Summary Measures and Graphs
Description of Proposed Provision:
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.
Estimates based on the intermediate assumptions
of the 2024 Trustees Report
Summary Measures | |||||||
---|---|---|---|---|---|---|---|
Current law [percent of payroll] |
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 |
Long-range actuarial balance |
Annual balance in 75th year |
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-3.50 | -4.64 | -0.21 | -0.29 | -6% | -6% |