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Benefit Formula Changes

Reconfigure the minimum benefit: For workers with 10 to 30 years of coverage (YOC = 4 quarters earned that year) set PIA up to 125% of the monthly poverty level

Projected effects on beneficiaries in 2030

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Table 1. Individual benefits 2030: Reconfigure MinBen versus Scheduled
Characteristic Median Percent Change Percent With
Lower Benefits Higher Benefits
Total 0% 0% 12%
Sex
Female 0% 1% 15%
Male 0% 0% 9%
Race/Ethnicity
Hispanic 0% 0% 19%
White 0% 0% 11%
Black 0% 0% 19%
Other 0% 0% 11%
Immigration
Immigrant 0% 0% 14%
Native Born 0% 0% 12%
Age
60–69 0% 0% 18%
70–79 0% 1% 13%
80–89 0% 0% 2%
90+ 0% 0% 0%
Marital Status
Never Married 0% 0% 18%
Married 0% 1% 14%
Divorced 0% 0% 13%
Widowed 0% 0% 5%
Education
Graduate 0% 0% 4%
Bachelor 0% 0% 6%
Associate 0% 1% 13%
High School 0% 0% 16%
Less than 12 Yrs 0% 0% 23%
Indiv. Income Quintile
$92,568+ 0% 0% 3%
$51,630 - $92,568 0% 0% 5%
$32,444 - $51,630 0% 0% 10%
$19,359 - $32,444 0% 1% 14%
$0-$19,359 0% 0% 29%
Hhld. Income Quintile
$156,005+ 0% 1% 6%
$88,261 - $156,005 0% 0% 9%
$53,741 - $88,261 0% 0% 11%
$29,648 - $53,741 0% 0% 15%
$0-$29,648 0% 0% 22%
Shared Earn. Quintile
$85,700+ 0% 1% 2%
$63,084 - $85,700 0% 1% 4%
$46,412 - $63,084 0% 0% 8%
$29,733 - $46,412 0% 0% 18%
$0-$29,733 0% 0% 31%
Benefit Type
Retired Worker 0% 0% 13%
Spousal & Worker 0% 7% 24%
Spousal Only 0% 0% 9%
Survivor & Worker 0% 0% 3%
Survivor Only 0% 0% 4%
Retired Disabled 0% 0% 10%
Disabled Worker 0% 0% 18%
Claiming Age
62 or younger 0% 1% 14%
63–66 0% 0% 11%
67 or older 0% 0% 6%
Quarters of Coverage
201+ 0% 0% 2%
161–200 0% 0% 9%
81–160 0% 1% 23%
0–80 0% 0% 4%
Own AIME Quintile
$7,147+ 0% 0% 0%
$4,819 - $7,147 0% 0% 0%
$3,235 - $4,819 0% 0% 1%
$1,780 - $3,235 0% 1% 42%
$0-$1,780 0% 1% 19%
Paying AIME Quintile
$8,406+ 0% 1% 2%
$6,129 - $8,406 0% 0% 3%
$4,412 - $6,129 0% 0% 1%
$2,836 - $4,412 0% 0% 11%
$0-$2,836 0% 0% 45%
Hhld. Benefit Quintile
$3,023+ 0% 1% 4%
$2,211 - $3,023 0% 0% 11%
$1,683 - $2,211 0% 0% 8%
$1,193 - $1,683 0% 0% 9%
$0-$1,193 0% 0% 29%
Adj. Gross Income
$116,762+ 0% 1% 6%
$81,240 - $116,762 0% 1% 9%
$52,849 - $81,240 0% 0% 10%
$1 - $52,849 0% 0% 15%
$0.00 0% 0% 18%
Population: current law beneficiaries aged 60 and older
Source: SSA's Office of Retirement Policy, using MINT 6/TR11 Assumptions/SSMBA 4. Run: 11/28/2012
Note: This proposal is based on specifications received from outside the Social Security Administration, unless noted otherwise. It does not represent the views of the agency.
Table 2. Distribution of changes 2030: Reconfigure MinBen versus Scheduled
Characteristic % of Population With % Change of
-20%+ -10 to -19% -1 to -9% No change +1 to +9% +10 to +19% +20%+
Total 0% 0% 0% 87% 5% 3% 4%
Sex
Female 0% 0% 1% 84% 6% 4% 5%
Male 0% 0% 0% 91% 3% 2% 3%
Race/Ethnicity
Hispanic 0% 0% 0% 81% 6% 6% 7%
White 0% 0% 0% 89% 4% 3% 3%
Black 0% 0% 0% 81% 8% 5% 7%
Other 0% 0% 0% 88% 4% 3% 4%
Immigration
Immigrant 0% 0% 0% 86% 5% 4% 5%
Native Born 0% 0% 0% 88% 5% 3% 4%
Age
60–69 0% 0% 0% 82% 7% 5% 6%
70–79 0% 0% 1% 86% 5% 4% 5%
80–89 0% 0% 0% 98% 1% 1% 0%
90+ 0% 0% 0% 100% 0% 0% 0%
Marital Status
Never Married 0% 0% 0% 82% 6% 5% 6%
Married 0% 0% 1% 85% 5% 4% 5%
Divorced 0% 0% 0% 86% 5% 4% 5%
Widowed 0% 0% 0% 95% 2% 1% 2%
Education
Graduate 0% 0% 0% 96% 1% 1% 1%
Bachelor 0% 0% 0% 93% 3% 2% 2%
Associate 0% 0% 1% 87% 5% 4% 4%
High School 0% 0% 0% 84% 6% 5% 5%
Less than 12 Yrs 0% 0% 0% 77% 7% 6% 10%
Indiv. Income Quintile
$92,568+ 0% 0% 0% 96% 1% 1% 1%
$51,630 - $92,568 0% 0% 0% 94% 2% 1% 2%
$32,444 - $51,630 0% 0% 0% 89% 4% 3% 3%
$19,359 - $32,444 0% 0% 1% 85% 7% 4% 3%
$0-$19,359 0% 0% 0% 71% 9% 8% 12%
Hhld. Income Quintile
$156,005+ 0% 0% 1% 94% 2% 2% 2%
$88,261 - $156,005 0% 0% 0% 91% 4% 2% 3%
$53,741 - $88,261 0% 0% 0% 88% 4% 3% 3%
$29,648 - $53,741 0% 0% 0% 85% 6% 4% 5%
$0-$29,648 0% 0% 0% 78% 7% 6% 8%
Shared Earn. Quintile
$85,700+ 0% 0% 1% 98% 1% 0% 0%
$63,084 - $85,700 0% 0% 1% 95% 2% 1% 1%
$46,412 - $63,084 0% 0% 0% 92% 4% 3% 1%
$29,733 - $46,412 0% 0% 0% 82% 8% 5% 5%
$0-$29,733 0% 0% 0% 69% 9% 9% 13%
Benefit Type
Retired Worker 0% 0% 0% 86% 5% 4% 5%
Spousal & Worker 0% 0% 7% 70% 11% 7% 5%
Spousal Only 0% 0% 0% 91% 3% 2% 4%
Survivor & Worker 0% 0% 0% 96% 2% 1% 1%
Survivor Only 0% 0% 0% 96% 1% 1% 1%
Retired Disabled 0% 0% 0% 89% 5% 3% 3%
Disabled Worker 0% 0% 0% 82% 7% 6% 5%
Claiming Age
62 or younger 0% 0% 1% 85% 5% 4% 5%
63–66 0% 0% 0% 89% 4% 3% 4%
67 or older 0% 0% 0% 94% 2% 2% 2%
Quarters of Coverage
201+ 0% 0% 0% 97% 1% 1% 0%
161–200 0% 0% 0% 91% 4% 2% 3%
81–160 0% 0% 1% 76% 8% 7% 9%
0–80 0% 0% 0% 96% 2% 1% 1%
Own AIME Quintile
$7,147+ 0% 0% 0% 100% 0% 0% 0%
$4,819 - $7,147 0% 0% 0% 100% 0% 0% 0%
$3,235 - $4,819 0% 0% 0% 99% 0% 0% 0%
$1,780 - $3,235 0% 0% 1% 57% 18% 14% 10%
$0-$1,780 0% 0% 1% 80% 5% 4% 11%
Paying AIME Quintile
$8,406+ 0% 0% 1% 96% 2% 0% 0%
$6,129 - $8,406 0% 0% 0% 97% 1% 1% 0%
$4,412 - $6,129 0% 0% 0% 98% 1% 0% 1%
$2,836 - $4,412 0% 0% 0% 89% 10% 0% 0%
$0-$2,836 0% 0% 0% 55% 11% 15% 19%
Hhld. Benefit Quintile
$3,023+ 0% 0% 1% 94% 3% 1% 0%
$2,211 - $3,023 0% 0% 0% 89% 5% 3% 3%
$1,683 - $2,211 0% 0% 0% 92% 3% 2% 3%
$1,193 - $1,683 0% 0% 0% 91% 4% 3% 3%
$0-$1,193 0% 0% 0% 71% 9% 8% 12%
Adj. Gross Income
$116,762+ 0% 0% 1% 93% 2% 2% 2%
$81,240 - $116,762 0% 0% 1% 90% 4% 2% 3%
$52,849 - $81,240 0% 0% 0% 89% 4% 3% 3%
$1 - $52,849 0% 0% 0% 84% 6% 5% 5%
$0.00 0% 0% 0% 82% 7% 5% 7%
Population: current law beneficiaries aged 60 and older
Source: SSA's Office of Retirement Policy, using MINT 6/TR11 Assumptions/SSMBA 4. Run: 11/28/2012
Note: This proposal is based on specifications received from outside the Social Security Administration, unless noted otherwise. It does not represent the views of the agency.
Table 3. Poverty 2030: Reconfigure MinBen versus Scheduled
Characteristic Poverty Rate # of Poor Change
Scheduled Option Diff
Total 3.1% 2.7% -0.5% -323,539
Sex
Female 3.6% 3.1% -0.5% -181,471
Male 2.7% 2.2% -0.4% -142,068
Race/Ethnicity
Hispanic 5.8% 5.1% -0.7% -54,446
White 1.9% 1.6% -0.3% -153,592
Black 8.2% 6.9% -1.3% -97,663
Other 4.7% 4.2% -0.4% -17,837
Immigration
Immigrant 5.4% 4.8% -0.6% -70,896
Native Born 2.7% 2.3% -0.4% -252,643
Age
60–69 4.2% 3.7% -0.6% -139,457
70–79 2.9% 2.4% -0.6% -176,543
80–89 1.9% 1.9% -0.1% -7,539
90+ 1.3% 1.3% 0.0% 0
Marital Status
Never Married 11.6% 10.1% -1.5% -73,749
Married 1.3% 1.1% -0.2% -60,462
Divorced 5.4% 4.4% -1.0% -130,498
Widowed 3.2% 2.8% -0.4% -58,829
Education
Graduate 0.6% 0.6% 0.0% -2,923
Bachelor 1.1% 1.0% -0.1% -11,841
Associate 2.5% 1.9% -0.5% -92,480
High School 4.3% 3.7% -0.6% -157,643
Less than 12 Yrs 9.8% 8.5% -1.3% -58,650
Indiv. Income Quintile
$92,568+ 0.0% 0.0% 0.0% 0
$51,630 - $92,568 0.0% 0.0% 0.0% 0
$32,444 - $51,630 0.0% 0.0% 0.0% 0
$19,359 - $32,444 0.0% 0.0% 0.0% 0
$0-$19,359 15.8% 13.5% -2.3% -323,539
Hhld. Income Quintile
$156,005+ 0.0% 0.0% 0.0% 0
$88,261 - $156,005 0.0% 0.0% 0.0% 0
$53,741 - $88,261 0.0% 0.0% 0.0% 0
$29,648 - $53,741 0.0% 0.0% 0.0% 0
$0-$29,648 15.8% 13.6% -2.3% -323,539
Shared Earn. Quintile
$85,700+ 0.0% 0.0% 0.0% 0
$63,084 - $85,700 0.0% 0.0% 0.0% 0
$46,412 - $63,084 0.1% 0.1% 0.0% 0
$29,733 - $46,412 0.4% 0.3% -0.1% -13,910
$0-$29,733 15.3% 13.1% -2.2% -309,629
Benefit Type
Retired Worker 2.6% 2.0% -0.6% -255,281
Spousal & Worker 1.3% 0.9% -0.4% -13,445
Spousal Only 7.3% 7.3% 0.0% 0
Survivor & Worker 1.4% 1.1% -0.2% -24,044
Survivor Only 9.0% 8.3% -0.6% -8,666
Retired Disabled 6.0% 5.8% -0.2% -15,003
Disabled Worker 7.0% 6.8% -0.2% -7,099
Claiming Age
62 or younger 4.7% 4.1% -0.7% -244,969
63–66 1.4% 1.2% -0.2% -75,290
67 or older 1.7% 1.6% -0.1% -3,280
Quarters of Coverage
201+ 0.0% 0.0% 0.0% 0
161–200 0.4% 0.2% -0.2% -53,969
81–160 3.0% 2.1% -0.9% -240,369
0–80 14.0% 13.7% -0.3% -29,201
Own AIME Quintile
$7,147+ 0.0% 0.0% 0.0% 0
$4,819 - $7,147 0.0% 0.0% 0.0% 0
$3,235 - $4,819 0.0% 0.0% 0.0% 0
$1,780 - $3,235 2.8% 2.0% -0.8% -120,057
$0-$1,780 12.9% 11.5% -1.4% -203,482
Paying AIME Quintile
$8,406+ 0.0% 0.0% 0.0% 0
$6,129 - $8,406 0.1% 0.0% 0.0% -2,266
$4,412 - $6,129 0.1% 0.1% 0.0% -3,260
$2,836 - $4,412 0.5% 0.5% 0.0% 0
$0-$2,836 15.1% 12.9% -2.2% -318,012
Hhld. Benefit Quintile
$3,023+ 0.0% 0.0% 0.0% 0
$2,211 - $3,023 0.0% 0.0% 0.0% 0
$1,683 - $2,211 0.0% 0.0% 0.0% 0
$1,193 - $1,683 0.0% 0.0% 0.0% 0
$0-$1,193 15.7% 13.5% -2.3% -323,539
Adj. Gross Income
$116,762+ 0.0% 0.0% 0.0% 0
$81,240 - $116,762 0.1% 0.1% 0.0% -2,651
$52,849 - $81,240 0.2% 0.2% 0.0% -814
$1 - $52,849 1.5% 1.4% -0.1% -11,123
$0.00 9.7% 8.2% -1.5% -308,950
Population: current law beneficiaries aged 60 and older
Source: SSA's Office of Retirement Policy, using MINT 6/TR11 Assumptions/SSMBA 4. Run: 11/28/2012
Note: This proposal is based on specifications received from outside the Social Security Administration, unless noted otherwise. It does not represent the views of the agency.
Table 4. Median Monthly Scheduled Benefit, 2030
Characteristic Wage-Adjusted (2012 $) Inflation-Adjusted (2012 $) Nominal (2030 $)
Total $1,103 $1,420 $2,241
Sex
Female $993 $1,278 $2,017
Male $1,232 $1,585 $2,502
Race/Ethnicity
Hispanic $882 $1,136 $1,793
White $1,166 $1,501 $2,368
Black $963 $1,239 $1,956
Other $981 $1,262 $1,992
Immigration
Immigrant $879 $1,132 $1,786
Native Born $1,141 $1,469 $2,318
Age
60–69 $1,007 $1,296 $2,046
70–79 $1,138 $1,464 $2,311
80–89 $1,179 $1,518 $2,395
90+ $1,139 $1,466 $2,313
Marital Status
Never Married $970 $1,248 $1,970
Married $1,065 $1,370 $2,163
Divorced $1,098 $1,414 $2,231
Widowed $1,224 $1,575 $2,486
Education
Graduate $1,444 $1,858 $2,932
Bachelor $1,286 $1,656 $2,613
Associate $1,100 $1,416 $2,234
High School $1,013 $1,304 $2,058
Less than 12 Yrs $791 $1,018 $1,607
Indiv. Income Quintile
$92,568+ $1,477 $1,902 $3,001
$51,630 - $92,568 $1,322 $1,701 $2,685
$32,444 - $51,630 $1,176 $1,514 $2,389
$19,359 - $32,444 $1,064 $1,370 $2,162
$0-$19,359 $695 $894 $1,411
Hhld. Income Quintile
$156,005+ $1,383 $1,780 $2,809
$88,261 - $156,005 $1,259 $1,621 $2,558
$53,741 - $88,261 $1,172 $1,508 $2,380
$29,648 - $53,741 $1,060 $1,364 $2,152
$0-$29,648 $808 $1,040 $1,641
Shared Earn. Quintile
$85,700+ $1,598 $2,057 $3,246
$63,084 - $85,700 $1,332 $1,714 $2,705
$46,412 - $63,084 $1,145 $1,474 $2,327
$29,733 - $46,412 $952 $1,226 $1,934
$0-$29,733 $664 $855 $1,349
Benefit Type
Retired Worker $1,133 $1,459 $2,302
Spousal & Worker $710 $914 $1,442
Spousal Only $498 $641 $1,012
Survivor & Worker $1,277 $1,643 $2,593
Survivor Only $1,031 $1,327 $2,094
Retired Disabled $1,093 $1,406 $2,219
Disabled Worker $1,031 $1,327 $2,094
Claiming Age
62 or younger $969 $1,247 $1,968
63–66 $1,268 $1,632 $2,576
67 or older $1,419 $1,827 $2,883
Quarters of Coverage
201+ $1,512 $1,946 $3,070
161–200 $1,241 $1,597 $2,520
81–160 $925 $1,191 $1,879
0–80 $651 $838 $1,322
Own AIME Quintile
$7,147+ $1,658 $2,134 $3,368
$4,819 - $7,147 $1,320 $1,700 $2,682
$3,235 - $4,819 $1,026 $1,320 $2,084
$1,780 - $3,235 $803 $1,033 $1,630
$0-$1,780 $615 $792 $1,249
Paying AIME Quintile
$8,406+ $1,658 $2,134 $3,368
$6,129 - $8,406 $1,392 $1,792 $2,828
$4,412 - $6,129 $1,179 $1,518 $2,395
$2,836 - $4,412 $916 $1,179 $1,861
$0-$2,836 $608 $783 $1,236
Hhld. Benefit Quintile
$3,023+ $1,456 $1,874 $2,958
$2,211 - $3,023 $1,223 $1,574 $2,484
$1,683 - $2,211 $1,398 $1,799 $2,839
$1,193 - $1,683 $1,083 $1,394 $2,199
$0-$1,193 $668 $860 $1,357
Adj. Gross Income
$116,762+ $1,400 $1,802 $2,844
$81,240 - $116,762 $1,246 $1,604 $2,531
$52,849 - $81,240 $1,174 $1,511 $2,384
$1 - $52,849 $1,004 $1,292 $2,039
$0.00 $926 $1,192 $1,881
Population: current law beneficiaries aged 60 and older
Source: SSA's Office of Retirement Policy, using MINT 6/TR11 Assumptions/SSMBA 4. Run: 11/28/2012
Note: This proposal is based on specifications received from outside the Social Security Administration, unless noted otherwise. It does not represent the views of the agency.