Proposed Provision: 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. In addition, the reduction to the upper 2 formula factors is suspended for any year in which sustainable solvency over the next 75 years is expected. With this provision taken alone, suspension is not expected within the next 75 years.

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

Year Present Law Provision
2008359359
2009369369
2010378378
2011386386
2012392392
2013394394
2014395395
2015393394
2016390391
2017385387
2018378382
2019371375
2020361368
2021351360
2022341351
2023329341
2024316331
2025302320
2026287308
2027272296
2028256283
2029239270
2030221257
2031203243
2032185229
2033166215
2034147201
2035127188
2036108174
203788160
203867147
203947134
204026121
20416108
2042-1596
2043-3684
2044-5772
2045-7861
2046-10050
2047-12139
2048-14328
2049-16518
2050-1878
2051-209-2
2052-232-11
2053-254-21
2054-277-30
2055-300-39
2056-324-48
2057-347-57
2058-372-66
2059-396-74
2060-421-83
2061-447-91
2062-472-100
2063-498-108
2064-525-116
2065-552-124
2066-579-132
2067-607-139
2068-635-147
2069-664-155
2070-693-162
2071-722-170
2072-752-177
2073-782-185
2074-813-192
2075-845-200
2076-876-207
2077-909-214
2078-942-222
2079-975-229
2080-1009-236
2081-1044-244
2082-1079-251
2083-1114-258
2084-1151-266
2085-1188-273
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