Description of Proposed Provision:
B5.10: Reconfigure the special minimum benefit, phased in for retired and disabled workers newly eligible from 2026 through 2035: (a) A year of work (YOW) coverage is equal to earnings at or above $10,875 in 2019 (reflecting a full-time worker earning the federal minimum wage), adjusted thereafter for wage growth. (b) At implementation, set the minimum PIA at zero percent of AWI for those with 10 or fewer YOWs to 15 percent of AWI for those with 15 YOWs, increasing linearly so that it reaches 19 percent for 19 YOWs. Then the minimum PIA would jump up to 25 percent of AWI for those with 20 YOWs, increasing linearly so that it equals 35 percent of AWI for those with 35 or more YOWs. (c) Use the AWI for two years prior to the year of initial eligibility in the minimum PIA calculation with COLA increase after the year of initial eligibility. (d) Scale the YOW requirements for disabled workers, based on the number of years of non-disabled potential work.

Financial Estimates for the OASDI Trust Fund Program

  Proposal   Change from Current Law
  Expressed as a percentage of
current-law taxable payroll

Trust fund
ratio as of
January 1
Expressed as a percentage of
current-law taxable payroll
Calendar
year
Cost
rate
Income
rate
Annual
balance

Cost
rate
Income
rate
Annual
balance
201913.9112.85-1.06
273
0.000.000.00
202013.9412.87-1.07
260
0.000.000.00
202114.0912.90-1.19
245
0.000.000.00
202214.2312.92-1.31
229
0.000.000.00
202314.4012.94-1.46
213
0.000.000.00
202414.5912.97-1.62
197
0.000.000.00
202514.7912.99-1.80
180
0.000.000.00
202614.9913.11-1.88
163
0.000.00-0.00
202715.1913.13-2.06
147
0.000.00-0.00
202815.4413.17-2.26
130
0.010.00-0.00
202915.6413.19-2.45
114
0.010.00-0.01
203015.8213.20-2.62
97
0.020.00-0.02
203115.9913.22-2.77
80
0.030.00-0.02
203216.1413.23-2.92
63
0.040.00-0.03
203316.2813.24-3.04
45
0.050.00-0.05
203416.3913.25-3.14
27
0.060.00-0.06
203516.4813.25-3.22
8
0.080.00-0.08
203616.5613.26-3.30
----
0.100.00-0.09
203716.6313.27-3.36
----
0.110.00-0.11
203816.7013.27-3.42
----
0.130.00-0.13
203916.7513.28-3.48
----
0.150.01-0.14
204016.7813.28-3.50
----
0.170.01-0.16
204116.7913.28-3.51
----
0.180.01-0.18
204216.7913.28-3.51
----
0.200.01-0.19
204316.7713.28-3.49
----
0.220.01-0.21
204416.7513.28-3.47
----
0.230.01-0.22
204516.7313.28-3.45
----
0.250.01-0.24
204616.7113.28-3.43
----
0.260.01-0.25
204716.7013.28-3.42
----
0.270.01-0.26
204816.6913.28-3.41
----
0.290.01-0.28
204916.6813.28-3.40
----
0.300.01-0.29
205016.6813.28-3.40
----
0.310.01-0.30
205116.6913.28-3.40
----
0.330.01-0.31
205216.7013.29-3.42
----
0.340.01-0.32
205316.7213.29-3.43
----
0.350.02-0.33
205416.7513.29-3.45
----
0.360.02-0.34
205516.7813.29-3.49
----
0.370.02-0.35
205616.8213.30-3.52
----
0.380.02-0.36
205716.8713.30-3.57
----
0.390.02-0.37
205816.9213.31-3.62
----
0.400.02-0.38
205916.9813.31-3.67
----
0.410.02-0.39
206017.0413.32-3.73
----
0.410.02-0.39
206117.1013.32-3.78
----
0.420.02-0.40
206217.1613.33-3.84
----
0.430.02-0.41
206317.2213.33-3.89
----
0.430.02-0.41
206417.2813.33-3.95
----
0.440.02-0.42
206517.3413.34-4.00
----
0.440.02-0.42
206617.4013.34-4.06
----
0.450.02-0.43
206717.4713.35-4.12
----
0.450.02-0.43
206817.5313.35-4.18
----
0.460.02-0.44
206917.5913.36-4.24
----
0.460.02-0.44
207017.6613.36-4.30
----
0.460.02-0.44
207117.7213.36-4.35
----
0.470.02-0.44
207217.7713.37-4.40
----
0.470.02-0.45
207317.8213.37-4.45
----
0.470.02-0.45
207417.8713.38-4.49
----
0.470.02-0.45
207517.9113.38-4.53
----
0.480.02-0.45
207617.9413.38-4.56
----
0.480.02-0.45
207717.9613.38-4.57
----
0.480.02-0.46
207817.9613.38-4.58
----
0.480.02-0.46
207917.9613.38-4.57
----
0.480.02-0.46
208017.9413.38-4.56
----
0.480.02-0.46
208117.9313.38-4.54
----
0.480.02-0.46
208217.9113.38-4.52
----
0.480.02-0.46
208317.8813.38-4.50
----
0.480.02-0.46
208417.8613.38-4.48
----
0.480.02-0.46
208517.8413.38-4.46
----
0.480.02-0.46
208617.8213.38-4.44
----
0.480.02-0.46
208717.8113.38-4.44
----
0.480.02-0.46
208817.8113.38-4.43
----
0.480.02-0.46
208917.8213.38-4.44
----
0.480.02-0.46
209017.8413.38-4.46
----
0.480.02-0.46
209117.8713.38-4.49
----
0.490.02-0.46
209217.9113.38-4.53
----
0.490.02-0.46
209317.9613.39-4.58
----
0.490.02-0.46
209418.0113.39-4.62
----
0.490.02-0.47


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2019-2093 16.88% 13.82% -3.05%
2035
0.28% 0.01% -0.27%

1 Under current law, the year of Trust Fund reserve depletion is 2035.
Based on Intermediate Assumptions of the 2019 Trustees Report.