Description of Proposed Provisions:
Provisions Affecting Level of Monthly Benefits
Estimates based on the intermediate assumptions of
the 2018 Trustees Report
Printer-friendly Version (PDF)
Change from current law [percent of payroll] |
Shortfall eliminated | |||||
---|---|---|---|---|---|---|
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
|||
Current law shortfall in long-range actuarial balance is 2.84 percent of payroll and in annual balance for the 75th year is 4.32 percent of payroll. | ||||||
B1.1 |
Price indexing of PIA factors beginning with those newly eligible for
OASDI benefits in 2025: Reduce factors so that initial benefits grow
by inflation rather than by the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
2.78 | 7.75 | 98% | 180% | |
B1.2 |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2025: 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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
1.53 | 4.31 | 54% | 100% | |
B1.3 |
Progressive price indexing (40th percentile) of PIA factors beginning
with individuals newly eligible for OASDI benefits in 2025: Create a
new bend point at the 40th percentile of the AIME distribution of newly
retired workers. Maintain current-law benefits for earners at the 40th
percentile and below. Reduce the 32 and 15 percent factors above the 40th
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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
1.30 | 3.63 | 46% | 84% | |
B1.4 |
Progressive price indexing (50th percentile) of PIA factors beginning
with individuals newly eligible for OASDI benefits in 2025: Create a
new bend point at the 50th percentile of the AIME distribution of newly
retired workers. Maintain current-law benefits for earners at the 50th
percentile and below. Reduce the 32 and 15 percent factors above the 50th
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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
1.06 | 2.77 | 37% | 64% | |
B1.5 |
Progressive price indexing (60th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2025: Create a new bend
point at the 60th percentile of the AIME distribution of newly retired workers.
Maintain current-law benefits for earners at the 60th percentile and below. Reduce
the 32 and 15 percent factors above the 60th 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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.78 | 1.84 | 28% | 43% | |
B1.6 (2022) |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASI benefits in 2022: 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. Young survivors (children of deceased
workers and surviving spouses with a child in care) are not affected.
graph | table | pdf-graph | pdf-table | memo (Bennett) |
1.53 | 4.00 | 54% | 93% | |
B1.6 (2027) |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASI benefits in 2027: 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.
graph | table | pdf-graph | pdf-table | memo (Ryan 2010) |
1.21 | 3.66 | 43% | 85% | |
B1.7 |
Progressive price indexing (40th percentile) of PIA factors for individuals
newly eligible for OASI benefits in 2026 through 2063: Create a new bend point
at the 40th percentile of the AIME distribution of newly retired workers. Maintain
current-law benefits for earners at the 40th percentile and below. Reduce the
32 and 15 percent factors above the 40th 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. Young survivors (children of deceased workers
and surviving spouses with a child in care) are not affected.
graph | table | pdf-graph | pdf-table | memo (Graham, Paul, Lee) |
1.02 | 2.62 | 36% | 61% | |
B1.8 |
Progressive price indexing (50th percentile) of PIA factors for individuals
newly eligible for OASI benefits in 2023 through 2062: Create a new bend point
at the 50th percentile of the AIME distribution of newly retired workers. Maintain
current-law benefits for earners at the 50th percentile and below. Reduce the
32 and 15 percent factors above the 50th 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.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) |
1.02 | 2.39 | 36% | 55% | |
B2.1 |
Beginning with those newly eligible for OASI benefits in 2028, multiply
the PIA factors by the ratio of life expectancy at 67 for 2023 to the
life expectancy at age 67 for the 4th year prior to the year of benefit
eligibility. Unisex life expectancies, based on period life tables as
computed by SSA's Office of the Chief Actuary, are used to determine the
ratio. 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.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) | memo (Bennett) |
0.52 | 1.66 | 18% | 39% | |
B3.8 |
Beginning with those newly eligible for OASDI benefits in 2025, create a
new bend point at the 50th percentile of the AIME distribution of newly
retired workers and gradually reduce all PIA factors except for the 90 percent
factor. By 2058: a) the 32 percent PIA factor below the new bend point reduces
to 30 percent; b) the 32 percent PIA factor above the new bend point reduces
to 10 percent; and c) the 15 percent PIA factor reduces to 5 percent.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission) |
0.94 | 2.32 | 33% | 54% | |
B3.9 |
Beginning with those newly eligible for OASDI benefits in 2031, gradually
reduce the 15 percent PIA factor in each year so that it reaches 10 percent
for those newly eligible in 2060 and later.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
0.09 | 0.25 | 3% | 6% | |
B3.10 |
Beginning with those newly eligible for OASDI benefits in 2025, gradually
increase the first PIA bend point in each year so that it is 15 percent higher
for those newly eligible in 2039 and later.
graph | table | pdf-graph | pdf-table | memo (Sanders, DeFazio 2019) | memo (Sanders, DeFazio 2017) | memo (Sanchez) | memo (Sanders 2016) | memo (Schatz) | memo (Sanders 2015) | memo (Harkin 2013) | memo (Harkin 2012) |
-0.37 | -0.70 | -13% | -16% | |
B3.11 |
Increase the first PIA factor from 90 percent to 93 percent for all
beneficiaries eligible as of January 2020 and for those newly eligible
for benefits after 2019.
graph | table | pdf-graph | pdf-table | memo (Larson, Blumenthal, Van Hollen 2019) | memo (Larson 2017) | memo (Larson 2015) | memo (Larson 2014) |
-0.24 | -0.26 | -8% | -6% | |
B3.12 |
Use an annualized "mini-PIA" formula beginning with retired workers
newly eligible in 2025. For each indexed earnings year, compute an
individual AIME and an individual PIA. Sum these individual PIAs for
the 40 highest years of indexed earnings and divide that total amount
by 37 to get the PIA for this provision. Phase-in over five years,
meaning that in 2025, 80 percent of the benefit would be based on the
old 35-year average PIA formula and 20 percent on the new mini-PIA
formula, shifting by 20 percentage points each year until 100 percent
is based on the new mini-PIA formula for those attaining age 62 in 2029.
Disabled worker benefits are unchanged under this provision.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.25 | 0.40 | 9% | 9% | |
B3.13 |
For retired worker beneficiaries newly eligible in 2025 (excluding
disabled workers), add a new bend point at the wage-indexed equivalent
of the 50th percentile of the AIME distribution minus $100 (for 2015
eligibility) and change the PIA factors to 95/32/15/5. Also move the
current-law first bend point from the wage-indexed equivalent of $895
in 2018 to $1,138 in 2018. Phase this provision in over 10 years
(2025-2034). The phase-in would work on a weighted-average basis: 90%
of CL formula + 10% of proposal formula for 2025, 80% of CL formula
+ 20% of proposal formula for 2026, and so on.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.09 | 0.18 | 3% | 4% | |
B3.14 |
Beginning with those newly eligible for OASDI benefits in 2020, reduce
the 15 percent PIA factor by 2 percentage points per year so that it
reaches 5 percent for those newly eligible in 2024 and later.
graph | table | pdf-graph | pdf-table | memo (Ribble) |
0.33 | 0.49 | 12% | 11% | |
B3.15 |
Increase the 90 percent PIA formula factor to 91 percent for beneficiaries
newly eligible in 2023, 92 percent for those newly eligible in 2024, ...,
reaching 95 percent for those newly eligible in 2027 and later.
graph | table | pdf-graph | pdf-table | memo (Sanchez) |
-0.27 | -0.44 | -10% | -10% | |
B3.16 |
For retired worker and disabled worker beneficiaries becoming initially
eligible in January 2025 or later, phase in a new benefit formula (from
2025 to 2034). Replace the existing two primary insurance amount (PIA)
bend points with three new bend points as follows: (1) 25% AWI/12 from
2 years prior to initial eligibility; (2) 100% AWI/12 from 2 years prior
to initial eligibility; and (3) 125% AWI/12 from 2 years prior to initial
eligibility. The new PIA factors are 95%, 27.5%, 5% and 2%. During the
phase in, those becoming newly eligible for benefits will receive an increasing
portion of their benefits based on the new formula, reaching 100% of the
new formula in 2034.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
0.89 | 1.62 | 31% | 37% | |
B4.1 |
Increase the number of years used to calculate benefits for retirees and
survivors (but not for disabled workers) from 35 to 38, phased in over
the years 2019-2023.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.27 | 0.38 | 9% | 9% | |
B4.2 |
Increase the number of years used to calculate benefits for retirees
and survivors (but not for disabled workers) from 35 to 40, phased in
over the years 2019-2027.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) | memo (Social Security Advisory Board) |
0.43 | 0.64 | 15% | 15% | |
B4.3 |
For the OASI and DI computation of the PIA, gradually reduce the
maximum number of drop-out years from 5 to 0, phased in over the
years 2020-2028.
graph | table | pdf-graph | pdf-table | memo (Warshawsky) |
0.59 | 0.91 | 21% | 21% | |
B4.4 |
Reduce the number of computation years (increase dropout years) for
parents having a child in care under the age of 6. The parent must
have no earnings (covered or non-covered) for the year to be eligible
for the credit. Only one parent can claim the childcare added dropout
year for a given earnings year. Each parent can earn at most 2 dropout
years per child, and a maximum of 5 dropout years in total. The years
designated as childcare years do not have to be the years that could
otherwise be included in the computation of the average indexed monthly
earnings (AIME). The provision would be effective for all benefits payable
for entitlement in January 2020 and later (without regard for when the
beneficiary became initially eligible).
graph | table | pdf-graph | pdf-table | memo (Murphy) |
-0.05 | -0.05 | -2% | -1% | |
B4.5 |
For retired and disabled workers, reduce the maximum number of dropout
years to 4 for workers newly eligible in 2020, to 3 for workers newly
eligible in 2021, and to 2 for workers newly eligible in 2022 and later.
graph | table | pdf-graph | pdf-table | memo (Ribble) |
0.36 | 0.51 | 13% | 12% | |
B5.1 |
Increase the PIA to a level such that a worker with 30 years of earnings
at the minimum wage level receives an adjusted PIA equal to 120 percent
of the Federal poverty level for an aged individual. This provision takes
full effect for all newly eligible OASDI workers in 2036, and is phased
in for new eligibles in 2027 through 2035. The percentage increase in PIA
is lowered proportionately for those with fewer than 30 years of earnings,
down to no enhancement for workers with 20 or fewer years of earnings.
(Year-of-work requirements are "scaled" for disabled workers based on their
years of potential work from age 22 to benefit eligibility). The benefit
enhancement percentage is reduced proportionately for workers with higher
average indexed monthly earnings (AIME), down to no enhancement for those
with AIME at least twice that of a 35-year steady minimum wage earner.
graph | table | pdf-graph | pdf-table | memo (Ryan 2010) |
-0.01 | -0.00 | -0% | -0% | |
B5.2 |
Beginning for those newly eligible in 2019, 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 $1,256 in 2017). For
those with under 30 years of coverage, the PIA per year of coverage over 10
years is $1,256/20 = $62.80. (c) Index the initial PIA per year of coverage
by wage growth for successive cohorts.
graph | table | pdf-graph | pdf-table | memo (Sanders, DeFazio 2019) | memo (Larson, Blumenthal, Van Hollen 2019) | memo (Lawson) | memo (Larson 2017) | memo (Sanders, DeFazio 2017) | memo (Sanders 2016) | memo (Sanders 2015) | memo (Larson 2015) | memo (Larson 2014) | memo (National Academy of Social Insurance) |
-0.17 | -0.25 | -6% | -6% | |
B5.3 |
Beginning for those newly eligible in 2019, reconfigure the special
minimum benefit: (a) A year of coverage is defined to be either a year
in which 4 quarters of coverage are earned or a child is in care.
Childcare years are granted to parents who have a child under 5, with
a limit of 8 such years. (b) At implementation, set the PIA for 30
years of coverage equal to 125 percent of the monthly poverty level
(about $1,256 in 2017). For those with under 30 years of coverage,
the PIA per year of coverage over 10 years is $1,256/20 = $62.80.
(c) Index the initial PIA per year of coverage by wage growth for
successive cohorts.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.25 | -0.36 | -9% | -8% | |
B5.4 |
Beginning for those newly eligible in 2025, 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 $1,256 in 2017). For those with under 30 years of coverage,
the PIA per year of coverage over 10 years is $1,256/20 = $62.80. (c)
From 2017 to the year of implementation, 2025, index the PIA per year
of coverage using the chain-CPI index. Then, for later years, index the
PIA per year of coverage by wage growth for successive cohorts. (d)
Scale work requirements for disabled workers, based on the number of
years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission) |
-0.13 | -0.22 | -5% | -5% | |
B5.5 |
Beginning for those newly eligible in 2020, reconfigure the special
minimum benefit: (a) A year of coverage is defined as a year in which
either 20 percent of the "old law maximum" is earned or a child is
in care. Childcare years are granted to parents who have a child under
6, with a limit of 8 such years. (b) At implementation, set the PIA
for 30 years of coverage equal to 133 percent of the Census monthly
poverty level (about $1,303 in 2017). For those with under 30 years
of coverage, the PIA per year of coverage over 19 years is $1,303/11
= $118.50. (c) Index the initial PIA per year of coverage by wage
growth for successive cohorts. (d) Scale work requirements for disabled
workers, based on the number of years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
-0.06 | -0.08 | -2% | -2% | |
B5.6 |
Beginning for those newly eligible in 2019, reconfigure the special
minimum benefit: (a) A year of coverage is defined to be either a
year in which 4 quarters of coverage are earned or a child is in care.
Childcare years are granted to parents who have a child under 6, with
a limit of 5 such years. (b) At implementation, set the PIA for 30
years of coverage equal to 100 percent of the monthly poverty level
(about $1,012 in 2018). For those with under 30 years of coverage,
the PIA per year of coverage over 10 years is $1,012/20 = $50.60.
(c) From 2018 to the year of implementation, 2019, index the PIA per
year of coverage using the CPI index. Then, for later years, index
the PIA per year of coverage by wage growth for successive cohorts.
(d) Scale work requirements for disabled workers, based on the number
of years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) |
-0.10 | -0.15 | -4% | -4% | |
B5.7 |
Beginning for those newly eligible in 2021, reconfigure the special
minimum benefit: (a) The number of years of work (YOWs) is determined
as total quarters of coverage divided by 4, ignoring any fraction.
Childcare years are granted to parents who have a child under 6, with
a limit of 5 such years. (b) At implementation, set the PIA for 30+
YOWs equal to 100 percent of the monthly HHS poverty level for the
year prior to eligibility. For workers between 11 and 29 YOWs, reduce
the special minimum by 3 1/3 percentage points per YOW so that at 29
YOWs the minimum would be 96 2/3% of poverty, ..., down to 11 YOWs at
36 2/3% of poverty. No minimum for 10 or fewer YOWs.
graph | table | pdf-graph | pdf-table | memo (Moore) |
-0.02 | -0.00 | -1% | -0% | |
B5.8 |
Beginning in 2023, create a Basic Minimum Benefit (BMB) within Social
Security (i.e., the cost of the BMB would be charged as a cost to the
OASI Trust Fund), with the following specifications: (1) Eligibility
for the BMB would be limited to OASI beneficiaries who have attained
normal retirement age (NRA) or above. OASI beneficiaries under NRA would
not be eligible for the BMB. (2) The BMB would be calculated on a household
basis and split equally between members of the household. In the case
of a married couple, both spouses would need to claim any Social Security
benefits for which they are eligible before they could receive the BMB.
If both spouses have claimed and one is NRA or above and the other has
not yet attained NRA, only the half of the BMB for the spouse over NRA
would be payable. (3) The BMB amount for single beneficiaries would be
equal to either: 1) the BMB base ($604 in 2015) - 0.70 * current monthly
OASI benefit (not including any BMB), if positive; or 2) zero. (4) The
BMB amount for married beneficiaries would be equal to either: 1) the
BMB base ($906 in 2015) - 0.70 * total household monthly OASI benefits
(not including any BMB), if positive; or 2) zero. (5) The BMB bases for
singles and couples would be updated annually for changes in the average
wage index (AWI). (6) Single filers with Adjusted Gross Income (AGI) over
$30,000 and joint filers with AGI (including taxable SS benefits) over
$45,000 would be subject to clawback of the BMB through the income tax
system. Any BMB would be reduced by one dollar for every dollar of income
above the thresholds. (Thresholds, in 2015 dollars, would be indexed to
chained CPI-U.) Clawbacks would be credited back to the OASI Trust Fund.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
-0.20 | -0.24 | -7% | -5% | |
B5.9 |
Beginning for those newly eligible in 2020, 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 40 years of coverage equal to 125 percent of the monthly Aged
Federal poverty level (about $1,225 in 2017). For those with 20 or
fewer years of coverage, phase up linearly from 0 percent of the poverty
level for 10 years of coverage to 100 percent of the poverty level.
For those having between 20 and 40 years of coverage, phase up linearly
from 100 percent of the poverty level at 20 years of coverage to 125%
of the poverty level for 40 or more years of coverage. (c) For newly
eligible workers in 2020 and 2021, index the applicable poverty level
using the CPI index, to the year prior to eligibility. Then, for newly
eligible workers in 2022 and later, index the PIA per year of coverage
by wage growth for successive cohorts. (d) Disabled workers have a somewhat
similar minimum benefit, with work requirements scaled based on the number
of years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Ribble) |
-0.17 | -0.28 | -6% | -7% | |
B5.10 |
Reconfigure the special minimum benefit, phased in for retired and
disabled workers newly eligible from 2025 through 2034: (a) A year
of work (YOW) coverage is equal to earnings at or above $10,875 in
2018 (reflecting a full-time worker earning the federal minimum wage),
adjusted thereafter for wage growth. (b) At implementation, set the
minimum PIA at zero percent of AWI for those with 10 or fewer YOWs
to 15 percent of AWI for those with 15 YOWs, increasing linearly so
that it reaches 19 percent for 19 YOWs. Then the minimum PIA would
jump up to 25 percent of AWI for those with 20 YOWs, increasing linearly
so that it equals 35 percent of AWI for those with 35 or more YOWs.
(c) Use the AWI for two years prior to the year of initial eligibility
in the minimum PIA calculation with COLA increase after the year of
initial eligibility. (d) Scale the YOW requirements for disabled workers,
based on the number of years of non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
-0.23 | -0.41 | -8% | -10% | |
B6.1 |
Provide a 5 percent increase to the monthly benefit amount (MBA) of any
beneficiary who is 85 or older at the beginning of 2019 or who reaches
their 85th birthday after the beginning of 2019.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) | memo (National Academy of Social Insurance) |
-0.11 | -0.16 | -4% | -4% | |
B6.2 |
Provide the same dollar amount increase to the monthly benefit amount
(MBA) of any beneficiary who is 85 or older at the beginning of 2019
or who reaches their 85th birthday after the beginning of 2019. The dollar
amount of increase equals 5 percent of the average retired-worker MBA
in the prior year.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.11 | -0.16 | -4% | -4% | |
B6.3 |
Provide an increase in the benefit level of any beneficiary who is 85
or older at the beginning of 2020 or who reaches their 85th birthday
after the beginning of 2020. Increase the beneficiary's PIA based on
an amount equal to the average retired-worker PIA at the end of 2019,
or at the end of the year age 80 if later. Increase the beneficiary's
PIA by 5 percent of this amount for those older than 85 at the beginning
of 2020 and by 5 percent of this amount at age 85 for others, phased
in at 1 percent per year for ages 81-85.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
-0.14 | -0.19 | -5% | -4% | |
B6.4 |
Starting in 2019, provide a 5 percent uniform benefit increase
24 years after initial benefit eligibility. Phase in the benefit
increase at 1 percent per year from the 20th through 24th years
after eligibility. For disabled workers, the eligibility age is
the initial entitlement year to the benefit. The benefit increase
is equal to 5 percent of the PIA of a worker assumed to have
career-average earnings equal to SSA's average wage index.
graph | table | pdf-graph | pdf-table | memo (Ribble) | memo (Fiscal Commission) |
-0.16 | -0.22 | -6% | -5% | |
B6.5 |
Starting in 2021, provide a 5 percent uniform PIA increase 20 years
after benefit eligibility. Phase in the PIA increase at 1 percent per
year from the 16th through 20th years after eligibility. The full PIA
increase is equal to 5 percent of the PIA of a worker assumed to have
career-average earnings equal to the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Moore) |
-0.24 | -0.32 | -9% | -7% | |
B6.6 |
Starting in 2025, provide a uniform PIA increase 23 years after
benefit eligibility. Phase in the PIA increase at 0.5 percent per
year from the 14th through the 23rd years after eligibility. The
full PIA increase is equal to 5 percent of the average retired worker
PIA in December of the 12th year after benefit eligibility. A similar
additional PIA increase applies 42 years after benefit eligibility
(age 104), phased in from the 33rd through the 42nd years after eligibility.
For those past the 14th year of eligibility in 2025 (over age 76 for
retirees), phase in the PIA enhancement over 10 years starting in 2025.
Auxiliary beneficiaries receive benefit enhancement based on the PIA
of the governing worker.
graph | table | pdf-graph | pdf-table | memo (FY 2014 Budget) |
-0.21 | -0.30 | -7% | -7% | |
B6.7 |
Starting in January 2025, provide an addition to monthly benefits for
all beneficiaries who have been eligible for at least 20 years, with
the following specifications: (1) Augment benefits (not the PIA) for
those of qualifying age and eligibility duration with a MAGI below about
$26,150 if single and $52,300 if married. MAGI is set to equal the IRMAA
definition (AGI plus tax-exempt interest income). Index these thresholds
after 2025 by the increase in the C-CPI-U; (2) The full additional amount
is applicable for those born 1959 and later, once 24 years elapse from
initial eligibility. The basic additional amount is calculated as 5 percent
of the PIA for a hypothetical worker with earnings equal to the AWI each
year; (3) For those born prior to 1959, the full additional amount is
multiplied by the number of years they have been affected by the C-CPI-U,
divided by 24; (4) Beneficiaries will receive 20 percent of their additional
amount in their 20th year after initial eligibility, 40 percent in their
21st year after initial eligibility,..., and 100 percent of their additional
amount in their 24th and later years after benefit eligibility; (5) Retired
and disabled worker beneficiaries, dually entitled spouse beneficiaries,
and all survivor beneficiaries received their addition as described above.
Spousal beneficiaries (aged or with child in care) and child beneficiaries
of a living retired or disabled worker receive 50 percent of the additional
amount described above. Other beneficiary types (such as parents of deceased
workers) will receive the percentage of the flat benefit that equals the
percentage of the insured worker's PIA that they receive; (6) The AWI used
is for the second year prior to the beneficiary's initial eligibility year,
with applicable COLAs applied up to the age when the addition is received;
and (7) The additional amount is added to the monthly benefit after reductions
for early claiming or increases for delayed claiming have been applied.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
-0.06 | -0.08 | -2% | -2% | |
B7.2 |
Reduce benefits by 5 percent for those newly eligible for benefits
in 2019 and later.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.61 | 0.83 | 21% | 19% | |
B7.3 |
Give credit to parents with a child under 6 for earnings for up to five years.
The earnings credited for a childcare year equal one half of the SSA average
wage index (about $25,947 in 2018). The credits are available for all past years
to newly eligible retired-worker and disabled-worker beneficiaries starting in
2019. The 5 years are chosen to yield the largest increase in AIME.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.23 | -0.32 | -8% | -7% | |
B7.5 |
Increase benefits by 5 percent for all beneficiaries as of the beginning
of 2019 and for those newly eligible for benefits after the beginning of 2019.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.78 | -0.83 | -27% | -19% | |
B7.7 |
Reduce individual Social Security benefits if modified adjusted
gross income, or MAGI (AGI less taxable Social Security benefits
plus nontaxable interest income) is above $60,000 for single taxpayers
or $120,000 for taxpayers filing jointly. This provision is effective
for individuals newly eligible for benefits in 2023 or later. The
percentage reduction increases linearly up to 50 percent for single/joint
filers with MAGI of $180,000/$360,000 or above. Index the MAGI
thresholds for years after 2023, based on changes in the SSA
average wage index.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) |
0.36 | 0.50 | 13% | 12% | |
B7.8 |
Replace the Windfall Elimination Provision (WEP) and Government Pension
Offset (GPO) with a revised reduction for most OASI benefits based on all
earnings, beginning with beneficiaries newly eligible in 2025.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.09 | 0.13 | 3% | 3% | |
B7.9 |
Beginning for newly eligible retired workers and spouses in 2025, all
claimants who are married would receive a specified joint-and-survivor
annuity benefit (i.e., surviving spouses would receive 75 percent of
the decedents' benefits, in addition to their own) that would be payable
if both were still alive. Initial benefits would be actuarially adjusted
to keep the expected value of benefits equivalent to what would otherwise
be current law.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.00 | -0.24 | 0% | -6% | |
B7.10 |
Replace the current-law WEP with a new calculation for most OASI and DI
benefits based on covered and non-covered earnings, phased in for beneficiaries
becoming newly eligible in 2025 through 2034. For this new approach, compute
a PIA based on all past earnings (covered and non-covered), and multiply
by the "non-covered earnings ratio." This ratio is equal to the current-law
concept of the average indexed monthly earnings computed without non-covered
earnings divided by a modified average indexed monthly earnings that includes
both covered and non-covered earnings in our records.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
0.05 | 0.09 | 2% | 2% | |
B7.11 |
Beginning in January 2021, eliminate the retirement earnings test for
all beneficiaries under normal retirement age, including retired workers,
aged spouses, aged widow(er)s, young spouses with a child in care, young
surviving spouses with a child in care, and children.
graph | table | pdf-graph | pdf-table | memo (Johnson, Walorski) | memo (Johnson 2016) |
0.02 | 0.13 | 1% | 3% | |
B7.12 |
Provide an option to split the 8-percent delayed retirement credit (DRC)
to offer a lump sum benefit at initial entitlement equal to 2 percent of
the 8 percent DRC earned, and a 6 percent DRC on subsequent monthly benefits,
effective for workers newly entitled to retired worker benefits in 2021
and later. Widows are held harmless from the lump-sum decision.
graph | table | pdf-graph | pdf-table | memo (Johnson, Smith) | memo (Johnson 2016) |
-0.00 | 0.00 | -0% | 0% |