Description of Proposed Provision:
B1.6 (2022): Progressive price indexing (30th percentile) of PIA factors beginning with individuals newly eligible for OASI benefits in 2022: Create a new bend point at the 30th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent factors above the 30th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum grows by inflation rather than the growth in the SSA average wage index. Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject to a proportional reduction in benefits, based on the worker's years of disability, upon conversion to retired-worker beneficiary status. Young survivors (children of deceased workers and surviving spouses with a child in care) are not affected.

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
202014.1212.89-1.23
256
0.000.000.00
202114.2712.92-1.35
239
0.000.000.00
202214.4412.95-1.49
223
-0.00-0.000.00
202314.6212.97-1.65
206
-0.00-0.000.00
202414.8012.99-1.80
188
-0.01-0.000.01
202514.9713.01-1.96
171
-0.01-0.000.01
202615.1413.13-2.01
154
-0.02-0.000.02
202715.3313.15-2.18
138
-0.03-0.000.03
202815.5313.17-2.36
121
-0.05-0.000.05
202915.7213.18-2.53
105
-0.07-0.000.07
203015.8813.20-2.68
88
-0.11-0.010.10
203116.0213.21-2.81
71
-0.14-0.010.13
203216.1313.22-2.92
54
-0.18-0.010.17
203316.2213.22-3.00
37
-0.23-0.010.22
203416.2813.23-3.05
19
-0.28-0.020.27
203516.3213.23-3.08
1
-0.33-0.020.32
203616.3313.24-3.09
----
-0.39-0.020.37
203716.3313.24-3.09
----
-0.45-0.030.43
203816.3113.24-3.07
----
-0.52-0.030.49
203916.2513.24-3.01
----
-0.58-0.030.55
204016.1813.24-2.95
----
-0.65-0.040.61
204116.1013.23-2.87
----
-0.71-0.040.67
204215.9913.23-2.77
----
-0.78-0.050.73
204315.8813.22-2.66
----
-0.85-0.050.80
204415.7713.22-2.56
----
-0.92-0.050.87
204515.6713.21-2.46
----
-0.99-0.060.94
204615.5613.20-2.35
----
-1.07-0.061.01
204715.4613.20-2.26
----
-1.15-0.071.08
204815.3513.19-2.16
----
-1.22-0.071.15
204915.2513.19-2.06
----
-1.30-0.081.22
205015.1613.19-1.98
----
-1.38-0.081.30
205115.0713.18-1.89
----
-1.46-0.091.37
205214.9913.18-1.81
----
-1.54-0.091.45
205314.9213.17-1.75
----
-1.62-0.101.53
205414.8613.17-1.68
----
-1.71-0.101.60
205514.8013.17-1.63
----
-1.79-0.111.68
205614.7513.17-1.59
----
-1.87-0.111.76
205714.7113.17-1.54
----
-1.96-0.121.84
205814.6713.16-1.51
----
-2.04-0.121.92
205914.6413.16-1.48
----
-2.12-0.131.99
206014.6113.16-1.44
----
-2.20-0.132.07
206114.5813.16-1.41
----
-2.28-0.142.15
206214.5513.16-1.39
----
-2.36-0.142.22
206314.5213.16-1.36
----
-2.44-0.152.29
206414.5013.16-1.34
----
-2.52-0.152.36
206514.4813.16-1.32
----
-2.59-0.162.44
206614.4513.16-1.30
----
-2.67-0.162.51
206714.4413.16-1.28
----
-2.75-0.172.58
206814.4213.16-1.26
----
-2.82-0.172.65
206914.4013.16-1.25
----
-2.90-0.182.72
207014.3913.15-1.23
----
-2.98-0.182.79
207114.3713.15-1.22
----
-3.05-0.192.86
207214.3513.15-1.19
----
-3.12-0.192.93
207314.3213.15-1.17
----
-3.20-0.193.00
207414.2913.15-1.14
----
-3.27-0.203.07
207514.2513.15-1.10
----
-3.34-0.203.13
207614.2113.15-1.06
----
-3.40-0.213.19
207714.1613.14-1.02
----
-3.46-0.213.25
207814.1013.14-0.96
----
-3.52-0.213.31
207914.0413.14-0.90
----
-3.58-0.223.36
208013.9813.13-0.84
----
-3.63-0.223.41
208113.9113.13-0.78
----
-3.68-0.223.45
208213.8413.13-0.72
----
-3.73-0.233.50
208313.7813.12-0.66
----
-3.78-0.233.55
208413.7113.12-0.60
----
-3.83-0.233.59
208513.6613.11-0.54
----
-3.87-0.243.64
208613.6013.11-0.49
----
-3.92-0.243.68
208713.5613.11-0.45
----
-3.98-0.243.73
208813.5213.11-0.41
----
-4.03-0.253.78
208913.4813.10-0.38
----
-4.08-0.253.83
209013.4613.10-0.35
----
-4.14-0.253.89
209113.4313.10-0.33
----
-4.20-0.263.95
209213.4113.10-0.32
----
-4.26-0.264.00
209313.4013.10-0.30
----
-4.33-0.274.06


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 15.05% 13.75% -1.31%
2035
-1.63% -0.10% 1.53%

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