Description of Proposed Provision:
B5.2: Beginning for those newly eligible in 2019, 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 $1,256 in 2017). For those with under 30 years of coverage, the PIA per year of coverage over 10 years is $1,256/20 = $62.80. (c) Index the initial PIA per year of coverage by wage growth for successive cohorts.
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 |
|||
| 2018 | 13.81 | 12.64 | -1.17 | 288 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.96 | 12.87 | -1.08 | 272 | 0.00 | 0.00 | -0.00 | ||
| 2020 | 14.13 | 12.89 | -1.24 | 256 | 0.01 | 0.00 | -0.01 | ||
| 2021 | 14.29 | 12.92 | -1.37 | 239 | 0.01 | 0.00 | -0.01 | ||
| 2022 | 14.46 | 12.95 | -1.51 | 222 | 0.02 | 0.00 | -0.02 | ||
| 2023 | 14.65 | 12.97 | -1.68 | 205 | 0.03 | 0.00 | -0.03 | ||
| 2024 | 14.84 | 13.00 | -1.84 | 187 | 0.04 | 0.00 | -0.03 | ||
| 2025 | 15.03 | 13.01 | -2.02 | 170 | 0.04 | 0.00 | -0.04 | ||
| 2026 | 15.21 | 13.14 | -2.08 | 152 | 0.05 | 0.00 | -0.05 | ||
| 2027 | 15.43 | 13.16 | -2.27 | 135 | 0.06 | 0.00 | -0.06 | ||
| 2028 | 15.65 | 13.18 | -2.48 | 118 | 0.07 | 0.00 | -0.07 | ||
| 2029 | 15.87 | 13.19 | -2.68 | 101 | 0.08 | 0.00 | -0.08 | ||
| 2030 | 16.07 | 13.21 | -2.87 | 84 | 0.09 | 0.00 | -0.08 | ||
| 2031 | 16.26 | 13.22 | -3.04 | 66 | 0.10 | 0.00 | -0.09 | ||
| 2032 | 16.42 | 13.23 | -3.19 | 47 | 0.11 | 0.01 | -0.10 | ||
| 2033 | 16.57 | 13.24 | -3.32 | 29 | 0.11 | 0.01 | -0.11 | ||
| 2034 | 16.69 | 13.25 | -3.43 | 9 | 0.12 | 0.01 | -0.11 | ||
| 2035 | 16.78 | 13.26 | -3.52 | ---- | 0.13 | 0.01 | -0.12 | ||
| 2036 | 16.86 | 13.27 | -3.59 | ---- | 0.14 | 0.01 | -0.13 | ||
| 2037 | 16.93 | 13.27 | -3.65 | ---- | 0.14 | 0.01 | -0.13 | ||
| 2038 | 16.97 | 13.28 | -3.69 | ---- | 0.15 | 0.01 | -0.14 | ||
| 2039 | 16.99 | 13.28 | -3.71 | ---- | 0.15 | 0.01 | -0.15 | ||
| 2040 | 16.99 | 13.28 | -3.71 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2041 | 16.98 | 13.28 | -3.69 | ---- | 0.17 | 0.01 | -0.16 | ||
| 2042 | 16.95 | 13.28 | -3.67 | ---- | 0.17 | 0.01 | -0.16 | ||
| 2043 | 16.91 | 13.28 | -3.63 | ---- | 0.18 | 0.01 | -0.17 | ||
| 2044 | 16.88 | 13.28 | -3.60 | ---- | 0.18 | 0.01 | -0.17 | ||
| 2045 | 16.85 | 13.28 | -3.57 | ---- | 0.19 | 0.01 | -0.18 | ||
| 2046 | 16.82 | 13.28 | -3.54 | ---- | 0.20 | 0.01 | -0.18 | ||
| 2047 | 16.80 | 13.28 | -3.52 | ---- | 0.20 | 0.01 | -0.19 | ||
| 2048 | 16.78 | 13.28 | -3.50 | ---- | 0.21 | 0.01 | -0.19 | ||
| 2049 | 16.77 | 13.28 | -3.49 | ---- | 0.21 | 0.01 | -0.20 | ||
| 2050 | 16.76 | 13.28 | -3.48 | ---- | 0.21 | 0.01 | -0.20 | ||
| 2051 | 16.75 | 13.28 | -3.47 | ---- | 0.22 | 0.01 | -0.21 | ||
| 2052 | 16.76 | 13.28 | -3.48 | ---- | 0.22 | 0.01 | -0.21 | ||
| 2053 | 16.77 | 13.28 | -3.49 | ---- | 0.23 | 0.01 | -0.21 | ||
| 2054 | 16.79 | 13.29 | -3.51 | ---- | 0.23 | 0.01 | -0.22 | ||
| 2055 | 16.82 | 13.29 | -3.53 | ---- | 0.23 | 0.01 | -0.22 | ||
| 2056 | 16.86 | 13.29 | -3.57 | ---- | 0.24 | 0.01 | -0.22 | ||
| 2057 | 16.90 | 13.30 | -3.61 | ---- | 0.24 | 0.01 | -0.23 | ||
| 2058 | 16.95 | 13.30 | -3.65 | ---- | 0.24 | 0.01 | -0.23 | ||
| 2059 | 17.00 | 13.30 | -3.70 | ---- | 0.25 | 0.01 | -0.23 | ||
| 2060 | 17.06 | 13.31 | -3.75 | ---- | 0.25 | 0.01 | -0.23 | ||
| 2061 | 17.11 | 13.31 | -3.80 | ---- | 0.25 | 0.01 | -0.24 | ||
| 2062 | 17.16 | 13.32 | -3.84 | ---- | 0.25 | 0.01 | -0.24 | ||
| 2063 | 17.22 | 13.32 | -3.90 | ---- | 0.25 | 0.01 | -0.24 | ||
| 2064 | 17.27 | 13.33 | -3.95 | ---- | 0.26 | 0.01 | -0.24 | ||
| 2065 | 17.33 | 13.33 | -4.00 | ---- | 0.26 | 0.01 | -0.24 | ||
| 2066 | 17.39 | 13.33 | -4.05 | ---- | 0.26 | 0.01 | -0.25 | ||
| 2067 | 17.44 | 13.34 | -4.11 | ---- | 0.26 | 0.01 | -0.25 | ||
| 2068 | 17.51 | 13.34 | -4.16 | ---- | 0.26 | 0.02 | -0.25 | ||
| 2069 | 17.57 | 13.35 | -4.22 | ---- | 0.26 | 0.02 | -0.25 | ||
| 2070 | 17.63 | 13.35 | -4.28 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2071 | 17.69 | 13.35 | -4.33 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2072 | 17.74 | 13.36 | -4.38 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2073 | 17.78 | 13.36 | -4.42 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2074 | 17.82 | 13.36 | -4.46 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2075 | 17.86 | 13.37 | -4.49 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2076 | 17.88 | 13.37 | -4.51 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2077 | 17.89 | 13.37 | -4.52 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2078 | 17.90 | 13.37 | -4.52 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2079 | 17.89 | 13.37 | -4.52 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2080 | 17.87 | 13.37 | -4.50 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2081 | 17.86 | 13.37 | -4.49 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2082 | 17.84 | 13.37 | -4.47 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2083 | 17.82 | 13.37 | -4.45 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2084 | 17.81 | 13.37 | -4.44 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2085 | 17.80 | 13.37 | -4.43 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2086 | 17.79 | 13.37 | -4.43 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2087 | 17.80 | 13.37 | -4.43 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2088 | 17.81 | 13.37 | -4.45 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2089 | 17.83 | 13.37 | -4.47 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2090 | 17.86 | 13.37 | -4.49 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2091 | 17.90 | 13.37 | -4.53 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2092 | 17.95 | 13.38 | -4.57 | ---- | 0.27 | 0.02 | -0.25 | ||
| 2093 | 17.99 | 13.38 | -4.61 | ---- | 0.27 | 0.02 | -0.25 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2018-2092 | 16.87% | 13.85% | -3.02% | 2034 | 0.18% | 0.01% | -0.17% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2018 Trustees Report.