Proposed Provision: Progressive price indexing (40th percentile) of PIA formula factors beginning with individuals newly eligible for OASDI benefits in 2018: Create a new bend point at the 40th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 40th percentile and below. Reduce the 32 and 15 percent formula factors above the 40th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum grows by inflation rather than the growth in average wages.

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

Year Present Law Provision
2011353353
2012347347
2013341341
2014334334
2015328328
2016321321
2017314314
2018306306
2019296296
2020284285
2021272273
2022259260
2023245246
2024230232
2025214218
2026198203
2027181187
2028164171
2029145154
2030127137
2031107119
203287101
20336783
20344665
20352546
2036428
2037-189
2038-40-9
2039-62-28
2040-85-46
2041-108-65
2042-130-83
2043-153-101
2044-176-119
2045-200-137
2046-223-154
2047-247-172
2048-271-189
2049-295-206
2050-319-223
2051-343-240
2052-368-257
2053-393-273
2054-418-289
2055-443-305
2056-468-321
2057-494-338
2058-521-354
2059-548-370
2060-575-386
2061-602-402
2062-630-418
2063-659-434
2064-687-450
2065-716-465
2066-746-481
2067-775-497
2068-805-512
2069-835-527
2070-866-543
2071-897-558
2072-928-574
2073-960-589
2074-992-605
2075-1025-621
2076-1058-636
2077-1092-652
2078-1126-668
2079-1161-684
2080-1196-700
2081-1232-716
2082-1268-732
2083-1305-748
2084-1342-765
2085-1380-781
2086-1419-797
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