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| Actuarial Publications |
Summary of Provisions That Would Change the Social Security Program |
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Description of Proposed Provisions:
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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 | ||||
| C1 | Shorten the hiatus
in the normal retirement age
(start increasing to age 67 for those age 62 in 2009, rather
those age 62 in 2017). graph | table | pdf-graph | pdf-table |
0.10 | 0.00 | -1.60 | -4.20 | |
| C2 | Shorten the hiatus
in the normal retirement age
(start increasing to age 67 for those age 62 in 2009, rather
those age 62 in 2017)
and then index
the normal retirement age (by 1 month every 2 years)
until the NRA reaches age 68. graph | table | pdf-graph | pdf-table |
0.46 | 0.73 | -1.24 | -3.47 | |
| C3 | Shorten the hiatus
in the normal retirement age
(start increasing to age 67 for those age 62 in 2009, rather
those age 62 in 2017)
and then index
the normal retirement age (by 1 month every 2 years)
until the NRA reaches age 70. graph | table | pdf-graph | pdf-table |
0.62 | 1.43 | -1.08 | -2.78 | |
| C4 |
Shorten the hiatus in the normal retirement age
(start increasing to age 67 for those age 62 in 2009, rather
those age 62 in 2017)
and then increase the NRA 2 months per year until
the NRA reaches age 68. graph | table | pdf-graph | pdf-table | memo |
0.58 | 0.73 | -1.12 | -3.47 | |
| C5 |
Shorten the hiatus in the normal retirement age (speed up the
increase to age 67). That is, increase the NRA by 2 months per year
for those attaining age 62 in 2012 through 2017, five years earlier
than in current law, which would increase the NRA 2 months per year
for those reaching age 62 in 2017 through 2022. graph | table | pdf-graph | pdf-table | memo |
0.05 | 0.00 | -1.65 | -4.20 | |
| C6 |
Increase the normal retirement age (NRA) from 66 to 67 one year
earlier than current law, starting for those reaching age 62 in
2016 and ending for those reaching age 62 in 2021. Then, after
2021, index the NRA to maintain a constant ratio of expected
retirement years (life expectancy at NRA) to potential work
years (NRA minus 20).
graph | table | pdf-graph | pdf-table | memo |
0.38 | 1.11 | -1.32 | -3.09 | |
| C7 |
Index benefits to longevity after the normal retirement age (NRA)
reaches age 67 under current law. Under current law, the NRA
reaches 67 for individuals who attain age 62 in 2022 and later.
Under this provision, the NRA would be further increased by
one month for those attaining age 62 in every other year after 2022.
graph | table | pdf-graph | pdf-table |
0.37 | 1.09 | -1.32 | -3.12 | |
| C8 |
Gradually raise the earliest eligibility age (EEA)
for Social Security retirement benefits
from 62 to 65. The EEA would be increased by 2 months for
individuals reaching age 62 in every year, starting in 2010.
The EEA of 65 would apply for those reaching age 62 in 2027
and later (those reaching age 65 in 2030 and later). As under
current law, the PIA formula applicable for any individual
would depend on the year in which eligibility age is attained.
It should be noted that the elimination of retirement
eligibility between ages 62 and 65 would increase the number
of individuals who would apply for disabled worker benefits
at those ages.
graph | table | pdf-graph | pdf-table |
-0.01 | -0.28 | -1.70 | -4.48 | |
| C9 |
Shorten the hiatus in the NRA by 5 years, that is, start
increasing the NRA from 66 to 67 for individuals age 62 in 2012,
rather than in 2017. Beginning for those age 62 in 2012, increase
the EEA and NRA for retired worker benefits by 2 months per year
until the EEA reaches age 63 and the NRA reaches age 67 for
those attaining age 62 in 2017. Thereafter, increase both EEA
and NRA by 1 month every 2 years. Finally, increase the earliest
eligibility age for disabled widow(er)s and aged widow(er)s at
the same rate as the increase in the EEA for retired worker
benefits.
graph | table | pdf-graph | pdf-table | memo |
0.56 | 1.18 | -1.14 | -3.02 | |
| C10 |
Starting in 2012, convert all disabled worker beneficiaries to
retired worker status upon attainment of their EEA (rather than
their NRA). After conversion, apply the early retirement
reduction for retirement at EEA (currently 25%) times the ratio
of years after 2011 (or years after attaining age 21, if later)
and before attaining age 62, to 40. Medicare eligibility would
be extended to age 65 on the basis of disability. After 2011,
disability applications would not be accepted for benefit
entitlement that would start at ages over EEA.
graph | table | pdf-graph | pdf-table | memo |
0.37 | 0.77 | -1.33 | -3.43 | |
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