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Summary of Provisions That Would Change the Social Security Program
Solvency Provisions

Description of Proposed Provisions:
Cost-of-Living Adjustment

Estimates based on the intermediate assumptions of the 2008 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.
 -1.70 -4.20
A1 Beginning December 2009, reduce cost-of-living adjustment for OASDI benefits by 1 percentage point.
graph | table | pdf-graph | pdf-table 		1.43 2.04 -0.27 -2.16
A2 Beginning December 2009, reduce cost-of-living adjustment for OASDI benefits by 0.5 percentage point.
graph | table | pdf-graph | pdf-table 		0.75 1.07 -0.95 -3.13
A3 Beginning December 2009, use the "superlative" (or "chained") CPI for COLAs, estimated to reduce the COLA by 0.3 percentage point.
graph | table | pdf-graph | pdf-table 		0.45 0.65 -1.24 -3.55
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Last reviewed or modified July 16, 2008