Summary Measures and Graphs
Description of Proposed Provision:
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 $27,821 in 2020). The credits are available for all past years to newly eligible retired-worker and disabled-worker beneficiaries starting in 2021. The 5 years are chosen to yield the largest increase in AIME.
Estimates based on the intermediate assumptions
of the 2020 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 |
||
-3.21 | -4.51 | -0.24 | -0.33 | -7% | -7% |