__Description of Proposed Provision__:

B3.13: For retired worker beneficiaries newly eligible in 2025 (excluding disabled workers), add a new bend point at the wage-indexed equivalent of the 50th percentile of the AIME distribution minus $100 (for 2015 eligibility) and change the PIA factors to 95/32/15/5. Also move the current-law first bend point from the wage-indexed equivalent of $895 in 2018 to $1,138 in 2018. Phase this provision in over 10 years (2025-2034). The phase-in would work on a weighted-average basis: 90% of CL formula + 10% of proposal formula for 2025, 80% of CL formula + 20% of proposal formula for 2026, and so on.

*Estimates based on the intermediate assumptions
of the 2018 Trustees Report*

Summary Measures | |||||||
---|---|---|---|---|---|---|---|

Current law [percent of payroll] |
Change from current law [percent of payroll] |
Shortfall eliminated | |||||

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 |
||

-2.84 | -4.32 | 0.09 | 0.18 | 3% | 4% |