Description of Proposed Provision:
B1.7: Progressive price indexing (40th percentile) of PIA factors for individuals newly eligible for OASI benefits in 2026 through 2063: Create a new bend point at the 40th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 40th percentile and below. Reduce the 32 and 15 percent factors above the 40th 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
0.000.000.00
202314.6212.97-1.66
206
0.000.000.00
202414.8012.99-1.81
188
0.000.000.00
202514.9813.01-1.98
171
0.000.000.00
202615.1613.13-2.02
154
-0.00-0.000.00
202715.3613.15-2.21
137
-0.00-0.000.00
202815.5813.17-2.41
120
-0.00-0.000.00
202915.7813.19-2.60
104
-0.01-0.000.01
203015.9713.20-2.77
87
-0.01-0.000.01
203116.1413.21-2.92
69
-0.02-0.000.02
203216.2813.23-3.06
52
-0.03-0.000.03
203316.4013.23-3.17
34
-0.05-0.000.05
203416.4913.24-3.25
15
-0.07-0.000.07
203516.5513.25-3.31
----
-0.10-0.010.09
203616.6013.25-3.34
----
-0.13-0.010.12
203716.6213.26-3.37
----
-0.16-0.010.15
203816.6313.26-3.37
----
-0.20-0.010.18
203916.6013.26-3.34
----
-0.23-0.010.22
204016.5513.26-3.30
----
-0.27-0.020.26
204116.4913.25-3.24
----
-0.32-0.020.30
204216.4113.25-3.16
----
-0.36-0.020.34
204316.3213.25-3.07
----
-0.41-0.020.39
204416.2313.24-2.99
----
-0.46-0.030.44
204516.1413.24-2.90
----
-0.52-0.030.49
204616.0513.23-2.82
----
-0.57-0.030.54
204715.9713.23-2.74
----
-0.63-0.040.59
204815.8813.23-2.66
----
-0.69-0.040.65
204915.8013.22-2.58
----
-0.75-0.040.71
205015.7313.22-2.51
----
-0.82-0.050.77
205115.6513.22-2.44
----
-0.88-0.050.83
205215.5913.21-2.37
----
-0.95-0.060.89
205315.5313.21-2.32
----
-1.02-0.060.95
205415.4813.21-2.27
----
-1.08-0.061.02
205515.4413.21-2.23
----
-1.15-0.071.09
205615.4013.21-2.19
----
-1.23-0.071.15
205715.3713.20-2.16
----
-1.30-0.081.22
205815.3413.20-2.14
----
-1.37-0.081.29
205915.3213.20-2.11
----
-1.44-0.091.36
206015.2913.20-2.09
----
-1.52-0.091.42
206115.2713.20-2.07
----
-1.59-0.101.49
206215.2513.20-2.05
----
-1.66-0.101.56
206315.2413.20-2.03
----
-1.73-0.101.62
206415.2213.20-2.02
----
-1.80-0.111.69
206515.2013.20-2.00
----
-1.86-0.111.75
206615.1913.20-1.99
----
-1.93-0.121.82
206715.1813.20-1.98
----
-2.00-0.121.88
206815.1813.20-1.97
----
-2.07-0.131.94
206915.1713.20-1.97
----
-2.13-0.132.00
207015.1713.20-1.97
----
-2.19-0.132.06
207115.1713.20-1.96
----
-2.25-0.142.12
207215.1613.20-1.96
----
-2.31-0.142.17
207315.1513.20-1.95
----
-2.36-0.142.22
207415.1413.20-1.94
----
-2.41-0.152.26
207515.1313.20-1.93
----
-2.46-0.152.31
207615.1113.20-1.91
----
-2.50-0.152.35
207715.0913.20-1.89
----
-2.54-0.152.38
207815.0613.20-1.86
----
-2.57-0.162.41
207915.0213.20-1.83
----
-2.60-0.162.44
208014.9913.20-1.79
----
-2.62-0.162.46
208114.9513.19-1.76
----
-2.64-0.162.48
208214.9113.19-1.72
----
-2.66-0.162.50
208314.8813.19-1.69
----
-2.68-0.162.51
208414.8513.19-1.66
----
-2.69-0.162.53
208514.8313.19-1.64
----
-2.70-0.172.54
208614.8113.18-1.63
----
-2.72-0.172.55
208714.8013.18-1.62
----
-2.73-0.172.56
208814.8113.18-1.62
----
-2.74-0.172.57
208914.8113.18-1.63
----
-2.75-0.172.59
209014.8313.19-1.65
----
-2.77-0.172.60
209114.8613.19-1.67
----
-2.78-0.172.61
209214.8913.19-1.70
----
-2.79-0.172.62
209314.9213.19-1.73
----
-2.81-0.172.63


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 15.60% 13.78% -1.82%
2034
-1.09% -0.06% 1.02%

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