Description of Proposed Provision:
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 2020-2028.

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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1212.89-1.23
256
-0.00-0.000.00
202114.2712.92-1.35
240
-0.00-0.000.00
202214.4312.95-1.48
223
-0.01-0.000.01
202314.6012.96-1.64
206
-0.02-0.000.02
202414.7712.99-1.78
189
-0.03-0.000.03
202514.9413.01-1.93
172
-0.05-0.000.04
202615.0913.13-1.96
155
-0.07-0.000.06
202715.2713.15-2.12
139
-0.09-0.000.09
202815.4613.17-2.29
123
-0.12-0.010.12
202915.6313.18-2.45
107
-0.16-0.010.15
203015.7913.19-2.59
91
-0.20-0.010.19
203115.9213.20-2.72
74
-0.24-0.010.22
203216.0413.21-2.83
58
-0.27-0.010.26
203316.1413.22-2.92
41
-0.31-0.020.30
203416.2113.23-2.98
24
-0.35-0.020.34
203516.2613.23-3.03
6
-0.39-0.020.37
203616.3013.24-3.06
----
-0.42-0.020.40
203716.3213.24-3.08
----
-0.46-0.020.44
203816.3313.25-3.08
----
-0.49-0.020.47
203916.3113.25-3.06
----
-0.52-0.030.50
204016.2813.25-3.03
----
-0.55-0.030.52
204116.2313.24-2.99
----
-0.58-0.030.55
204216.1713.24-2.93
----
-0.60-0.030.57
204316.1113.24-2.87
----
-0.63-0.030.60
204416.0413.24-2.81
----
-0.65-0.030.62
204515.9913.23-2.75
----
-0.67-0.030.64
204615.9313.23-2.70
----
-0.70-0.040.66
204715.8813.23-2.65
----
-0.72-0.040.68
204815.8413.23-2.61
----
-0.74-0.040.70
204915.8013.23-2.57
----
-0.76-0.040.72
205015.7713.23-2.54
----
-0.77-0.040.73
205115.7413.23-2.52
----
-0.79-0.040.75
205215.7313.23-2.50
----
-0.80-0.040.76
205315.7313.23-2.50
----
-0.82-0.040.77
205415.7313.23-2.50
----
-0.83-0.040.79
205515.7513.23-2.52
----
-0.84-0.050.80
205615.7713.23-2.54
----
-0.85-0.050.81
205715.8013.24-2.57
----
-0.86-0.050.82
205815.8413.24-2.60
----
-0.87-0.050.83
205915.8813.24-2.64
----
-0.88-0.050.83
206015.9213.25-2.67
----
-0.89-0.050.84
206115.9713.25-2.71
----
-0.89-0.050.84
206216.0113.25-2.76
----
-0.90-0.050.85
206316.0613.26-2.80
----
-0.90-0.050.86
206416.1113.26-2.84
----
-0.91-0.050.86
206516.1513.26-2.89
----
-0.91-0.050.86
206616.2113.27-2.94
----
-0.92-0.050.87
206716.2613.27-2.99
----
-0.92-0.050.87
206816.3213.28-3.04
----
-0.93-0.050.88
206916.3713.28-3.09
----
-0.93-0.050.88
207016.4313.28-3.14
----
-0.94-0.050.88
207116.4813.29-3.19
----
-0.94-0.050.89
207216.5313.29-3.23
----
-0.94-0.050.89
207316.5713.29-3.27
----
-0.95-0.050.89
207416.6013.30-3.31
----
-0.95-0.050.90
207516.6413.30-3.34
----
-0.95-0.050.90
207616.6613.30-3.36
----
-0.95-0.050.90
207716.6713.30-3.37
----
-0.95-0.050.90
207816.6713.30-3.37
----
-0.95-0.050.90
207916.6713.30-3.36
----
-0.95-0.050.90
208016.6513.30-3.35
----
-0.95-0.050.90
208116.6413.30-3.33
----
-0.95-0.050.90
208216.6213.30-3.32
----
-0.95-0.050.90
208316.6013.30-3.30
----
-0.95-0.050.90
208416.5913.30-3.29
----
-0.95-0.050.90
208516.5813.30-3.28
----
-0.95-0.050.90
208616.5813.30-3.28
----
-0.95-0.050.90
208716.5813.30-3.28
----
-0.95-0.050.90
208816.5913.30-3.30
----
-0.95-0.050.90
208916.6213.30-3.32
----
-0.95-0.050.90
209016.6413.30-3.34
----
-0.95-0.050.90
209116.6813.30-3.37
----
-0.96-0.050.90
209216.7213.31-3.41
----
-0.96-0.050.91
209316.7613.31-3.45
----
-0.96-0.050.91


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2018-2092 16.06% 13.81% -2.25%
2035
-0.62% -0.03% 0.59%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.