Plan 3--2-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets at Retirement With a CPI-Indexed Life Annuity on a Joint and 2/3 Survivor Basis
Index PIAby 0.995%
Starting in 2009
PA Portfolio/Yield*
Scaled LOW Earner
($15,875 in 2002)
Scaled MEDIUM Earner
($35,277 in 2002)
Scaled HIGH Earner
($56,443 in 2002)
Scaled MAXIMUM Earner
($84,900 in 2002)
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
 
(Billions of Constant 2001 Dollars)
2012 Retiree
Present Law
Scheduled Benefit
$723
$723
$723
$1,194
$1,194
$1,194
$1,578
$1,578
$1,578
$1,873
$1,873
$1,873
% Basic Change for All
0.2
0.2
0.2
-0.9
-0.9
-0.9
-1.0
-1.0
-1.0
-1.2
-1.2
-1.2
% for PA Annuity**
3.1
3.5
3.5
4.2
4.7
4.8
4.6
5.2
5.2
5.0
5.5
5.6
% for Benefit Offset
-2.2
-2.2
-2.2
-2.9
-2.9
-2.9
-3.1
-3.1
-3.1
-2.6
-2.6
-2.6
Proposed Benefit
$732
$734
$735
$1,199
$1,205
$1,206
$1,587
$1,595
$1,596
$1,895
$1,905
$1,907
% of Present Law
Scheduled Benefit
101.2
101.6
101.6
100.4
100.9
101.0
100.6
101.1
101.2
101.1
101.7
101.8
% of Present Law
Payable Benefit
101.2
101.6
101.6
100.4
100.9
101.0
100.6
101.1
101.2
101.1
101.7
101.8
% of 2001
Real Benefit
114.9
115.3
115.4
114.0
114.6
114.6
116.2
116.8
116.9
123.2
123.9
124.0
2022 Retiree
Present Law
Scheduled Benefit
$767
$767
$767
$1,266
$1,266
$1,266
$1,673
$1,673
$1,673
$2,024
$2,024
$2,024
% Basic Change for All
2.1
2.1
2.1
-8.0
-8.0
-8.0
-9.2
-9.2
-9.2
-11.9
-11.9
-11.9
% for PA Annuity**
9.3
11.6
12.0
12.5
15.6
16.1
12.3
15.2
15.7
12.2
15.0
15.5
% for Benefit Offset
-6.4
-6.4
-6.4
-8.6
-8.6
-8.6
-7.6
-7.6
-7.6
-6.3
-6.3
-6.3
Proposed Benefit
$806
$823
$826
$1,214
$1,254
$1,261
$1,596
$1,646
$1,654
$1,901
$1,958
$1,968
% of Present Law
Scheduled Benefit
105.0
107.4
107.8
95.9
99.1
99.6
95.4
98.4
98.8
93.9
96.8
97.2
% of Present Law
Payable Benefit
105.0
107.4
107.8
95.9
99.1
99.6
95.4
98.4
98.8
93.9
96.8
97.2
% of 2001
Real Benefit
126.5
129.3
129.7
115.5
119.2
119.9
116.9
120.5
121.1
123.6
127.3
128.0
2032 Retiree
Present Law
Scheduled Benefit
$813
$813
$813
$1,343
$1,343
$1,343
$1,774
$1,774
$1,774
$2,151
$2,151
$2,151
% Basic Change for All
-3.9
-3.9
-3.9
-13.5
-13.5
-13.5
-15.5
-15.5
-15.5
-20.2
-20.2
-20.2
% for PA Annuity**
16.8
23.4
24.7
22.6
31.5
33.2
21.6
29.9
31.4
21.0
28.9
30.4
% for Benefit Offset
-11.4
-11.4
-11.4
-15.3
-15.3
-15.3
-13.1
-13.1
-13.1
-10.8
-10.8
-10.8
Proposed Benefit
$825
$879
$889
$1,260
$1,380
$1,402
$1,649
$1,796
$1,824
$1,935
$2,106
$2,138
% of Present Law
Scheduled Benefit
101.5
108.1
109.4
93.8
102.8
104.4
93.0
101.3
102.8
90.0
97.9
99.4
% of Present Law
Payable Benefit
101.5
108.1
109.4
93.8
102.8
104.4
93.0
101.3
102.8
90.0
97.9
99.4
% of 2001
Real Benefit
129.6
138.0
139.6
119.8
131.2
133.3
120.7
131.5
133.5
125.8
136.9
139.0
2042 Retiree
Present Law
Scheduled Benefit
$896
$896
$896
$1,478
$1,478
$1,478
$1,953
$1,953
$1,953
$2,365
$2,365
$2,365
% Basic Change for All
-8.6
-8.6
-8.6
-17.7
-17.7
-17.7
-19.7
-19.7
-19.7
-24.1
-24.1
-24.1
% for PA Annuity**
23.7
36.7
39.3
31.9
49.3
52.9
31.1
48.3
51.8
30.7
47.6
51.1
% for Benefit Offset
-15.9
-15.9
-15.9
-21.4
-21.4
-21.4
-18.9
-18.9
-18.9
-15.6
-15.6
-15.6
Proposed Benefit
$888
$1,004
$1,028
$1,372
$1,630
$1,684
$1,808
$2,143
$2,212
$2,152
$2,552
$2,636
% of Present Law
Scheduled Benefit
99.2
112.1
114.8
92.8
110.3
113.9
92.6
109.7
113.3
91.0
107.9
111.4
% of Present Law
Payable Benefit
135.6
153.4
157.1
126.9
150.8
155.8
126.6
150.1
154.9
124.5
147.6
152.4
% of 2001
Real Benefit
139.4
157.7
161.4
130.4
155.0
160.1
132.4
156.9
162.0
139.9
166.0
171.4
2052 Retiree
Present Law
Scheduled Benefit
$986
$986
$986
$1,628
$1,628
$1,628
$2,151
$2,151
$2,151
$2,604
$2,604
$2,604
% Basic Change for All
-13.1
-13.1
-13.1
-21.7
-21.7
-21.7
-23.6
-23.6
-23.6
-27.8
-27.8
-27.8
% for PA Annuity**
26.2
42.4
45.9
35.3
57.1
61.8
35.3
57.8
62.7
35.8
59.1
64.1
% for Benefit Offset
-17.5
-17.5
-17.5
-23.5
-23.5
-23.5
-21.6
-21.6
-21.6
-18.1
-18.1
-18.1
Proposed Benefit
$943
$1,103
$1,137
$1,465
$1,821
$1,897
$1,939
$2,423
$2,527
$2,341
$2,947
$3,079
% of Present Law
Scheduled Benefit
95.6
111.9
115.3
90.0
111.9
116.6
90.1
112.6
117.5
89.9
113.2
118.2
% of Present Law
Payable Benefit
132.1
154.5
159.3
124.3
154.5
161.0
124.5
155.6
162.3
124.2
156.3
163.3
% of 2001
Real Benefit
148.0
173.2
178.5
139.3
173.1
180.4
141.9
177.4
185.0
152.2
191.6
200.2
2075 Retiree
Present Law
Scheduled Benefit
$1,231
$1,231
$1,231
$2,032
$2,032
$2,032
$2,685
$2,685
$2,685
$3,250
$3,250
$3,250
% Basic Change for All
-22.2
-22.2
-22.2
-29.9
-29.9
-29.9
-31.6
-31.6
-31.6
-35.4
-35.4
-35.4
% for PA Annuity**
25.3
41.1
44.4
34.1
55.3
59.8
34.1
56.0
60.7
34.6
57.1
62.0
% for Benefit Offset
-16.9
-16.9
-16.9
-22.7
-22.7
-22.7
-20.9
-20.9
-20.9
-17.4
-17.4
-17.4
Proposed Benefit
$1,062
$1,255
$1,297
$1,655
$2,086
$2,178
$2,194
$2,779
$2,905
$2,658
$3,391
$3,550
% of Present Law
Scheduled Benefit
86.3
102.0
105.4
81.5
102.7
107.2
81.7
103.5
108.2
81.8
104.3
109.2
% of Present Law
Payable Benefit>
128.7
152.2
157.2
121.5
153.1
159.9
121.9
154.4
161.5
122.0
155.7
163.0
% of 2001
Real Benefit
166.7
197.1
203.6
157.3
198.3
207.0
160.6
203.5
212.7
172.8
220.5
230.8
* Low Yield assumes the Treasury Bond yield on all assets, or risk adjusted returns. High Yield reflects a higher 7.1% ultimate real yield on equities, OR investing 60% of PA in equities at the assumed 6.5% yield.
** Annuity is assumed to have a net real yield equal to Long-Term Treasury Bonds, except for 100% Treasury case, where gross annuity yield is equal to Treasury.

Note: Based on 2001 Trustees Intermediate assumptions, including 3.0% Treasury ultimate real yield; plus 6.5% equity, 3.5% corporate bond ultimate real yields, and 0.3% annual ultimate PA and annuity administrative cost. For portfolios with part equity, balance is assumed 60% corporate and 40% Treasury bonds.
Office of the Actuary
Social Security Administration
January 29, 2002

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