Description of Proposed Provision:
B1.6 (2026): Progressive price indexing (30th percentile) of PIA factors beginning with individuals newly eligible for OASI benefits in 2026: 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 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 the SSA average wage index. 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.
Financial Estimates for the OASDI Trust Fund Program
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Expressed as a percentage of current-law taxable payroll |
Trust fund ratio as of January 1 |
Expressed as a percentage of current-law taxable payroll |
|||||||
|
Calendar year |
Cost rate |
Income rate |
Annual balance |
Cost rate |
Income rate |
Annual balance |
|||
| 2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
| 2018 | 13.49 | 12.93 | -0.56 | 287 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.70 | 12.95 | -0.75 | 273 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 13.85 | 12.96 | -0.89 | 259 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.02 | 12.99 | -1.03 | 245 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.26 | 13.02 | -1.23 | 230 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.54 | 13.05 | -1.50 | 215 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.83 | 13.08 | -1.74 | 199 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 15.10 | 13.10 | -2.00 | 182 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.37 | 13.14 | -2.24 | 165 | -0.00 | -0.00 | 0.00 | ||
| 2027 | 15.61 | 13.15 | -2.46 | 148 | -0.00 | -0.00 | 0.00 | ||
| 2028 | 15.85 | 13.17 | -2.68 | 130 | -0.00 | -0.00 | 0.00 | ||
| 2029 | 16.06 | 13.18 | -2.88 | 112 | -0.01 | -0.00 | 0.01 | ||
| 2030 | 16.25 | 13.19 | -3.06 | 94 | -0.01 | -0.00 | 0.01 | ||
| 2031 | 16.42 | 13.21 | -3.22 | 76 | -0.02 | -0.00 | 0.02 | ||
| 2032 | 16.57 | 13.22 | -3.35 | 57 | -0.04 | -0.00 | 0.03 | ||
| 2033 | 16.69 | 13.22 | -3.46 | 37 | -0.05 | -0.00 | 0.05 | ||
| 2034 | 16.77 | 13.23 | -3.54 | 17 | -0.08 | -0.00 | 0.07 | ||
| 2035 | 16.82 | 13.23 | -3.59 | ---- | -0.10 | -0.01 | 0.10 | ||
| 2036 | 16.85 | 13.24 | -3.62 | ---- | -0.13 | -0.01 | 0.13 | ||
| 2037 | 16.85 | 13.24 | -3.61 | ---- | -0.17 | -0.01 | 0.16 | ||
| 2038 | 16.82 | 13.24 | -3.58 | ---- | -0.21 | -0.01 | 0.19 | ||
| 2039 | 16.75 | 13.23 | -3.52 | ---- | -0.25 | -0.01 | 0.23 | ||
| 2040 | 16.67 | 13.23 | -3.44 | ---- | -0.29 | -0.02 | 0.27 | ||
| 2041 | 16.58 | 13.23 | -3.35 | ---- | -0.34 | -0.02 | 0.32 | ||
| 2042 | 16.47 | 13.22 | -3.25 | ---- | -0.39 | -0.02 | 0.37 | ||
| 2043 | 16.37 | 13.22 | -3.15 | ---- | -0.44 | -0.02 | 0.42 | ||
| 2044 | 16.26 | 13.21 | -3.05 | ---- | -0.50 | -0.03 | 0.47 | ||
| 2045 | 16.16 | 13.21 | -2.96 | ---- | -0.56 | -0.03 | 0.53 | ||
| 2046 | 16.06 | 13.20 | -2.86 | ---- | -0.62 | -0.03 | 0.58 | ||
| 2047 | 15.96 | 13.20 | -2.77 | ---- | -0.68 | -0.04 | 0.65 | ||
| 2048 | 15.86 | 13.19 | -2.67 | ---- | -0.75 | -0.04 | 0.71 | ||
| 2049 | 15.77 | 13.19 | -2.58 | ---- | -0.82 | -0.05 | 0.78 | ||
| 2050 | 15.67 | 13.18 | -2.49 | ---- | -0.89 | -0.05 | 0.84 | ||
| 2051 | 15.59 | 13.18 | -2.41 | ---- | -0.97 | -0.05 | 0.91 | ||
| 2052 | 15.51 | 13.17 | -2.34 | ---- | -1.04 | -0.06 | 0.98 | ||
| 2053 | 15.45 | 13.17 | -2.28 | ---- | -1.12 | -0.06 | 1.06 | ||
| 2054 | 15.39 | 13.17 | -2.22 | ---- | -1.20 | -0.07 | 1.13 | ||
| 2055 | 15.34 | 13.16 | -2.17 | ---- | -1.28 | -0.07 | 1.21 | ||
| 2056 | 15.29 | 13.16 | -2.13 | ---- | -1.37 | -0.08 | 1.29 | ||
| 2057 | 15.25 | 13.16 | -2.08 | ---- | -1.45 | -0.08 | 1.37 | ||
| 2058 | 15.20 | 13.16 | -2.04 | ---- | -1.54 | -0.09 | 1.45 | ||
| 2059 | 15.16 | 13.16 | -2.01 | ---- | -1.62 | -0.09 | 1.53 | ||
| 2060 | 15.12 | 13.16 | -1.97 | ---- | -1.70 | -0.10 | 1.61 | ||
| 2061 | 15.09 | 13.15 | -1.93 | ---- | -1.79 | -0.10 | 1.69 | ||
| 2062 | 15.05 | 13.15 | -1.90 | ---- | -1.87 | -0.11 | 1.76 | ||
| 2063 | 15.02 | 13.15 | -1.87 | ---- | -1.95 | -0.11 | 1.84 | ||
| 2064 | 14.99 | 13.15 | -1.84 | ---- | -2.03 | -0.12 | 1.92 | ||
| 2065 | 14.95 | 13.15 | -1.81 | ---- | -2.11 | -0.12 | 1.99 | ||
| 2066 | 14.92 | 13.15 | -1.78 | ---- | -2.19 | -0.13 | 2.07 | ||
| 2067 | 14.90 | 13.15 | -1.75 | ---- | -2.27 | -0.13 | 2.14 | ||
| 2068 | 14.87 | 13.14 | -1.73 | ---- | -2.35 | -0.13 | 2.22 | ||
| 2069 | 14.84 | 13.14 | -1.70 | ---- | -2.43 | -0.14 | 2.29 | ||
| 2070 | 14.82 | 13.14 | -1.68 | ---- | -2.51 | -0.14 | 2.37 | ||
| 2071 | 14.79 | 13.14 | -1.65 | ---- | -2.59 | -0.15 | 2.44 | ||
| 2072 | 14.75 | 13.14 | -1.61 | ---- | -2.66 | -0.15 | 2.51 | ||
| 2073 | 14.71 | 13.14 | -1.58 | ---- | -2.74 | -0.16 | 2.58 | ||
| 2074 | 14.67 | 13.13 | -1.54 | ---- | -2.81 | -0.16 | 2.65 | ||
| 2075 | 14.62 | 13.13 | -1.49 | ---- | -2.88 | -0.16 | 2.72 | ||
| 2076 | 14.57 | 13.13 | -1.44 | ---- | -2.95 | -0.17 | 2.78 | ||
| 2077 | 14.51 | 13.13 | -1.39 | ---- | -3.01 | -0.17 | 2.84 | ||
| 2078 | 14.45 | 13.12 | -1.33 | ---- | -3.07 | -0.18 | 2.90 | ||
| 2079 | 14.38 | 13.12 | -1.27 | ---- | -3.13 | -0.18 | 2.95 | ||
| 2080 | 14.32 | 13.11 | -1.20 | ---- | -3.19 | -0.18 | 3.01 | ||
| 2081 | 14.26 | 13.11 | -1.15 | ---- | -3.25 | -0.19 | 3.06 | ||
| 2082 | 14.20 | 13.11 | -1.09 | ---- | -3.31 | -0.19 | 3.12 | ||
| 2083 | 14.15 | 13.10 | -1.04 | ---- | -3.37 | -0.19 | 3.17 | ||
| 2084 | 14.10 | 13.10 | -1.00 | ---- | -3.43 | -0.20 | 3.23 | ||
| 2085 | 14.06 | 13.10 | -0.96 | ---- | -3.49 | -0.20 | 3.29 | ||
| 2086 | 14.03 | 13.10 | -0.93 | ---- | -3.55 | -0.20 | 3.35 | ||
| 2087 | 14.00 | 13.10 | -0.90 | ---- | -3.62 | -0.21 | 3.41 | ||
| 2088 | 13.97 | 13.09 | -0.88 | ---- | -3.69 | -0.21 | 3.47 | ||
| 2089 | 13.95 | 13.09 | -0.86 | ---- | -3.75 | -0.22 | 3.54 | ||
| 2090 | 13.93 | 13.09 | -0.84 | ---- | -3.82 | -0.22 | 3.60 | ||
| 2091 | 13.91 | 13.09 | -0.82 | ---- | -3.89 | -0.22 | 3.66 | ||
| 2092 | 13.89 | 13.09 | -0.80 | ---- | -3.95 | -0.23 | 3.73 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2017-2091 | 15.41% | 13.77% | -1.64% | 2034 | -1.26% | -0.07% | 1.18% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2017 Trustees Report.