Summary of Provisions That Would Change the Social Security Program
Description of Proposed Provisions:
Provisions Affecting Level of Monthly Benefits
Estimates based on the intermediate assumptions of
the 2024 Trustees Report
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Change from current law [percent of payroll] |
Shortfall eliminated | |||||
|---|---|---|---|---|---|---|
|
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
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| Current law shortfall in long-range actuarial balance is 3.50 percent of payroll and in annual balance for the 75th year is 4.64 percent of payroll. | ||||||
| B1.1 |
Price indexing of PIA factors beginning with those newly eligible for OASDI
benefits in 2031: Reduce factors so that initial benefits grow by inflation
rather than by the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board 2005) |
2.96 | 7.79 | 85% | 168% | |
| B1.2 |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2031: 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 factors above the 30th percentile such that the initial
benefit for a worker with AIME equal to the taxable maximum grows by inflation
rather than the growth in the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board 2005) |
1.64 | 4.34 | 47% | 94% | |
| B1.3 |
Progressive price indexing (40th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2031: Create a new bend
point at the 40th percentile of the AIME distribution of newly retired workers.
Maintain current-law benefits for earners at the 40th percentile and below. Reduce
the 32 and 15 percent factors above the 40th percentile such that the initial
benefit for a worker with AIME equal to the taxable maximum grows by inflation
rather than the growth in the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board 2005) |
1.40 | 3.71 | 40% | 80% | |
| B1.4 |
Progressive price indexing (50th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2031: Create a new bend
point at the 50th percentile of the AIME distribution of newly retired workers.
Maintain current-law benefits for earners at the 50th percentile and below.
Reduce the 32 and 15 percent factors above the 50th percentile such that the
initial benefit for a worker with AIME equal to the taxable maximum grows by
inflation rather than the growth in the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board 2005) |
1.17 | 2.91 | 33% | 63% | |
| B1.5 |
Progressive price indexing (60th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2031: Create a new bend point
at the 60th percentile of the AIME distribution of newly retired workers. Maintain
current-law benefits for earners at the 60th percentile and below. Reduce the
32 and 15 percent factors above the 60th percentile such that the initial benefit
for a worker with AIME equal to the taxable maximum grows by inflation rather
than the growth in the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board 2005) |
0.88 | 1.99 | 25% | 43% | |
| B2.1 |
Beginning with those newly eligible for OASI benefits in 2034, multiply the PIA
factors by the ratio of life expectancy at 67 for 2029 to the life expectancy at
age 67 for the 4th year prior to the year of benefit eligibility. Unisex life expectancies,
based on period life tables as computed by SSA's Office of the Chief Actuary, are
used to determine the ratio. 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.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) | memo (Bennett 2009) |
0.56 | 1.72 | 16% | 37% | |
| B3.8 |
Beginning with those newly eligible for OASDI benefits in 2031, create a new bend
point at the 50th percentile of the AIME distribution of newly retired workers and
gradually reduce all PIA factors except for the 90 percent factor. By 2064: a) the
32 percent PIA factor below the new bend point reduces to 30 percent; b) the 32 percent
PIA factor above the new bend point reduces to 10 percent; and c) the 15 percent PIA
factor reduces to 5 percent.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission 2010) |
1.02 | 2.43 | 29% | 52% | |
| B3.9 |
Beginning with those newly eligible for OASDI benefits in 2037, gradually reduce the
15 percent PIA factor in each year so that it reaches 10 percent for those newly eligible
in 2066 and later.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
0.10 | 0.27 | 3% | 6% | |
| B3.10 |
Beginning with those newly eligible for OASDI benefits in 2031, gradually increase the
first PIA bend point in each year so that it is 15 percent higher for those newly eligible
in 2045 and later.
graph | table | pdf-graph | pdf-table | memo (Sanders, DeFazio 2019) | memo (Sanders, DeFazio 2017) | memo (Sanchez 2016) | memo (Sanders 2016) | memo (Schatz 2015) | memo (Sanders 2015) | memo (Harkin 2013) | memo (Harkin 2012) |
-0.39 | -0.71 | -11% | -15% | |
| B3.11 |
Increase the first PIA factor from 90 percent to 93 percent for all beneficiaries eligible
as of January 2026 and for those newly eligible for benefits after 2025.
graph | table | pdf-graph | pdf-table | memo (Larson, Blumenthal, Van Hollen September 2019) | memo (Larson, Blumenthal, Van Hollen January 2019) | memo (Larson 2017) | memo (Larson 2015) | memo (Larson 2014) |
-0.24 | -0.26 | -7% | -6% | |
| B3.12 |
Use an annualized "mini-PIA" formula beginning with retired workers newly eligible in 2031.
For each indexed earnings year, compute an individual AIME and an individual PIA. Sum these
individual PIAs for the 40 highest years of indexed earnings and divide that total amount by
37 to get the PIA for this provision. Phase-in over five years, meaning that in 2031, 80 percent
of the benefit would be based on the old 35-year average PIA formula and 20 percent on the
new mini-PIA formula, shifting by 20 percentage points each year until 100 percent is based
on the new mini-PIA formula for those attaining age 62 in 2035. Disabled worker benefits are
unchanged under this provision.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.23 | 0.37 | 7% | 8% | |
| B3.13 |
For retired worker beneficiaries newly eligible in 2031 (excluding disabled workers),
add a new bend point at the wage-indexed equivalent of the 50th percentile of the AIME
distribution minus $100 (for 2015 eligibility) and change the PIA factors to 95/32/15/5.
Also move the current-law first bend point from the wage-indexed equivalent of $1,174
in 2023 to $1,493 in 2024. Phase this provision in over 10 years (2031-2040). The phase-in
would work on a weighted-average basis: 90% of CL formula + 10% of proposal formula for
2031, 80% of CL formula + 20% of proposal formula for 2032, and so on.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.10 | 0.21 | 3% | 5% | |
| B3.14 |
Beginning with those newly eligible for OASDI benefits in 2026, reduce the 15 percent
PIA factor by 2 percentage points per year so that it reaches 5 percent for those newly
eligible in 2030 and later.
graph | table | pdf-graph | pdf-table | memo (Ribble 2016) |
0.37 | 0.55 | 11% | 12% | |
| B3.15 |
Increase the 90 percent PIA formula factor to 91 percent for beneficiaries newly
eligible in 2029, 92 percent for those newly eligible in 2030, ..., reaching 95
percent for those newly eligible in 2033 and later.
graph | table | pdf-graph | pdf-table | memo (Sanchez 2016) |
-0.28 | -0.44 | -8% | -10% | |
| B3.16 |
For retired worker and disabled worker beneficiaries becoming initially eligible in
January 2031 or later, phase in a new benefit formula (from 2031 to 2040). Replace
the existing two primary insurance amount (PIA) bend points with three new bend points
as follows: (1) 25% AWI/12 from 2 years prior to initial eligibility; (2) 100% AWI/12
from 2 years prior to initial eligibility; and (3) 125% AWI/12 from 2 years prior to
initial eligibility. The new PIA factors are 95%, 27.5%, 5% and 2%. During the phase
in, those becoming newly eligible for benefits will receive an increasing portion of
their benefits based on the new formula, reaching 100% of the new formula in 2040.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
1.00 | 1.75 | 28% | 38% | |
| B3.17 |
Increase the current-law first bend point by 22 percent and increase the 90 percent
PIA factor to 95 percent for all beneficiaries eligible for benefits as of January
2025 and for those newly eligible for benefits after 2024. This provision will result
in an approximate $230 increase in PIA for most workers newly eligible for retirement
or disability benefits in 2025.
graph | table | pdf-graph | pdf-table | memo (Sanders 2023) | memo (Sanders, DeFazio 2022) |
-1.48 | -1.57 | -42% | -34% | |
| B4.1 |
Increase the number of years used to calculate benefits for retirees and survivors
(but not for disabled workers) from 35 to 38, phased in over the years 2025-2029.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board 2005) |
0.28 | 0.39 | 8% | 8% | |
| B4.2 |
Increase the number of years used to calculate benefits for retirees and survivors
(but not for disabled workers) from 35 to 40, phased in over the years 2025-2033.
graph | table | pdf-graph | pdf-table | memo (Chaffetz 2011) | memo (Social Security Advisory Board 2005) |
0.45 | 0.66 | 13% | 14% | |
| B4.3 |
For the OASI and DI computation of the PIA, gradually reduce the maximum number
of drop-out years from 5 to 0, phased in over the years 2026-2034.
graph | table | pdf-graph | pdf-table | memo (Warshawsky 2008) |
0.59 | 0.89 | 17% | 19% | |
| B4.4 |
Reduce the number of computation years (increase dropout years) for parents
having a child in care under the age of 6. The parent must have no earnings
(covered or non-covered) for the year to be eligible for the credit. Only one
parent can claim the childcare added dropout year for a given earnings year.
Each parent can earn at most 2 dropout years per child, and a maximum of 5
dropout years in total. The years designated as childcare years do not have
to be the years that could otherwise be included in the computation of the
average indexed monthly earnings (AIME). The provision would be effective for
all benefits payable for entitlement in January 2026 and later (without regard
for when the beneficiary became initially eligible).
graph | table | pdf-graph | pdf-table | memo (Murphy 2016) |
-0.06 | -0.06 | -2% | -1% | |
| B4.5 |
For retired and disabled workers, reduce the maximum number of dropout years to
4 for workers newly eligible in 2026, to 3 for workers newly eligible in 2027,
and to 2 for workers newly eligible in 2028 and later.
graph | table | pdf-graph | pdf-table | memo (Ribble 2016) |
0.36 | 0.51 | 10% | 11% | |
| B5.1 |
Increase the PIA to a level such that a worker with 30 years of earnings at the
minimum wage level receives an adjusted PIA equal to 120 percent of the Federal
poverty level for an aged individual. This provision takes full effect for all
newly eligible OASDI workers in 2042, and is phased in for new eligibles in 2033
through 2041. The percentage increase in PIA is lowered proportionately for those
with fewer than 30 years of earnings, down to no enhancement for workers with 20
or fewer years of earnings. (Year-of-work requirements are "scaled" for disabled
workers based on their years of potential work from age 22 to benefit eligibility).
The benefit enhancement percentage is reduced proportionately for workers with higher
average indexed monthly earnings (AIME), down to no enhancement for those with AIME
at least twice that of a 35-year steady minimum wage earner.
graph | table | pdf-graph | pdf-table | memo (Ryan 2010) |
-0.00 | -0.00 | -0% | -0% | |
| B5.2 |
Beginning for those newly eligible in 2025, reconfigure the special minimum benefit:
(a) A year of coverage is defined as a year in which 4 quarters of coverage are earned.
(b) At implementation, set the PIA for 30 years of coverage equal to 125 percent of
the monthly poverty level (about $1,519 in 2023). For those with under 30 years of
coverage, the PIA per year of coverage over 10 years is $1,519/20 = $75.95. (c) Index
the initial PIA per year of coverage by wage growth for successive cohorts.
graph | table | pdf-graph | pdf-table | memo (Sanders 2023) | memo (Sanders, DeFazio 2022) | memo (Lawson 2021) | memo (Larson, Blumenthal, Van Hollen September 2019) | memo (Sanders, DeFazio 2019) | memo (Larson, Blumenthal, Van Hollen January 2019) | memo (Lawson 2017) | memo (Larson 2017) | memo (Sanders, DeFazio 2017) | memo (Sanders 2016) | memo (Sanders 2015) | memo (Larson 2015) | memo (Larson 2014) | memo (National Academy of Social Insurance 2009) |
-0.13 | -0.19 | -4% | -4% | |
| B5.3 |
Beginning for those newly eligible in 2025, reconfigure the special minimum benefit:
(a) A year of coverage is defined to be either a year in which 4 quarters of coverage
are earned or a child is in care. Childcare years are granted to parents who have a
child under 5, with a limit of 8 such years. (b) At implementation, set the PIA for
30 years of coverage equal to 125 percent of the monthly poverty level (about $1,519
in 2023). For those with under 30 years of coverage, the PIA per year of coverage over
10 years is $1,519/20 = $75.95. (c) Index the initial PIA per year of coverage by wage
growth for successive cohorts.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance 2009) |
-0.21 | -0.29 | -6% | -6% | |
| B5.4 |
Beginning for those newly eligible in 2031, reconfigure the special minimum benefit:
(a) A year of coverage is defined as a year in which 4 quarters of coverage are earned.
(b) At implementation, set the PIA for 30 years of coverage equal to 125 percent of
the monthly poverty level (about $1,519 in 2023). For those with under 30 years of
coverage, the PIA per year of coverage over 10 years is $1,519/20 = $75.95. (c) From
2023 to the year of implementation, 2031, index the PIA per year of coverage using
the chain-CPI index. Then, for later years, index the PIA per year of coverage by
wage growth for successive cohorts. (d) Scale work requirements for disabled workers,
based on the number of years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission 2010) |
-0.09 | -0.14 | -3% | -3% | |
| B5.5 |
Beginning for those newly eligible in 2026, reconfigure the special minimum benefit:
(a) A year of coverage is defined as a year in which either 20 percent of the "old law
maximum" is earned or a child is in care. Childcare years are granted to parents who
have a child under 6, with a limit of 8 such years. (b) At implementation, set the PIA
for 30 years of coverage equal to 133 percent of the Census monthly poverty level (about
$1,620 in 2023). For those with under 30 years of coverage, the PIA per year of coverage
over 19 years is $1,620/11 = $147.20. (c) Index the initial PIA per year of coverage
by wage growth for successive cohorts. (d) Scale work requirements for disabled workers,
based on the number of years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
-0.00 | -0.01 | -0% | -0% | |
| B5.6 |
Beginning for those newly eligible in 2025, reconfigure the special minimum benefit:
(a) A year of coverage is defined to be either a year in which 4 quarters of coverage
are earned or a child is in care. Childcare years are granted to parents who have a
child under 6, with a limit of 5 such years. (b) At implementation, set the PIA for
30 years of coverage equal to 100 percent of the monthly poverty level (about $1,255
in 2024). For those with under 30 years of coverage, the PIA per year of coverage over
10 years is $1,255/20 = $62.75. (c) From 2024 to the year of implementation, 2025, index
the PIA per year of coverage using the CPI index. Then, for later years, index the PIA
per year of coverage by wage growth for successive cohorts. (d) Scale work requirements
for disabled workers, based on the number of years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Chaffetz 2011) |
-0.07 | -0.11 | -2% | -2% | |
| B5.7 |
Beginning for those newly eligible in 2027, reconfigure the special minimum benefit:
(a) The number of years of work (YOWs) is determined as total quarters of coverage divided
by 4, ignoring any fraction. Childcare years are granted to parents who have a child
under 6, with a limit of 5 such years. (b) At implementation, set the PIA for 30+ YOWs
equal to 100 percent of the monthly HHS poverty level for the year prior to eligibility.
For workers between 11 and 29 YOWs, reduce the special minimum by 3 1/3 percentage points
per YOW so that at 29 YOWs the minimum would be 96 2/3% of poverty, ..., down to 11 YOWs
at 36 2/3% of poverty. No minimum for 10 or fewer YOWs.
graph | table | pdf-graph | pdf-table | memo (Moore 2013) |
-0.02 | -0.00 | -1% | -0% | |
| B5.8 |
Beginning in 2029, create a Basic Minimum Benefit (BMB) within Social Security (i.e.,
the cost of the BMB would be charged as a cost to the OASI Trust Fund), with the following
specifications: (1) Eligibility for the BMB would be limited to OASI beneficiaries who
have attained normal retirement age (NRA) or above. OASI beneficiaries under NRA would
not be eligible for the BMB. (2) The BMB would be calculated on a household basis and
split equally between members of the household. In the case of a married couple, both
spouses would need to claim any Social Security benefits for which they are eligible
before they could receive the BMB. If both spouses have claimed and one is NRA or above
and the other has not yet attained NRA, only the half of the BMB for the spouse over
NRA would be payable. (3) The BMB amount for single beneficiaries would be equal to
either: 1) the BMB base ($604 in 2015) - 0.70 * current monthly OASI benefit (not including
any BMB), if positive; or 2) zero. (4) The BMB amount for married beneficiaries would
be equal to either: 1) the BMB base ($906 in 2015) - 0.70 * total household monthly OASI
benefits (not including any BMB), if positive; or 2) zero. (5) The BMB bases for singles
and couples would be updated annually for changes in the average wage index (AWI). (6)
Single filers with Adjusted Gross Income (AGI) over $30,000 and joint filers with AGI
(including taxable SS benefits) over $45,000 would be subject to clawback of the BMB
through the income tax system. Any BMB would be reduced by one dollar for every dollar
of income above the thresholds. (Thresholds, in 2015 dollars, would be indexed to chained
CPI-U.) Clawbacks would be credited back to the OASI Trust Fund.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
-0.21 | -0.25 | -6% | -5% | |
| B5.9 |
Beginning for those newly eligible in 2026, reconfigure the special minimum benefit:
(a) A year of coverage is defined as a year in which 4 quarters of coverage are earned.
(b) At implementation, set the PIA for 40 years of coverage equal to 125 percent of
the monthly Aged Federal poverty level (about $1,522 in 2023). For those with 20 or
fewer years of coverage, phase up linearly from 0 percent of the poverty level for 10
years of coverage to 100 percent of the poverty level. For those having between 20 and
40 years of coverage, phase up linearly from 100 percent of the poverty level at 20
years of coverage to 125% of the poverty level for 40 or more years of coverage. (c)
For newly eligible workers in 2026 and 2027, index the applicable poverty level using
the CPI index, to the year prior to eligibility. Then, for newly eligible workers in
2028 and later, index the PIA per year of coverage by wage growth for successive cohorts.
(d) Disabled workers have a somewhat similar minimum benefit, with work requirements
scaled based on the number of years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Ribble 2016) |
-0.15 | -0.23 | -4% | -5% | |
| B5.10 |
Reconfigure the special minimum benefit, phased in for retired and disabled workers
newly eligible from 2031 through 2040: (a) A year of work (YOW) coverage is equal to
earnings at or above $10,875 in 2024 (reflecting a full-time worker earning the federal
minimum wage), adjusted thereafter for wage growth. (b) At implementation, set the
minimum PIA at zero percent of AWI for those with 10 or fewer YOWs to 15 percent of
AWI for those with 15 YOWs, increasing linearly so that it reaches 19 percent for 19
YOWs. Then the minimum PIA would jump up to 25 percent of AWI for those with 20 YOWs,
increasing linearly so that it equals 35 percent of AWI for those with 35 or more YOWs.
(c) Use the AWI for two years prior to the year of initial eligibility in the minimum
PIA calculation with COLA increase after the year of initial eligibility. (d) Scale the
YOW requirements for disabled workers, based on the number of years of non-disabled
potential work.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
-0.38 | -0.64 | -11% | -14% | |
| B5.11 |
Beginning for those newly eligible in 2025, reconfigure the special minimum benefit:
(a) The number of years of work (YOWs) is determined as total quarters of coverage
divided by 4, ignoring any fraction. Childcare years are granted to parents who have
a child under 6, with a limit of 5 such years. (b) For beneficiaries becoming newly
eligible in 2025, set the initial special minimum benefit for 30+ YOWs equal to 100
percent of the monthly HHS poverty level for 2024. For beneficiaries becoming newly
eligible after 2025, the initial special minimum benefit is indexed by the AWI. For
workers between 11 and 29 YOWs, reduce the special minimum by 3 1/3 percentage points
per YOW so that at 29 YOWs the minimum would be 96 2/3% of poverty, ..., down to 11
YOWs at 36 2/3% of poverty. No minimum for 10 or fewer YOWs.
graph | table | pdf-graph | pdf-table | memo (Moore 2023) | memo (Moore 2022) | memo (Moore 2019) |
-0.09 | -0.13 | -3% | -3% | |
| B6.1 |
Provide a 5 percent increase to the monthly benefit amount (MBA) of any beneficiary
who is 85 or older at the beginning of 2025 or who reaches their 85th birthday after
the beginning of 2025.
graph | table | pdf-graph | pdf-table | memo (Chaffetz 2011) | memo (National Academy of Social Insurance 2009) |
-0.13 | -0.18 | -4% | -4% | |
| B6.2 |
Provide the same dollar amount increase to the monthly benefit amount (MBA) of any
beneficiary who is 85 or older at the beginning of 2025 or who reaches their 85th
birthday after the beginning of 2025. The dollar amount of increase equals 5 percent
of the average retired-worker MBA in the prior year.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance 2009) |
-0.13 | -0.18 | -4% | -4% | |
| B6.3 |
Provide an increase in the benefit level of any beneficiary who is 85 or older
at the beginning of 2026 or who reaches their 85th birthday after the beginning
of 2026. Increase the beneficiary's PIA based on an amount equal to the average
retired-worker PIA at the end of 2025, or at the end of the year age 80 if later.
Increase the beneficiary's PIA by 5 percent of this amount for those older than
85 at the beginning of 2026 and by 5 percent of this amount at age 85 for others,
phased in at 1 percent per year for ages 81-85.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
-0.16 | -0.21 | -5% | -5% | |
| B6.4 |
Starting in 2025, provide a 5 percent uniform benefit increase 24 years after
initial benefit eligibility. Phase in the benefit increase at 1 percent per year
from the 20th through 24th years after eligibility. For disabled workers, the
eligibility age is the initial entitlement year to the benefit. The benefit increase
is equal to 5 percent of the PIA of a worker assumed to have career-average earnings
equal to SSA's average wage index. Auxiliary beneficiaries receive benefit enhancement
based on the PIA of the governing worker.
graph | table | pdf-graph | pdf-table | memo (Ribble 2016) | memo (Fiscal Commission 2010) |
-0.18 | -0.24 | -5% | -5% | |
| B6.5 |
Starting in 2027, provide a 5 percent uniform PIA increase 20 years after benefit
eligibility. Phase in the PIA increase at 1 percent per year from the 16th through
20th years after eligibility. The full PIA increase is equal to 5 percent of the PIA
of a worker assumed to have career-average earnings equal to the SSA average wage
index. Auxiliary beneficiaries receive benefit enhancement based on the PIA of the
governing worker.
graph | table | pdf-graph | pdf-table | memo (Moore 2023) | memo (Moore 2022) | memo (Moore 2019) | memo (Moore 2013) |
-0.28 | -0.34 | -8% | -7% | |
| B6.6 |
Starting in 2031, provide a uniform PIA increase in the 24th year of benefit
eligibility. Phase in the PIA increase at 0.5 percent per year from the 15th
through the 24th years of eligibility. The full PIA increase is equal to 5 percent
of the average retired worker PIA in December of the 14th year of benefit eligibility.
A similar additional PIA increase applies in the 43rd year of benefit eligibility
(age 104), phased in from the 34th through the 43rd years of eligibility. For
those past the 15th year of eligibility in 2030 (over age 76 for retirees),
phase in the PIA enhancement over 10 years starting in 2031. Auxiliary beneficiaries
receive benefit enhancement based on the PIA of the governing worker.
graph | table | pdf-graph | pdf-table | memo (FY 2014 Budget) |
-0.23 | -0.32 | -7% | -7% | |
| B6.7 |
Starting in January 2031, provide an addition to monthly benefits for all
beneficiaries who have been eligible for at least 20 years, with the following
specifications: (1) Augment benefits (not the PIA) for those of qualifying
age and eligibility duration with a MAGI below about $30,000 if single and
$60,000 if married. MAGI is set to equal the IRMAA definition (AGI plus tax-exempt
interest income). Index these thresholds after 2031 by the increase in the
C-CPI-U; (2) The full additional amount is applicable for those born 1964
and later, once 24 years elapse from initial eligibility. The basic additional
amount is calculated as 5 percent of the PIA for a hypothetical worker with
earnings equal to the AWI each year; (3) For those born prior to 1964, the
full additional amount is multiplied by the number of years they have been
affected by the C-CPI-U, divided by 24; (4) Beneficiaries will receive 20
percent of their additional amount in their 20th year after initial eligibility,
40 percent in their 21st year after initial eligibility,..., and 100 percent
of their additional amount in their 24th and later years after benefit eligibility;
(5) Retired and disabled worker beneficiaries, dually entitled spouse beneficiaries,
and all survivor beneficiaries received their addition as described above.
Spousal beneficiaries (aged or with child in care) and child beneficiaries
of a living retired or disabled worker receive 50 percent of the additional
amount described above. Other beneficiary types (such as parents of deceased
workers) will receive the percentage of the flat benefit that equals the percentage
of the insured worker's PIA that they receive; (6) The AWI used is for the second
year prior to the beneficiary's initial eligibility year, with applicable COLAs
applied up to the age when the addition is received; and (7) The additional amount
is added to the monthly benefit after reductions for early claiming or increases
for delayed claiming have been applied.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
-0.06 | -0.07 | -2% | -1% | |
| B6.8 |
Starting in 2026, provide an additional monthly benefit equal to 1/12th of 2 percent
of the AWI for the second prior year. This additional benefit would be available to
those meeting any of the following four requirements: (a) Social Security beneficiaries
who have attained age 82; (b) Social Security beneficiaries who have attained NRA and
have both AIME at or below the first PIA bend point ($1,174 for 2024 initial eligibility)
and at least 11 "years of coverage" as used for Windfall Elimination Provision purposes
(earnings above $31,275 for 2024); (c) Individuals who have received Social Security
benefits and/or SSI payments for at least 240 distinct months after attaining age 19;
or (d) SSI recipients who have attained the Social Security NRA. This additional benefit
would be paid out of the applicable Social Security OASI or DI Trust Fund for any month
in which the individual is in receipt of a Social Security benefit; it would be paid out
of the General Fund of the Treasury for any month in which the individual is in receipt
of an SSI monthly payment but not a Social Security monthly benefit.
graph | table | pdf-graph | pdf-table | memo (Wyden 2018) |
-0.30 | -0.38 | -8% | -8% | |
| B7.2 |
Reduce benefits by 5 percent for those newly eligible for benefits in 2025 and later.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board 2005) |
0.62 | 0.85 | 18% | 18% | |
| B7.3 |
Give credit to parents with a child under 6 for earnings for up to five years. The
earnings credited for a childcare year equal one half of the SSA average wage index
(about $34,396 in 2024). The credits are available for all past years to newly eligible
retired-worker and disabled-worker beneficiaries starting in 2025. The 5 years are
chosen to yield the largest increase in AIME.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance 2009) |
-0.23 | -0.32 | -7% | -7% | |
| B7.5 |
Increase benefits by 5 percent for all beneficiaries as of the beginning of 2025
and for those newly eligible for benefits after the beginning of 2025.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance 2009) |
-0.80 | -0.85 | -23% | -18% | |
| B7.7 |
Reduce individual Social Security benefits if modified adjusted gross income,
or MAGI (AGI less taxable Social Security benefits plus nontaxable interest income)
is above $60,000 for single taxpayers or $120,000 for taxpayers filing jointly.
This provision is effective for individuals newly eligible for benefits in 2029
or later. The percentage reduction increases linearly up to 50 percent for single/joint
filers with MAGI of $180,000/$360,000 or above. Index the MAGI thresholds for years
after 2029, based on changes in the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Chaffetz 2011) |
0.50 | 0.69 | 14% | 15% | |
| B7.8 |
Replace the Windfall Elimination Provision (WEP) and Government Pension Offset
(GPO) with a revised reduction for most OASI benefits based on all earnings,
beginning with beneficiaries newly eligible in 2031.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.07 | 0.11 | 2% | 2% | |
| B7.9 |
Beginning for newly eligible retired workers and spouses in 2031, all claimants
who are married would receive a specified joint-and-survivor annuity benefit (i.e.,
surviving spouses would receive 75 percent of the decedents' benefits, in addition
to their own) that would be payable if both were still alive. Initial benefits would
be actuarially adjusted to keep the expected value of benefits equivalent to what
would otherwise be current law.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
-0.01 | -0.29 | -0% | -6% | |
| B7.10 |
Replace the current-law WEP with a new calculation for most OASI and DI benefits
based on covered and non-covered earnings, phased in for beneficiaries becoming
newly eligible in 2031 through 2040. For this new approach, compute a PIA based
on all past earnings (covered and non-covered), and multiply by the "non-covered
earnings ratio." This ratio is equal to the current-law concept of the average
indexed monthly earnings computed without non-covered earnings divided by a modified
average indexed monthly earnings that includes both covered and non-covered earnings
in agency records.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
0.05 | 0.08 | 1% | 2% | |
| B7.11 |
Beginning in January 2027, eliminate the retirement earnings test for all beneficiaries
under normal retirement age, including retired workers, aged spouses, aged widow(er)s,
young spouses with a child in care, young surviving spouses with a child in care, and children.
graph | table | pdf-graph | pdf-table | memo (Walorski 2019) | memo (Johnson, Walorski 2017) | memo (Johnson 2016) |
0.03 | 0.12 | 1% | 3% | |
| B7.12 |
Provide an option to split the 8-percent delayed retirement credit (DRC) to offer
a lump sum benefit at initial entitlement equal to 2 percent of the 8 percent DRC
earned, and a 6 percent DRC on subsequent monthly benefits, effective for workers
newly entitled to retired worker benefits in 2027 and later. Widows are held harmless
from the lump-sum decision.
graph | table | pdf-graph | pdf-table | memo (Johnson, Smith 2017) | memo (Johnson 2016) |
-0.00 | 0.00 | -0% | 0% | |
| B7.13 |
Eliminate the DI 5-month waiting period for disabled workers and disabled surviving
spouses, and eliminate the 24-month Medicare (HI) waiting period for individuals who
have become entitled to Social Security disability benefits. Effective with 2025 applications.
graph | table | pdf-graph | pdf-table | memo (Sanders 2018) |
-0.09 | -0.10 | -3% | -2% | |
| B7.14 |
Eliminate completely the Windfall Elimination Provision (WEP) and Government Pension
Offset (GPO), effective 2025.
graph | table | pdf-graph | pdf-table | memo (Davis, Spanberger 2022) | memo (Brown 2016) |
-0.12 | -0.12 | -4% | -3% | |