Description of Proposed Provision:
A7: Starting December 2019, reduce the annual COLA by 1 percentage point, but not to less than zero. In cases where the unreduced COLA is less than 1 percentage point, do not carry over the unused reduction into future years.
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 |
|||
| 2018 | 13.81 | 12.64 | -1.17 | 288 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.95 | 12.87 | -1.08 | 272 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 14.00 | 12.89 | -1.11 | 258 | -0.13 | -0.00 | 0.12 | ||
| 2021 | 14.02 | 12.91 | -1.11 | 245 | -0.25 | -0.01 | 0.24 | ||
| 2022 | 14.06 | 12.93 | -1.13 | 231 | -0.38 | -0.02 | 0.36 | ||
| 2023 | 14.12 | 12.94 | -1.17 | 218 | -0.50 | -0.02 | 0.48 | ||
| 2024 | 14.18 | 12.97 | -1.21 | 205 | -0.62 | -0.03 | 0.60 | ||
| 2025 | 14.24 | 12.98 | -1.26 | 192 | -0.74 | -0.03 | 0.71 | ||
| 2026 | 14.30 | 13.09 | -1.21 | 180 | -0.86 | -0.04 | 0.81 | ||
| 2027 | 14.40 | 13.10 | -1.29 | 168 | -0.97 | -0.05 | 0.92 | ||
| 2028 | 14.51 | 13.11 | -1.39 | 157 | -1.08 | -0.06 | 1.02 | ||
| 2029 | 14.61 | 13.13 | -1.49 | 146 | -1.18 | -0.06 | 1.12 | ||
| 2030 | 14.70 | 13.13 | -1.57 | 135 | -1.28 | -0.07 | 1.21 | ||
| 2031 | 14.79 | 13.14 | -1.64 | 125 | -1.37 | -0.07 | 1.30 | ||
| 2032 | 14.86 | 13.15 | -1.71 | 114 | -1.46 | -0.08 | 1.38 | ||
| 2033 | 14.91 | 13.15 | -1.75 | 104 | -1.54 | -0.08 | 1.46 | ||
| 2034 | 14.95 | 13.16 | -1.79 | 94 | -1.62 | -0.09 | 1.53 | ||
| 2035 | 14.96 | 13.16 | -1.80 | 83 | -1.69 | -0.09 | 1.60 | ||
| 2036 | 14.97 | 13.16 | -1.81 | 72 | -1.75 | -0.10 | 1.66 | ||
| 2037 | 14.97 | 13.17 | -1.81 | 61 | -1.81 | -0.10 | 1.71 | ||
| 2038 | 14.96 | 13.17 | -1.79 | 50 | -1.87 | -0.10 | 1.76 | ||
| 2039 | 14.92 | 13.17 | -1.75 | 39 | -1.91 | -0.11 | 1.81 | ||
| 2040 | 14.88 | 13.16 | -1.71 | 28 | -1.95 | -0.11 | 1.84 | ||
| 2041 | 14.82 | 13.16 | -1.66 | 17 | -1.99 | -0.11 | 1.88 | ||
| 2042 | 14.76 | 13.16 | -1.60 | 6 | -2.02 | -0.11 | 1.90 | ||
| 2043 | 14.70 | 13.16 | -1.54 | ---- | -2.04 | -0.11 | 1.92 | ||
| 2044 | 14.64 | 13.15 | -1.48 | ---- | -2.06 | -0.12 | 1.94 | ||
| 2045 | 14.59 | 13.15 | -1.44 | ---- | -2.07 | -0.12 | 1.95 | ||
| 2046 | 14.55 | 13.15 | -1.39 | ---- | -2.08 | -0.12 | 1.97 | ||
| 2047 | 14.51 | 13.15 | -1.36 | ---- | -2.09 | -0.12 | 1.97 | ||
| 2048 | 14.48 | 13.15 | -1.33 | ---- | -2.10 | -0.12 | 1.98 | ||
| 2049 | 14.45 | 13.15 | -1.31 | ---- | -2.10 | -0.12 | 1.98 | ||
| 2050 | 14.44 | 13.15 | -1.29 | ---- | -2.10 | -0.12 | 1.98 | ||
| 2051 | 14.43 | 13.15 | -1.28 | ---- | -2.11 | -0.12 | 1.99 | ||
| 2052 | 14.43 | 13.15 | -1.28 | ---- | -2.11 | -0.12 | 1.99 | ||
| 2053 | 14.43 | 13.15 | -1.28 | ---- | -2.11 | -0.12 | 1.99 | ||
| 2054 | 14.45 | 13.15 | -1.30 | ---- | -2.11 | -0.12 | 1.99 | ||
| 2055 | 14.48 | 13.16 | -1.32 | ---- | -2.11 | -0.12 | 1.99 | ||
| 2056 | 14.51 | 13.16 | -1.35 | ---- | -2.12 | -0.12 | 2.00 | ||
| 2057 | 14.54 | 13.16 | -1.38 | ---- | -2.12 | -0.12 | 2.00 | ||
| 2058 | 14.59 | 13.17 | -1.42 | ---- | -2.13 | -0.12 | 2.01 | ||
| 2059 | 14.63 | 13.17 | -1.46 | ---- | -2.13 | -0.12 | 2.01 | ||
| 2060 | 14.67 | 13.17 | -1.49 | ---- | -2.14 | -0.12 | 2.02 | ||
| 2061 | 14.71 | 13.18 | -1.53 | ---- | -2.15 | -0.12 | 2.03 | ||
| 2062 | 14.75 | 13.18 | -1.57 | ---- | -2.16 | -0.12 | 2.04 | ||
| 2063 | 14.79 | 13.18 | -1.61 | ---- | -2.17 | -0.12 | 2.05 | ||
| 2064 | 14.83 | 13.19 | -1.65 | ---- | -2.18 | -0.13 | 2.06 | ||
| 2065 | 14.88 | 13.19 | -1.69 | ---- | -2.19 | -0.13 | 2.07 | ||
| 2066 | 14.92 | 13.19 | -1.73 | ---- | -2.21 | -0.13 | 2.08 | ||
| 2067 | 14.97 | 13.19 | -1.77 | ---- | -2.22 | -0.13 | 2.09 | ||
| 2068 | 15.01 | 13.20 | -1.81 | ---- | -2.23 | -0.13 | 2.10 | ||
| 2069 | 15.06 | 13.20 | -1.86 | ---- | -2.24 | -0.13 | 2.11 | ||
| 2070 | 15.11 | 13.20 | -1.90 | ---- | -2.26 | -0.13 | 2.13 | ||
| 2071 | 15.15 | 13.21 | -1.94 | ---- | -2.27 | -0.13 | 2.14 | ||
| 2072 | 15.19 | 13.21 | -1.98 | ---- | -2.28 | -0.13 | 2.15 | ||
| 2073 | 15.22 | 13.21 | -2.01 | ---- | -2.29 | -0.13 | 2.16 | ||
| 2074 | 15.25 | 13.22 | -2.03 | ---- | -2.30 | -0.13 | 2.17 | ||
| 2075 | 15.27 | 13.22 | -2.05 | ---- | -2.32 | -0.13 | 2.18 | ||
| 2076 | 15.29 | 13.22 | -2.07 | ---- | -2.33 | -0.14 | 2.19 | ||
| 2077 | 15.29 | 13.22 | -2.07 | ---- | -2.33 | -0.14 | 2.20 | ||
| 2078 | 15.28 | 13.22 | -2.06 | ---- | -2.34 | -0.14 | 2.21 | ||
| 2079 | 15.27 | 13.22 | -2.05 | ---- | -2.35 | -0.14 | 2.21 | ||
| 2080 | 15.25 | 13.22 | -2.03 | ---- | -2.35 | -0.14 | 2.22 | ||
| 2081 | 15.23 | 13.22 | -2.01 | ---- | -2.36 | -0.14 | 2.22 | ||
| 2082 | 15.21 | 13.22 | -1.99 | ---- | -2.36 | -0.14 | 2.22 | ||
| 2083 | 15.19 | 13.21 | -1.97 | ---- | -2.37 | -0.14 | 2.23 | ||
| 2084 | 15.17 | 13.21 | -1.96 | ---- | -2.37 | -0.14 | 2.23 | ||
| 2085 | 15.16 | 13.21 | -1.95 | ---- | -2.37 | -0.14 | 2.23 | ||
| 2086 | 15.16 | 13.21 | -1.94 | ---- | -2.37 | -0.14 | 2.23 | ||
| 2087 | 15.16 | 13.21 | -1.95 | ---- | -2.37 | -0.14 | 2.24 | ||
| 2088 | 15.17 | 13.21 | -1.96 | ---- | -2.38 | -0.14 | 2.24 | ||
| 2089 | 15.19 | 13.21 | -1.97 | ---- | -2.38 | -0.14 | 2.24 | ||
| 2090 | 15.22 | 13.22 | -2.00 | ---- | -2.38 | -0.14 | 2.24 | ||
| 2091 | 15.25 | 13.22 | -2.03 | ---- | -2.39 | -0.14 | 2.25 | ||
| 2092 | 15.29 | 13.22 | -2.07 | ---- | -2.39 | -0.14 | 2.25 | ||
| 2093 | 15.33 | 13.22 | -2.10 | ---- | -2.40 | -0.14 | 2.26 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2018-2092 | 14.88% | 13.74% | -1.13% | 2042 | -1.81% | -0.10% | 1.71% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2018 Trustees Report.