Skip to content
Social Security Online
Actuarial Publications
Solvency Provisions SSA logo: link to Social Security Online home

Provisions Affecting Level of Monthly Benefits

These provisions modify the formula used for calculating the basic Social Security monthly benefit called the Primary Insurance Amount (PIA). We provide a summary list of all options in this category. For each provision listed below, we provide an estimate 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 graphs and detailed single year tables.

All estimates are based on the intermediate assumptions described in the 2010 Trustees Report. Choose the type of estimates (summary or detailed) from the list of provisions.

The provisions are grouped as follows:

Number Table and graph selection
B1.1 Beginning with those newly eligible for OASDI benefits in 2017 and later, reduce PIA formula factors so that benefits grow by inflation rather than by increases in real wages.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B1.2 Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASDI benefits in 2017. 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B1.3 Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASDI benefits in 2017. Create new bend point at the 40th percentile of earners. Maintain current-law benefits for earners at the 40th 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B1.4 Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASDI benefits in 2017. Create new bend point at the 50th percentile of earners. Maintain current-law benefits for earners at the 50th 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B1.5 Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASDI benefits in 2017. Create new bend point at the 60th percentile of earners. Maintain current-law benefits for earners at the 60th 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B1.6 (2014) Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2014. 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B1.6 (2019) Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2019. 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision (effective dates may be different)
B1.7 Progressive price indexing of PIA formula factors for individuals newly eligible for OASI benefits in 2018 through 2055. Create new bend point at the 40th percentile of career-average earnings for new retirees. Maintain current-law benefit credit for career-average earnings up to the 40th percentile. Reduce PIA formula factors (32% and 15%) that apply above the new bend point such that the maximum worker benefit grows with price inflation from one generation to the next rather than with growth in the average wage. Disability (DI) 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. Hold harmless from this provision young survivors (children of deceased workers and surviving spouses with a child in care).
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision (effective dates may be different)
B2.1 (2020) For OASI beneficiaries becoming eligible for benefits in 2020 and later, multiply the PIA factors by the ratio of life expectancy at 67 for 2015 to the life expectancy at age 67 for the 4th year prior to the year of benefit eligibility. Unisex life expectancies, based on period life tables, would be used as projected by SSA's Office of the Chief Actuary. 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision (effective dates may be different)
B2.1 (2023) For OASI beneficiaries becoming eligible for benefits in 2023 and later, multiply the PIA factors by the ratio of life expectancy at 67 for 2018 to the life expectancy at age 67 for the 4th year prior to the year of initial benefit eligibility. Unisex life expectancies, based on period life tables as computed by SSA's Office of the Chief Actuary, would be used in determining the ratio. 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 proportion of years at ages 22 through 61 not disabled.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision (effective dates may be different)
B3.1 For each year from 2011-2041, multiply the 32 and 15 percent formula factors by 0.987, reducing the factors to 21 percent and 10 percent respectively, for new eligibles in 2041 and later.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B3.2 Beginning with those newly eligible in 2018, multiply the 90 and 32 PIA factors each year by 0.9925 and 0.982, respectively. Stop reductions in 2055. Beginning with those newly eligible in 2013, multiply the 15 factor by 0.982. Stop reduction of the 15 factor in 2050. Disabled workers will have present law scheduled benefit and proportional reduction at conversion to retired worker benefits at normal retirement age, based on years of disability.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision (effective dates may be different)
B3.3 For all individuals becoming eligible for OASDI benefits in 2011 and later, use a modified primary insurance amount (PIA) formula. The modified formula would increase the first bend point to the equivalent of $800 in 2009. Also, a new bend point would be placed between the reset first bend point and the current-law second bend point. The new bend point would be equal to the reset first bend point plus 75 percent of the difference between the bend points. The PIA formula factor between the new bend point and the upper bend point would be lowered from 32% to 20%. The PIA formula factor above the upper bend point would be lowered from 15% to 10%.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B3.4 Multiply all PIA formula factors successively by 0.991 for new benefit eligibility in each year 2014 through 2042. Disabled workers and young survivors (surviving spouses with a child-in-care and survivor children) would not be affected by this provision. Upon conversion from disabled worker to retired worker benefits, benefit levels would be proportionally reduced based on the fraction of years the individual was not disabled between ages 22 and 62.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision (effective dates may be different)
B3.5 Progressive indexing of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2013, continuing through 2050, and resuming in 2071. 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 is reduced by 1.2 percent per year as compared to current law, for the years that progressive indexing applies. 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B3.6 Progressive indexing of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2013 through 2062. 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 is reduced by 1.2 percent per year as compared to current law, for the years that progressive indexing applies. 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B3.7 Progressive indexing of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2013, continuing through 2022, and then resuming in 2061. 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 is reduced by 1.2 percent per year as compared to current law, for the years that progressive indexing applies. 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.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B3.8 Create a new bend point at the 50th percentile of new retired and disabled worker entitlements. Beginning for those newly eligible in 2017, do the following: a) reduce the 32 percent PIA formula factor below the new bend point to 30 percent by 2050; b) reduce the 32 percent PIA factor above the new bend point to 10 percent by 2050; and c) reduce the 15 percent factor to 5 percent by 2050.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B3.9 Reduce the upper 15-percent PIA formula factor to 10 percent over a 30-year period from 2023 through 2052. Affects OASI and DI benefit computations.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B4.1 Increase the number of years used to calculate benefits for retirees and survivors (but not for disabled workers) from 35 to 38, phased in 2011-2015.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B4.2 Increase the number of years used to calculate benefits for retirees and survivors (but not for disabled workers) from 35 to 40, phased in 2011-2019.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B4.3 Eliminate dropout years for OASI and DI computation of primary insurance amount (PIA) for individuals newly eligible for benefits from 2012 to 2020. Specifically, for OASDI benefit computation, reduce the maximum number of drop-out years from 5 for benefit eligibility in 2011, with a decrease of 1 computation year in 2012, 2014, 2016, 2018, and 2020.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision (effective dates may be different)
B5.1 Increase the PIA to a level such that a worker with 30 years of earnings at the minimum wage level would receive an adjusted PIA equal to 120 percent of the Federal poverty level for an aged individual. This provision would take full effect for all newly eligible OASDI workers in 2028, and would be phased in for new eligible in 2019 through 2027. The percentage increase in PIA would be lowered proportionately for those with fewer than 30 years of earnings, down to no enhancement for workers with 20 or fewer years of earnings. (Year-of-work requirements are "scaled" for disabled workers based on their years of potential work from age 22 to benefit eligibility). The benefit enhancement percentage would be reduced proportionately for workers with higher average indexed monthly earnings (AIME), down to no enhancement for those with AIME at least twice that of a 35-year steady minimum wage earner.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision (effective dates may be different)
B5.2 Beginning in 2011, increase the special minimum benefit by making the following changes: (a) A year of coverage is defined as a year in which 4 quarters of coverage are earned. (b) At implementation, set the PIA for 30 years of coverage equal to 125 percent of the monthly poverty level (about $1,128 in 2009). The PIA per year of coverage (after the first 10 years) would be $1,128/20 = $56.40. (c) Index the initial PIA per year of coverage by wage growth for successive cohorts, so that the special minimum keeps up with the wage-indexed benefit formula.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B5.3 Beginning in 2011, increase the special minimum benefit by making the following changes: (a) A year of coverage is defined to be either a childcare year or a year in which 4 quarters of coverage are earned. Childcare years are granted to parents who have a child under 5, with a limit of 8 such years. (b) At implementation, set the PIA for 30 years of coverage equal to 125 percent of the monthly poverty level (about $1,128 in 2009). The PIA per year of coverage (after the first 10 years) would be $1,128/20 = $56.40. (c) Index the initial PIA per year of coverage by wage growth for successive cohorts, so that the special minimum keeps up with the wage-indexed benefit formula.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B5.4 Beginning for those newly eligible for benefits in 2017, increase the special minimum benefit by making the following changes. (a) A year of coverage is defined as a year in which 4 quarters of coverage are earned. (b) Set the PIA for 30 years of coverage equal to 125 percent of the monthly poverty level (about $1,128 in 2009). The PIA per year of coverage (after the first 10 years) would be $1,128/20 = $56.40. (c) Increase the PIA per year of coverage from 2009 to the year of implementation, 2017, using the chain-CPI index; then index the initial PIA per year of coverage by wage growth for successive cohorts, so that the special minimum keeps up with the wage-indexed benefit formula. Scale work requirements for disabled workers based on the years of potential work (not disabled).
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B5.5 Reconfigure the special minimum benefit to ensure that an individual with at least 30 creditable years of earnings (equal to at least 20% of the "old law taxable maximum") would receive a PIA of 133 percent of the Aged Federal poverty level, with the formula phased linearly from zero for workers with 19 creditable years to 133 percent of poverty for those with 30 creditable years. Up to 8 years with own child under the age of 6 could be used as creditable years, if not otherwise counted as a creditable year. Scale the creditable year requirements and number of child-care years for disabled workers and workers dying under age 62 based on the proportion of years from 22 through 61 alive and not disabled. This provision is effective for individuals newly eligible for benefits in 2012 and later. Wage-index the poverty level from 2009 up to 2 years prior to benefit eligibility.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing this provision
B6.1 Reduce benefits by 3 percent for those newly eligible for benefits in 2011 and later.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B6.2 Reduce benefits by 5 percent for those newly eligible for benefits in 2011 and later.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision (effective dates may be different)
B6.3 Give parents earnings credits for up to five years if they have a child under 6. The earnings credited for a childcare year would be such that the resulting earnings assigned to the parents would equal one half of the Social Security average-wage index -- about $21,542 in 2010. The credits would be available for all past years to newly eligible retired-worker and disabled-worker beneficiaries in 2011 and later. The 5 most advantageous years would be used if more than 5 childcare credit years are possible; that is, the 5 years that make the biggest difference in indexed earnings.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision
B6.4 Provide a 5 percent increase to the benefit level of any beneficiary who is 85 or older at the beginning of 2011 or who reaches their 85th birthday after the beginning of 2011.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision
B6.5 Provide the same dollar amount increase to the benefit level of any beneficiary who is 85 or older at the beginning of 2011 or who reaches their 85th birthday after the beginning of 2011. The dollar amount of increase equals 5 percent of the average retired worker benefit in the prior year.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision
B6.6 Increase benefits by 20 percent for all beneficiaries as of the beginning of 2011 and for those newly eligible for benefits after the beginning of 2011.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision
B6.7 Increase benefits by 5 percent for all beneficiaries as of the beginning of 2011 and for those newly eligible for benefits after the beginning of 2011.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision
B6.8 Increase benefits by 2 percent for all beneficiaries as of the beginning of 2011 and for those newly eligible for benefits after the beginning of 2011.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision
B6.9 Starting in 2011, provide a 5% uniform benefit increase, beginning 20 years after eligibility. The benefit increase would be phased in at 1% per year from the 20th through 24th years after initial benefit eligibility. For disabled workers the eligibility age would be the initial entitlement year to the benefit. The benefit increase is equal to 5% of the PIA of a worker assumed to have career-average earnings equal to SSA’s average wage index.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision
B6.10 Provide an increase in the benefit level of any beneficiary who is 85 or older at the beginning of 2012 or who reaches their 85th birthday after the beginning of 2012. The beneficiary’s PIA would be increased based on an amount equal to the average retired worker PIA at the end of 2011, or at the end of the year age 80 if later. The beneficiary’s PIA would be increased by 5 percent of this amount for those older than 85 at the beginning of 2012 and by 5 percent of this amount at age 85 for others, phased in at 1 percent per year for ages 81-85.
Summary measures and graphs   (PDF version)
Detailed single year tables   (PDF version)
Memorandum containing the provision

Above provisions
Summary measures
 Link to USA.gov: U.S. Government portal Privacy Policy  | Website Policies & Other Important Information  | Site Map
Last reviewed or modified April 26, 2011