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 2022 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 |
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B1.1 |
Price indexing of PIA factors beginning with those newly eligible for OASDI
benefits in 2029: 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 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.
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 2029: 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)
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B1.4 |
Progressive price indexing (50th percentile) of PIA factors beginning with
individuals newly eligible for OASDI benefits in 2029: 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 2029: 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)
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B2.1 |
Beginning with those newly eligible for OASI benefits in 2032, multiply the
PIA factors by the ratio of life expectancy at 67 for 2027 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)
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B3.8 |
Beginning with those newly eligible for OASDI benefits in 2029, 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 2062: 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)
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B3.9 |
Beginning with those newly eligible for OASDI benefits in 2035, gradually reduce
the 15 percent PIA factor in each year so that it reaches 10 percent for those
newly eligible in 2064 and later.
Summary measures and graphs
(PDF version)
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B3.10 |
Beginning with those newly eligible for OASDI benefits in 2029, gradually increase
the first PIA bend point in each year so that it is 15 percent higher for those newly
eligible in 2043 and later.
Summary measures and graphs
(PDF version)
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B3.11 |
Increase the first PIA factor from 90 percent to 93 percent for all beneficiaries
eligible as of January 2024 and for those newly eligible for benefits after 2023.
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 2029. 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 2029, 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 2033. 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 2029 (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 $1,024
in 2022 to $1,302 in 2022. Phase this provision in over 10 years (2029-2038). The phase-in
would work on a weighted-average basis: 90% of CL formula + 10% of proposal formula for
2029, 80% of CL formula + 20% of proposal formula for 2030, and so on.
Summary measures and graphs
(PDF version)
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B3.14 |
Beginning with those newly eligible for OASDI benefits in 2024, reduce the 15
percent PIA factor by 2 percentage points per year so that it reaches 5 percent
for those newly eligible in 2028 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 2027, 92 percent for those newly eligible in 2028, ..., reaching 95
percent for those newly eligible in 2031 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 2029 or later, phase in a new benefit formula (from 2029 to 2038). 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 2038.
Summary measures and graphs
(PDF version)
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B3.17 |
Increase the current-law first bend point by 22 percent and increase the
90 percent PIA factor to 95 percent for all beneficiaries eligible for benefits
as of January 2023 and for those newly eligible for benefits after 2022.
This provision will result in an approximate $200 increase in PIA for most
workers newly eligible for retirement or disability benefits in 2023.
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 2023-2027.
Summary measures and graphs
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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 2023-2031.
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 2024-2032.
Summary measures and graphs
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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 2024 and later (without
regard for when the beneficiary became initially eligible).
Summary measures and graphs
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B4.5 |
For retired and disabled workers, reduce the maximum number of dropout years to 4 for
workers newly eligible in 2024, to 3 for workers newly eligible in 2025, and to 2 for
workers newly eligible in 2026 and later.
Summary measures and graphs
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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 2040, and is phased in for new eligibles in 2031
through 2039. 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
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B5.2 |
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 30 years of coverage equal to 125 percent of
the monthly poverty level (about $1,342 in 2021). For those with under 30 years of
coverage, the PIA per year of coverage over 10 years is $1,342/20 = $67.10. (c) Index
the initial PIA per year of coverage by wage growth for successive cohorts.
Summary measures and graphs
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B5.3 |
Beginning for those newly eligible in 2023, 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 $1,342
in 2021). For those with under 30 years of coverage, the PIA per year of coverage over
10 years is $1,342/20 = $67.10. (c) Index the initial PIA per year of coverage by wage
growth for successive cohorts.
Summary measures and graphs
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B5.4 |
Beginning for those newly eligible in 2029, 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 $1,342 in 2021). For those with under 30 years of
coverage, the PIA per year of coverage over 10 years is $1,342/20 = $67.10. (c) From
2021 to the year of implementation, 2029, 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
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B5.5 |
Beginning for those newly eligible in 2024, 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
$1,440 in 2021). For those with under 30 years of coverage, the PIA per year of coverage
over 19 years is $1,440/11 = $130.90. (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
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B5.6 |
Beginning for those newly eligible in 2023, 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 $1,133
in 2022). For those with under 30 years of coverage, the PIA per year of coverage over
10 years is $1,133/20 = $56.65. (c) From 2022 to the year of implementation, 2023, 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
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B5.7 |
Beginning for those newly eligible in 2025, 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
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B5.8 |
Beginning in 2027, 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
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B5.9 |
Beginning for those newly eligible in 2024, 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 $1,354 in 2021). 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 2024 and 2025, index the applicable poverty level using
the CPI index, to the year prior to eligibility. Then, for newly eligible workers in
2026 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
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B5.10 |
Reconfigure the special minimum benefit, phased in for retired and disabled workers
newly eligible from 2029 through 2038: (a) A year of work (YOW) coverage is equal to
earnings at or above $10,875 in 2022 (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.
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B5.11 |
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) For beneficiaries becoming newly
eligible in 2023, set the initial special minimum benefit for 30+ YOWs equal to 100
percent of the monthly HHS poverty level for 2022. For beneficiaries becoming newly
eligible after 2023, 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 2023 or who reaches their 85th birthday after
the beginning of 2023.
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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 2023 or who reaches their 85th
birthday after the beginning of 2023. 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 2024 or who reaches their 85th birthday after
the beginning of 2024. Increase the beneficiary's PIA based on an amount
equal to the average retired-worker PIA at the end of 2023, 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 2024 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 2023, 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.
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B6.5 |
Starting in 2025, 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 2029, 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 2029. Auxiliary beneficiaries
receive benefit enhancement based on the PIA of the governing worker.
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B6.7 |
Starting in January 2029, 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 $28,300 if single and $56,600 if married. MAGI is set to equal the IRMAA definition
(AGI plus tax-exempt interest income). Index these thresholds after 2029 by the increase
in the C-CPI-U; (2) The full additional amount is applicable for those born 1962 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 1962, 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 2024, 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 ($1,024 for 2022 initial eligibility)
and at least 11 "years of coverage" as used for Windfall Elimination Provision purposes
(earnings above $27,300 for 2022); (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 2023 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 $31,292 in 2022). The credits are available for all past years to newly eligible
retired-worker and disabled-worker beneficiaries starting in 2023. 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 2023
and for those newly eligible for benefits after the beginning of 2023.
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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 2027
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 2027, 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 2029.
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B7.9 |
Beginning for newly eligible retired workers and spouses in 2029, 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 2029 through 2038. 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 agency records.
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B7.11 |
Beginning in January 2025, 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 2025 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 2023 applications.
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B7.14 |
Eliminate completely the Windfall Elimination Provision (WEP) and Government Pension
Offset (GPO), effective 2023.
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