Provisions Affecting Level of Monthly Benefits
These provisions modify the formula used for calculating the basic Social Security monthly benefit called the Primary Insurance Amount (PIA). We provide a summary list of all options (printer-friendly PDF version) in this category. For each provision listed below, we provide an estimate of the financial effect on the OASDI program over the long-range period (the next 75 years) and for the 75th year. In addition, we provide graphs and detailed single year tables. We base all estimates on the intermediate assumptions described in the 2021 Trustees Report.
Choose the type of estimates (summary or detailed) from the list of provisions.
We group these provisions as follows:- B1: PIA bend point and factor changes, adjusting for inflation. These provisions reduce benefits for some future beneficiaries. Future PIA bend points and formula factors change so that the growth in benefits from one cohort to the next reflect some degree of inflation, rather than growth in average wages as specified in current law.
- B2: PIA bend point and factor changes, adjusting for longevity. These provisions reduce benefits for some future beneficiaries. Future PIA formula factors decrease as a result of increased longevity (people living longer).
- B3: PIA bend point and factor changes, other adjustments. These provisions specify other changes in future PIA bend points and formula factors.
- B4: Computation year changes. These provisions specify changes to the number of years used in determining benefits.
- B5: Minimum benefits. These provisions provide an increase in benefits to targeted individuals, generally those with low earnings and full work careers.
- B6: Benefit Increases for Older Beneficiaries. These provisions provide an increase in benefits for beneficiaries who have been on the rolls for at least 20 years.
- B7: Other benefit adjustments.
Number | Table and graph selection |
---|---|
B1.1 |
Price indexing of PIA factors beginning with those newly eligible for OASDI
benefits in 2028: Reduce factors so that initial benefits grow by inflation
rather than by the SSA average wage index.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B1.2 |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2028: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B1.3 |
Progressive price indexing (40th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2028: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B1.4 |
Progressive price indexing (50th percentile) of PIA factors beginning
with individuals newly eligible for OASDI benefits in 2028: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B1.5 |
Progressive price indexing (60th percentile) of PIA factors beginning
with individuals newly eligible for OASDI benefits in 2028: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B1.6 (2025) |
Progressive price indexing (30th percentile) of PIA factors beginning
with individuals newly eligible for OASI benefits in 2025: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B1.6 (2030) |
Progressive price indexing (30th percentile) of PIA factors beginning with
individuals newly eligible for OASI benefits in 2030: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B1.7 |
Progressive price indexing (40th percentile) of PIA factors for individuals
newly eligible for OASI benefits in 2029 through 2066: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B1.8 |
Progressive price indexing (50th percentile) of PIA factors for individuals
newly eligible for OASI benefits in 2026 through 2065: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B2.1 |
Beginning with those newly eligible for OASI benefits in 2031, multiply
the PIA factors by the ratio of life expectancy at 67 for 2026 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memoranda containing this or a similar provision: |
B3.8 |
Beginning with those newly eligible for OASDI benefits in 2028, 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 2061: 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B3.9 |
Beginning with those newly eligible for OASDI benefits in 2034, gradually reduce
the 15 percent PIA factor in each year so that it reaches 10 percent for those newly
eligible in 2063 and later.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B3.10 |
Beginning with those newly eligible for OASDI benefits in 2028, gradually increase
the first PIA bend point in each year so that it is 15 percent higher for those newly
eligible in 2042 and later.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memoranda containing this or a similar provision: |
B3.11 |
Increase the first PIA factor from 90 percent to 93 percent for all beneficiaries
eligible as of January 2023 and for those newly eligible for benefits after 2022.
Summary measures and graphs
(PDF version)
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B3.12 |
Use an annualized "mini-PIA" formula beginning with retired workers newly eligible
in 2028. 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 2028, 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 2032. Disabled worker benefits are unchanged under this provision.
Summary measures and graphs
(PDF version)
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B3.13 |
For retired worker beneficiaries newly eligible in 2028 (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 $996 in
2021 to $1,266 in 2021. Phase this provision in over 10 years (2028-2037). The phase-in
would work on a weighted-average basis: 90% of CL formula + 10% of proposal formula for
2028, 80% of CL formula + 20% of proposal formula for 2029, and so on.
Summary measures and graphs
(PDF version)
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B3.14 |
Beginning with those newly eligible for OASDI benefits in 2023, reduce the 15 percent
PIA factor by 2 percentage points per year so that it reaches 5 percent for those newly
eligible in 2027 and later.
Summary measures and graphs
(PDF version)
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B3.15 |
Increase the 90 percent PIA formula factor to 91 percent for beneficiaries
newly eligible in 2026, 92 percent for those newly eligible in 2027, ...,
reaching 95 percent for those newly eligible in 2030 and later.
Summary measures and graphs
(PDF version)
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B3.16 |
For retired worker and disabled worker beneficiaries becoming initially eligible
in January 2028 or later, phase in a new benefit formula (from 2028 to 2037). 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 2037.
Summary measures and graphs
(PDF version)
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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 2022-2026.
Summary measures and graphs
(PDF version)
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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 2022-2030.
Summary measures and graphs
(PDF version)
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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 2023-2031.
Summary measures and graphs
(PDF version)
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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 2023 and later (without
regard for when the beneficiary became initially eligible).
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B4.5 |
For retired and disabled workers, reduce the maximum number of dropout years
to 4 for workers newly eligible in 2023, to 3 for workers newly eligible in
2024, and to 2 for workers newly eligible in 2025 and later.
Summary measures and graphs
(PDF version)
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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 2039, and is phased in for new eligibles in 2030 through 2038. 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.
Summary measures and graphs
(PDF version)
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B5.2 |
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 30 years of coverage equal to 125 percent of
the monthly poverty level (about $1,329 in 2020). For those with under 30 years of
coverage, the PIA per year of coverage over 10 years is $1,329/20 = $66.45. (c) Index
the initial PIA per year of coverage by wage growth for successive cohorts.
Summary measures and graphs
(PDF version)
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B5.3 |
Beginning for those newly eligible in 2022, 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 $1,329
in 2020). For those with under 30 years of coverage, the PIA per year of coverage over
10 years is $1,329/20 = $66.45. (c) Index the initial PIA per year of coverage by wage
growth for successive cohorts.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B5.4 |
Beginning for those newly eligible in 2028, 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 $1,329 in 2020). For those with under 30 years of
coverage, the PIA per year of coverage over 10 years is $1,329/20 = $66.45. (c) From
2020 to the year of implementation, 2028, 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B5.5 |
Beginning for those newly eligible in 2023, 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
$1,376 in 2020). For those with under 30 years of coverage, the PIA per year of coverage
over 19 years is $1,376/11 = $125.10. (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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B5.6 |
Beginning for those newly eligible in 2022, 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 $1,073
in 2021). For those with under 30 years of coverage, the PIA per year of coverage over
10 years is $1,073/20 = $53.65. (c) From 2021 to the year of implementation, 2022, 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.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |
B5.7 |
Beginning for those newly eligible in 2024, 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.
Summary measures and graphs
(PDF version)
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B5.8 |
Beginning in 2026, 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.
Summary measures and graphs
(PDF version)
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B5.9 |
Beginning for those newly eligible in 2023, 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 $1,293 in 2020). 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 2023 and 2024, index the applicable poverty level using the CPI index,
to the year prior to eligibility. Then, for newly eligible workers in 2025 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.
Summary measures and graphs
(PDF version)
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B5.10 |
Reconfigure the special minimum benefit, phased in for retired and disabled workers
newly eligible from 2028 through 2037: (a) A year of work (YOW) coverage is equal to
earnings at or above $10,875 in 2021 (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.
Summary measures and graphs
(PDF version)
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B5.11 |
Beginning for those newly eligible in 2022, 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 2022, set the initial special minimum benefit for 30+ YOWs equal to 100 percent of
the monthly HHS poverty level for 2021. For beneficiaries becoming newly eligible after
2022, 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.
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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 2022 or who reaches
their 85th birthday after the beginning of 2022.
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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 2022 or who reaches their 85th
birthday after the beginning of 2022. The dollar amount of increase equals 5 percent
of the average retired-worker MBA in the prior year.
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B6.3 |
Provide an increase in the benefit level of any beneficiary who is 85 or older at
the beginning of 2023 or who reaches their 85th birthday after the beginning of 2023.
Increase the beneficiary's PIA based on an amount equal to the average retired-worker
PIA at the end of 2022, 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 2023 and
by 5 percent of this amount at age 85 for others, phased in at 1 percent per year
for ages 81-85.
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B6.4 |
Starting in 2022, 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.
Summary measures and graphs
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B6.5 |
Starting in 2024, 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.
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B6.6 |
Starting in 2028, 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 2028 (over age 76 for
retirees), phase in the PIA enhancement over 10 years starting in 2028. Auxiliary beneficiaries
receive benefit enhancement based on the PIA of the governing worker.
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B6.7 |
Starting in January 2028, 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 $27,750 if single and $55,500 if married. MAGI is set to equal the IRMAA definition
(AGI plus tax-exempt interest income). Index these thresholds after 2028 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.
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B6.8 |
Starting in 2023, 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 ($996 for 2021 initial eligibility)
and at least 11 "years of coverage" as used for Windfall Elimination Provision purposes
(earnings above $26,550 for 2021); (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.
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B7.2 |
Reduce benefits by 5 percent for those newly eligible for benefits in 2022 and later.
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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 $29,532 in 2021). The credits are available for all past years to
newly eligible retired-worker and disabled-worker beneficiaries starting in 2022.
The 5 years are chosen to yield the largest increase in AIME.
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B7.5 |
Increase benefits by 5 percent for all beneficiaries as of the beginning of 2022
and for those newly eligible for benefits after the beginning of 2022.
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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 2026 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 2026, based on changes in the SSA
average wage index.
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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 2028.
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B7.9 |
Beginning for newly eligible retired workers and spouses in 2028, 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.
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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 2028 through 2037. 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.
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B7.11 |
Beginning in January 2024, 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.
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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 2024 and later. Widows are held harmless from the
lump-sum decision.
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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 2022 applications.
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B7.14 |
Eliminate completely the Windfall Elimination Provision (WEP) and Government
Pension Offset (GPO), effective 2022.
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