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Summary of Provisions That Would Change the Social Security Program
Solvency Provisions

Description of Proposed Provisions:
Provisions Affecting Trust Fund Investment in Equities

Estimates based on the intermediate assumptions of the 2013 Trustees Report


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  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
  Present Law, Alternative II.
     -2.72 -4.77
G1 Invest 40 percent of the Trust Funds in equities (phased in 2014-2028), assuming an ultimate 6.4 percent real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) 		0.60 0.00 -2.12 -4.77
G2 Invest 40 percent of the Trust Funds in equities (phased in 2014-2028), assuming an ultimate 5.4 percent real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) 		0.44 0.00 -2.28 -4.77
G3 Invest 40 percent of the Trust Funds in equities (phased in 2014-2028), assuming an ultimate 2.9 percent real rate of return on equities. Thus, the ultimate rate of return on equities is the same as that assumed for Trust Fund bonds.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) 		0.00 0.00 -2.72 -4.77
G4 Invest 15 percent of the Trust Fund in equities (phased in 2014-2023), assuming an ultimate 6.4 percent annual real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo (AARP) 		0.25 0.00 -2.47 -4.77
G5 Invest 15 percent of the Trust Funds in equities (phased in 2014-2023), assuming an ultimate 2.9 percent annual real rate of return on equities. Thus, the ultimate rate of return on equities is the same as that assumed for Trust Fund bonds.
graph | table | pdf-graph | pdf-table | memo (AARP) 		0.00 0.00 -2.72 -4.77
G6 Invest up to 25 percent of OASDI Trust Fund reserves in equities (phased in 2016-2025), assuming an ultimate 6.4 percent real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo (Larson) 		0.38 0.00 -2.33 -4.77
G7 Invest up to 25 percent of OASDI Trust Fund reserves in equities (phased in 2016-2025), assuming an ultimate 2.9 percent annual real rate of return on equities. Thus, the ultimate rate of return on equities is the same as that assumed for Trust Fund bonds.
graph | table | pdf-graph | pdf-table | memo (Larson) 		0.00 0.00 -2.72 -4.77
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Last reviewed or modified September 30, 2013