Appendix K to the report of the 1983 Greenspan Commission on Social Security Reform
Appendix K- Section F
SUMMARY OF SECTION F - RETIREMENT AGE OASI |
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OASDI Cost 1983-89 |
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Option No. |
Description |
II-B |
III |
Long-Term Cost |
F-1 |
Increase "normal" retirement age to 66 in 1999, beginning phase-in in 1990. | $0 |
$0 |
-.52 |
F-2 |
Increase "normal" retirement age to 66 in 2014, beginning phase-in in 2005. | 0 |
0 |
-.41 |
F-3 |
Increase "normal" retirement age to 66 in 2024, beginning phase-in in 2015. | 0 |
0 |
-.31 |
F-4 |
Increase "normal" retirement age to 67 in 2012, beginning phase-in in 2000. | 0 |
0 |
-.86 |
F-5 |
Increase "normal" retirement age to 67 in 2022, beginning phase-in in 2010. | 0 |
0 |
-.69 |
F-6 |
Increase "normal" retirement age to 67 in 2032, beginning phase-in in 2020. | 0 |
0 |
-.48 |
F-7 |
Increase "normal" retirement age to 68 in 2017, beginning phase-in in 2000. | 0 |
0 |
-1.22 |
F-8 |
Increase "normal" retirement age to 68 in 2027, beginning phase-in in 2010. | 0 |
0 |
-.95 |
F-9 |
Increase "normal" retirement age to 68 in 2037, beginning phase-in in 2020. | 0 |
0 |
-.63 |
F-10 |
Increase "normal" retirement age to 69 in 2022, beginning phase-in in 2000. | 0 |
0 |
-1.53 |
F-11 |
Increase "normal" retirement age to 69 in 2054, beginning phase-in in 2000. | 0 |
0 |
-.96 |
F-12 |
Increase "normal" retirement age to 66 in 2002, beginning phase-in in 1995, and thereafter, adjust according to changes in longevity. | 0 |
0 |
-1.68 |
F. RETIREMENT AGE
Present law. Unreduced retirement benefits are available to insured workers, spouses, and widows and widowers at age 65 (the "normal" retirement age). Actuarially reduced benefits are available at age 62 for insured workers and spouses and at age 60 for widows and widowers (age 50 if disabled). For insured workers who delay receipt of benefits beyond age 65, retirement benefits are increased by 3% for each year of delay (for persons attaining age 65 after 1981). See table at bottom of this page for actuarial benefit factors under present law and under each option as to normal retirement age.
Options.
F-1 Gradually increase the "normal" retirement age to 66 in 1999, beginning the phase-in with those who attain age 62 in 1990.*
25-Year Cost: -.14% of taxable payroll
50-Year Cost: -.38% of taxable payroll
Long-Term Cost: -.52% of taxable payroll
F-2 Gradually increase the "normal" retirement age to 66 in 2014, beginning the phase-in with those who attain age 62 in 2005.*
25-Year Cost: -.00% of taxable payroll
50-Year Cost: -.23% of taxable payroll
Long-Term Cost: -.41% of taxable payroll
* Early-retirement benefits would continue to be available beginning at age 62 for insured workers and spouses and at age 60 for widows and widowers, but the actuarial benefit factors would be made smaller. The minimum age for eligibility for Medicare benefits would continue to be the "normal" retirement age for OASDI benefits. Disability benefits would be available to those disabled between age 65 and the increased "normal" retirement age, under the more lenient definition now applicable at ages 60-64. The age at which the earnings test no longer applies would be left at age 70 (if such age were increased in tandem with the increase in the normal retirement age, the reduction in cost would be somewhat larger).
Actuarial Benefit Factors |
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Normal Retirement Age |
Worker, Age 62 |
Spouse, Age 62 |
Widow, Age 60 |
Disabled Widow, Age 50 |
65 |
80.0% |
75.0% |
71.5% |
50.0% |
66 |
75.0 |
70.0 |
66.5 |
50.0 |
67 |
70.0 |
65.0 |
61.5 |
50.0 |
68 |
65.0 |
60.0 |
56.5 |
50.0 |
69 |
60.0 |
55.0 |
51.5 |
50.0 |
F-3 Gradually increase the normal retirement age to 66 in 2024, beginning the phase-in with those who attain age 62 in 2015.*
25-Year Cost: None
50-Year Cost: -.12% of taxable payroll
Long-Term Cost: -.31% of taxable payroll
F-4 Gradually increase the "normal" retirement age to 67 in 2012, beginning the phase-in with those who attain age 62 in 2000.*
25-Year Cost: -.03% of taxable payroll
50-Year Cost: -.54% of taxable payroll
Long-Term Cost: -.86% of taxable payroll
F-5 Gradually increase the "normal" retirement age to 67 in 2022, beginning the phase-in with those who attain age 62 in 2010.*
25-Year Cost: None
50-Year Cost: -.32% of taxable payroll
Long-Term Cost: -.69% of taxable payroll
F-6 Gradually increase the "normal" retirement age to 67 in 2032, beginning the phase-in with those who attain age 62 in 2020.*
25-Year Cost: None
50-Year Cost: -.09% of taxable payroll
Long-Term Cost: -.48% of taxable payroll
F-7 Gradually increase the "normal" retirement age to 68 in 2017, beginning the phase-in with those who attain age 62 in 2000.*
25-Year Cost: -.03% of taxable payroll
50-Year Cost: -.72% of taxable payroll
Long-Term Cost: -1.22% of taxable payroll
F-8 Gradually increase the "normal" retirement age to 68 in 2027, beginning the phase-in with those who attain age 62 in 2010.*
25-Year Cost: None
50-Year Cost: -.40% of taxable payroll
Long-Term Cost: -.95% of taxable payroll
F-9 Gradually increase the "normal" retirement age to 68 in 2037, beginning the phase-in with those who attain age 62 in 2020.*
25-Year Cost: None
50-Year Cost: -.09% of taxable payroll
Long-Term Cost: -.63% of taxable payroll
F-10 Gradually increase the "normal" retirement age to 69 in 2022, beginning the phase-in with those who attain age 62 in 2000.*
25-Year Cost: -.03% of taxable payroll
50-Year Cost: -.88% of taxable payroll
Long-Term Cost: -1.53% of taxable payroll
F-11 Gradually increase the "normal" retirement age to 69 in 2054, beginning the phase-in with those who attain age 62 in 2000.*
25-Year Cost: -.01% of taxable payroll
50-Year Cost: -.36% of taxable payroll
Long-Term Cost: -.96% of taxable payroll
F-12 Gradually increase the "normal" retirement age to 66 in 2002, beginning the phase-in with those who attain age 62 in 1995. Beginning with those who attain age 62 in 2002, automatically adjust such age (on a phased-in basis) so that the ratio of the retirement-life expectancy to the potential working-lifetime (from age 20 to the "normal" retirement age) remains the same over the years. The age at which early retirement benefits are first payable and the age at which the earnings test no longer applies would be increased in tandem with the increase in the normal retirement age.
Long-Term Cost: -1.68% of taxable payroll