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 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.
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 |
|||
| 2020 | 13.92 | 13.00 | -0.92 | 261 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.05 | 12.90 | -1.15 | 248 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.25 | 12.93 | -1.32 | 233 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.43 | 12.94 | -1.49 | 217 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.64 | 12.98 | -1.67 | 200 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.88 | 13.00 | -1.88 | 183 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.11 | 13.12 | -1.99 | 165 | 0.00 | 0.00 | 0.00 | ||
| 2027 | 15.35 | 13.15 | -2.20 | 148 | -0.00 | -0.00 | 0.00 | ||
| 2028 | 15.58 | 13.19 | -2.39 | 130 | -0.00 | -0.00 | 0.00 | ||
| 2029 | 15.83 | 13.23 | -2.60 | 112 | -0.01 | -0.00 | 0.00 | ||
| 2030 | 16.01 | 13.24 | -2.77 | 94 | -0.01 | -0.00 | 0.01 | ||
| 2031 | 16.17 | 13.26 | -2.92 | 76 | -0.02 | -0.00 | 0.02 | ||
| 2032 | 16.31 | 13.27 | -3.04 | 58 | -0.03 | -0.00 | 0.03 | ||
| 2033 | 16.41 | 13.28 | -3.13 | 40 | -0.04 | -0.00 | 0.04 | ||
| 2034 | 16.49 | 13.28 | -3.21 | 21 | -0.06 | -0.00 | 0.06 | ||
| 2035 | 16.54 | 13.29 | -3.26 | 2 | -0.08 | -0.00 | 0.08 | ||
| 2036 | 16.58 | 13.29 | -3.28 | ---- | -0.11 | -0.01 | 0.10 | ||
| 2037 | 16.60 | 13.30 | -3.30 | ---- | -0.14 | -0.01 | 0.13 | ||
| 2038 | 16.61 | 13.30 | -3.31 | ---- | -0.18 | -0.01 | 0.17 | ||
| 2039 | 16.60 | 13.30 | -3.30 | ---- | -0.22 | -0.01 | 0.20 | ||
| 2040 | 16.59 | 13.30 | -3.29 | ---- | -0.26 | -0.01 | 0.24 | ||
| 2041 | 16.55 | 13.30 | -3.25 | ---- | -0.30 | -0.02 | 0.29 | ||
| 2042 | 16.51 | 13.30 | -3.21 | ---- | -0.35 | -0.02 | 0.33 | ||
| 2043 | 16.44 | 13.30 | -3.15 | ---- | -0.41 | -0.02 | 0.38 | ||
| 2044 | 16.37 | 13.29 | -3.08 | ---- | -0.46 | -0.03 | 0.44 | ||
| 2045 | 16.30 | 13.29 | -3.01 | ---- | -0.52 | -0.03 | 0.49 | ||
| 2046 | 16.22 | 13.29 | -2.93 | ---- | -0.58 | -0.03 | 0.55 | ||
| 2047 | 16.15 | 13.28 | -2.86 | ---- | -0.64 | -0.04 | 0.61 | ||
| 2048 | 16.08 | 13.28 | -2.80 | ---- | -0.71 | -0.04 | 0.67 | ||
| 2049 | 16.01 | 13.28 | -2.73 | ---- | -0.78 | -0.04 | 0.73 | ||
| 2050 | 15.94 | 13.27 | -2.67 | ---- | -0.85 | -0.05 | 0.80 | ||
| 2051 | 15.88 | 13.27 | -2.60 | ---- | -0.92 | -0.05 | 0.86 | ||
| 2052 | 15.82 | 13.27 | -2.55 | ---- | -0.99 | -0.06 | 0.93 | ||
| 2053 | 15.77 | 13.27 | -2.50 | ---- | -1.06 | -0.06 | 1.00 | ||
| 2054 | 15.72 | 13.27 | -2.45 | ---- | -1.14 | -0.07 | 1.07 | ||
| 2055 | 15.68 | 13.26 | -2.42 | ---- | -1.21 | -0.07 | 1.14 | ||
| 2056 | 15.64 | 13.26 | -2.38 | ---- | -1.29 | -0.07 | 1.22 | ||
| 2057 | 15.61 | 13.26 | -2.35 | ---- | -1.37 | -0.08 | 1.29 | ||
| 2058 | 15.58 | 13.26 | -2.32 | ---- | -1.44 | -0.08 | 1.36 | ||
| 2059 | 15.56 | 13.26 | -2.30 | ---- | -1.52 | -0.09 | 1.43 | ||
| 2060 | 15.54 | 13.26 | -2.28 | ---- | -1.60 | -0.09 | 1.51 | ||
| 2061 | 15.53 | 13.26 | -2.26 | ---- | -1.68 | -0.10 | 1.58 | ||
| 2062 | 15.51 | 13.26 | -2.25 | ---- | -1.75 | -0.10 | 1.65 | ||
| 2063 | 15.50 | 13.26 | -2.23 | ---- | -1.83 | -0.11 | 1.72 | ||
| 2064 | 15.49 | 13.26 | -2.22 | ---- | -1.91 | -0.11 | 1.79 | ||
| 2065 | 15.48 | 13.26 | -2.21 | ---- | -1.98 | -0.12 | 1.87 | ||
| 2066 | 15.47 | 13.26 | -2.20 | ---- | -2.06 | -0.12 | 1.94 | ||
| 2067 | 15.46 | 13.26 | -2.20 | ---- | -2.13 | -0.13 | 2.01 | ||
| 2068 | 15.45 | 13.27 | -2.19 | ---- | -2.21 | -0.13 | 2.08 | ||
| 2069 | 15.45 | 13.27 | -2.18 | ---- | -2.28 | -0.13 | 2.15 | ||
| 2070 | 15.44 | 13.27 | -2.18 | ---- | -2.36 | -0.14 | 2.22 | ||
| 2071 | 15.44 | 13.27 | -2.17 | ---- | -2.43 | -0.14 | 2.29 | ||
| 2072 | 15.42 | 13.27 | -2.16 | ---- | -2.51 | -0.15 | 2.36 | ||
| 2073 | 15.41 | 13.27 | -2.14 | ---- | -2.58 | -0.15 | 2.43 | ||
| 2074 | 15.38 | 13.27 | -2.12 | ---- | -2.65 | -0.16 | 2.49 | ||
| 2075 | 15.36 | 13.26 | -2.09 | ---- | -2.72 | -0.16 | 2.56 | ||
| 2076 | 15.33 | 13.26 | -2.06 | ---- | -2.79 | -0.17 | 2.62 | ||
| 2077 | 15.28 | 13.26 | -2.02 | ---- | -2.85 | -0.17 | 2.68 | ||
| 2078 | 15.23 | 13.26 | -1.97 | ---- | -2.92 | -0.17 | 2.74 | ||
| 2079 | 15.17 | 13.26 | -1.92 | ---- | -2.98 | -0.18 | 2.80 | ||
| 2080 | 15.10 | 13.25 | -1.85 | ---- | -3.04 | -0.18 | 2.85 | ||
| 2081 | 15.03 | 13.25 | -1.78 | ---- | -3.09 | -0.18 | 2.91 | ||
| 2082 | 14.95 | 13.24 | -1.71 | ---- | -3.14 | -0.19 | 2.96 | ||
| 2083 | 14.87 | 13.24 | -1.63 | ---- | -3.20 | -0.19 | 3.01 | ||
| 2084 | 14.79 | 13.23 | -1.55 | ---- | -3.25 | -0.19 | 3.05 | ||
| 2085 | 14.70 | 13.23 | -1.47 | ---- | -3.30 | -0.20 | 3.10 | ||
| 2086 | 14.61 | 13.22 | -1.39 | ---- | -3.34 | -0.20 | 3.14 | ||
| 2087 | 14.53 | 13.22 | -1.31 | ---- | -3.39 | -0.20 | 3.19 | ||
| 2088 | 14.45 | 13.21 | -1.24 | ---- | -3.44 | -0.21 | 3.24 | ||
| 2089 | 14.38 | 13.21 | -1.17 | ---- | -3.49 | -0.21 | 3.28 | ||
| 2090 | 14.32 | 13.21 | -1.12 | ---- | -3.54 | -0.21 | 3.33 | ||
| 2091 | 14.27 | 13.20 | -1.07 | ---- | -3.60 | -0.22 | 3.38 | ||
| 2092 | 14.23 | 13.20 | -1.03 | ---- | -3.65 | -0.22 | 3.43 | ||
| 2093 | 14.20 | 13.20 | -1.00 | ---- | -3.71 | -0.22 | 3.49 | ||
| 2094 | 14.17 | 13.20 | -0.97 | ---- | -3.77 | -0.23 | 3.54 | ||
| 2095 | 14.15 | 13.20 | -0.95 | ---- | -3.82 | -0.23 | 3.59 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2020-2094 | 15.68% | 13.77% | -1.91% | 2035 | -1.38% | -0.08% | 1.30% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2035. |
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Based on Intermediate Assumptions of the 2020 Trustees Report.