Description of Proposed Provision:
B5.3: Beginning for those newly eligible in 2019, 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 $1,256 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 | -1.09 | 272 | 0.00 | 0.00 | -0.00 | ||
| 2020 | 14.14 | 12.89 | -1.24 | 256 | 0.01 | 0.00 | -0.01 | ||
| 2021 | 14.30 | 12.92 | -1.38 | 239 | 0.02 | 0.00 | -0.02 | ||
| 2022 | 14.47 | 12.95 | -1.52 | 222 | 0.03 | 0.00 | -0.03 | ||
| 2023 | 14.67 | 12.97 | -1.70 | 204 | 0.05 | 0.00 | -0.05 | ||
| 2024 | 14.86 | 13.00 | -1.87 | 187 | 0.06 | 0.00 | -0.06 | ||
| 2025 | 15.06 | 13.01 | -2.05 | 169 | 0.08 | 0.00 | -0.07 | ||
| 2026 | 15.25 | 13.14 | -2.11 | 151 | 0.09 | 0.00 | -0.09 | ||
| 2027 | 15.47 | 13.16 | -2.31 | 134 | 0.10 | 0.00 | -0.10 | ||
| 2028 | 15.70 | 13.18 | -2.52 | 117 | 0.12 | 0.01 | -0.11 | ||
| 2029 | 15.92 | 13.19 | -2.73 | 99 | 0.13 | 0.01 | -0.12 | ||
| 2030 | 16.13 | 13.21 | -2.92 | 82 | 0.14 | 0.01 | -0.14 | ||
| 2031 | 16.32 | 13.22 | -3.09 | 64 | 0.16 | 0.01 | -0.15 | ||
| 2032 | 16.49 | 13.24 | -3.25 | 45 | 0.17 | 0.01 | -0.16 | ||
| 2033 | 16.63 | 13.25 | -3.39 | 26 | 0.18 | 0.01 | -0.17 | ||
| 2034 | 16.76 | 13.26 | -3.50 | 6 | 0.19 | 0.01 | -0.18 | ||
| 2035 | 16.85 | 13.26 | -3.59 | ---- | 0.20 | 0.01 | -0.19 | ||
| 2036 | 16.93 | 13.27 | -3.66 | ---- | 0.21 | 0.01 | -0.20 | ||
| 2037 | 17.00 | 13.28 | -3.73 | ---- | 0.22 | 0.01 | -0.21 | ||
| 2038 | 17.05 | 13.28 | -3.77 | ---- | 0.23 | 0.01 | -0.22 | ||
| 2039 | 17.07 | 13.28 | -3.78 | ---- | 0.24 | 0.01 | -0.23 | ||
| 2040 | 17.07 | 13.29 | -3.79 | ---- | 0.25 | 0.01 | -0.23 | ||
| 2041 | 17.06 | 13.29 | -3.78 | ---- | 0.25 | 0.01 | -0.24 | ||
| 2042 | 17.04 | 13.29 | -3.75 | ---- | 0.26 | 0.01 | -0.25 | ||
| 2043 | 17.00 | 13.29 | -3.72 | ---- | 0.27 | 0.01 | -0.25 | ||
| 2044 | 16.97 | 13.28 | -3.69 | ---- | 0.28 | 0.01 | -0.26 | ||
| 2045 | 16.94 | 13.28 | -3.66 | ---- | 0.28 | 0.02 | -0.27 | ||
| 2046 | 16.92 | 13.28 | -3.64 | ---- | 0.29 | 0.02 | -0.28 | ||
| 2047 | 16.90 | 13.28 | -3.62 | ---- | 0.30 | 0.02 | -0.28 | ||
| 2048 | 16.88 | 13.28 | -3.60 | ---- | 0.31 | 0.02 | -0.29 | ||
| 2049 | 16.87 | 13.28 | -3.58 | ---- | 0.31 | 0.02 | -0.30 | ||
| 2050 | 16.86 | 13.29 | -3.58 | ---- | 0.32 | 0.02 | -0.30 | ||
| 2051 | 16.86 | 13.29 | -3.57 | ---- | 0.32 | 0.02 | -0.31 | ||
| 2052 | 16.86 | 13.29 | -3.58 | ---- | 0.33 | 0.02 | -0.31 | ||
| 2053 | 16.88 | 13.29 | -3.59 | ---- | 0.34 | 0.02 | -0.32 | ||
| 2054 | 16.90 | 13.29 | -3.61 | ---- | 0.34 | 0.02 | -0.32 | ||
| 2055 | 16.93 | 13.29 | -3.64 | ---- | 0.34 | 0.02 | -0.33 | ||
| 2056 | 16.97 | 13.30 | -3.67 | ---- | 0.35 | 0.02 | -0.33 | ||
| 2057 | 17.02 | 13.30 | -3.71 | ---- | 0.35 | 0.02 | -0.33 | ||
| 2058 | 17.07 | 13.31 | -3.76 | ---- | 0.36 | 0.02 | -0.34 | ||
| 2059 | 17.12 | 13.31 | -3.81 | ---- | 0.36 | 0.02 | -0.34 | ||
| 2060 | 17.17 | 13.32 | -3.85 | ---- | 0.36 | 0.02 | -0.34 | ||
| 2061 | 17.22 | 13.32 | -3.90 | ---- | 0.36 | 0.02 | -0.34 | ||
| 2062 | 17.28 | 13.32 | -3.95 | ---- | 0.37 | 0.02 | -0.35 | ||
| 2063 | 17.33 | 13.33 | -4.00 | ---- | 0.37 | 0.02 | -0.35 | ||
| 2064 | 17.39 | 13.33 | -4.05 | ---- | 0.37 | 0.02 | -0.35 | ||
| 2065 | 17.44 | 13.34 | -4.11 | ---- | 0.37 | 0.02 | -0.35 | ||
| 2066 | 17.50 | 13.34 | -4.16 | ---- | 0.37 | 0.02 | -0.35 | ||
| 2067 | 17.56 | 13.34 | -4.22 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2068 | 17.62 | 13.35 | -4.27 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2069 | 17.68 | 13.35 | -4.33 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2070 | 17.75 | 13.36 | -4.39 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2071 | 17.80 | 13.36 | -4.44 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2072 | 17.85 | 13.36 | -4.49 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2073 | 17.90 | 13.37 | -4.53 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2074 | 17.94 | 13.37 | -4.57 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2075 | 17.97 | 13.37 | -4.60 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2076 | 18.00 | 13.38 | -4.62 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2077 | 18.01 | 13.38 | -4.63 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2078 | 18.01 | 13.38 | -4.63 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2079 | 18.00 | 13.38 | -4.62 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2080 | 17.99 | 13.38 | -4.61 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2081 | 17.97 | 13.38 | -4.59 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2082 | 17.95 | 13.38 | -4.58 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2083 | 17.94 | 13.37 | -4.56 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2084 | 17.92 | 13.37 | -4.55 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2085 | 17.91 | 13.37 | -4.54 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2086 | 17.91 | 13.37 | -4.54 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2087 | 17.91 | 13.37 | -4.54 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2088 | 17.93 | 13.37 | -4.55 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2089 | 17.95 | 13.37 | -4.57 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2090 | 17.98 | 13.38 | -4.60 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2091 | 18.02 | 13.38 | -4.64 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2092 | 18.06 | 13.38 | -4.68 | ---- | 0.38 | 0.02 | -0.36 | ||
| 2093 | 18.11 | 13.39 | -4.72 | ---- | 0.38 | 0.02 | -0.36 | ||
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 | 16.96% | 13.86% | -3.10% | 2034 | 0.27% | 0.01% | -0.25% | ||
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.