Proposed Provision: Progressive indexing (30th percentile) of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2015, continuing through 2064: 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 formula factors above the 30th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum is reduced by 1.12 percent per year as compared to current law (for the years that progressive indexing applies). Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject to a proportional reduction in benefits, based on the worker's years of disability, upon conversion to retired-worker beneficiary status.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Present Law Provision
2012340340
2013329329
2014315315
2015302302
2016290290
2017277278
2018265266
2019253254
2020240241
2021227228
2022212215
2023197200
2024181185
2025164169
2026147153
2027129136
2028110119
202990101
20307082
20314963
20322744
2033524
2034-184
2035-41-17
2036-65-38
2037-89-58
2038-114-79
2039-138-100
2040-163-121
2041-189-142
2042-215-163
2043-240-184
2044-266-205
2045-292-226
2046-319-247
2047-346-267
2048-373-288
2049-400-308
2050-428-329
2051-456-349
2052-484-369
2053-512-389
2054-540-409
2055-569-429
2056-598-448
2057-628-468
2058-657-488
2059-688-508
2060-719-528
2061-750-548
2062-782-568
2063-814-588
2064-847-608
2065-880-628
2066-913-648
2067-946-667
2068-980-687
2069-1014-706
2070-1049-726
2071-1084-745
2072-1120-765
2073-1156-785
2074-1193-804
2075-1230-824
2076-1268-844
2077-1307-863
2078-1346-883
2079-1385-903
2080-1425-923
2081-1465-942
2082-1505-962
2083-1547-982
2084-1588-1002
2085-1631-1023
2086-1673-1043
2087-1717-1064
back