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
2011353353
2012347347
2013341341
2014334334
2015328328
2016321321
2017314314
2018306306
2019296296
2020284284
2021272272
2022259259
2023245246
2024230231
2025214216
2026198201
2027181185
2028164168
2029145151
2030127133
2031107114
20328796
20336777
20344657
20352538
2036418
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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