Detailed Single Year Tables
Description of Proposed Provision:
B1.7: Progressive price indexing (40th percentile) of PIA factors for individuals newly eligible for OASI benefits in 2028 through 2065: 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 |
|||
| 2020 | 13.92 | 13.00 | -0.92 | 261 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.05 | 12.90 | -1.15 | 248 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.25 | 12.93 | -1.32 | 233 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.43 | 12.94 | -1.49 | 217 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.64 | 12.98 | -1.67 | 200 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.88 | 13.00 | -1.88 | 183 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.11 | 13.12 | -1.99 | 165 | 0.00 | 0.00 | 0.00 | ||
| 2027 | 15.35 | 13.15 | -2.20 | 148 | 0.00 | 0.00 | 0.00 | ||
| 2028 | 15.58 | 13.19 | -2.39 | 130 | -0.00 | -0.00 | 0.00 | ||
| 2029 | 15.83 | 13.23 | -2.60 | 112 | -0.00 | -0.00 | 0.00 | ||
| 2030 | 16.02 | 13.24 | -2.78 | 94 | -0.00 | -0.00 | 0.00 | ||
| 2031 | 16.18 | 13.26 | -2.93 | 76 | -0.01 | -0.00 | 0.01 | ||
| 2032 | 16.32 | 13.27 | -3.06 | 58 | -0.01 | -0.00 | 0.01 | ||
| 2033 | 16.43 | 13.28 | -3.16 | 39 | -0.02 | -0.00 | 0.02 | ||
| 2034 | 16.52 | 13.28 | -3.24 | 20 | -0.03 | -0.00 | 0.03 | ||
| 2035 | 16.59 | 13.29 | -3.30 | 1 | -0.04 | -0.00 | 0.04 | ||
| 2036 | 16.63 | 13.30 | -3.33 | ---- | -0.06 | -0.00 | 0.05 | ||
| 2037 | 16.66 | 13.30 | -3.36 | ---- | -0.08 | -0.00 | 0.07 | ||
| 2038 | 16.68 | 13.30 | -3.38 | ---- | -0.10 | -0.01 | 0.10 | ||
| 2039 | 16.68 | 13.30 | -3.38 | ---- | -0.13 | -0.01 | 0.13 | ||
| 2040 | 16.68 | 13.31 | -3.37 | ---- | -0.17 | -0.01 | 0.16 | ||
| 2041 | 16.66 | 13.31 | -3.35 | ---- | -0.20 | -0.01 | 0.19 | ||
| 2042 | 16.62 | 13.30 | -3.31 | ---- | -0.24 | -0.01 | 0.23 | ||
| 2043 | 16.57 | 13.30 | -3.27 | ---- | -0.28 | -0.02 | 0.26 | ||
| 2044 | 16.51 | 13.30 | -3.21 | ---- | -0.33 | -0.02 | 0.31 | ||
| 2045 | 16.44 | 13.30 | -3.15 | ---- | -0.37 | -0.02 | 0.35 | ||
| 2046 | 16.38 | 13.29 | -3.08 | ---- | -0.42 | -0.03 | 0.40 | ||
| 2047 | 16.31 | 13.29 | -3.02 | ---- | -0.48 | -0.03 | 0.45 | ||
| 2048 | 16.26 | 13.29 | -2.97 | ---- | -0.53 | -0.03 | 0.50 | ||
| 2049 | 16.20 | 13.29 | -2.91 | ---- | -0.59 | -0.04 | 0.55 | ||
| 2050 | 16.14 | 13.28 | -2.85 | ---- | -0.65 | -0.04 | 0.61 | ||
| 2051 | 16.08 | 13.28 | -2.80 | ---- | -0.71 | -0.04 | 0.67 | ||
| 2052 | 16.03 | 13.28 | -2.76 | ---- | -0.77 | -0.05 | 0.73 | ||
| 2053 | 15.99 | 13.28 | -2.72 | ---- | -0.84 | -0.05 | 0.79 | ||
| 2054 | 15.95 | 13.28 | -2.68 | ---- | -0.90 | -0.06 | 0.85 | ||
| 2055 | 15.92 | 13.28 | -2.65 | ---- | -0.97 | -0.06 | 0.91 | ||
| 2056 | 15.89 | 13.27 | -2.62 | ---- | -1.04 | -0.06 | 0.98 | ||
| 2057 | 15.87 | 13.27 | -2.59 | ---- | -1.11 | -0.07 | 1.04 | ||
| 2058 | 15.85 | 13.27 | -2.58 | ---- | -1.18 | -0.07 | 1.11 | ||
| 2059 | 15.84 | 13.27 | -2.56 | ---- | -1.25 | -0.08 | 1.17 | ||
| 2060 | 15.82 | 13.28 | -2.55 | ---- | -1.32 | -0.08 | 1.24 | ||
| 2061 | 15.81 | 13.28 | -2.54 | ---- | -1.39 | -0.09 | 1.30 | ||
| 2062 | 15.81 | 13.28 | -2.53 | ---- | -1.46 | -0.09 | 1.37 | ||
| 2063 | 15.80 | 13.28 | -2.52 | ---- | -1.53 | -0.09 | 1.44 | ||
| 2064 | 15.79 | 13.28 | -2.52 | ---- | -1.60 | -0.10 | 1.50 | ||
| 2065 | 15.79 | 13.28 | -2.51 | ---- | -1.67 | -0.10 | 1.57 | ||
| 2066 | 15.79 | 13.28 | -2.51 | ---- | -1.74 | -0.11 | 1.63 | ||
| 2067 | 15.79 | 13.28 | -2.51 | ---- | -1.81 | -0.11 | 1.69 | ||
| 2068 | 15.79 | 13.28 | -2.51 | ---- | -1.87 | -0.12 | 1.76 | ||
| 2069 | 15.79 | 13.28 | -2.51 | ---- | -1.94 | -0.12 | 1.82 | ||
| 2070 | 15.79 | 13.28 | -2.51 | ---- | -2.01 | -0.12 | 1.88 | ||
| 2071 | 15.80 | 13.28 | -2.51 | ---- | -2.07 | -0.13 | 1.95 | ||
| 2072 | 15.79 | 13.28 | -2.51 | ---- | -2.14 | -0.13 | 2.00 | ||
| 2073 | 15.79 | 13.28 | -2.51 | ---- | -2.20 | -0.14 | 2.06 | ||
| 2074 | 15.78 | 13.28 | -2.50 | ---- | -2.25 | -0.14 | 2.11 | ||
| 2075 | 15.77 | 13.28 | -2.49 | ---- | -2.31 | -0.14 | 2.16 | ||
| 2076 | 15.76 | 13.28 | -2.47 | ---- | -2.36 | -0.15 | 2.21 | ||
| 2077 | 15.74 | 13.28 | -2.45 | ---- | -2.40 | -0.15 | 2.25 | ||
| 2078 | 15.71 | 13.28 | -2.43 | ---- | -2.44 | -0.15 | 2.29 | ||
| 2079 | 15.67 | 13.28 | -2.39 | ---- | -2.48 | -0.15 | 2.32 | ||
| 2080 | 15.63 | 13.28 | -2.35 | ---- | -2.51 | -0.16 | 2.35 | ||
| 2081 | 15.58 | 13.27 | -2.31 | ---- | -2.54 | -0.16 | 2.38 | ||
| 2082 | 15.53 | 13.27 | -2.26 | ---- | -2.56 | -0.16 | 2.40 | ||
| 2083 | 15.49 | 13.27 | -2.22 | ---- | -2.58 | -0.16 | 2.42 | ||
| 2084 | 15.44 | 13.27 | -2.17 | ---- | -2.60 | -0.16 | 2.44 | ||
| 2085 | 15.38 | 13.26 | -2.12 | ---- | -2.61 | -0.16 | 2.45 | ||
| 2086 | 15.33 | 13.26 | -2.08 | ---- | -2.62 | -0.16 | 2.46 | ||
| 2087 | 15.29 | 13.26 | -2.03 | ---- | -2.63 | -0.16 | 2.47 | ||
| 2088 | 15.25 | 13.25 | -2.00 | ---- | -2.64 | -0.17 | 2.48 | ||
| 2089 | 15.22 | 13.25 | -1.97 | ---- | -2.65 | -0.17 | 2.49 | ||
| 2090 | 15.21 | 13.25 | -1.96 | ---- | -2.66 | -0.17 | 2.49 | ||
| 2091 | 15.20 | 13.25 | -1.95 | ---- | -2.67 | -0.17 | 2.50 | ||
| 2092 | 15.20 | 13.25 | -1.95 | ---- | -2.68 | -0.17 | 2.51 | ||
| 2093 | 15.21 | 13.25 | -1.96 | ---- | -2.69 | -0.17 | 2.52 | ||
| 2094 | 15.24 | 13.25 | -1.98 | ---- | -2.70 | -0.17 | 2.53 | ||
| 2095 | 15.26 | 13.25 | -2.01 | ---- | -2.71 | -0.17 | 2.54 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2020-2094 | 15.96% | 13.78% | -2.18% | 2035 | -1.10% | -0.07% | 1.03% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2035. |
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Based on Intermediate Assumptions of the 2020 Trustees Report.