Proposed Provision: B1.3. Progressive price indexing (40th percentile) of PIA factors beginning with individuals newly eligible for OASDI benefits in 2027: Create a new bend point at the 40th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 40th percentile and below. Reduce the 32 and 15 percent factors above the 40th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum grows by inflation rather than the growth in the SSA average wage index.
OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)
Year |
Current Law |
Provision |
2020 | 261 | 261 |
2021 | 248 | 248 |
2022 | 233 | 233 |
2023 | 217 | 217 |
2024 | 200 | 200 |
2025 | 183 | 183 |
2026 | 165 | 165 |
2027 | 148 | 148 |
2028 | 130 | 130 |
2029 | 112 | 112 |
2030 | 94 | 94 |
2031 | 76 | 76 |
2032 | 58 | 58 |
2033 | 39 | 40 |
2034 | 20 | 21 |
2035 | 1 | 2 |
2036 | -19 | -17 |
2037 | -38 | -37 |
2038 | -59 | -57 |
2039 | -80 | -77 |
2040 | -101 | -97 |
2041 | -122 | -118 |
2042 | -144 | -138 |
2043 | -166 | -159 |
2044 | -188 | -180 |
2045 | -210 | -201 |
2046 | -232 | -222 |
2047 | -255 | -242 |
2048 | -277 | -262 |
2049 | -299 | -283 |
2050 | -322 | -303 |
2051 | -344 | -323 |
2052 | -367 | -342 |
2053 | -389 | -362 |
2054 | -412 | -381 |
2055 | -434 | -401 |
2056 | -457 | -420 |
2057 | -480 | -439 |
2058 | -504 | -458 |
2059 | -527 | -476 |
2060 | -551 | -495 |
2061 | -575 | -514 |
2062 | -599 | -533 |
2063 | -624 | -552 |
2064 | -650 | -572 |
2065 | -676 | -591 |
2066 | -702 | -611 |
2067 | -728 | -630 |
2068 | -755 | -650 |
2069 | -782 | -669 |
2070 | -809 | -689 |
2071 | -837 | -709 |
2072 | -866 | -730 |
2073 | -895 | -750 |
2074 | -925 | -771 |
2075 | -955 | -792 |
2076 | -986 | -813 |
2077 | -1018 | -835 |
2078 | -1051 | -857 |
2079 | -1084 | -880 |
2080 | -1119 | -903 |
2081 | -1154 | -927 |
2082 | -1190 | -950 |
2083 | -1226 | -974 |
2084 | -1263 | -998 |
2085 | -1300 | -1021 |
2086 | -1337 | -1045 |
2087 | -1374 | -1068 |
2088 | -1411 | -1090 |
2089 | -1448 | -1112 |
2090 | -1484 | -1133 |
2091 | -1520 | -1153 |
2092 | -1554 | -1173 |
2093 | -1589 | -1192 |
2094 | -1623 | -1210 |
2095 | -1657 | -1228 |
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