Proposed Provision: Progressive indexing (30th percentile) of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2014, continuing through 2051, and resuming in 2072: Create a new bend point at the 30th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent formula factors above the 30th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum is reduced by 1.2 percent per year as compared to current law (for the years that progressive indexing applies). Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject to a proportional reduction in benefits, based on the worker's years of disability, upon conversion to retired worker beneficiary status.
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 | 297 |
2020 | 284 | 286 |
2021 | 272 | 275 |
2022 | 259 | 262 |
2023 | 245 | 250 |
2024 | 230 | 236 |
2025 | 214 | 222 |
2026 | 198 | 208 |
2027 | 181 | 193 |
2028 | 164 | 177 |
2029 | 145 | 161 |
2030 | 127 | 145 |
2031 | 107 | 128 |
2032 | 87 | 111 |
2033 | 67 | 94 |
2034 | 46 | 77 |
2035 | 25 | 59 |
2036 | 4 | 42 |
2037 | -18 | 25 |
2038 | -40 | 7 |
2039 | -62 | -10 |
2040 | -85 | -27 |
2041 | -108 | -44 |
2042 | -130 | -61 |
2043 | -153 | -77 |
2044 | -176 | -93 |
2045 | -200 | -109 |
2046 | -223 | -125 |
2047 | -247 | -141 |
2048 | -271 | -156 |
2049 | -295 | -171 |
2050 | -319 | -186 |
2051 | -343 | -201 |
2052 | -368 | -215 |
2053 | -393 | -230 |
2054 | -418 | -244 |
2055 | -443 | -258 |
2056 | -468 | -271 |
2057 | -494 | -285 |
2058 | -521 | -299 |
2059 | -548 | -312 |
2060 | -575 | -326 |
2061 | -602 | -339 |
2062 | -630 | -352 |
2063 | -659 | -365 |
2064 | -687 | -378 |
2065 | -716 | -391 |
2066 | -746 | -404 |
2067 | -775 | -417 |
2068 | -805 | -430 |
2069 | -835 | -443 |
2070 | -866 | -455 |
2071 | -897 | -468 |
2072 | -928 | -482 |
2073 | -960 | -495 |
2074 | -992 | -508 |
2075 | -1025 | -522 |
2076 | -1058 | -536 |
2077 | -1092 | -550 |
2078 | -1126 | -565 |
2079 | -1161 | -579 |
2080 | -1196 | -595 |
2081 | -1232 | -610 |
2082 | -1268 | -626 |
2083 | -1305 | -642 |
2084 | -1342 | -658 |
2085 | -1380 | -675 |
2086 | -1419 | -692 |
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