Description of Proposed Provision:
B5.5: Beginning for those newly eligible in 2020, 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 $1,303 in 2017). For those with under 30 years of coverage, the PIA per year of coverage over 19 years is $1,303/11 = $118.50. (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.
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 | 13.95 | 12.87 | -1.08 | 272 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 14.13 | 12.89 | -1.23 | 256 | 0.00 | 0.00 | -0.00 | ||
| 2021 | 14.28 | 12.92 | -1.36 | 239 | 0.00 | 0.00 | -0.00 | ||
| 2022 | 14.44 | 12.95 | -1.50 | 223 | 0.01 | 0.00 | -0.01 | ||
| 2023 | 14.63 | 12.97 | -1.66 | 205 | 0.01 | 0.00 | -0.01 | ||
| 2024 | 14.81 | 12.99 | -1.82 | 188 | 0.01 | 0.00 | -0.01 | ||
| 2025 | 15.00 | 13.01 | -1.99 | 171 | 0.02 | 0.00 | -0.01 | ||
| 2026 | 15.18 | 13.13 | -2.04 | 153 | 0.02 | 0.00 | -0.02 | ||
| 2027 | 15.39 | 13.15 | -2.23 | 137 | 0.02 | 0.00 | -0.02 | ||
| 2028 | 15.61 | 13.17 | -2.44 | 120 | 0.02 | 0.00 | -0.02 | ||
| 2029 | 15.82 | 13.19 | -2.63 | 103 | 0.03 | 0.00 | -0.03 | ||
| 2030 | 16.01 | 13.20 | -2.81 | 85 | 0.03 | 0.00 | -0.03 | ||
| 2031 | 16.19 | 13.22 | -2.98 | 68 | 0.03 | 0.00 | -0.03 | ||
| 2032 | 16.35 | 13.23 | -3.12 | 50 | 0.04 | 0.00 | -0.04 | ||
| 2033 | 16.49 | 13.24 | -3.25 | 31 | 0.04 | 0.00 | -0.04 | ||
| 2034 | 16.61 | 13.25 | -3.36 | 12 | 0.04 | 0.00 | -0.04 | ||
| 2035 | 16.69 | 13.26 | -3.44 | ---- | 0.04 | 0.00 | -0.04 | ||
| 2036 | 16.77 | 13.26 | -3.51 | ---- | 0.05 | 0.00 | -0.04 | ||
| 2037 | 16.83 | 13.27 | -3.56 | ---- | 0.05 | 0.00 | -0.05 | ||
| 2038 | 16.87 | 13.27 | -3.60 | ---- | 0.05 | 0.00 | -0.05 | ||
| 2039 | 16.88 | 13.27 | -3.61 | ---- | 0.05 | 0.00 | -0.05 | ||
| 2040 | 16.88 | 13.28 | -3.61 | ---- | 0.05 | 0.00 | -0.05 | ||
| 2041 | 16.86 | 13.28 | -3.59 | ---- | 0.05 | 0.00 | -0.05 | ||
| 2042 | 16.83 | 13.27 | -3.56 | ---- | 0.06 | 0.00 | -0.05 | ||
| 2043 | 16.79 | 13.27 | -3.52 | ---- | 0.06 | 0.00 | -0.06 | ||
| 2044 | 16.75 | 13.27 | -3.48 | ---- | 0.06 | 0.00 | -0.06 | ||
| 2045 | 16.72 | 13.27 | -3.45 | ---- | 0.06 | 0.00 | -0.06 | ||
| 2046 | 16.69 | 13.27 | -3.42 | ---- | 0.06 | 0.00 | -0.06 | ||
| 2047 | 16.66 | 13.27 | -3.39 | ---- | 0.06 | 0.00 | -0.06 | ||
| 2048 | 16.64 | 13.27 | -3.37 | ---- | 0.06 | 0.00 | -0.06 | ||
| 2049 | 16.62 | 13.27 | -3.35 | ---- | 0.07 | 0.00 | -0.06 | ||
| 2050 | 16.61 | 13.27 | -3.34 | ---- | 0.07 | 0.00 | -0.06 | ||
| 2051 | 16.60 | 13.27 | -3.33 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2052 | 16.60 | 13.27 | -3.33 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2053 | 16.61 | 13.27 | -3.34 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2054 | 16.63 | 13.28 | -3.36 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2055 | 16.66 | 13.28 | -3.38 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2056 | 16.70 | 13.28 | -3.42 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2057 | 16.74 | 13.29 | -3.45 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2058 | 16.79 | 13.29 | -3.50 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2059 | 16.83 | 13.29 | -3.54 | ---- | 0.08 | 0.00 | -0.07 | ||
| 2060 | 16.88 | 13.30 | -3.59 | ---- | 0.08 | 0.00 | -0.07 | ||
| 2061 | 16.94 | 13.30 | -3.63 | ---- | 0.08 | 0.00 | -0.07 | ||
| 2062 | 16.99 | 13.31 | -3.68 | ---- | 0.08 | 0.00 | -0.07 | ||
| 2063 | 17.04 | 13.31 | -3.73 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2064 | 17.09 | 13.31 | -3.78 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2065 | 17.15 | 13.32 | -3.83 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2066 | 17.20 | 13.32 | -3.88 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2067 | 17.26 | 13.33 | -3.94 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2068 | 17.32 | 13.33 | -3.99 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2069 | 17.38 | 13.33 | -4.05 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2070 | 17.45 | 13.34 | -4.11 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2071 | 17.50 | 13.34 | -4.16 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2072 | 17.55 | 13.35 | -4.21 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2073 | 17.60 | 13.35 | -4.25 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2074 | 17.64 | 13.35 | -4.28 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2075 | 17.67 | 13.36 | -4.31 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2076 | 17.69 | 13.36 | -4.34 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2077 | 17.71 | 13.36 | -4.35 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2078 | 17.71 | 13.36 | -4.35 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2079 | 17.70 | 13.36 | -4.34 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2080 | 17.69 | 13.36 | -4.33 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2081 | 17.67 | 13.36 | -4.32 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2082 | 17.66 | 13.36 | -4.30 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2083 | 17.64 | 13.36 | -4.28 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2084 | 17.63 | 13.35 | -4.27 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2085 | 17.62 | 13.35 | -4.26 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2086 | 17.61 | 13.35 | -4.26 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2087 | 17.62 | 13.35 | -4.26 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2088 | 17.63 | 13.35 | -4.28 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2089 | 17.65 | 13.36 | -4.30 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2090 | 17.68 | 13.36 | -4.33 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2091 | 17.72 | 13.36 | -4.36 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2092 | 17.77 | 13.36 | -4.40 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2093 | 17.81 | 13.37 | -4.44 | ---- | 0.09 | 0.00 | -0.08 | ||
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 | 16.74% | 13.84% | -2.90% | 2034 | 0.06% | 0.00% | -0.06% | ||
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.