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
2011353353
2012347347
2013341341
2014334334
2015328328
2016321321
2017314314
2018306306
2019296297
2020284286
2021272275
2022259262
2023245250
2024230236
2025214222
2026198208
2027181193
2028164177
2029145161
2030127145
2031107128
203287111
20336794
20344677
20352559
2036442
2037-1825
2038-407
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
back