Proposed Provision: Progressive indexing (30th percentile) of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2015, continuing through 2024, and then resuming in 2063: Create a new bend point at the 30th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent formula factors above the 30th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum is reduced by 1.12 percent per year as compared to current law (for the years that progressive indexing applies). 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.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Present Law Provision
2012340340
2013329329
2014315315
2015302302
2016290290
2017277278
2018265266
2019253254
2020240241
2021227228
2022212215
2023197200
2024181185
2025164169
2026147153
2027129136
2028110119
202990101
20307082
20314963
20322743
2033523
2034-182
2035-41-19
2036-65-40
2037-89-61
2038-114-83
2039-138-105
2040-163-127
2041-189-149
2042-215-172
2043-240-194
2044-266-216
2045-292-239
2046-319-261
2047-346-284
2048-373-307
2049-400-330
2050-428-353
2051-456-377
2052-484-400
2053-512-424
2054-540-447
2055-569-471
2056-598-495
2057-628-520
2058-657-545
2059-688-570
2060-719-596
2061-750-622
2062-782-649
2063-814-676
2064-847-703
2065-880-730
2066-913-758
2067-946-786
2068-980-815
2069-1014-844
2070-1049-874
2071-1084-904
2072-1120-935
2073-1156-967
2074-1193-999
2075-1230-1032
2076-1268-1066
2077-1307-1100
2078-1346-1135
2079-1385-1170
2080-1425-1205
2081-1465-1242
2082-1505-1278
2083-1547-1315
2084-1588-1353
2085-1631-1392
2086-1673-1431
2087-1717-1471
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