Detailed Single Year Tables
Description of Proposed Provision:
B1.2: Progressive price indexing (30th percentile) of PIA factors beginning with individuals newly eligible for OASDI benefits in 2027: Create a new bend point at the 30th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent factors above the 30th 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.
Financial Estimates for the OASDI Trust Fund Program
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Expressed as a percentage of current-law taxable payroll |
Trust fund ratio as of January 1 |
Expressed as a percentage of current-law taxable payroll |
|||||||
|
Calendar year |
Cost rate |
Income rate |
Annual balance |
Cost rate |
Income rate |
Annual balance |
|||
| 2020 | 13.92 | 13.00 | -0.92 | 261 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.05 | 12.90 | -1.15 | 248 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.25 | 12.93 | -1.32 | 233 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.43 | 12.94 | -1.49 | 217 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.64 | 12.98 | -1.67 | 200 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.88 | 13.00 | -1.88 | 183 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.11 | 13.12 | -1.99 | 165 | 0.00 | 0.00 | 0.00 | ||
| 2027 | 15.35 | 13.15 | -2.20 | 148 | -0.00 | -0.00 | 0.00 | ||
| 2028 | 15.58 | 13.19 | -2.39 | 130 | -0.00 | -0.00 | 0.00 | ||
| 2029 | 15.83 | 13.23 | -2.60 | 112 | -0.01 | -0.00 | 0.01 | ||
| 2030 | 16.01 | 13.24 | -2.77 | 94 | -0.01 | -0.00 | 0.01 | ||
| 2031 | 16.17 | 13.25 | -2.91 | 76 | -0.02 | -0.00 | 0.02 | ||
| 2032 | 16.30 | 13.27 | -3.03 | 58 | -0.03 | -0.00 | 0.03 | ||
| 2033 | 16.40 | 13.28 | -3.13 | 40 | -0.05 | -0.00 | 0.05 | ||
| 2034 | 16.48 | 13.28 | -3.19 | 21 | -0.07 | -0.00 | 0.07 | ||
| 2035 | 16.53 | 13.29 | -3.24 | 2 | -0.10 | -0.00 | 0.09 | ||
| 2036 | 16.55 | 13.29 | -3.26 | ---- | -0.13 | -0.01 | 0.13 | ||
| 2037 | 16.57 | 13.30 | -3.27 | ---- | -0.17 | -0.01 | 0.16 | ||
| 2038 | 16.57 | 13.30 | -3.28 | ---- | -0.21 | -0.01 | 0.20 | ||
| 2039 | 16.56 | 13.30 | -3.26 | ---- | -0.26 | -0.01 | 0.24 | ||
| 2040 | 16.54 | 13.30 | -3.24 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2041 | 16.50 | 13.30 | -3.20 | ---- | -0.36 | -0.02 | 0.34 | ||
| 2042 | 16.44 | 13.30 | -3.14 | ---- | -0.42 | -0.02 | 0.40 | ||
| 2043 | 16.37 | 13.29 | -3.07 | ---- | -0.48 | -0.03 | 0.46 | ||
| 2044 | 16.29 | 13.29 | -3.00 | ---- | -0.55 | -0.03 | 0.52 | ||
| 2045 | 16.20 | 13.29 | -2.92 | ---- | -0.61 | -0.03 | 0.58 | ||
| 2046 | 16.12 | 13.28 | -2.84 | ---- | -0.68 | -0.04 | 0.65 | ||
| 2047 | 16.03 | 13.28 | -2.75 | ---- | -0.76 | -0.04 | 0.72 | ||
| 2048 | 15.95 | 13.27 | -2.68 | ---- | -0.83 | -0.05 | 0.79 | ||
| 2049 | 15.87 | 13.27 | -2.60 | ---- | -0.91 | -0.05 | 0.86 | ||
| 2050 | 15.79 | 13.27 | -2.53 | ---- | -0.99 | -0.06 | 0.94 | ||
| 2051 | 15.72 | 13.26 | -2.45 | ---- | -1.08 | -0.06 | 1.02 | ||
| 2052 | 15.65 | 13.26 | -2.39 | ---- | -1.16 | -0.07 | 1.10 | ||
| 2053 | 15.58 | 13.26 | -2.33 | ---- | -1.25 | -0.07 | 1.18 | ||
| 2054 | 15.52 | 13.26 | -2.27 | ---- | -1.34 | -0.08 | 1.26 | ||
| 2055 | 15.47 | 13.25 | -2.22 | ---- | -1.42 | -0.08 | 1.34 | ||
| 2056 | 15.42 | 13.25 | -2.17 | ---- | -1.51 | -0.09 | 1.43 | ||
| 2057 | 15.37 | 13.25 | -2.12 | ---- | -1.60 | -0.09 | 1.51 | ||
| 2058 | 15.34 | 13.25 | -2.09 | ---- | -1.69 | -0.10 | 1.60 | ||
| 2059 | 15.30 | 13.25 | -2.05 | ---- | -1.78 | -0.10 | 1.68 | ||
| 2060 | 15.27 | 13.25 | -2.02 | ---- | -1.87 | -0.11 | 1.77 | ||
| 2061 | 15.24 | 13.25 | -1.99 | ---- | -1.96 | -0.11 | 1.85 | ||
| 2062 | 15.21 | 13.25 | -1.97 | ---- | -2.05 | -0.12 | 1.93 | ||
| 2063 | 15.19 | 13.25 | -1.94 | ---- | -2.14 | -0.12 | 2.02 | ||
| 2064 | 15.16 | 13.25 | -1.91 | ---- | -2.23 | -0.13 | 2.10 | ||
| 2065 | 15.14 | 13.25 | -1.89 | ---- | -2.32 | -0.14 | 2.18 | ||
| 2066 | 15.12 | 13.24 | -1.87 | ---- | -2.41 | -0.14 | 2.27 | ||
| 2067 | 15.10 | 13.24 | -1.85 | ---- | -2.50 | -0.15 | 2.35 | ||
| 2068 | 15.08 | 13.24 | -1.84 | ---- | -2.58 | -0.15 | 2.43 | ||
| 2069 | 15.06 | 13.24 | -1.82 | ---- | -2.67 | -0.16 | 2.51 | ||
| 2070 | 15.04 | 13.24 | -1.80 | ---- | -2.76 | -0.16 | 2.60 | ||
| 2071 | 15.02 | 13.24 | -1.78 | ---- | -2.85 | -0.17 | 2.68 | ||
| 2072 | 15.00 | 13.24 | -1.76 | ---- | -2.93 | -0.17 | 2.76 | ||
| 2073 | 14.97 | 13.24 | -1.73 | ---- | -3.02 | -0.18 | 2.84 | ||
| 2074 | 14.94 | 13.24 | -1.70 | ---- | -3.10 | -0.18 | 2.92 | ||
| 2075 | 14.90 | 13.24 | -1.66 | ---- | -3.18 | -0.19 | 2.99 | ||
| 2076 | 14.86 | 13.24 | -1.62 | ---- | -3.26 | -0.19 | 3.07 | ||
| 2077 | 14.80 | 13.23 | -1.57 | ---- | -3.34 | -0.20 | 3.14 | ||
| 2078 | 14.74 | 13.23 | -1.51 | ---- | -3.41 | -0.20 | 3.21 | ||
| 2079 | 14.67 | 13.23 | -1.44 | ---- | -3.48 | -0.21 | 3.27 | ||
| 2080 | 14.59 | 13.22 | -1.37 | ---- | -3.55 | -0.21 | 3.34 | ||
| 2081 | 14.51 | 13.22 | -1.29 | ---- | -3.61 | -0.21 | 3.40 | ||
| 2082 | 14.42 | 13.21 | -1.21 | ---- | -3.67 | -0.22 | 3.46 | ||
| 2083 | 14.33 | 13.21 | -1.12 | ---- | -3.73 | -0.22 | 3.51 | ||
| 2084 | 14.24 | 13.20 | -1.04 | ---- | -3.79 | -0.23 | 3.57 | ||
| 2085 | 14.14 | 13.20 | -0.95 | ---- | -3.85 | -0.23 | 3.62 | ||
| 2086 | 14.05 | 13.19 | -0.86 | ---- | -3.91 | -0.23 | 3.68 | ||
| 2087 | 13.96 | 13.19 | -0.77 | ---- | -3.96 | -0.24 | 3.73 | ||
| 2088 | 13.87 | 13.18 | -0.69 | ---- | -4.02 | -0.24 | 3.78 | ||
| 2089 | 13.80 | 13.18 | -0.62 | ---- | -4.08 | -0.24 | 3.84 | ||
| 2090 | 13.73 | 13.17 | -0.55 | ---- | -4.14 | -0.25 | 3.89 | ||
| 2091 | 13.66 | 13.17 | -0.50 | ---- | -4.20 | -0.25 | 3.95 | ||
| 2092 | 13.61 | 13.16 | -0.45 | ---- | -4.27 | -0.25 | 4.02 | ||
| 2093 | 13.57 | 13.16 | -0.41 | ---- | -4.34 | -0.26 | 4.08 | ||
| 2094 | 13.53 | 13.16 | -0.37 | ---- | -4.41 | -0.26 | 4.14 | ||
| 2095 | 13.49 | 13.16 | -0.34 | ---- | -4.48 | -0.27 | 4.21 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2020-2094 | 15.44% | 13.76% | -1.69% | 2035 | -1.62% | -0.09% | 1.52% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2035. |
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Based on Intermediate Assumptions of the 2020 Trustees Report.