Description of Proposed Provision:
B3.13: For retired worker beneficiaries newly eligible in 2024 (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 $885 in 2017 to $1,125 in 2017. Phase this provision in over 10 years (2024-2033). The phase-in would work on a weighted-average basis: 90% of CL formula + 10% of proposal formula for 2024, 80% of CL formula + 20% of proposal formula for 2025, and so on.

Estimates based on the intermediate assumptions of the 2017 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
-2.83 -4.48   0.07 0.14   2% 3%

graph of OASDI cost rates and income rates by year, under current law and provision. click on graph to view underlying data. graph of OASDI trust fund ratio by year, under current law and provision. click on graph to view underlying data.