Description of Proposed Provision:
C2.5: Increase the normal retirement age (NRA) 3 months per year starting for those age 62 in 2019 until the NRA reaches 70 in 2033. Thereafter, index the NRA to maintain a constant ratio of expected retirement years (life expectancy at NRA) to potential work years (NRA minus 20). We assume the NRA will increase 1 month every 2 years. Also, increase the earliest eligibility age (EEA) from 62 to 64 at the same time the NRA increases from 67 to 69; that is, for those attaining age 62 in 2021 through 2028. Keep EEA at 64 thereafter.

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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
-0.000.000.00
202014.1212.90-1.22
256
-0.000.010.01
202114.2712.93-1.34
240
-0.010.010.02
202214.4312.96-1.47
223
-0.010.010.02
202314.6112.98-1.63
206
-0.010.020.03
202414.7513.01-1.74
189
-0.050.020.07
202514.8713.03-1.85
173
-0.110.020.13
202614.9513.15-1.80
158
-0.210.020.23
202715.0613.17-1.90
143
-0.300.010.32
202815.2113.19-2.02
129
-0.380.010.39
202915.3513.20-2.15
114
-0.440.010.45
203015.4913.21-2.28
100
-0.490.010.51
203115.6413.22-2.42
85
-0.520.010.52
203215.7713.23-2.54
70
-0.55-0.000.55
203315.8613.23-2.62
54
-0.60-0.000.59
203415.9213.24-2.68
39
-0.65-0.010.64
203515.9413.24-2.70
23
-0.71-0.010.70
203615.9413.25-2.69
6
-0.79-0.010.78
203715.9213.26-2.67
----
-0.86-0.010.85
203815.9013.26-2.64
----
-0.92-0.010.91
203915.8413.26-2.58
----
-0.99-0.010.98
204015.8013.26-2.54
----
-1.03-0.011.02
204115.7413.26-2.48
----
-1.07-0.021.06
204215.6613.25-2.41
----
-1.11-0.021.10
204315.5813.25-2.33
----
-1.16-0.021.14
204415.5013.25-2.25
----
-1.20-0.021.18
204515.4213.24-2.17
----
-1.24-0.021.22
204615.3513.24-2.11
----
-1.28-0.031.25
204715.2813.24-2.04
----
-1.32-0.031.29
204815.2113.24-1.98
----
-1.36-0.031.33
204915.1413.23-1.91
----
-1.41-0.031.38
205015.0813.23-1.85
----
-1.46-0.031.42
205115.0213.23-1.79
----
-1.52-0.041.48
205214.9713.23-1.74
----
-1.57-0.041.53
205314.9313.23-1.70
----
-1.61-0.041.57
205414.9113.23-1.67
----
-1.66-0.041.61
205514.9013.23-1.66
----
-1.69-0.041.65
205614.9013.23-1.67
----
-1.72-0.051.68
205714.9113.23-1.67
----
-1.76-0.051.71
205814.9213.24-1.69
----
-1.79-0.051.74
205914.9413.24-1.70
----
-1.82-0.051.77
206014.9613.24-1.71
----
-1.85-0.051.80
206114.9813.24-1.73
----
-1.88-0.061.83
206215.0013.25-1.75
----
-1.91-0.061.86
206315.0113.25-1.76
----
-1.95-0.061.89
206415.0313.25-1.78
----
-1.99-0.061.93
206515.0413.25-1.79
----
-2.03-0.061.96
206615.0613.25-1.81
----
-2.07-0.072.00
206715.0713.25-1.82
----
-2.11-0.072.04
206815.0913.26-1.84
----
-2.15-0.072.08
206915.1213.26-1.86
----
-2.19-0.072.11
207015.1413.26-1.88
----
-2.22-0.082.15
207115.1613.26-1.90
----
-2.26-0.082.18
207215.1713.26-1.91
----
-2.29-0.082.21
207315.1913.26-1.92
----
-2.33-0.082.25
207415.1913.27-1.93
----
-2.36-0.082.28
207515.2013.27-1.93
----
-2.39-0.092.30
207615.2013.27-1.93
----
-2.42-0.092.33
207715.1813.27-1.91
----
-2.44-0.092.36
207815.1613.27-1.89
----
-2.47-0.092.38
207915.1213.27-1.85
----
-2.50-0.092.41
208015.0813.26-1.81
----
-2.53-0.092.44
208115.0313.26-1.77
----
-2.56-0.092.47
208214.9813.26-1.72
----
-2.59-0.092.50
208314.9413.26-1.68
----
-2.61-0.092.52
208414.9013.26-1.65
----
-2.64-0.102.54
208514.8813.25-1.63
----
-2.65-0.102.55
208614.8713.25-1.62
----
-2.65-0.102.56
208714.8713.25-1.62
----
-2.66-0.102.57
208814.8713.25-1.62
----
-2.67-0.102.58
208914.8813.25-1.63
----
-2.69-0.102.59
209014.8913.26-1.64
----
-2.70-0.102.61
209114.9113.26-1.65
----
-2.73-0.102.63
209214.9313.26-1.67
----
-2.75-0.102.65
209314.9613.26-1.70
----
-2.76-0.102.66


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2018-2092 15.28% 13.81% -1.48%
2036
-1.40% -0.04% 1.37%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.