## Summary Measures and Graphs

__Description of Proposed Provision__:

E2.12: Eliminate the taxable maximum in years 2032 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 1.24 percent in 2023, 2.48 percent in 2024, and so on, up to 12.40 percent in 2032. Provide benefit credit for earnings above the current-law taxable maximum. Create a new bend point at the current-law taxable maximum with a 3 percent formula factor applying above the new bend point.

__Description of Proposed Provision__:

E2.12: Eliminate the taxable maximum in years 2032 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 1.24 percent in 2023, 2.48 percent in 2024, and so on, up to 12.40 percent in 2032. Provide benefit credit for earnings above the current-law taxable maximum. Create a new bend point at the current-law taxable maximum with a 3 percent formula factor applying above the new bend point.

*Estimates based on the intermediate assumptions of the 2020 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 |
||

-3.21 | -4.51 | 1.90 | 2.12 | 59% | 47% |