Proposed Provision: B3.16. For retired worker and disabled worker beneficiaries becoming initially eligible in January 2023 or later, phase in a new benefit formula (from 2023 to 2032). Replace the existing two primary insurance amount (PIA) bend points with three new bend points as follows: (1) 25% AWI/12 from 2 years prior to initial eligibility; (2) 100% AWI/12 from 2 years prior to initial eligibility; and (3) 125% AWI/12 from 2 years prior to initial eligibility. The new PIA factors are 95%, 27.5%, 5% and 2%. During the phase in, those becoming newly eligible for benefits will receive an increasing portion of their benefits based on the new formula, reaching 100% of the new formula in 2032.

OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201612.912.914.014.0
201712.912.913.713.7
201813.013.013.913.9
201913.013.014.014.0
202013.013.014.114.1
202113.013.014.314.3
202213.013.014.514.5
202313.113.114.814.8
202413.113.115.015.0
202513.113.115.315.3
202613.113.115.515.5
202713.113.115.615.6
202813.213.215.815.8
202913.213.216.015.9
203013.213.216.116.0
203113.213.216.216.1
203213.213.216.316.2
203313.213.216.416.2
203413.213.216.516.2
203513.213.216.516.2
203613.213.216.616.1
203713.213.216.616.1
203813.213.216.616.1
203913.213.216.616.0
204013.213.216.615.9
204113.213.216.615.8
204213.213.216.515.7
204313.213.216.515.7
204413.213.216.515.6
204513.213.216.415.5
204613.213.216.415.4
204713.213.216.415.4
204813.213.216.415.3
204913.213.216.415.2
205013.213.216.415.2
205113.213.216.415.1
205213.213.216.415.1
205313.213.216.415.1
205413.213.216.415.1
205513.213.216.515.1
205613.213.216.515.1
205713.313.216.615.1
205813.313.216.615.2
205913.313.216.715.2
206013.313.216.715.2
206113.313.216.815.3
206213.313.216.815.3
206313.313.216.915.3
206413.313.216.915.4
206513.313.217.015.4
206613.313.217.015.5
206713.313.217.115.5
206813.313.217.115.6
206913.313.217.215.6
207013.313.217.215.6
207113.313.217.315.7
207213.313.217.315.7
207313.313.217.315.8
207413.313.217.415.8
207513.313.217.415.8
207613.313.217.415.8
207713.313.217.415.8
207813.313.217.415.8
207913.313.217.415.8
208013.313.217.415.8
208113.313.217.415.8
208213.313.217.415.8
208313.313.217.415.8
208413.313.217.415.8
208513.313.217.515.9
208613.313.217.515.9
208713.313.217.515.9
208813.313.217.616.0
208913.313.217.616.0
209013.313.217.716.1
209113.313.217.716.1
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