Proposed Provision: Progressive indexing (30th percentile) of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2015, continuing through 2024, and then resuming in 2063: 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 1.12 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 |
2012 | 340 | 340 |
2013 | 329 | 329 |
2014 | 315 | 315 |
2015 | 302 | 302 |
2016 | 290 | 290 |
2017 | 277 | 278 |
2018 | 265 | 266 |
2019 | 253 | 254 |
2020 | 240 | 241 |
2021 | 227 | 228 |
2022 | 212 | 215 |
2023 | 197 | 200 |
2024 | 181 | 185 |
2025 | 164 | 169 |
2026 | 147 | 153 |
2027 | 129 | 136 |
2028 | 110 | 119 |
2029 | 90 | 101 |
2030 | 70 | 82 |
2031 | 49 | 63 |
2032 | 27 | 43 |
2033 | 5 | 23 |
2034 | -18 | 2 |
2035 | -41 | -19 |
2036 | -65 | -40 |
2037 | -89 | -61 |
2038 | -114 | -83 |
2039 | -138 | -105 |
2040 | -163 | -127 |
2041 | -189 | -149 |
2042 | -215 | -172 |
2043 | -240 | -194 |
2044 | -266 | -216 |
2045 | -292 | -239 |
2046 | -319 | -261 |
2047 | -346 | -284 |
2048 | -373 | -307 |
2049 | -400 | -330 |
2050 | -428 | -353 |
2051 | -456 | -377 |
2052 | -484 | -400 |
2053 | -512 | -424 |
2054 | -540 | -447 |
2055 | -569 | -471 |
2056 | -598 | -495 |
2057 | -628 | -520 |
2058 | -657 | -545 |
2059 | -688 | -570 |
2060 | -719 | -596 |
2061 | -750 | -622 |
2062 | -782 | -649 |
2063 | -814 | -676 |
2064 | -847 | -703 |
2065 | -880 | -730 |
2066 | -913 | -758 |
2067 | -946 | -786 |
2068 | -980 | -815 |
2069 | -1014 | -844 |
2070 | -1049 | -874 |
2071 | -1084 | -904 |
2072 | -1120 | -935 |
2073 | -1156 | -967 |
2074 | -1193 | -999 |
2075 | -1230 | -1032 |
2076 | -1268 | -1066 |
2077 | -1307 | -1100 |
2078 | -1346 | -1135 |
2079 | -1385 | -1170 |
2080 | -1425 | -1205 |
2081 | -1465 | -1242 |
2082 | -1505 | -1278 |
2083 | -1547 | -1315 |
2084 | -1588 | -1353 |
2085 | -1631 | -1392 |
2086 | -1673 | -1431 |
2087 | -1717 | -1471 |
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