Description of Proposed Provision:
B7.10: Replace the current-law WEP with a new calculation for most OASI and DI benefits based on covered and non-covered earnings, phased in for beneficiaries becoming newly eligible in 2026 through 2035. For this new approach, compute a PIA based on all past earnings (covered and non-covered), and multiply by the "non-covered earnings ratio." This ratio is equal to the current-law concept of the average indexed monthly earnings computed without non-covered earnings divided by a modified average indexed monthly earnings that includes both covered and non-covered earnings in our records.

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
-0.00-0.000.00
202715.1913.13-2.06
147
-0.00-0.000.00
202815.4313.17-2.26
130
-0.00-0.000.00
202915.6213.19-2.43
114
-0.00-0.000.00
203015.8013.20-2.60
97
-0.00-0.000.00
203115.9613.22-2.75
80
-0.00-0.000.00
203216.1013.23-2.88
63
-0.00-0.000.00
203316.2313.24-2.99
46
-0.01-0.000.01
203416.3213.24-3.07
28
-0.01-0.000.01
203516.3913.25-3.14
10
-0.01-0.000.01
203616.4513.26-3.19
----
-0.01-0.000.01
203716.5013.26-3.24
----
-0.02-0.000.02
203816.5413.27-3.28
----
-0.02-0.000.02
203916.5813.27-3.31
----
-0.02-0.000.02
204016.5913.27-3.32
----
-0.03-0.000.03
204116.5813.27-3.31
----
-0.03-0.000.03
204216.5613.27-3.28
----
-0.03-0.000.03
204316.5213.27-3.25
----
-0.04-0.000.04
204416.4813.27-3.21
----
-0.04-0.000.04
204516.4413.27-3.17
----
-0.05-0.000.04
204616.4013.27-3.14
----
-0.05-0.000.05
204716.3713.27-3.11
----
-0.05-0.000.05
204816.3513.27-3.08
----
-0.06-0.000.05
204916.3313.27-3.06
----
-0.06-0.000.05
205016.3113.27-3.04
----
-0.06-0.000.06
205116.3013.27-3.03
----
-0.06-0.000.06
205216.3013.27-3.03
----
-0.07-0.000.06
205316.3013.27-3.03
----
-0.07-0.000.06
205416.3113.27-3.04
----
-0.07-0.000.07
205516.3413.27-3.06
----
-0.07-0.000.07
205616.3713.28-3.09
----
-0.08-0.000.07
205716.4013.28-3.12
----
-0.08-0.000.07
205816.4513.28-3.16
----
-0.08-0.000.07
205916.5013.29-3.21
----
-0.08-0.000.08
206016.5513.29-3.25
----
-0.08-0.000.08
206116.6013.30-3.30
----
-0.08-0.000.08
206216.6513.30-3.35
----
-0.09-0.000.08
206316.7013.30-3.40
----
-0.09-0.000.08
206416.7513.31-3.45
----
-0.09-0.000.08
206516.8113.31-3.50
----
-0.09-0.000.08
206616.8713.32-3.55
----
-0.09-0.010.08
206716.9213.32-3.60
----
-0.09-0.010.08
206816.9813.32-3.66
----
-0.09-0.010.09
206917.0413.33-3.71
----
-0.09-0.010.09
207017.1013.33-3.77
----
-0.09-0.010.09
207117.1613.34-3.82
----
-0.09-0.010.09
207217.2113.34-3.87
----
-0.09-0.010.09
207317.2613.34-3.91
----
-0.09-0.010.09
207417.3013.35-3.95
----
-0.09-0.010.09
207517.3413.35-3.99
----
-0.09-0.010.09
207617.3713.35-4.01
----
-0.09-0.010.09
207717.3813.35-4.03
----
-0.09-0.010.09
207817.3913.36-4.03
----
-0.09-0.010.09
207917.3813.36-4.03
----
-0.09-0.010.09
208017.3713.36-4.01
----
-0.09-0.010.09
208117.3513.35-4.00
----
-0.09-0.010.09
208217.3313.35-3.98
----
-0.09-0.010.09
208317.3113.35-3.96
----
-0.09-0.010.09
208417.2813.35-3.93
----
-0.09-0.010.09
208517.2613.35-3.91
----
-0.09-0.010.09
208617.2413.35-3.90
----
-0.09-0.010.09
208717.2313.35-3.89
----
-0.09-0.010.09
208817.2313.35-3.89
----
-0.09-0.010.09
208917.2413.35-3.90
----
-0.09-0.010.09
209017.2613.35-3.91
----
-0.09-0.010.09
209117.2913.35-3.94
----
-0.09-0.010.09
209217.3313.35-3.98
----
-0.09-0.010.09
209317.3813.36-4.02
----
-0.09-0.010.09
209417.4313.36-4.07
----
-0.09-0.010.09


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 16.54% 13.81% -2.73%
2035
-0.05% -0.00% 0.05%

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