Description of Proposed Provision:
B5.6: 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 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 $1,012 in 2018). For those with under 30 years of coverage, the PIA per year of coverage over 10 years is $1,012/20 = $50.60. (c) From 2018 to the year of implementation, 2019, 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.
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 | -1.24 | 256 | 0.01 | 0.00 | -0.00 | ||
| 2021 | 14.28 | 12.92 | -1.36 | 239 | 0.01 | 0.00 | -0.01 | ||
| 2022 | 14.45 | 12.95 | -1.51 | 222 | 0.01 | 0.00 | -0.01 | ||
| 2023 | 14.64 | 12.97 | -1.67 | 205 | 0.02 | 0.00 | -0.02 | ||
| 2024 | 14.83 | 12.99 | -1.83 | 188 | 0.02 | 0.00 | -0.02 | ||
| 2025 | 15.01 | 13.01 | -2.00 | 170 | 0.03 | 0.00 | -0.03 | ||
| 2026 | 15.19 | 13.13 | -2.06 | 153 | 0.03 | 0.00 | -0.03 | ||
| 2027 | 15.40 | 13.15 | -2.25 | 136 | 0.04 | 0.00 | -0.04 | ||
| 2028 | 15.63 | 13.17 | -2.45 | 119 | 0.04 | 0.00 | -0.04 | ||
| 2029 | 15.84 | 13.19 | -2.65 | 102 | 0.05 | 0.00 | -0.05 | ||
| 2030 | 16.04 | 13.20 | -2.83 | 85 | 0.05 | 0.00 | -0.05 | ||
| 2031 | 16.22 | 13.22 | -3.00 | 67 | 0.06 | 0.00 | -0.06 | ||
| 2032 | 16.38 | 13.23 | -3.15 | 49 | 0.06 | 0.00 | -0.06 | ||
| 2033 | 16.52 | 13.24 | -3.28 | 30 | 0.07 | 0.00 | -0.06 | ||
| 2034 | 16.64 | 13.25 | -3.39 | 11 | 0.07 | 0.00 | -0.07 | ||
| 2035 | 16.73 | 13.26 | -3.47 | ---- | 0.07 | 0.00 | -0.07 | ||
| 2036 | 16.80 | 13.26 | -3.54 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2037 | 16.87 | 13.27 | -3.60 | ---- | 0.08 | 0.00 | -0.08 | ||
| 2038 | 16.91 | 13.27 | -3.63 | ---- | 0.09 | 0.00 | -0.08 | ||
| 2039 | 16.92 | 13.28 | -3.65 | ---- | 0.09 | 0.00 | -0.09 | ||
| 2040 | 16.92 | 13.28 | -3.64 | ---- | 0.09 | 0.00 | -0.09 | ||
| 2041 | 16.91 | 13.28 | -3.63 | ---- | 0.10 | 0.00 | -0.09 | ||
| 2042 | 16.87 | 13.28 | -3.60 | ---- | 0.10 | 0.00 | -0.10 | ||
| 2043 | 16.84 | 13.27 | -3.56 | ---- | 0.10 | 0.00 | -0.10 | ||
| 2044 | 16.80 | 13.27 | -3.53 | ---- | 0.10 | 0.00 | -0.10 | ||
| 2045 | 16.77 | 13.27 | -3.50 | ---- | 0.11 | 0.00 | -0.10 | ||
| 2046 | 16.74 | 13.27 | -3.47 | ---- | 0.11 | 0.00 | -0.11 | ||
| 2047 | 16.72 | 13.27 | -3.44 | ---- | 0.11 | 0.00 | -0.11 | ||
| 2048 | 16.69 | 13.27 | -3.42 | ---- | 0.12 | 0.00 | -0.11 | ||
| 2049 | 16.67 | 13.27 | -3.40 | ---- | 0.12 | 0.00 | -0.11 | ||
| 2050 | 16.66 | 13.27 | -3.39 | ---- | 0.12 | 0.00 | -0.12 | ||
| 2051 | 16.66 | 13.27 | -3.38 | ---- | 0.12 | 0.00 | -0.12 | ||
| 2052 | 16.66 | 13.27 | -3.39 | ---- | 0.13 | 0.00 | -0.12 | ||
| 2053 | 16.67 | 13.28 | -3.40 | ---- | 0.13 | 0.00 | -0.12 | ||
| 2054 | 16.69 | 13.28 | -3.41 | ---- | 0.13 | 0.00 | -0.13 | ||
| 2055 | 16.72 | 13.28 | -3.44 | ---- | 0.13 | 0.01 | -0.13 | ||
| 2056 | 16.76 | 13.28 | -3.47 | ---- | 0.13 | 0.01 | -0.13 | ||
| 2057 | 16.80 | 13.29 | -3.51 | ---- | 0.14 | 0.01 | -0.13 | ||
| 2058 | 16.85 | 13.29 | -3.56 | ---- | 0.14 | 0.01 | -0.13 | ||
| 2059 | 16.90 | 13.30 | -3.60 | ---- | 0.14 | 0.01 | -0.13 | ||
| 2060 | 16.95 | 13.30 | -3.65 | ---- | 0.14 | 0.01 | -0.14 | ||
| 2061 | 17.00 | 13.30 | -3.70 | ---- | 0.14 | 0.01 | -0.14 | ||
| 2062 | 17.05 | 13.31 | -3.75 | ---- | 0.14 | 0.01 | -0.14 | ||
| 2063 | 17.11 | 13.31 | -3.80 | ---- | 0.15 | 0.01 | -0.14 | ||
| 2064 | 17.16 | 13.32 | -3.84 | ---- | 0.15 | 0.01 | -0.14 | ||
| 2065 | 17.22 | 13.32 | -3.90 | ---- | 0.15 | 0.01 | -0.14 | ||
| 2066 | 17.27 | 13.32 | -3.95 | ---- | 0.15 | 0.01 | -0.14 | ||
| 2067 | 17.33 | 13.33 | -4.00 | ---- | 0.15 | 0.01 | -0.14 | ||
| 2068 | 17.39 | 13.33 | -4.06 | ---- | 0.15 | 0.01 | -0.15 | ||
| 2069 | 17.46 | 13.34 | -4.12 | ---- | 0.15 | 0.01 | -0.15 | ||
| 2070 | 17.52 | 13.34 | -4.18 | ---- | 0.15 | 0.01 | -0.15 | ||
| 2071 | 17.57 | 13.35 | -4.23 | ---- | 0.15 | 0.01 | -0.15 | ||
| 2072 | 17.62 | 13.35 | -4.27 | ---- | 0.15 | 0.01 | -0.15 | ||
| 2073 | 17.67 | 13.35 | -4.32 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2074 | 17.71 | 13.36 | -4.35 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2075 | 17.74 | 13.36 | -4.38 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2076 | 17.77 | 13.36 | -4.41 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2077 | 17.78 | 13.36 | -4.42 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2078 | 17.78 | 13.36 | -4.42 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2079 | 17.78 | 13.36 | -4.41 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2080 | 17.76 | 13.36 | -4.40 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2081 | 17.75 | 13.36 | -4.39 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2082 | 17.73 | 13.36 | -4.37 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2083 | 17.71 | 13.36 | -4.35 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2084 | 17.70 | 13.36 | -4.34 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2085 | 17.69 | 13.36 | -4.33 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2086 | 17.69 | 13.36 | -4.33 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2087 | 17.69 | 13.36 | -4.33 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2088 | 17.70 | 13.36 | -4.35 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2089 | 17.73 | 13.36 | -4.37 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2090 | 17.76 | 13.36 | -4.40 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2091 | 17.79 | 13.36 | -4.43 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2092 | 17.84 | 13.37 | -4.47 | ---- | 0.16 | 0.01 | -0.15 | ||
| 2093 | 17.88 | 13.37 | -4.51 | ---- | 0.16 | 0.01 | -0.15 | ||
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 | 16.79% | 13.85% | -2.94% | 2034 | 0.11% | 0.00% | -0.10% | ||
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.