Detailed Single Year Tables
Description of Proposed Provision:
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.
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 | 13.25 | -2.91 | 76 | -0.02 | -0.00 | 0.02 | ||
| 2032 | 16.30 | 13.27 | -3.04 | 58 | -0.03 | -0.00 | 0.03 | ||
| 2033 | 16.40 | 13.27 | -3.13 | 40 | -0.05 | -0.00 | 0.05 | ||
| 2034 | 16.48 | 13.28 | -3.20 | 21 | -0.07 | -0.00 | 0.07 | ||
| 2035 | 16.52 | 13.29 | -3.23 | 2 | -0.10 | -0.01 | 0.10 | ||
| 2036 | 16.54 | 13.29 | -3.25 | ---- | -0.14 | -0.01 | 0.14 | ||
| 2037 | 16.55 | 13.29 | -3.25 | ---- | -0.19 | -0.01 | 0.18 | ||
| 2038 | 16.54 | 13.30 | -3.24 | ---- | -0.25 | -0.01 | 0.23 | ||
| 2039 | 16.51 | 13.30 | -3.21 | ---- | -0.31 | -0.02 | 0.29 | ||
| 2040 | 16.47 | 13.29 | -3.18 | ---- | -0.38 | -0.02 | 0.35 | ||
| 2041 | 16.41 | 13.29 | -3.12 | ---- | -0.45 | -0.03 | 0.42 | ||
| 2042 | 16.34 | 13.29 | -3.05 | ---- | -0.52 | -0.03 | 0.49 | ||
| 2043 | 16.26 | 13.28 | -2.97 | ---- | -0.59 | -0.03 | 0.56 | ||
| 2044 | 16.16 | 13.28 | -2.88 | ---- | -0.67 | -0.04 | 0.63 | ||
| 2045 | 16.07 | 13.28 | -2.80 | ---- | -0.74 | -0.04 | 0.70 | ||
| 2046 | 15.98 | 13.27 | -2.71 | ---- | -0.82 | -0.05 | 0.77 | ||
| 2047 | 15.90 | 13.27 | -2.64 | ---- | -0.89 | -0.05 | 0.84 | ||
| 2048 | 15.83 | 13.26 | -2.57 | ---- | -0.96 | -0.06 | 0.90 | ||
| 2049 | 15.76 | 13.26 | -2.50 | ---- | -1.02 | -0.06 | 0.96 | ||
| 2050 | 15.70 | 13.26 | -2.44 | ---- | -1.09 | -0.07 | 1.03 | ||
| 2051 | 15.64 | 13.25 | -2.39 | ---- | -1.15 | -0.07 | 1.08 | ||
| 2052 | 15.60 | 13.25 | -2.34 | ---- | -1.21 | -0.07 | 1.14 | ||
| 2053 | 15.56 | 13.25 | -2.31 | ---- | -1.27 | -0.08 | 1.19 | ||
| 2054 | 15.53 | 13.25 | -2.28 | ---- | -1.32 | -0.08 | 1.24 | ||
| 2055 | 15.52 | 13.25 | -2.27 | ---- | -1.37 | -0.08 | 1.29 | ||
| 2056 | 15.51 | 13.25 | -2.26 | ---- | -1.42 | -0.09 | 1.34 | ||
| 2057 | 15.51 | 13.25 | -2.26 | ---- | -1.47 | -0.09 | 1.38 | ||
| 2058 | 15.52 | 13.26 | -2.26 | ---- | -1.51 | -0.09 | 1.42 | ||
| 2059 | 15.54 | 13.26 | -2.28 | ---- | -1.55 | -0.09 | 1.45 | ||
| 2060 | 15.56 | 13.26 | -2.30 | ---- | -1.59 | -0.10 | 1.49 | ||
| 2061 | 15.59 | 13.26 | -2.32 | ---- | -1.62 | -0.10 | 1.52 | ||
| 2062 | 15.62 | 13.27 | -2.35 | ---- | -1.65 | -0.10 | 1.55 | ||
| 2063 | 15.66 | 13.27 | -2.39 | ---- | -1.67 | -0.10 | 1.57 | ||
| 2064 | 15.70 | 13.27 | -2.42 | ---- | -1.70 | -0.10 | 1.59 | ||
| 2065 | 15.74 | 13.28 | -2.46 | ---- | -1.72 | -0.11 | 1.61 | ||
| 2066 | 15.79 | 13.28 | -2.51 | ---- | -1.74 | -0.11 | 1.63 | ||
| 2067 | 15.84 | 13.28 | -2.56 | ---- | -1.75 | -0.11 | 1.65 | ||
| 2068 | 15.90 | 13.29 | -2.61 | ---- | -1.77 | -0.11 | 1.66 | ||
| 2069 | 15.95 | 13.29 | -2.66 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2070 | 16.01 | 13.30 | -2.72 | ---- | -1.79 | -0.11 | 1.68 | ||
| 2071 | 16.07 | 13.30 | -2.77 | ---- | -1.80 | -0.11 | 1.69 | ||
| 2072 | 16.12 | 13.30 | -2.81 | ---- | -1.81 | -0.11 | 1.70 | ||
| 2073 | 16.16 | 13.31 | -2.86 | ---- | -1.82 | -0.11 | 1.71 | ||
| 2074 | 16.21 | 13.31 | -2.90 | ---- | -1.83 | -0.11 | 1.72 | ||
| 2075 | 16.24 | 13.31 | -2.93 | ---- | -1.83 | -0.11 | 1.72 | ||
| 2076 | 16.27 | 13.32 | -2.96 | ---- | -1.84 | -0.11 | 1.73 | ||
| 2077 | 16.30 | 13.32 | -2.98 | ---- | -1.84 | -0.11 | 1.73 | ||
| 2078 | 16.31 | 13.32 | -2.99 | ---- | -1.85 | -0.11 | 1.73 | ||
| 2079 | 16.30 | 13.32 | -2.98 | ---- | -1.85 | -0.11 | 1.73 | ||
| 2080 | 16.29 | 13.32 | -2.97 | ---- | -1.85 | -0.11 | 1.73 | ||
| 2081 | 16.27 | 13.32 | -2.96 | ---- | -1.84 | -0.11 | 1.73 | ||
| 2082 | 16.25 | 13.32 | -2.93 | ---- | -1.84 | -0.11 | 1.73 | ||
| 2083 | 16.23 | 13.32 | -2.91 | ---- | -1.84 | -0.11 | 1.73 | ||
| 2084 | 16.20 | 13.31 | -2.88 | ---- | -1.84 | -0.11 | 1.72 | ||
| 2085 | 16.16 | 13.31 | -2.85 | ---- | -1.83 | -0.11 | 1.72 | ||
| 2086 | 16.13 | 13.31 | -2.82 | ---- | -1.83 | -0.11 | 1.72 | ||
| 2087 | 16.10 | 13.31 | -2.79 | ---- | -1.82 | -0.11 | 1.71 | ||
| 2088 | 16.07 | 13.31 | -2.77 | ---- | -1.82 | -0.11 | 1.71 | ||
| 2089 | 16.06 | 13.31 | -2.75 | ---- | -1.82 | -0.11 | 1.71 | ||
| 2090 | 16.05 | 13.30 | -2.74 | ---- | -1.82 | -0.11 | 1.71 | ||
| 2091 | 16.05 | 13.30 | -2.75 | ---- | -1.82 | -0.11 | 1.71 | ||
| 2092 | 16.06 | 13.31 | -2.76 | ---- | -1.82 | -0.11 | 1.71 | ||
| 2093 | 16.08 | 13.31 | -2.78 | ---- | -1.82 | -0.11 | 1.71 | ||
| 2094 | 16.11 | 13.31 | -2.80 | ---- | -1.83 | -0.11 | 1.71 | ||
| 2095 | 16.14 | 13.31 | -2.83 | ---- | -1.83 | -0.11 | 1.72 | ||
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 | 16.02% | 13.79% | -2.23% | 2035 | -1.04% | -0.06% | 0.98% | ||
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.