Description of Proposed Provision:
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.
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 |
|||
2018 | 13.81 | 12.64 | -1.17 | 288 | 0.00 | 0.00 | 0.00 | ||
2019 | 13.95 | 12.87 | -1.08 | 272 | 0.00 | 0.00 | 0.00 | ||
2020 | 14.12 | 12.89 | -1.23 | 256 | 0.00 | 0.00 | 0.00 | ||
2021 | 14.27 | 12.92 | -1.35 | 239 | 0.00 | 0.00 | -0.00 | ||
2022 | 14.44 | 12.95 | -1.49 | 223 | 0.00 | 0.00 | -0.00 | ||
2023 | 14.62 | 12.97 | -1.66 | 206 | 0.00 | 0.00 | -0.00 | ||
2024 | 14.80 | 12.99 | -1.81 | 188 | 0.00 | 0.00 | -0.00 | ||
2025 | 14.99 | 13.01 | -1.98 | 171 | 0.00 | 0.00 | -0.00 | ||
2026 | 15.17 | 13.13 | -2.03 | 154 | 0.01 | 0.00 | -0.01 | ||
2027 | 15.38 | 13.15 | -2.23 | 137 | 0.02 | 0.00 | -0.02 | ||
2028 | 15.61 | 13.17 | -2.44 | 120 | 0.03 | 0.00 | -0.03 | ||
2029 | 15.83 | 13.19 | -2.64 | 103 | 0.04 | 0.00 | -0.04 | ||
2030 | 16.03 | 13.20 | -2.83 | 86 | 0.05 | 0.00 | -0.05 | ||
2031 | 16.22 | 13.22 | -3.00 | 68 | 0.06 | 0.00 | -0.06 | ||
2032 | 16.39 | 13.23 | -3.16 | 50 | 0.07 | 0.00 | -0.07 | ||
2033 | 16.53 | 13.24 | -3.29 | 31 | 0.08 | 0.00 | -0.08 | ||
2034 | 16.65 | 13.25 | -3.40 | 12 | 0.09 | 0.00 | -0.09 | ||
2035 | 16.75 | 13.26 | -3.49 | ---- | 0.10 | 0.00 | -0.09 | ||
2036 | 16.83 | 13.26 | -3.57 | ---- | 0.11 | 0.00 | -0.10 | ||
2037 | 16.90 | 13.27 | -3.63 | ---- | 0.12 | 0.00 | -0.11 | ||
2038 | 16.95 | 13.27 | -3.67 | ---- | 0.12 | 0.00 | -0.12 | ||
2039 | 16.96 | 13.28 | -3.69 | ---- | 0.13 | 0.01 | -0.13 | ||
2040 | 16.97 | 13.28 | -3.69 | ---- | 0.14 | 0.01 | -0.13 | ||
2041 | 16.96 | 13.28 | -3.68 | ---- | 0.15 | 0.01 | -0.14 | ||
2042 | 16.93 | 13.28 | -3.65 | ---- | 0.15 | 0.01 | -0.15 | ||
2043 | 16.90 | 13.28 | -3.62 | ---- | 0.16 | 0.01 | -0.16 | ||
2044 | 16.86 | 13.28 | -3.59 | ---- | 0.17 | 0.01 | -0.16 | ||
2045 | 16.84 | 13.28 | -3.56 | ---- | 0.18 | 0.01 | -0.17 | ||
2046 | 16.81 | 13.28 | -3.54 | ---- | 0.18 | 0.01 | -0.18 | ||
2047 | 16.79 | 13.28 | -3.52 | ---- | 0.19 | 0.01 | -0.18 | ||
2048 | 16.77 | 13.28 | -3.50 | ---- | 0.20 | 0.01 | -0.19 | ||
2049 | 16.76 | 13.28 | -3.48 | ---- | 0.20 | 0.01 | -0.20 | ||
2050 | 16.75 | 13.28 | -3.48 | ---- | 0.21 | 0.01 | -0.20 | ||
2051 | 16.75 | 13.28 | -3.47 | ---- | 0.22 | 0.01 | -0.21 | ||
2052 | 16.76 | 13.28 | -3.48 | ---- | 0.22 | 0.01 | -0.21 | ||
2053 | 16.77 | 13.28 | -3.49 | ---- | 0.23 | 0.01 | -0.22 | ||
2054 | 16.79 | 13.28 | -3.51 | ---- | 0.23 | 0.01 | -0.22 | ||
2055 | 16.83 | 13.29 | -3.54 | ---- | 0.24 | 0.01 | -0.23 | ||
2056 | 16.87 | 13.29 | -3.58 | ---- | 0.24 | 0.01 | -0.23 | ||
2057 | 16.91 | 13.29 | -3.62 | ---- | 0.25 | 0.01 | -0.24 | ||
2058 | 16.96 | 13.30 | -3.66 | ---- | 0.25 | 0.01 | -0.24 | ||
2059 | 17.01 | 13.30 | -3.71 | ---- | 0.25 | 0.01 | -0.24 | ||
2060 | 17.07 | 13.31 | -3.76 | ---- | 0.26 | 0.01 | -0.25 | ||
2061 | 17.12 | 13.31 | -3.81 | ---- | 0.26 | 0.01 | -0.25 | ||
2062 | 17.17 | 13.31 | -3.86 | ---- | 0.26 | 0.01 | -0.25 | ||
2063 | 17.23 | 13.32 | -3.91 | ---- | 0.27 | 0.01 | -0.26 | ||
2064 | 17.29 | 13.32 | -3.96 | ---- | 0.27 | 0.01 | -0.26 | ||
2065 | 17.34 | 13.33 | -4.01 | ---- | 0.27 | 0.01 | -0.26 | ||
2066 | 17.40 | 13.33 | -4.07 | ---- | 0.28 | 0.01 | -0.26 | ||
2067 | 17.46 | 13.34 | -4.13 | ---- | 0.28 | 0.01 | -0.27 | ||
2068 | 17.52 | 13.34 | -4.18 | ---- | 0.28 | 0.01 | -0.27 | ||
2069 | 17.59 | 13.34 | -4.24 | ---- | 0.28 | 0.01 | -0.27 | ||
2070 | 17.65 | 13.35 | -4.30 | ---- | 0.28 | 0.01 | -0.27 | ||
2071 | 17.71 | 13.35 | -4.35 | ---- | 0.29 | 0.01 | -0.27 | ||
2072 | 17.76 | 13.36 | -4.40 | ---- | 0.29 | 0.01 | -0.27 | ||
2073 | 17.80 | 13.36 | -4.44 | ---- | 0.29 | 0.01 | -0.27 | ||
2074 | 17.84 | 13.36 | -4.48 | ---- | 0.29 | 0.01 | -0.28 | ||
2075 | 17.88 | 13.37 | -4.51 | ---- | 0.29 | 0.01 | -0.28 | ||
2076 | 17.90 | 13.37 | -4.53 | ---- | 0.29 | 0.01 | -0.28 | ||
2077 | 17.92 | 13.37 | -4.55 | ---- | 0.29 | 0.01 | -0.28 | ||
2078 | 17.92 | 13.37 | -4.55 | ---- | 0.29 | 0.01 | -0.28 | ||
2079 | 17.91 | 13.37 | -4.54 | ---- | 0.29 | 0.01 | -0.28 | ||
2080 | 17.90 | 13.37 | -4.53 | ---- | 0.29 | 0.01 | -0.28 | ||
2081 | 17.88 | 13.37 | -4.51 | ---- | 0.29 | 0.01 | -0.28 | ||
2082 | 17.86 | 13.37 | -4.50 | ---- | 0.29 | 0.01 | -0.28 | ||
2083 | 17.85 | 13.37 | -4.48 | ---- | 0.29 | 0.01 | -0.28 | ||
2084 | 17.83 | 13.37 | -4.47 | ---- | 0.29 | 0.01 | -0.28 | ||
2085 | 17.82 | 13.36 | -4.46 | ---- | 0.29 | 0.01 | -0.28 | ||
2086 | 17.82 | 13.36 | -4.46 | ---- | 0.29 | 0.01 | -0.28 | ||
2087 | 17.83 | 13.36 | -4.46 | ---- | 0.29 | 0.01 | -0.28 | ||
2088 | 17.84 | 13.37 | -4.47 | ---- | 0.29 | 0.01 | -0.28 | ||
2089 | 17.86 | 13.37 | -4.50 | ---- | 0.29 | 0.01 | -0.28 | ||
2090 | 17.89 | 13.37 | -4.52 | ---- | 0.29 | 0.01 | -0.28 | ||
2091 | 17.93 | 13.37 | -4.56 | ---- | 0.30 | 0.01 | -0.28 | ||
2092 | 17.97 | 13.37 | -4.60 | ---- | 0.30 | 0.01 | -0.28 | ||
2093 | 18.02 | 13.38 | -4.64 | ---- | 0.30 | 0.01 | -0.28 |
Summarized Estimates
Proposal | Change from Current Law | ||||||||
---|---|---|---|---|---|---|---|---|---|
Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
2018-2092 | 16.86% | 13.85% | -3.01% | 2034 | 0.18% | 0.01% | -0.17% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
Based on Intermediate Assumptions of the 2018 Trustees Report.