Description of Proposed Provision:
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.
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 | 14.98 | 13.01 | -1.98 | 171 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.16 | 13.13 | -2.02 | 154 | 0.00 | 0.00 | 0.00 | ||
| 2027 | 15.36 | 13.15 | -2.21 | 137 | 0.00 | 0.00 | -0.00 | ||
| 2028 | 15.58 | 13.17 | -2.41 | 120 | 0.00 | 0.00 | -0.00 | ||
| 2029 | 15.79 | 13.19 | -2.61 | 104 | 0.00 | 0.00 | -0.00 | ||
| 2030 | 15.99 | 13.20 | -2.79 | 86 | 0.00 | 0.00 | -0.00 | ||
| 2031 | 16.17 | 13.22 | -2.95 | 69 | 0.01 | 0.00 | -0.01 | ||
| 2032 | 16.33 | 13.23 | -3.10 | 51 | 0.01 | 0.00 | -0.01 | ||
| 2033 | 16.46 | 13.24 | -3.23 | 33 | 0.01 | 0.00 | -0.01 | ||
| 2034 | 16.58 | 13.25 | -3.33 | 14 | 0.02 | 0.00 | -0.02 | ||
| 2035 | 16.67 | 13.25 | -3.41 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2036 | 16.74 | 13.26 | -3.48 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2037 | 16.80 | 13.27 | -3.54 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2038 | 16.84 | 13.27 | -3.57 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2039 | 16.85 | 13.27 | -3.58 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2040 | 16.85 | 13.27 | -3.58 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2041 | 16.83 | 13.27 | -3.56 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2042 | 16.80 | 13.27 | -3.52 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2043 | 16.76 | 13.27 | -3.48 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2044 | 16.72 | 13.27 | -3.44 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2045 | 16.68 | 13.27 | -3.41 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2046 | 16.65 | 13.27 | -3.38 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2047 | 16.62 | 13.27 | -3.36 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2048 | 16.60 | 13.27 | -3.33 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2049 | 16.58 | 13.27 | -3.31 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2050 | 16.57 | 13.27 | -3.30 | ---- | 0.03 | 0.00 | -0.02 | ||
| 2051 | 16.56 | 13.27 | -3.29 | ---- | 0.03 | 0.00 | -0.02 | ||
| 2052 | 16.56 | 13.27 | -3.29 | ---- | 0.03 | 0.00 | -0.02 | ||
| 2053 | 16.57 | 13.27 | -3.30 | ---- | 0.03 | 0.00 | -0.02 | ||
| 2054 | 16.59 | 13.27 | -3.31 | ---- | 0.03 | 0.00 | -0.02 | ||
| 2055 | 16.61 | 13.28 | -3.34 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2056 | 16.65 | 13.28 | -3.37 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2057 | 16.69 | 13.28 | -3.40 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2058 | 16.74 | 13.29 | -3.45 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2059 | 16.78 | 13.29 | -3.49 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2060 | 16.83 | 13.30 | -3.53 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2061 | 16.88 | 13.30 | -3.58 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2062 | 16.93 | 13.30 | -3.62 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2063 | 16.98 | 13.31 | -3.67 | ---- | 0.02 | 0.00 | -0.02 | ||
| 2064 | 17.03 | 13.31 | -3.72 | ---- | 0.01 | 0.00 | -0.01 | ||
| 2065 | 17.08 | 13.32 | -3.77 | ---- | 0.01 | 0.00 | -0.01 | ||
| 2066 | 17.14 | 13.32 | -3.82 | ---- | 0.01 | 0.00 | -0.01 | ||
| 2067 | 17.19 | 13.32 | -3.87 | ---- | 0.01 | 0.00 | -0.01 | ||
| 2068 | 17.25 | 13.33 | -3.92 | ---- | 0.01 | 0.00 | -0.01 | ||
| 2069 | 17.31 | 13.33 | -3.98 | ---- | 0.01 | 0.00 | -0.01 | ||
| 2070 | 17.37 | 13.34 | -4.03 | ---- | 0.01 | 0.00 | -0.01 | ||
| 2071 | 17.42 | 13.34 | -4.09 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2072 | 17.47 | 13.34 | -4.13 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2073 | 17.52 | 13.35 | -4.17 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2074 | 17.56 | 13.35 | -4.21 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2075 | 17.59 | 13.35 | -4.24 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2076 | 17.61 | 13.35 | -4.26 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2077 | 17.63 | 13.36 | -4.27 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2078 | 17.63 | 13.36 | -4.27 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2079 | 17.62 | 13.36 | -4.26 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2080 | 17.61 | 13.36 | -4.25 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2081 | 17.59 | 13.35 | -4.24 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2082 | 17.57 | 13.35 | -4.22 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2083 | 17.56 | 13.35 | -4.20 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2084 | 17.54 | 13.35 | -4.19 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2085 | 17.53 | 13.35 | -4.18 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2086 | 17.53 | 13.35 | -4.18 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2087 | 17.53 | 13.35 | -4.18 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2088 | 17.55 | 13.35 | -4.20 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2089 | 17.57 | 13.35 | -4.22 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2090 | 17.60 | 13.36 | -4.24 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2091 | 17.64 | 13.36 | -4.28 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2092 | 17.68 | 13.36 | -4.32 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2093 | 17.73 | 13.36 | -4.36 | ---- | 0.00 | 0.00 | -0.00 | ||
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 | 16.70% | 13.84% | -2.85% | 2034 | 0.01% | 0.00% | -0.01% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2018 Trustees Report.