Proposed Revisions to the Special Minimum Benefit for Low Lifetime Earners

by Glenn R. Springstead, Kevin Whitman, and Dave Shoffner
Policy Brief No. 2014-01 (released September 2014)
Table equivalent for Chart 1. Prorated special minimum benefit levels under alternative YOC eligibility thresholds (in dollars)
YOCs Threshold A: 11 YOCs Threshold B: 20 YOCs
11 41 0
12 82 0
13 122 0
14 163 0
15 204 0
16 245 0
17 286 0
18 326 0
19 367 0
20 408 74
21 449 148
22 490 223
23 530 297
24 571 371
25 612 445
26 653 519
27 694 593
28 734 668
29 775 742
30 816 816
SOURCE: Authors' calculations.
Table equivalent for Chart 2. Percentages of beneficiaries aged 62 or older whose earnings histories would have met minimum benefit eligibility under alternative YOC formulas and thresholds in 2013
YOC threshold Four QCs 15 percent of OLB 20 percent of OLB
11 YOCs 91 84 80
20 YOCs 79 70 66
30 YOCs 63 53 49
SOURCE: Authors' calculations using MINT6.
Table equivalent for Chart 3. Minimum benefit levels under alternative indexing methods, projected 2013–2050 (in dollars, monthly)
Year AWI CPI
2013 1,197 1,197
2014 1,251 1,220
2015 1,303 1,244
2016 1,354 1,268
2017 1,408 1,294
2018 1,464 1,322
2019 1,527 1,356
2020 1,591 1,394
2021 1,653 1,433
2022 1,717 1,473
2023 1,784 1,515
2024 1,853 1,557
2025 1,925 1,601
2026 2,000 1,645
2027 2,080 1,691
2028 2,162 1,739
2029 2,248 1,787
2030 2,338 1,838
2031 2,431 1,889
2032 2,529 1,942
2033 2,631 1,996
2034 2,737 2,052
2035 2,848 2,110
2036 2,963 2,169
2037 3,083 2,229
2038 3,208 2,292
2039 3,337 2,356
2040 3,472 2,422
2041 3,612 2,490
2042 3,757 2,560
2043 3,908 2,631
2044 4,064 2,705
2045 4,226 2,781
2046 4,394 2,858
2047 4,568 2,938
2048 4,749 3,021
2049 4,937 3,105
2050 5,133 3,192
SOURCE: Authors' calculations.
NOTE: Projections assume the use of 125 percent of the HHS poverty guideline as the income-adequacy measure.