Proposed Provision: Progressive price indexing (30th percentile) of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2020: 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 grows by inflation rather than the growth in average wages. 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 | 296 |
2020 | 284 | 284 |
2021 | 272 | 272 |
2022 | 259 | 259 |
2023 | 245 | 245 |
2024 | 230 | 231 |
2025 | 214 | 215 |
2026 | 198 | 200 |
2027 | 181 | 184 |
2028 | 164 | 167 |
2029 | 145 | 149 |
2030 | 127 | 131 |
2031 | 107 | 113 |
2032 | 87 | 94 |
2033 | 67 | 75 |
2034 | 46 | 56 |
2035 | 25 | 37 |
2036 | 4 | 17 |
2037 | -18 | -2 |
2038 | -40 | -22 |
2039 | -62 | -42 |
2040 | -85 | -62 |
2041 | -108 | -81 |
2042 | -130 | -101 |
2043 | -153 | -120 |
2044 | -176 | -139 |
2045 | -200 | -158 |
2046 | -223 | -177 |
2047 | -247 | -196 |
2048 | -271 | -215 |
2049 | -295 | -234 |
2050 | -319 | -252 |
2051 | -343 | -271 |
2052 | -368 | -289 |
2053 | -393 | -307 |
2054 | -418 | -325 |
2055 | -443 | -342 |
2056 | -468 | -360 |
2057 | -494 | -378 |
2058 | -521 | -395 |
2059 | -548 | -413 |
2060 | -575 | -430 |
2061 | -602 | -448 |
2062 | -630 | -465 |
2063 | -659 | -483 |
2064 | -687 | -500 |
2065 | -716 | -517 |
2066 | -746 | -534 |
2067 | -775 | -551 |
2068 | -805 | -568 |
2069 | -835 | -585 |
2070 | -866 | -602 |
2071 | -897 | -618 |
2072 | -928 | -635 |
2073 | -960 | -652 |
2074 | -992 | -669 |
2075 | -1025 | -686 |
2076 | -1058 | -703 |
2077 | -1092 | -720 |
2078 | -1126 | -737 |
2079 | -1161 | -754 |
2080 | -1196 | -772 |
2081 | -1232 | -789 |
2082 | -1268 | -806 |
2083 | -1305 | -824 |
2084 | -1342 | -841 |
2085 | -1380 | -859 |
2086 | -1419 | -877 |
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