Proposed Provision: B3.16. For retired worker and disabled worker beneficiaries becoming initially eligible in January 2024 or later, phase in a new benefit formula (from 2024 to 2033). 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 2033.

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

  Income Rates Cost Rates
Year Current Law Provision Current Law Provision
201713.013.013.413.4
201812.912.913.513.5
201912.912.913.713.7
202013.013.013.913.9
202113.013.014.014.0
202213.013.014.314.3
202313.013.014.514.5
202413.113.114.814.8
202513.113.115.115.1
202613.113.115.415.4
202713.213.215.615.6
202813.213.215.915.8
202913.213.216.116.0
203013.213.216.316.2
203113.213.216.416.4
203213.213.216.616.5
203313.213.216.716.6
203413.213.216.816.6
203513.213.216.916.6
203613.213.217.016.6
203713.213.217.016.6
203813.213.217.016.5
203913.213.217.016.4
204013.213.217.016.3
204113.213.216.916.2
204213.213.216.916.1
204313.213.216.816.0
204413.213.216.815.9
204513.213.216.715.8
204613.213.216.715.7
204713.213.216.615.6
204813.213.216.615.5
204913.213.216.615.4
205013.213.216.615.4
205113.213.216.615.3
205213.213.216.615.3
205313.213.216.615.2
205413.213.216.615.2
205513.213.216.615.2
205613.213.216.715.2
205713.213.216.715.2
205813.213.216.715.3
205913.213.216.815.3
206013.313.216.815.3
206113.313.216.915.3
206213.313.216.915.4
206313.313.217.015.4
206413.313.217.015.4
206513.313.217.115.5
206613.313.217.115.5
206713.313.217.215.5
206813.313.217.215.6
206913.313.217.315.6
207013.313.217.315.7
207113.313.217.415.7
207213.313.217.415.8
207313.313.217.415.8
207413.313.217.515.8
207513.313.217.515.8
207613.313.217.515.9
207713.313.217.515.9
207813.313.217.515.9
207913.313.217.515.8
208013.313.217.515.8
208113.313.217.515.8
208213.313.217.515.8
208313.313.217.515.8
208413.313.217.515.9
208513.313.217.615.9
208613.313.217.615.9
208713.313.217.615.9
208813.313.217.716.0
208913.313.217.716.0
209013.313.217.716.1
209113.313.217.816.1
209213.313.217.816.1
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