Provisions Affecting Trust Fund Investment in Equities

Updated May 3, 2006

Introduction

These provisions would prescribe that a portion of the Social Security trust funds be invested in marketable securities (e.g., equities, corporate bonds), rather than 100 percent total investment in special-issue government bonds, as under current law. For the provisions listed below, we provide estimates of the financial effect on the OASDI program over the long-range period (the next 75 years) and for the 75th year. In addition, we provide detailed single year tables.

Tables and graphs are available in two formats: HTML and Portable Document Format (PDF). We recommend the PDF version for printing (requires Adobe Acrobat Reader).

The year of the Trustees Report identifies the assumptions (intermediate) used in the preparation of the estimates. Choose the type of estimates (summary or detailed) from the list of provisions.

Number	Table and graph selection
G1	Invest 40 percent of the Trust Funds in equities (phased in 2006-2020), assuming an ultimate 6.5 percent annual real rate of return on equities. (2005 Trustees Report) Summary measures and graphs (PDF Version) Detailed Single Year Tables (PDF Version)
G2	Invest 40 percent of the Trust Funds in equities (phased in 2006-2020), assuming an ultimate 5.5 percent annual real rate of return on equities. (2005 Trustees Report) Summary measures and graphs (PDF Version) Detailed Single Year Tables (PDF Version)
G3	Invest 40 percent of the Trust Funds in equities (phased in 2006-2020), assuming an ultimate 3 percent annual real rate of return on equities, the same as the assumed ultimate yield on the special-issue Social Security trust fund bonds. (2005 Trustees Report) Summary measures and graphs (PDF Version) Detailed Single Year Tables (PDF Version)
	Above provisions Summary measures


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