Short-Range Actuarial Projections
of the Old-Age, Survivors, and
Disability Insurance Program, 2005

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ACTUARIAL STUDY NO. 119
by Chris Motsiopoulos
and Richard B. Tucker

V.B3.—Interest Rates  for Special Public-Debt Obligations Issuable to the OASI and DI Trust Funds
(High cost alternative, calendar years 2005-14)
Calendar
year
January
February
March
April
May
June
July
August
September
October
November
December
Average
nominal
rate
OASDI
effective
rate
2005
4.000
3.625
3.375
2.500
2.750
3.000
3.250
3.625
4.000
4.500
4.750
4.875
3.688
5.366
2006
4.875
5.250
5.625
6.500
6.250
6.125
6.000
5.875
5.750
5.500
5.500
5.500
5.729
5.282
2007
5.500
5.500
5.500
5.250
5.500
5.625
5.750
5.875
6.000
6.125
6.125
6.250
5.750
5.352
2008
6.375
6.250
6.250
6.125
6.125
6.000
5.875
5.750
5.750
5.500
5.750
5.875
5.969
5.431
2009
6.000
6.375
6.750
7.125
7.500
7.875
8.250
8.500
8.750
9.250
9.250
9.250
7.906
5.693
2010
9.500
9.250
9.125
9.000
8.875
8.750
8.625
8.500
8.375
8.250
8.125
7.875
8.688
6.210
2011
7.750
7.625
7.500
7.375
7.250
7.125
7.000
7.000
6.875
6.750
6.625
6.625
7.125
6.403
2012
6.500
6.375
6.375
6.250
6.250
6.125
6.125
6.125
6.000
6.000
6.000
6.000
6.177
6.399
2013
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.384
2014
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.000
6.387

Sources:

Note: Estimates based on 2005 Trustees Report high cost set of assumptions.

V.B4.—Cost-of-Living Benefit Increases, Average Wage Index Increases, OASDI Contribution and Benefit Bases,
and Retirement Earnings Test Exempt Amounts
(High cost alternative, calendar years 2005-14)
Year
OASDI
benefit increase 1
(percent)
Average wage2
Increase in average
wage index 3
(percent)
OASDI
contribution and
benefit base  4
Retirement earnings test exempt amounts
Under normal
retirement age 5
Normal
retirement age  6
2005
2.6
$35,921.47
72.4
$90,000
$12,000
$31,800
2006
2.6
37,716.79
5.0
92,700
12,240
32,760
2007
2.9
39,428.35
4.5
94,800
12,600
33,480
2008
4.6
40,860.58
3.6
99,600
13,200
35,160
2009
5.8
43,485.07
6.4
104,100
13,800
36,840
2010
5.5
46,602.64
7.2
108,000
14,280
38,160
2011
4.6
49,154.43
5.5
114,900
15,240
40,560
2012
3.8
51,426.51
4.6
123,000
16,320
43,440
2013
3.8
53,679.36
4.4
129,900
17,280
45,840
2014
3.8
55,992.55
4.3
135,900
18,000
48,000

1Effective with benefits payable for December in each year.

2Average wages used for Social Security indexing purposes.

3Increase in the average wage index over the prior year.

4See Glossary for definition of "Annual maximum taxable limit".

5See Glossary for definition of "Normal retirement age—NRA".

6Public Law 106-182 eliminated the earnings test for workers attaining normal retirement age through age 69 in 2000 or later. Exception: the test still applies to all months prior to attainment of the full retirement age in the calendar year the beneficiary attains full retirement age.

7Based on estimated average wage index of $35,157.10 for 2004.

Source: Benefit increases based on assumed future growth in CPI; all other future figures based on average amount of total wages.

Note: Estimates based on 2005 Trustees Report high cost set of assumptions.

V.B5.—Selected OASDI Program Amounts Determined Under the Automatic-Adjustment Provisions
(High cost alternative, calendar years 2005-14)
Year
AIME "bend points" in PIA formula
PIA "bend points" in maximum-family-benefit formula
Earnings required
for a quarter
of coverage 1
"Old-law"
contribution and benefit base 2
First
Second
First
Second
Third
2005
$627
$3,779
$801
$1,156
$1,508
$920
$66,900
2006
645
3,891
825
1,190
1,553
950
68,700
2007
661
3,985
845
1,219
1,590
970
70,500
2008
694
4,185
887
1,280
1,670
1,020
74,100
2009
726
4,374
927
1,339
1,746
1,070
77,400
2010
752
4,533
961
1,387
1,809
1,110
80,100
2011
800
4,825
1,023
1,476
1,925
1,180
85,200
2012
858
5,170
1,096
1,582
2,063
1,260
91,500
2013
905
5,454
1,156
1,669
2,176
1,330
96,300
2014
947
5,706
1,209
1,746
2,277
1,390
100,800

1See Glossary for a description of quarter-of-coverage requirements prior to 1978.

2Contribution and benefit base that would have been determined automatically under the law in effect prior to enactment of the Social Security Amendments of 1977.

Source: Figures based on average amount of total wages.

Note: Estimates based on 2005 Trustees Report high cost set of assumptions.

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