Summary of Provisions That Would Change the Social Security Program
Description of Proposed Provisions:
Provisions Affecting Level of Monthly Benefits
Estimates based on the intermediate assumptions of
the 2020 Trustees Report
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|
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 3.21 percent of payroll and in annual balance for the 75th year is 4.51 percent of payroll. | ||||||
| B1.1 |
Price indexing of PIA factors beginning with those newly eligible for OASDI
benefits in 2027: 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) |
2.75 | 7.44 | 86% | 165% | |
| B1.2 |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASDI 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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
1.52 | 4.14 | 47% | 92% | |
| B1.3 |
Progressive price indexing (40th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2027: 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 | 3.54 | 41% | 78% | |
| B1.4 |
Progressive price indexing (50th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2027: 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) |
1.08 | 2.81 | 34% | 62% | |
| B1.5 |
Progressive price indexing (60th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2027: 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) |
0.82 | 1.92 | 25% | 42% | |
| B1.6 (2024) |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASI benefits in 2024: 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) |
1.50 | 3.85 | 47% | 85% | |
| B1.6 (2029) |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASI benefits in 2029: 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) |
1.23 | 3.55 | 38% | 79% | |
| B1.7 |
Progressive price indexing (40th percentile) of PIA factors for individuals
newly eligible for OASI benefits in 2028 through 2065: 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) |
1.03 | 2.53 | 32% | 56% | |
| B1.8 |
Progressive price indexing (50th percentile) of PIA factors for individuals
newly eligible for OASI benefits in 2025 through 2064: 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) |
1.01 | 2.30 | 31% | 51% | |
| B2.1 |
Beginning with those newly eligible for OASI benefits in 2030, multiply
the PIA factors by the ratio of life expectancy at 67 for 2025 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) |
0.57 | 1.73 | 18% | 38% | |
| B3.8 |
Beginning with those newly eligible for OASDI benefits in 2027, 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 2060: 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) |
1.01 | 2.38 | 31% | 53% | |
| B3.9 |
Beginning with those newly eligible for OASDI benefits in 2033, gradually
reduce the 15 percent PIA factor in each year so that it reaches 10 percent
for those newly eligible in 2062 and later.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center 2010) |
0.10 | 0.26 | 3% | 6% | |
| B3.10 |
Beginning with those newly eligible for OASDI benefits in 2027, gradually
increase the first PIA bend point in each year so that it is 15 percent higher
for those newly eligible in 2041 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) |
-0.38 | -0.70 | -12% | -16% | |
| B3.11 |
Increase the first PIA factor from 90 percent to 93 percent for all
beneficiaries eligible as of January 2022 and for those newly eligible
for benefits after 2021.
graph | table | pdf-graph | pdf-table | memo (Larson, Blumenthal, Van Hollen September 2019) | memo (Larson, Blumenthal, Van Hollen January 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 2027. 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 2027, 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 2031.
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 | 0.38 | 8% | 9% | |
| B3.13 |
For retired worker beneficiaries newly eligible in 2027 (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 $960 in 2020 to $1,220 in 2020. Phase this provision
in over 10 years (2027-2036). The phase-in would work on a weighted-average
basis: 90% of CL formula + 10% of proposal formula for 2027, 80% of CL formula
+ 20% of proposal formula for 2028, and so on.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.10 | 0.20 | 3% | 4% | |
| B3.14 |
Beginning with those newly eligible for OASDI benefits in 2022, reduce
the 15 percent PIA factor by 2 percentage points per year so that it reaches
5 percent for those newly eligible in 2026 and later.
graph | table | pdf-graph | pdf-table | memo (Ribble) |
0.36 | 0.53 | 11% | 12% | |
| B3.15 |
Increase the 90 percent PIA formula factor to 91 percent for beneficiaries
newly eligible in 2025, 92 percent for those newly eligible in 2026, ...,
reaching 95 percent for those newly eligible in 2029 and later.
graph | table | pdf-graph | pdf-table | memo (Sanchez) |
-0.28 | -0.44 | -9% | -10% | |
| B3.16 |
For retired worker and disabled worker beneficiaries becoming initially
eligible in January 2027 or later, phase in a new benefit formula (from
2027 to 2036). 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 2036.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
0.98 | 1.71 | 30% | 38% | |
| 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 2021-2025.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.28 | 0.38 | 9% | 8% | |
| 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 2021-2029.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) | memo (Social Security Advisory Board) |
0.45 | 0.64 | 14% | 14% | |
| 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 2022-2030.
graph | table | pdf-graph | pdf-table | memo (Warshawsky) |
0.60 | 0.90 | 19% | 20% | |
| 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 2022 and later (without regard for when the
beneficiary became initially eligible).
graph | table | pdf-graph | pdf-table | memo (Murphy) |
-0.05 | -0.06 | -2% | -1% | |
| B4.5 |
For retired and disabled workers, reduce the maximum number of dropout
years to 4 for workers newly eligible in 2022, to 3 for workers newly
eligible in 2023, and to 2 for workers newly eligible in 2024 and later.
graph | table | pdf-graph | pdf-table | memo (Ribble) |
0.37 | 0.51 | 11% | 11% | |
| 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 2038, and is phased in for new eligibles in 2029 through 2037.
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 2021, 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 $1,301 in 2019). For those with under 30 years of coverage,
the PIA per year of coverage over 10 years is $1,301/20 = $65.05. (c)
Index the initial PIA per year of coverage by wage growth for successive
cohorts.
graph | table | pdf-graph | pdf-table | memo (Larson, Blumenthal, Van Hollen September 2019) | memo (Sanders, DeFazio 2019) | memo (Larson, Blumenthal, Van Hollen January 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) |
-0.16 | -0.23 | -5% | -5% | |
| B5.3 |
Beginning for those newly eligible in 2021, 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 $1,301 in 2019). For those with under 30 years of coverage,
the PIA per year of coverage over 10 years is $1,301/20 = $65.05.
(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) |
-0.24 | -0.34 | -8% | -8% | |
| B5.4 |
Beginning for those newly eligible in 2027, 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 $1,301 in 2019). For those with under 30 years of coverage,
the PIA per year of coverage over 10 years is $1,301/20 = $65.05. (c)
From 2019 to the year of implementation, 2027, 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) |
-0.12 | -0.19 | -4% | -4% | |
| B5.5 |
Beginning for those newly eligible in 2022, 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 $1,359 in 2019). For those with under 30 years
of coverage, the PIA per year of coverage over 19 years is $1,359/11
= $123.50. (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) |
-0.04 | -0.06 | -1% | -1% | |
| B5.6 |
Beginning for those newly eligible in 2021, 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 $1,063 in 2020). For those with under 30 years of coverage, the
PIA per year of coverage over 10 years is $1,063/20 = $53.15. (c) From
2020 to the year of implementation, 2021, 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 | -0.14 | -3% | -3% | |
| B5.7 |
Beginning for those newly eligible in 2023, 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 2013) |
-0.03 | -0.01 | -1% | -0% | |
| B5.8 |
Beginning in 2025, 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 | -6% | -5% | |
| B5.9 |
Beginning for those newly eligible in 2022, 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 $1,277 in 2019). 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 2022 and 2023, index the applicable poverty level using the
CPI index, to the year prior to eligibility. Then, for newly eligible
workers in 2024 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) |
-0.16 | -0.25 | -5% | -6% | |
| B5.10 |
Reconfigure the special minimum benefit, phased in for retired and disabled
workers newly eligible from 2027 through 2036: (a) A year of work (YOW) coverage
is equal to earnings at or above $10,875 in 2020 (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) |
-0.29 | -0.50 | -9% | -11% | |
| B5.11 |
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) For
beneficiaries becoming newly eligible in 2021, set the initial special minimum
benefit for 30+ YOWs equal to 100 percent of the monthly HHS poverty level
for 2020. For beneficiaries becoming newly eligible after 2021, the initial
special minimum benefit is indexed by the AWI. 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 2019) |
-0.12 | -0.18 | -4% | -4% | |
| 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 2021 or who reaches
their 85th birthday after the beginning of 2021.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) | memo (National Academy of Social Insurance) |
-0.12 | -0.17 | -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 2021
or who reaches their 85th birthday after the beginning of 2021. 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) |
-0.12 | -0.17 | -4% | -4% | |
| B6.3 |
Provide an increase in the benefit level of any beneficiary who is
85 or older at the beginning of 2022 or who reaches their 85th birthday
after the beginning of 2022. Increase the beneficiary's PIA based
on an amount equal to the average retired-worker PIA at the end of
2021, 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 2022 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) |
-0.15 | -0.20 | -5% | -4% | |
| B6.4 |
Starting in 2021, 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. Auxiliary beneficiaries receive benefit enhancement based on the
PIA of the governing worker.
graph | table | pdf-graph | pdf-table | memo (Ribble) | memo (Fiscal Commission) |
-0.18 | -0.23 | -5% | -5% | |
| B6.5 |
Starting in 2023, 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. Auxiliary beneficiaries
receive benefit enhancement based on the PIA of the governing worker.
graph | table | pdf-graph | pdf-table | memo (Moore 2019) | memo (Moore 2013) |
-0.27 | -0.34 | -8% | -8% | |
| B6.6 |
Starting in 2027, provide a uniform PIA increase in the 24th year of benefit
eligibility. Phase in the PIA increase at 0.5 percent per year from the 15th
through the 24th years of eligibility. The full PIA increase is equal to 5
percent of the average retired worker PIA in December of the 14th year of benefit
eligibility. A similar additional PIA increase applies in the 43rd year of
benefit eligibility (age 104), phased in from the 34rd through the 43nd years
of eligibility. For those past the 15th year of eligibility in 2027 (over age
76 for retirees), phase in the PIA enhancement over 10 years starting in 2027.
Auxiliary beneficiaries receive benefit enhancement based on the PIA of the
governing worker.
graph | table | pdf-graph | pdf-table | memo (FY 2014 Budget) |
-0.22 | -0.31 | -7% | -7% | |
| B6.7 |
Starting in January 2027, 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 $27,000 if single and
$54,000 if married. MAGI is set to equal the IRMAA definition (AGI plus
tax-exempt interest income). Index these thresholds after 2027 by the increase
in the C-CPI-U; (2) The full additional amount is applicable for those born
1961 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 1961, 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% | |
| B6.8 |
Starting in 2022, provide an additional monthly benefit equal to 1/12th
of 2 percent of the AWI for the second prior year. This additional benefit
would be available to those meeting any of the following four requirements:
(a) Social Security beneficiaries who have attained age 82; (b) Social
Security beneficiaries who have attained NRA and have both AIME at or below
the first PIA bend point ($960 for 2020 initial eligibility) and at least
11 "years of coverage" as used for Windfall Elimination Provision purposes
(earnings above $25.575 for 2020); (c) Individuals who have received Social
Security benefits and/or SSI payments for at least 240 distinct months after
attaining age 19; or (d) SSI recipients who have attained the Social Security
NRA. This additional benefit would be paid out of the applicable Social
Security OASI or DI Trust Fund for any month in which the individual is in
receipt of a Social Security benefit; it would be paid out of the General
Fund of the Treasury for any month in which the individual is in receipt of
an SSI monthly payment but not a Social Security monthly benefit.
graph | table | pdf-graph | pdf-table | memo (Wyden) |
-0.28 | -0.37 | -9% | -8% | |
| B7.2 |
Reduce benefits by 5 percent for those newly eligible for benefits in 2021 and later.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.62 | 0.84 | 19% | 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 $27,821 in 2020). The credits are available
for all past years to newly eligible retired-worker and disabled-worker
beneficiaries starting in 2021. The 5 years are chosen to yield the largest
increase in AIME.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.24 | -0.33 | -7% | -7% | |
| B7.5 |
Increase benefits by 5 percent for all beneficiaries as of the beginning of
2021 and for those newly eligible for benefits after the beginning of 2021.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.79 | -0.84 | -25% | -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 2025 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 2024, based on changes in the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) |
0.42 | 0.57 | 13% | 13% | |
| 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 2027.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.07 | 0.11 | 2% | 3% | |
| B7.9 |
Beginning for newly eligible retired workers and spouses in 2027, 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 | -0.25 | -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 2027 through 2036. 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 2023, 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) |
0.03 | 0.12 | 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 2023 and later. Widows are held harmless from
the lump-sum decision.
graph | table | pdf-graph | pdf-table | memo (Johnson, Smith) | memo (Johnson 2016) |
-0.01 | 0.00 | -0% | 0% | |
| B7.13 |
Eliminate the DI 5-month waiting period for disabled workers and disabled
surviving spouses, and eliminate the 24-month Medicare (HI) waiting period
for individuals who have become entitled to Social Security disability benefits.
Effective with 2021 applications.
graph | table | pdf-graph | pdf-table | memo (Sanders 2018) |
-0.12 | -0.14 | -4% | -3% | |