Proposed Provision: Progressive price indexing (60th percentile) of PIA formula factors beginning with individuals newly eligible for OASDI benefits in 2018: Create a new bend point at the 60th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 60th percentile and below. Reduce the 32 and 15 percent formula factors above the 60th 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 |
2011 | 353 | 353 |
2012 | 347 | 347 |
2013 | 341 | 341 |
2014 | 334 | 334 |
2015 | 328 | 328 |
2016 | 321 | 321 |
2017 | 314 | 314 |
2018 | 306 | 306 |
2019 | 296 | 296 |
2020 | 284 | 284 |
2021 | 272 | 272 |
2022 | 259 | 259 |
2023 | 245 | 246 |
2024 | 230 | 231 |
2025 | 214 | 216 |
2026 | 198 | 201 |
2027 | 181 | 185 |
2028 | 164 | 168 |
2029 | 145 | 151 |
2030 | 127 | 133 |
2031 | 107 | 114 |
2032 | 87 | 96 |
2033 | 67 | 77 |
2034 | 46 | 57 |
2035 | 25 | 38 |
2036 | 4 | 18 |
2037 | -18 | -2 |
2038 | -40 | -22 |
2039 | -62 | -42 |
2040 | -85 | -62 |
2041 | -108 | -82 |
2042 | -130 | -102 |
2043 | -153 | -122 |
2044 | -176 | -142 |
2045 | -200 | -162 |
2046 | -223 | -182 |
2047 | -247 | -202 |
2048 | -271 | -222 |
2049 | -295 | -242 |
2050 | -319 | -262 |
2051 | -343 | -282 |
2052 | -368 | -302 |
2053 | -393 | -322 |
2054 | -418 | -342 |
2055 | -443 | -362 |
2056 | -468 | -383 |
2057 | -494 | -403 |
2058 | -521 | -423 |
2059 | -548 | -444 |
2060 | -575 | -465 |
2061 | -602 | -486 |
2062 | -630 | -507 |
2063 | -659 | -528 |
2064 | -687 | -550 |
2065 | -716 | -571 |
2066 | -746 | -593 |
2067 | -775 | -615 |
2068 | -805 | -637 |
2069 | -835 | -659 |
2070 | -866 | -681 |
2071 | -897 | -703 |
2072 | -928 | -726 |
2073 | -960 | -749 |
2074 | -992 | -773 |
2075 | -1025 | -796 |
2076 | -1058 | -820 |
2077 | -1092 | -845 |
2078 | -1126 | -870 |
2079 | -1161 | -895 |
2080 | -1196 | -920 |
2081 | -1232 | -946 |
2082 | -1268 | -972 |
2083 | -1305 | -999 |
2084 | -1342 | -1026 |
2085 | -1380 | -1054 |
2086 | -1419 | -1082 |
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