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Summary of Provisions That Would Change the Social Security Program |
Description of Proposed Provisions:
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Estimates based on the intermediate assumptions of the 2012 Trustees Report
Printer-friendly Version (PDF) |
  | Change from present law | Results with this provision | ||||
---|---|---|---|---|---|---|
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
|||
  | Present Law, Alternative II. |
  |   | -2.67 | -4.50 | |
A1 |
Starting December 2013, reduce the annual COLA by 1 percentage point. graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
1.69 | 2.27 | -0.98 | -2.24 | |
A2 |
Starting December 2013, reduce the annual COLA by 0.5 percentage point.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.88 | 1.19 | -1.79 | -3.32 | |
A3 |
Starting December 2013, compute the COLA using a chained version of the consumer
price index for wage and salary workers (CPI-W). We estimate this new computation
will reduce the annual COLA by about 0.3 percentage point, on average.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) | memo (Becerra) | memo (Bipartisan Policy Center) | memo (Chaffetz) | memo (Fiscal Commission) |
0.54 | 0.73 | -2.13 | -3.78 | |
A4 |
Starting December 2015, compute the COLA using a chained version of the consumer
price index for wage and salary workers (CPI-W). We estimate this new computation
will reduce the annual COLA by about 0.3 percentage point, on average. The new
COLA will not apply to DI benefits. It will apply to OASI benefits, except for
those of formerly disabled-workers who converted to retired-worker status.
graph | table | pdf-graph | pdf-table | memo (NRC/NAPA) |
0.39 | 0.53 | -2.27 | -3.97 | |
A5 |
Starting December 2013, add 1 percentage point to the annual COLA for beneficiaries
who have lived past a "specified age". The "specified age" is the sum of: (1) 65
and (2) the unisex cohort life expectancy at age 65.
graph | table | pdf-graph | pdf-table | memo (Senate Special Committee on Aging) |
-0.09 | -0.11 | -2.75 | -4.61 | |
A6 |
Starting December 2014, compute the COLA using the Consumer Price Index for the
Elderly (CPI-E). We estimate this new computation will increase the annual COLA
by about 0.2 percentage point, on average.
graph | table | pdf-graph | pdf-table | memo (Harkin 2013) | memo (Harkin 2012) | memo (Becerra) | memo (Deutch) |
-0.37 | -0.51 | -3.03 | -5.01 | |
A7 |
Starting December 2013, reduce the annual COLA by 1 percentage point, but not to
less than zero. In cases where the unreduced COLA is less than 1 percentage point,
do not carry over the unused reduction into future years.
graph | table | pdf-graph | pdf-table | memo (Hutchison) |
1.59 | 2.14 | -1.08 | -2.37 |
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