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Summary of Provisions That Would Change the Social Security Program |
Description of Proposed Provisions:
|
|
Estimates based on the intermediate assumptions of the 2005 Trustees Report
Change from present law | Results with this provision | |||||
---|---|---|---|---|---|---|
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
|||
Present Law, Alternative II. |
-1.92 | -5.70 | ||||
B1 | Increase the number of years used to
calculate benefits for retirees and survivors (but not for
disabled workers) from 35 to 38, phased in 2006-2010. graph | table | pdf-graph | pdf-table |
0.28 | 0.43 | -1.64 | -5.27 | |
B2 | Increase the number of years used to
calculate benefits for retirees and survivors (but not for
disabled workers) from 35 to 40, phased in 2006-2014. graph | table | pdf-graph | pdf-table |
0.46 | 0.73 | -1.46 | -4.97 | |
B3 |
For each year from 2006-2036, multiply the 32 and 15 percent
formula factors by 0.987, reducing the factors to 21 percent
and 10 percent respectively, for new eligibles in 2036 and later. graph | table | pdf-graph | pdf-table |
1.60 | 3.29 | -0.32 | -2.41 | |
B4 | Reduce benefits by
3 percent for those newly eligible for benefits in 2006 and later. graph | table | pdf-graph | pdf-table |
0.37 | 0.54 | -1.56 | -5.16 | |
B5 | Reduce benefits by
5 percent for those newly eligible for benefits in 2006 and later. graph | table | pdf-graph | pdf-table |
0.61 | 0.90 | -1.31 | -4.80 | |
B6 |
Beginning with those newly eligible for OASDI benefits in 2012 and
later, reduce PIA formula factors so that benefits grow by
inflation rather than by increases in real wages. graph | table | pdf-graph | pdf-table |
2.38 | 7.85 | 0.45 | 2.14 | |
B7 | Progressive price indexing of PIA formula
factors beginning with individuals newly eligible for OASDI
benefits in 2012. Create new bend point at the 30th
percentile of earners. Maintain current-law benefits for earners
at the 30th percentile and below and reduce upper 2 formula
factors (32% and 15%) such that maximum worker benefit
grows by inflation rather than the growth in average wages. graph | table | pdf-graph | pdf-table |
1.43 | 4.62 | -0.50 | -1.09 | |
B8 | Progressive price indexing of PIA
formula factors beginning with individuals newly eligible for
OASDI benefits in 2012. Create new bend point at the 40th
percentile of earners. Maintain current-law benefits for earners
at the 40th percentile and below and reduce upper 2 formula
factors (32% and 15%) such that maximum worker benefit
grows by inflation rather than the growth in average wages. graph | table | pdf-graph | pdf-table |
1.21 | 3.89 | -0.72 | -1.81 | |
B9 | Progressive price indexing of PIA
formula factors beginning with individuals newly eligible for
OASDI benefits in 2012. Create new bend point at the 50th
percentile of earners. Maintain current-law benefits for earners
at the 50th percentile and below and reduce upper 2 formula
factors (32% and 15%) such that maximum worker benefit
grows by inflation rather than the growth in average wages. graph | table | pdf-graph | pdf-table |
0.97 | 2.92 | -0.96 | -2.78 | |
B10 | Progressive price indexing of PIA
formula factors beginning with individuals newly eligible for
OASDI benefits in 2012. Create new bend point at the 60th
percentile of earners. Maintain current-law benefits for
earners at the 60th percentile and below and reduce upper
2 formula factors (32% and 15%) such that maximum worker benefit
grows by inflation rather than the growth in average wages. graph | table | pdf-graph | pdf-table |
0.68 | 1.82 | -1.24 | -3,88 | |
B11 |
Beginning with those newly eligible in 2013, multiply the 90 and 32
PIA factors each year by 0.9925 and 0.982, respectively. Stop
reductions in
2050. Beginning with those newly eligible in 2008, multiply the 15
factor by 0.982. Stop reduction of the 15 factor in 2045. DI will
have present law scheduled benefit and proportional reduction at
conversion to retired worker benefits at normal retirement age,
based on years of disability. graph | table | pdf-graph | pdf-table |
2.08 | 5.78 | 0.15 | 0.08 | |
B12 |
Progressive price indexing of PIA formula factors beginning with
individuals newly eligible for OASI benefits in 2012. Create new
bend point at the 30th percentile of earners. Maintain current-law
benefits for earners at the 30th percentile and below and reduce
upper 2 formula factors (32% and 15%) such that maximum worker
benefit grows by inflation rather than the growth in average wages.
Disability benefits are not affected by the proposal. Disabled
worker beneficiaries, upon attaining normal retirement age, would
be subject to a proportional reduction in benefits based on the
worker's years of disability. graph | table | pdf-graph | pdf-table |
1.21 | 3.97 | -0.71 | -1.73 | |
B13 |
For OASI beneficiaries becoming eligible for benefits in 2018 and
later, multiply the PIA factors by the ratio of life expectancy at
67 for 2013 to the life expectancy at age 67 for the 4th year prior
to the year of benefit eligibility. Unisex life expectancies, based
on period life tables, would be used as projected by SSA's Office
of the Chief Actuary. Disability benefits are not affected by the
proposal. Disabled worker beneficiaries, upon attaining normal
retirement age, would be subject to a proportional reduction in
benefits based on the worker's years of disability.
graph | table | pdf-graph | pdf-table |
0.45 | 1.77 | -1.48 | -3.93 |
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