Detailed Single Year Tables
Description of Proposed Provision:
B1.3: Progressive price indexing (40th percentile) of PIA factors beginning with individuals newly eligible for OASDI benefits in 2026: 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.
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 |
|||
| 2019 | 13.91 | 12.85 | -1.06 | 273 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 13.94 | 12.87 | -1.07 | 260 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.09 | 12.90 | -1.19 | 245 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.23 | 12.92 | -1.31 | 229 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.40 | 12.94 | -1.46 | 213 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.59 | 12.97 | -1.62 | 197 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.79 | 12.99 | -1.80 | 180 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 14.99 | 13.11 | -1.88 | 163 | -0.00 | -0.00 | 0.00 | ||
| 2027 | 15.19 | 13.13 | -2.06 | 147 | -0.00 | -0.00 | 0.00 | ||
| 2028 | 15.43 | 13.17 | -2.25 | 130 | -0.01 | -0.00 | 0.01 | ||
| 2029 | 15.61 | 13.19 | -2.42 | 114 | -0.01 | -0.00 | 0.01 | ||
| 2030 | 15.79 | 13.20 | -2.58 | 97 | -0.02 | -0.00 | 0.02 | ||
| 2031 | 15.94 | 13.22 | -2.72 | 81 | -0.03 | -0.00 | 0.03 | ||
| 2032 | 16.06 | 13.23 | -2.84 | 64 | -0.05 | -0.00 | 0.04 | ||
| 2033 | 16.16 | 13.23 | -2.93 | 47 | -0.07 | -0.00 | 0.06 | ||
| 2034 | 16.23 | 13.24 | -2.99 | 29 | -0.09 | -0.00 | 0.09 | ||
| 2035 | 16.28 | 13.25 | -3.03 | 11 | -0.12 | -0.01 | 0.12 | ||
| 2036 | 16.30 | 13.25 | -3.05 | ---- | -0.16 | -0.01 | 0.15 | ||
| 2037 | 16.32 | 13.25 | -3.07 | ---- | -0.20 | -0.01 | 0.19 | ||
| 2038 | 16.32 | 13.26 | -3.07 | ---- | -0.24 | -0.01 | 0.23 | ||
| 2039 | 16.32 | 13.26 | -3.06 | ---- | -0.29 | -0.01 | 0.27 | ||
| 2040 | 16.28 | 13.26 | -3.02 | ---- | -0.34 | -0.02 | 0.32 | ||
| 2041 | 16.22 | 13.25 | -2.97 | ---- | -0.39 | -0.02 | 0.37 | ||
| 2042 | 16.15 | 13.25 | -2.90 | ---- | -0.44 | -0.02 | 0.42 | ||
| 2043 | 16.06 | 13.25 | -2.81 | ---- | -0.50 | -0.03 | 0.47 | ||
| 2044 | 15.96 | 13.24 | -2.72 | ---- | -0.56 | -0.03 | 0.53 | ||
| 2045 | 15.87 | 13.24 | -2.63 | ---- | -0.62 | -0.03 | 0.59 | ||
| 2046 | 15.77 | 13.23 | -2.53 | ---- | -0.69 | -0.04 | 0.65 | ||
| 2047 | 15.67 | 13.23 | -2.44 | ---- | -0.75 | -0.04 | 0.71 | ||
| 2048 | 15.58 | 13.22 | -2.36 | ---- | -0.82 | -0.05 | 0.78 | ||
| 2049 | 15.49 | 13.22 | -2.27 | ---- | -0.89 | -0.05 | 0.84 | ||
| 2050 | 15.40 | 13.22 | -2.19 | ---- | -0.96 | -0.05 | 0.91 | ||
| 2051 | 15.33 | 13.21 | -2.11 | ---- | -1.04 | -0.06 | 0.98 | ||
| 2052 | 15.25 | 13.21 | -2.04 | ---- | -1.11 | -0.06 | 1.05 | ||
| 2053 | 15.18 | 13.21 | -1.98 | ---- | -1.19 | -0.07 | 1.12 | ||
| 2054 | 15.12 | 13.20 | -1.92 | ---- | -1.26 | -0.07 | 1.19 | ||
| 2055 | 15.07 | 13.20 | -1.87 | ---- | -1.34 | -0.08 | 1.27 | ||
| 2056 | 15.02 | 13.20 | -1.82 | ---- | -1.42 | -0.08 | 1.34 | ||
| 2057 | 14.98 | 13.20 | -1.78 | ---- | -1.50 | -0.08 | 1.42 | ||
| 2058 | 14.94 | 13.20 | -1.75 | ---- | -1.58 | -0.09 | 1.49 | ||
| 2059 | 14.91 | 13.20 | -1.72 | ---- | -1.66 | -0.09 | 1.57 | ||
| 2060 | 14.89 | 13.20 | -1.69 | ---- | -1.74 | -0.10 | 1.64 | ||
| 2061 | 14.86 | 13.20 | -1.66 | ---- | -1.82 | -0.10 | 1.72 | ||
| 2062 | 14.83 | 13.20 | -1.64 | ---- | -1.90 | -0.11 | 1.79 | ||
| 2063 | 14.81 | 13.20 | -1.61 | ---- | -1.98 | -0.11 | 1.87 | ||
| 2064 | 14.79 | 13.20 | -1.59 | ---- | -2.06 | -0.12 | 1.94 | ||
| 2065 | 14.76 | 13.19 | -1.57 | ---- | -2.13 | -0.12 | 2.01 | ||
| 2066 | 14.74 | 13.19 | -1.55 | ---- | -2.21 | -0.13 | 2.08 | ||
| 2067 | 14.73 | 13.19 | -1.53 | ---- | -2.29 | -0.13 | 2.16 | ||
| 2068 | 14.71 | 13.19 | -1.52 | ---- | -2.36 | -0.14 | 2.23 | ||
| 2069 | 14.69 | 13.19 | -1.50 | ---- | -2.44 | -0.14 | 2.30 | ||
| 2070 | 14.68 | 13.19 | -1.49 | ---- | -2.52 | -0.15 | 2.37 | ||
| 2071 | 14.66 | 13.19 | -1.47 | ---- | -2.59 | -0.15 | 2.44 | ||
| 2072 | 14.64 | 13.19 | -1.45 | ---- | -2.66 | -0.15 | 2.51 | ||
| 2073 | 14.61 | 13.19 | -1.42 | ---- | -2.74 | -0.16 | 2.58 | ||
| 2074 | 14.58 | 13.19 | -1.39 | ---- | -2.81 | -0.16 | 2.64 | ||
| 2075 | 14.55 | 13.19 | -1.36 | ---- | -2.88 | -0.17 | 2.71 | ||
| 2076 | 14.51 | 13.19 | -1.33 | ---- | -2.95 | -0.17 | 2.77 | ||
| 2077 | 14.47 | 13.18 | -1.28 | ---- | -3.01 | -0.18 | 2.84 | ||
| 2078 | 14.41 | 13.18 | -1.23 | ---- | -3.07 | -0.18 | 2.89 | ||
| 2079 | 14.35 | 13.18 | -1.17 | ---- | -3.13 | -0.18 | 2.95 | ||
| 2080 | 14.28 | 13.17 | -1.10 | ---- | -3.19 | -0.19 | 3.00 | ||
| 2081 | 14.20 | 13.17 | -1.03 | ---- | -3.24 | -0.19 | 3.05 | ||
| 2082 | 14.13 | 13.17 | -0.96 | ---- | -3.29 | -0.19 | 3.10 | ||
| 2083 | 14.06 | 13.16 | -0.89 | ---- | -3.35 | -0.20 | 3.15 | ||
| 2084 | 13.98 | 13.16 | -0.82 | ---- | -3.40 | -0.20 | 3.20 | ||
| 2085 | 13.91 | 13.15 | -0.76 | ---- | -3.45 | -0.20 | 3.25 | ||
| 2086 | 13.84 | 13.15 | -0.69 | ---- | -3.50 | -0.20 | 3.29 | ||
| 2087 | 13.78 | 13.15 | -0.64 | ---- | -3.55 | -0.21 | 3.34 | ||
| 2088 | 13.73 | 13.14 | -0.59 | ---- | -3.60 | -0.21 | 3.39 | ||
| 2089 | 13.69 | 13.14 | -0.55 | ---- | -3.65 | -0.21 | 3.44 | ||
| 2090 | 13.66 | 13.14 | -0.52 | ---- | -3.70 | -0.22 | 3.48 | ||
| 2091 | 13.63 | 13.14 | -0.50 | ---- | -3.75 | -0.22 | 3.53 | ||
| 2092 | 13.62 | 13.14 | -0.49 | ---- | -3.81 | -0.22 | 3.58 | ||
| 2093 | 13.62 | 13.14 | -0.48 | ---- | -3.86 | -0.23 | 3.63 | ||
| 2094 | 13.62 | 13.14 | -0.48 | ---- | -3.91 | -0.23 | 3.68 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2019-2093 | 15.18% | 13.73% | -1.45% | 2035 | -1.42% | -0.08% | 1.34% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2035. |
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Based on Intermediate Assumptions of the 2019 Trustees Report.