Skip to content
Social Security Online
Actuarial Publications
Solvency provisions SSA logo: link to Social Security Online home

Summary Measures and Graphs

Description of Proposed Provision:
Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2016. Create new bend point at the 30th percentile of earners. Maintain current-law benefits for earners at the 30th percentile and below and reduce upper 2 formula factors (32% and 15%) such that maximum worker benefit grows by inflation rather than the growth in average wages. Disability benefits are not affected by the proposal. Disabled worker beneficiaries, upon attaining normal retirement age, would be subject to a proportional reduction in benefits based on the worker's years of disability.

Estimates based on the intermediate assumptions of the 2009 Trustees Report

Summary Measures
[As a percentage of taxable payroll]
Present Law Change from present law Results with this provision
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
-2.00 -4.34 1.14 3.46 -0.86 -0.88


graph of OASDI cost rates and income rates by year, under
                 present law and provision. click on graph to view underlying
                 data. graph of OASDI trust fund ratio by year, under present law
                 and provision. click on graph to view underlying data.
 Link to USA.gov: U.S. Government portal Privacy Policy  | Website Policies & Other Important Information  | Site Map
Last reviewed or modified August 26, 2009