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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 2016 Trustees Report
Printer-friendly Version (PDF) |
Change from present law [percent of payroll] |
Shortfall eliminated | |||||
---|---|---|---|---|---|---|
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
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Present law shortfall in long-range actuarial balance is 2.66 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll. | ||||||
D1 |
Beginning in 2017, continue benefits for children of disabled or deceased
workers until age 22 if the child is in high school, college or vocational
school.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) | memo (Begich, Murray) | memo (Moore) | memo (National Academy of Social Insurance) |
-0.06 | -0.06 | -2% | -1% | |
D2 |
The current spouse benefit is based on 50 percent of the PIA of the other spouse.
Reduce this percent each year by 1 percentage point beginning with newly eligible
spouses in 2017, until the percent reaches 33 in 2033.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
0.12 | 0.18 | 4% | 4% | |
D3 |
Allow divorced aged spouses and divorced surviving spouses married 5 to 9 years
to get benefits based on the former spouse's account. Divorced aged and surviving
spouses would receive 50% of the applicable current-law PIA percentage if married
5 years, 60% of the applicable PIA percentage if married 6 years, ..., 90% of the
applicable PIA percentage if married 9 years. This benefit would be available to
divorced spouses on the rolls at the beginning of 2018 and those becoming eligible
after 2018.
graph | table | pdf-graph | pdf-table | memo (Begich, Murray) |
-0.02 | -0.01 | -1% | 0% | |
D4 |
Establish an alternative benefit for a surviving spouse. For the surviving spouse,
the alternative benefit would equal 75 percent of the sum of the survivor's own
worker benefit and the deceased worker's PIA (including any actuarial reductions
or delayed retirement credits). If the deceased worker died before becoming entitled,
use the age 62 actuarial reduction if deceased before age 62, or the applicable
actuarial reduction/DRC for entitlement at the age of death if deceased after 62.
The alternative benefit would not exceed the PIA of a hypothetical earner who earns
the SSA average wage index (AWI) every year, and who becomes eligible for
retired-worker benefits in the same year in which the deceased worker became entitled
to worker benefits or died (if before entitlement). The alternative benefit would be
paid only if more than the current-law benefit. This benefit would be available to
surviving spouses on the rolls at the beginning of 2018 and those becoming eligible
after 2018.
graph | table | pdf-graph | pdf-table | memo (Begich, Murray) |
-0.12 | -0.12 | -4% | -3% | |
D5 |
Limit the spousal benefit to that received by the spouse of the 75th percentile
career-average worker, beginning with retired workers newly eligible in 2023.
For future cohorts, this limit would be indexed for inflation annually using chain
weighted CPI-U. The provision affects divorced spouses and young spouses (retired
workers) but not spouses of disabled workers.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.11 | 0.21 | 4% | 5% | |
D6 |
For spouses and children of retired and disabled workers becoming newly eligible
beginning in 2023 and phased in for 2023 through 2032, limit their auxiliary benefit
to one-half of the PIA for a hypothetical worker with earnings equal to the national
average wage index (AWI) each year.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
0.07 | 0.11 | 3% | 2% | |
D7 |
Beginning in January 2019, require full time school enrollment as a condition of
eligibility for child benefits at age 15 up to 18.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
0.01 | 0.01 | 0% | 0% |
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