Description of Proposed Provision:
B5.2: Beginning for those newly eligible in 2018, reconfigure the special minimum benefit: (a) A year of coverage is defined as a year in which 4 quarters of coverage are earned. (b) At implementation, set the PIA for 30 years of coverage equal to 125 percent of the monthly poverty level (about $1,238 in 2016). For those with under 30 years of coverage, the PIA per year of coverage over 10 years is $1,238/20 = $61.90. (c) Index the initial PIA per year of coverage by wage growth for successive cohorts.

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
201713.4113.03-0.38
298
0.000.000.00
201813.4912.93-0.56
287
0.000.00-0.00
201913.7112.95-0.76
273
0.010.00-0.01
202013.8712.96-0.90
258
0.010.00-0.01
202114.0312.99-1.04
244
0.020.00-0.02
202214.2813.02-1.26
230
0.020.00-0.02
202314.5813.05-1.53
214
0.030.00-0.03
202414.8713.09-1.78
198
0.040.00-0.04
202515.1513.11-2.04
181
0.050.00-0.05
202615.4313.14-2.29
164
0.060.00-0.05
202715.6813.15-2.53
146
0.060.00-0.06
202815.9313.17-2.75
128
0.070.00-0.07
202916.1513.19-2.96
109
0.080.00-0.08
203016.3513.20-3.15
91
0.090.00-0.08
203116.5413.21-3.33
72
0.090.00-0.09
203216.7113.22-3.48
52
0.100.01-0.10
203316.8513.23-3.62
32
0.110.01-0.10
203416.9613.24-3.72
12
0.110.01-0.11
203517.0513.25-3.80
----
0.120.01-0.11
203617.1113.25-3.86
----
0.130.01-0.12
203717.1513.25-3.90
----
0.130.01-0.12
203817.1613.26-3.90
----
0.140.01-0.13
203917.1413.26-3.88
----
0.140.01-0.13
204017.1113.26-3.85
----
0.150.01-0.14
204117.0713.25-3.81
----
0.150.01-0.14
204217.0213.25-3.76
----
0.150.01-0.15
204316.9713.25-3.72
----
0.160.01-0.15
204416.9213.25-3.68
----
0.160.01-0.15
204516.8913.25-3.64
----
0.170.01-0.16
204616.8513.24-3.61
----
0.170.01-0.16
204716.8213.24-3.58
----
0.180.01-0.17
204816.8013.24-3.55
----
0.180.01-0.17
204916.7713.24-3.53
----
0.180.01-0.17
205016.7513.24-3.51
----
0.190.01-0.18
205116.7513.24-3.50
----
0.190.01-0.18
205216.7513.24-3.51
----
0.190.01-0.18
205316.7613.24-3.52
----
0.200.01-0.19
205416.7913.25-3.54
----
0.200.01-0.19
205516.8213.25-3.57
----
0.200.01-0.19
205616.8613.25-3.61
----
0.200.01-0.19
205716.9013.25-3.65
----
0.210.01-0.19
205816.9513.26-3.69
----
0.210.01-0.20
205916.9913.26-3.73
----
0.210.01-0.20
206017.0413.26-3.78
----
0.210.01-0.20
206117.0913.27-3.82
----
0.210.01-0.20
206217.1413.27-3.87
----
0.220.01-0.20
206317.1913.27-3.91
----
0.220.01-0.21
206417.2413.28-3.96
----
0.220.01-0.21
206517.2913.28-4.01
----
0.220.01-0.21
206617.3413.28-4.06
----
0.220.01-0.21
206717.3913.29-4.11
----
0.220.01-0.21
206817.4513.29-4.16
----
0.220.01-0.21
206917.5013.29-4.21
----
0.230.01-0.21
207017.5513.30-4.26
----
0.230.01-0.21
207117.6013.30-4.30
----
0.230.01-0.22
207217.6413.30-4.34
----
0.230.01-0.22
207317.6813.31-4.37
----
0.230.01-0.22
207417.7113.31-4.40
----
0.230.01-0.22
207517.7313.31-4.42
----
0.230.01-0.22
207617.7513.31-4.44
----
0.230.01-0.22
207717.7513.31-4.44
----
0.230.01-0.22
207817.7513.31-4.44
----
0.230.01-0.22
207917.7513.31-4.44
----
0.230.01-0.22
208017.7413.31-4.43
----
0.230.01-0.22
208117.7313.31-4.42
----
0.230.01-0.22
208217.7313.31-4.42
----
0.230.01-0.22
208317.7413.31-4.43
----
0.230.01-0.22
208417.7613.31-4.45
----
0.230.01-0.22
208517.7813.31-4.47
----
0.230.01-0.22
208617.8113.31-4.50
----
0.230.01-0.22
208717.8513.32-4.53
----
0.230.01-0.22
208817.8913.32-4.57
----
0.230.01-0.22
208917.9313.32-4.61
----
0.230.01-0.22
209017.9813.32-4.66
----
0.230.01-0.22
209118.0313.33-4.70
----
0.230.01-0.22
209218.0713.33-4.74
----
0.230.01-0.22


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2017-2091 16.82% 13.85% -2.98%
2034
0.16% 0.01% -0.15%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2017 Trustees Report.