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

Description of Proposed Provisions:
Provisions Affecting Trust Fund Investment in Equities

Estimates based on the intermediate assumptions of the 2009 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.
 -2.00 -4.34
G1 Invest 40 percent of the Trust Funds in equities (phased in 2010-2024), assuming an ultimate 6.4 percent real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo 		0.67 0.00 -1.34 -4.34
G2 Invest 40 percent of the Trust Funds in equities (phased in 2010-2024), assuming an ultimate 5.4 percent real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo 		0.48 0.00 -1.52 -4.34
G3 Invest 40 percent of the Trust Funds in equities (phased in 2010-2024), assuming an ultimate 2.9 percent real rate of return on equities, the same as the assumed ultimate yield on the special-issue Social Security trust fund bonds.
graph | table | pdf-graph | pdf-table | memo 		0.00 0.00 -2.00 -4.34
G4 Gradually invest 15 percent of OASDI trust fund assets in a broad index of equity market securities (such as the Wilshire 5000), assuming an ultimate 6.4 percent annual real rate of return on equities. Increase the portion in equities by 1.5 percent each year 2010 through 2019. Maintain the percentage at 15 percent thereafter.
graph | table | pdf-graph | pdf-table | memo 		0.27 0.00 -1.73 -4.34
G5 Invest 15 percent of the Trust Funds in equities (phased in 2010-2019), assuming an ultimate 2.9 percent annual real rate of return on equities, the same as the assumed ultimate yield on the special-issue Social Security trust fund bonds.
graph | table | pdf-graph | pdf-table | memo 		0.00 0.00 -2.00 -4.34
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Last reviewed or modified April 12, 2010