Description of Proposed Provision:
E3.7: Increase the taxable maximum by an additional 2 percent per year beginning in 2021 until taxable earnings equal 90 percent of covered earnings. Provide benefit credit for earnings up to the revised taxable maximum. Create a new bend point equal to the current-law taxable maximum with a 5 percent formula factor applying above the new bend point.

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
202114.0912.93-1.15
245
0.000.040.04
202214.2313.00-1.23
230
-0.000.080.08
202314.4013.06-1.34
214
-0.000.120.12
202414.5913.13-1.46
198
0.000.160.16
202514.7913.18-1.60
183
0.000.200.20
202614.9913.35-1.64
167
0.000.240.23
202715.1913.40-1.79
152
0.000.270.27
202815.4313.48-1.95
137
0.000.310.30
202915.6313.53-2.10
122
0.000.340.34
203015.8113.58-2.23
108
0.000.370.37
203115.9713.62-2.35
93
0.010.410.40
203216.1213.67-2.45
78
0.010.440.43
203316.2413.71-2.53
63
0.010.470.46
203416.3413.75-2.59
49
0.010.500.49
203516.4113.79-2.63
33
0.020.530.52
203616.4813.82-2.66
18
0.020.560.54
203716.5413.86-2.69
2
0.020.590.57
203816.5913.89-2.70
----
0.030.620.59
203916.6313.92-2.71
----
0.030.650.62
204016.6513.95-2.70
----
0.040.680.64
204116.6513.98-2.67
----
0.040.700.66
204216.6414.00-2.63
----
0.040.730.68
204316.6114.03-2.58
----
0.050.760.71
204416.5814.05-2.52
----
0.060.780.73
204516.5514.08-2.47
----
0.060.810.74
204616.5214.10-2.42
----
0.070.830.76
204716.5014.12-2.38
----
0.070.850.78
204816.4914.15-2.34
----
0.080.880.80
204916.4714.17-2.30
----
0.090.900.81
205016.4614.19-2.27
----
0.100.920.83
205116.4614.22-2.25
----
0.100.950.84
205216.4814.24-2.24
----
0.110.970.86
205316.4914.26-2.23
----
0.120.990.87
205416.5114.29-2.23
----
0.131.010.88
205516.5514.31-2.24
----
0.141.030.90
205616.5914.34-2.25
----
0.151.050.91
205716.6414.34-2.29
----
0.161.060.90
205816.6914.35-2.34
----
0.161.060.89
205916.7514.35-2.40
----
0.171.060.89
206016.8114.36-2.45
----
0.181.060.88
206116.8714.36-2.51
----
0.191.060.87
206216.9414.37-2.57
----
0.201.060.86
206317.0014.38-2.63
----
0.211.070.85
206417.0714.38-2.68
----
0.221.070.84
206517.1314.39-2.74
----
0.231.070.84
206617.2014.39-2.81
----
0.241.070.83
206717.2714.40-2.87
----
0.251.070.82
206817.3414.41-2.93
----
0.261.080.81
206917.4114.41-3.00
----
0.271.080.80
207017.4814.42-3.06
----
0.281.080.80
207117.5414.42-3.12
----
0.291.080.79
207217.6014.43-3.17
----
0.301.080.78
207317.6514.43-3.22
----
0.311.080.78
207417.7114.44-3.27
----
0.311.080.77
207517.7514.44-3.31
----
0.321.090.76
207617.7914.45-3.34
----
0.331.090.76
207717.8114.45-3.36
----
0.341.090.75
207817.8214.45-3.37
----
0.341.090.75
207917.8214.45-3.37
----
0.351.090.75
208017.8114.45-3.36
----
0.351.090.74
208117.8014.45-3.35
----
0.361.090.74
208217.7814.45-3.33
----
0.361.100.74
208317.7614.45-3.31
----
0.361.100.73
208417.7414.45-3.29
----
0.371.100.73
208517.7214.45-3.27
----
0.371.100.73
208617.7114.45-3.26
----
0.371.100.73
208717.7014.45-3.25
----
0.371.100.73
208817.7014.45-3.25
----
0.381.100.72
208917.7214.45-3.26
----
0.381.100.72
209017.7414.46-3.28
----
0.381.100.72
209117.7714.46-3.31
----
0.391.100.72
209217.8214.46-3.35
----
0.391.110.72
209317.8714.47-3.40
----
0.391.110.71
209417.9214.47-3.45
----
0.391.110.71


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 16.75% 14.59% -2.15%
2037
0.15% 0.78% 0.63%

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