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| Actuarial Publications |
Summary of Provisions That Would Change the Social Security Program |
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Description of Proposed Provisions:
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Estimates based on the intermediate assumptions of the 2011 Trustees Report
| Printer-friendly Version (PDF) |
| Change from present law | Results with this provision | |||||
|---|---|---|---|---|---|---|
| Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
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| Present Law, Alternative II. |
-2.22 | -4.24 | ||||
| C1.1 |
After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, increase the
NRA 1 month every 2 years until the NRA reaches 68.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.32 | 0.74 | -1.90 | -3.51 | |
| C1.2 |
After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, increase the NRA
2 months every year until the NRA reaches 68.
graph | table | pdf-graph | pdf-table | memo (Liebman, MacGuineas, Samwick) |
0.41 | 0.74 | -1.81 | -3.51 | |
| C1.3 |
After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, index the NRA
to maintain a constant ratio of expected retirement years (life expectancy at NRA) to potential
work years (NRA minus 20). We assume the NRA will increase 1 month every 2 years.
graph | table | pdf-graph | pdf-table | memo (Ryan 2010) | memo (AARP) | memo (Ryan 2008) | memo (Social Security Advisory Board) |
0.44 | 1.51 | -1.78 | -2.73 | |
| C1.4 |
After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, increase the NRA 2
months per year until it reaches 69 for individuals attaining age 62 in 2034. Thereafter,
increase the NRA 1 month every 2 years.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) |
0.98 | 2.30 | -1.24 | -1.94 | |
| C1.5 |
Starting in 2012, allow workers to choose whether to have their payroll tax rate reduced by 2
percentage points. For each calendar year that a worker chooses to have their payroll tax reduced,
their NRA increases 1 month. We assume 2/3 of workers each year will choose this payroll reduction.
The General Fund of the Treasury reimburses the OASI and DI Trust Funds for the reduction in payroll
tax revenue.
graph | table | pdf-graph | pdf-table | memo (Landry) |
0.66 | 1.53 | -1.57 | -2.71 | |
| C2.1 |
Increase the earliest eligibility age (EEA) by two months every year for those age 62 starting in 2013
and ending in 2030 (EEA reaches 65 for those age 62 in 2030).
graph | table | pdf-graph | pdf-table | memo (AARP) |
-0.05 | -0.41 | -2.27 | -4.65 | |
| C2.2 |
After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, index the NRA to maintain a
constant ratio of expected retirement years (life expectancy at NRA) to potential work years (NRA minus
20). We assume the NRA will increase 1 month every 2 years. Also, raise the earliest eligibility age
(EEA) for retired workers, aged widow(er)s, and disabled widow(er)s by the same amount as the NRA starting
for those attaining EEA in 2017.
graph | table | pdf-graph | pdf-table | memo (NRC/NAPA) | memo (Warshawsky) |
0.45 | 1.43 | -1.77 | -2.81 | |
| C2.3 |
After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, index the NRA to maintain
a constant ratio of expected retirement years (life expectancy at NRA) to potential work years (NRA
minus 20). We assume the NRA will increase 1 month every 2 years. Also, increase the earliest eligibility
age (EEA) by the same amount as the NRA starting for those age 62 in 2022 so as to maintain a 5 year
difference between the two ages. Include a "hardship exemption" with no EEA/NRA change for a worker with
25 years of earnings (with 4 quarters of coverage each), and average indexed monthly earnings (AIME) less
than 250% of the poverty level (wage-indexed from 2010). The hardship exemption is phased out for those
with AIME above 400% of the poverty level.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission) |
0.37 | 1.22 | -1.85 | -3.03 | |
| C2.4 |
After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, increase both the NRA and
the earliest eligibility age (EEA) by 36/47 of a month per year until the NRA and EEA reach 65 and 70
respectively. For each year, the computed EEA and NRA rounds down to the next lower full month.
graph | table | pdf-graph | pdf-table | memo (Lummis) |
0.66 | 2.03 | -1.57 | -2.22 | |
| C2.5 |
Increase the normal retirement age (NRA) 3 months per year starting for those age 62 in 2017 until the
NRA reaches 70 in 2032. Thereafter, index the NRA to maintain a constant ratio of expected retirement
years (life expectancy at NRA) to potential work years (NRA minus 20). We assume the NRA will increase
1 month every 2 years. Also, increase the earliest eligibility age (EEA) from 62 to 64 at the same time
the NRA increases from 67 to 69; that is, for those attaining age 62 in 2021 through 2028. Keep EEA at
64 thereafter.
graph | table | pdf-graph | pdf-table | memo (Graham, Paul, Lee) |
1.38 | 2.86 | -0.84 | -1.38 | |
| C2.6 |
Increase the normal retirement age (NRA) and the earliest eligibility age (EEA) for those age 62 in
2020-21 to 68 and 63, respectively and then by 3 months per year in 2022-25 to 69 and 64, respectively.
graph | table | pdf-graph | pdf-table | memo (Hutchison) |
0.88 | 1.24 | -1.35 | -3.00 | |
| C2.7 |
Increase the normal retirement age (NRA) and the earliest eligibility age (EEA) for those age 62
starting in 2016 by 3 months per year until EEA reaches 64 in 2023 and NRA reaches 69 in 2027.
graph | table | pdf-graph | pdf-table | memo (Hutchison) |
0.85 | 1.24 | -1.37 | -3.00 | |
| C2.8 |
Starting in 2014, convert all disabled worker beneficiaries to retired worker status upon attainment
of their earliest eligibility age (EEA) rather than their normal retirement age (NRA). After conversion,
apply the early retirement reduction for retirement at EEA (currently 25% for those age 62 in 2014)
phased in over 40 years.
graph | table | pdf-graph | pdf-table | memo (Warshawsky) |
0.40 | 0.79 | -1.83 | -3.45 | |
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