Description of Proposed Provision:
B3.3: Beginning with those newly eligible for OASDI benefits in 2018, use a modified primary insurance amount (PIA) formula. The modified formula: (1) increases the first bend point to the equivalent of $800 in 2009 (about $952 in 2017); (2) places a new bend point 75 percent of the way between the reset first bend point and the current-law second bend point; (3) lowers the PIA factor between the new bend point and the upper bend point from 32 percent to 20 percent; and (4) lowers the factor above the upper bend point from 15 percent to 10 percent.
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 |
|||
| 2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
| 2018 | 13.49 | 12.93 | -0.56 | 287 | -0.00 | -0.00 | 0.00 | ||
| 2019 | 13.70 | 12.95 | -0.75 | 273 | -0.00 | -0.00 | 0.00 | ||
| 2020 | 13.85 | 12.96 | -0.89 | 259 | -0.00 | -0.00 | 0.00 | ||
| 2021 | 14.01 | 12.99 | -1.02 | 245 | -0.01 | -0.00 | 0.01 | ||
| 2022 | 14.24 | 13.02 | -1.22 | 230 | -0.01 | -0.00 | 0.01 | ||
| 2023 | 14.52 | 13.05 | -1.47 | 215 | -0.03 | -0.00 | 0.02 | ||
| 2024 | 14.79 | 13.08 | -1.71 | 200 | -0.04 | -0.00 | 0.04 | ||
| 2025 | 15.04 | 13.10 | -1.94 | 184 | -0.06 | -0.00 | 0.05 | ||
| 2026 | 15.30 | 13.13 | -2.17 | 167 | -0.07 | -0.00 | 0.07 | ||
| 2027 | 15.53 | 13.15 | -2.38 | 150 | -0.09 | -0.01 | 0.09 | ||
| 2028 | 15.74 | 13.16 | -2.58 | 133 | -0.11 | -0.01 | 0.10 | ||
| 2029 | 15.94 | 13.17 | -2.77 | 115 | -0.13 | -0.01 | 0.12 | ||
| 2030 | 16.12 | 13.19 | -2.94 | 98 | -0.14 | -0.01 | 0.13 | ||
| 2031 | 16.29 | 13.20 | -3.09 | 80 | -0.16 | -0.01 | 0.15 | ||
| 2032 | 16.43 | 13.21 | -3.22 | 62 | -0.18 | -0.01 | 0.17 | ||
| 2033 | 16.55 | 13.22 | -3.33 | 43 | -0.19 | -0.01 | 0.18 | ||
| 2034 | 16.64 | 13.22 | -3.42 | 24 | -0.20 | -0.01 | 0.19 | ||
| 2035 | 16.71 | 13.23 | -3.48 | 4 | -0.22 | -0.01 | 0.20 | ||
| 2036 | 16.76 | 13.23 | -3.53 | ---- | -0.23 | -0.01 | 0.21 | ||
| 2037 | 16.78 | 13.23 | -3.55 | ---- | -0.24 | -0.01 | 0.22 | ||
| 2038 | 16.78 | 13.23 | -3.54 | ---- | -0.25 | -0.01 | 0.23 | ||
| 2039 | 16.74 | 13.23 | -3.51 | ---- | -0.25 | -0.01 | 0.24 | ||
| 2040 | 16.70 | 13.23 | -3.47 | ---- | -0.26 | -0.02 | 0.25 | ||
| 2041 | 16.65 | 13.23 | -3.42 | ---- | -0.27 | -0.02 | 0.25 | ||
| 2042 | 16.59 | 13.23 | -3.36 | ---- | -0.27 | -0.02 | 0.26 | ||
| 2043 | 16.53 | 13.22 | -3.30 | ---- | -0.28 | -0.02 | 0.26 | ||
| 2044 | 16.48 | 13.22 | -3.25 | ---- | -0.28 | -0.02 | 0.27 | ||
| 2045 | 16.43 | 13.22 | -3.21 | ---- | -0.29 | -0.02 | 0.27 | ||
| 2046 | 16.39 | 13.22 | -3.17 | ---- | -0.29 | -0.02 | 0.27 | ||
| 2047 | 16.35 | 13.22 | -3.14 | ---- | -0.29 | -0.02 | 0.28 | ||
| 2048 | 16.32 | 13.22 | -3.11 | ---- | -0.29 | -0.02 | 0.28 | ||
| 2049 | 16.29 | 13.21 | -3.08 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2050 | 16.27 | 13.21 | -3.06 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2051 | 16.26 | 13.21 | -3.05 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2052 | 16.26 | 13.21 | -3.05 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2053 | 16.27 | 13.22 | -3.06 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2054 | 16.29 | 13.22 | -3.08 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2055 | 16.32 | 13.22 | -3.10 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2056 | 16.36 | 13.22 | -3.14 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2057 | 16.40 | 13.23 | -3.18 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2058 | 16.44 | 13.23 | -3.22 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2059 | 16.49 | 13.23 | -3.26 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2060 | 16.53 | 13.24 | -3.30 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2061 | 16.58 | 13.24 | -3.34 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2062 | 16.62 | 13.24 | -3.38 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2063 | 16.67 | 13.24 | -3.43 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2064 | 16.72 | 13.25 | -3.47 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2065 | 16.77 | 13.25 | -3.52 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2066 | 16.82 | 13.25 | -3.56 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2067 | 16.87 | 13.26 | -3.61 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2068 | 16.92 | 13.26 | -3.66 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2069 | 16.97 | 13.26 | -3.71 | ---- | -0.30 | -0.02 | 0.28 | ||
| 2070 | 17.02 | 13.27 | -3.76 | ---- | -0.30 | -0.02 | 0.29 | ||
| 2071 | 17.07 | 13.27 | -3.80 | ---- | -0.30 | -0.02 | 0.29 | ||
| 2072 | 17.11 | 13.27 | -3.84 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2073 | 17.14 | 13.27 | -3.87 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2074 | 17.17 | 13.28 | -3.90 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2075 | 17.20 | 13.28 | -3.92 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2076 | 17.21 | 13.28 | -3.93 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2077 | 17.22 | 13.28 | -3.94 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2078 | 17.22 | 13.28 | -3.93 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2079 | 17.21 | 13.28 | -3.93 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2080 | 17.20 | 13.28 | -3.92 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2081 | 17.20 | 13.28 | -3.92 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2082 | 17.20 | 13.28 | -3.92 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2083 | 17.20 | 13.28 | -3.93 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2084 | 17.22 | 13.28 | -3.94 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2085 | 17.24 | 13.28 | -3.96 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2086 | 17.27 | 13.28 | -3.99 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2087 | 17.31 | 13.28 | -4.02 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2088 | 17.35 | 13.29 | -4.06 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2089 | 17.39 | 13.29 | -4.10 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2090 | 17.44 | 13.29 | -4.14 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2091 | 17.48 | 13.30 | -4.19 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2092 | 17.53 | 13.30 | -4.23 | ---- | -0.31 | -0.02 | 0.30 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2017-2091 | 16.43% | 13.82% | -2.61% | 2035 | -0.23% | -0.01% | 0.22% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2017 Trustees Report.