Description of Proposed Provision:
E2.15: Apply OASDI 12.4 percent payroll tax rate on earnings above $300,000 starting in 2021, and tax all earnings once the current-law taxable maximum exceeds $300,000. Provide benefit credit for earnings above the current-law taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after 2020 that were in excess of that year's current-law taxable maximum; and (2) a formula factor of 3 percent on this newly computed "AIME+".

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
202114.0914.120.03
245
0.001.221.22
202214.2314.230.00
238
-0.001.311.31
202314.3914.29-0.11
230
-0.001.351.35
202414.5914.36-0.23
222
-0.001.391.39
202514.7814.41-0.37
214
-0.001.431.43
202614.9914.58-0.41
205
-0.001.471.47
202715.1914.65-0.54
197
0.001.521.52
202815.4314.74-0.70
189
0.001.561.56
202915.6314.81-0.82
181
0.001.621.61
203015.8114.87-0.93
173
0.001.671.67
203115.9714.94-1.03
166
0.011.731.72
203216.1215.01-1.11
159
0.011.781.77
203316.2415.08-1.16
152
0.011.841.83
203416.3415.15-1.19
146
0.011.901.89
203516.4115.22-1.19
140
0.011.971.96
203616.4815.29-1.18
133
0.022.042.02
203716.5415.37-1.16
127
0.022.112.09
203816.5915.45-1.13
122
0.022.182.16
203916.6315.53-1.09
116
0.022.262.24
204016.6415.59-1.05
110
0.022.322.29
204116.6415.60-1.04
105
0.032.322.29
204216.6215.60-1.02
100
0.032.322.29
204316.5915.60-0.99
95
0.032.322.29
204416.5615.60-0.96
91
0.042.332.29
204516.5315.60-0.93
86
0.042.332.29
204616.4915.60-0.90
81
0.042.332.29
204716.4715.60-0.87
77
0.042.332.28
204816.4515.60-0.85
73
0.052.332.28
204916.4315.60-0.83
68
0.052.332.28
205016.4215.60-0.82
64
0.052.332.28
205116.4215.60-0.81
60
0.062.332.28
205216.4215.61-0.82
55
0.062.332.28
205316.4315.61-0.83
51
0.062.342.27
205416.4515.61-0.84
46
0.062.342.27
205516.4815.62-0.86
42
0.072.342.27
205616.5115.62-0.89
37
0.072.342.27
205716.5515.62-0.93
32
0.072.342.27
205816.6015.63-0.97
27
0.082.342.26
205916.6615.63-1.02
21
0.082.342.26
206016.7115.64-1.07
16
0.082.342.26
206116.7715.64-1.12
10
0.092.342.26
206216.8215.65-1.17
3
0.092.352.26
206316.8815.66-1.22
----
0.092.352.25
206416.9415.66-1.28
----
0.092.352.25
206516.9915.67-1.33
----
0.102.352.25
206617.0515.67-1.38
----
0.102.352.25
206717.1115.68-1.44
----
0.102.352.25
206817.1815.68-1.50
----
0.102.352.25
206917.2415.69-1.55
----
0.112.352.25
207017.3015.69-1.61
----
0.112.352.25
207117.3615.70-1.66
----
0.112.362.25
207217.4115.70-1.71
----
0.112.362.25
207317.4615.71-1.75
----
0.112.362.24
207417.5115.71-1.79
----
0.112.362.24
207517.5515.72-1.83
----
0.122.362.24
207617.5815.72-1.86
----
0.122.362.24
207717.6015.72-1.87
----
0.122.362.24
207817.6015.73-1.88
----
0.122.362.24
207917.6015.73-1.87
----
0.122.372.24
208017.5815.73-1.86
----
0.122.372.24
208117.5715.73-1.84
----
0.122.372.25
208217.5515.73-1.82
----
0.122.372.25
208317.5215.73-1.80
----
0.122.372.25
208417.5015.73-1.77
----
0.122.372.25
208517.4815.73-1.75
----
0.122.372.25
208617.4615.73-1.74
----
0.122.372.25
208717.4515.73-1.73
----
0.122.382.25
208817.4515.73-1.72
----
0.132.382.25
208917.4615.73-1.73
----
0.132.382.25
209017.4815.73-1.75
----
0.132.382.25
209117.5215.74-1.78
----
0.132.382.25
209217.5615.74-1.82
----
0.132.382.25
209317.6015.74-1.86
----
0.132.382.25
209417.6515.75-1.90
----
0.132.382.25


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 16.66% 15.90% -0.76%
2062
0.06% 2.09% 2.03%

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