Description of Proposed Provision:
B7.10: Replace the current-law WEP with a new calculation for most OASI and DI benefits based on covered and non-covered earnings, phased in for beneficiaries becoming newly eligible in 2025 through 2034. For this new approach, compute a PIA based on all past earnings (covered and non-covered), and multiply by the "non-covered earnings ratio." This ratio is equal to the current-law concept of the average indexed monthly earnings computed without non-covered earnings divided by a modified average indexed monthly earnings that includes both covered and non-covered earnings in our records.
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 | 14.12 | 12.89 | -1.23 | 256 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.27 | 12.92 | -1.35 | 239 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.44 | 12.95 | -1.49 | 223 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.62 | 12.97 | -1.66 | 206 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.80 | 12.99 | -1.81 | 188 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.98 | 13.01 | -1.98 | 171 | -0.00 | -0.00 | 0.00 | ||
| 2026 | 15.16 | 13.13 | -2.02 | 154 | -0.00 | -0.00 | 0.00 | ||
| 2027 | 15.36 | 13.15 | -2.21 | 137 | -0.00 | -0.00 | 0.00 | ||
| 2028 | 15.58 | 13.17 | -2.41 | 120 | -0.00 | -0.00 | 0.00 | ||
| 2029 | 15.79 | 13.19 | -2.60 | 104 | -0.00 | -0.00 | 0.00 | ||
| 2030 | 15.98 | 13.20 | -2.78 | 86 | -0.00 | -0.00 | 0.00 | ||
| 2031 | 16.16 | 13.22 | -2.94 | 69 | -0.00 | -0.00 | 0.00 | ||
| 2032 | 16.31 | 13.23 | -3.08 | 51 | -0.01 | -0.00 | 0.01 | ||
| 2033 | 16.44 | 13.24 | -3.21 | 33 | -0.01 | -0.00 | 0.01 | ||
| 2034 | 16.55 | 13.25 | -3.31 | 14 | -0.01 | -0.00 | 0.01 | ||
| 2035 | 16.64 | 13.25 | -3.38 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2036 | 16.71 | 13.26 | -3.45 | ---- | -0.02 | -0.00 | 0.02 | ||
| 2037 | 16.76 | 13.26 | -3.50 | ---- | -0.02 | -0.00 | 0.02 | ||
| 2038 | 16.80 | 13.27 | -3.53 | ---- | -0.02 | -0.00 | 0.02 | ||
| 2039 | 16.81 | 13.27 | -3.53 | ---- | -0.03 | -0.00 | 0.03 | ||
| 2040 | 16.80 | 13.27 | -3.53 | ---- | -0.03 | -0.00 | 0.03 | ||
| 2041 | 16.78 | 13.27 | -3.50 | ---- | -0.03 | -0.00 | 0.03 | ||
| 2042 | 16.74 | 13.27 | -3.47 | ---- | -0.04 | -0.00 | 0.04 | ||
| 2043 | 16.69 | 13.27 | -3.43 | ---- | -0.04 | -0.00 | 0.04 | ||
| 2044 | 16.65 | 13.27 | -3.38 | ---- | -0.04 | -0.00 | 0.04 | ||
| 2045 | 16.61 | 13.27 | -3.35 | ---- | -0.05 | -0.00 | 0.05 | ||
| 2046 | 16.58 | 13.27 | -3.31 | ---- | -0.05 | -0.00 | 0.05 | ||
| 2047 | 16.55 | 13.26 | -3.28 | ---- | -0.05 | -0.00 | 0.05 | ||
| 2048 | 16.52 | 13.26 | -3.25 | ---- | -0.06 | -0.00 | 0.05 | ||
| 2049 | 16.49 | 13.26 | -3.23 | ---- | -0.06 | -0.00 | 0.06 | ||
| 2050 | 16.48 | 13.26 | -3.21 | ---- | -0.06 | -0.00 | 0.06 | ||
| 2051 | 16.47 | 13.26 | -3.20 | ---- | -0.07 | -0.00 | 0.06 | ||
| 2052 | 16.47 | 13.27 | -3.20 | ---- | -0.07 | -0.00 | 0.06 | ||
| 2053 | 16.47 | 13.27 | -3.21 | ---- | -0.07 | -0.00 | 0.07 | ||
| 2054 | 16.49 | 13.27 | -3.22 | ---- | -0.07 | -0.00 | 0.07 | ||
| 2055 | 16.51 | 13.27 | -3.24 | ---- | -0.07 | -0.00 | 0.07 | ||
| 2056 | 16.55 | 13.27 | -3.27 | ---- | -0.08 | -0.00 | 0.07 | ||
| 2057 | 16.59 | 13.28 | -3.31 | ---- | -0.08 | -0.00 | 0.07 | ||
| 2058 | 16.63 | 13.28 | -3.35 | ---- | -0.08 | -0.00 | 0.08 | ||
| 2059 | 16.68 | 13.29 | -3.39 | ---- | -0.08 | -0.00 | 0.08 | ||
| 2060 | 16.73 | 13.29 | -3.44 | ---- | -0.08 | -0.00 | 0.08 | ||
| 2061 | 16.77 | 13.29 | -3.48 | ---- | -0.08 | -0.00 | 0.08 | ||
| 2062 | 16.82 | 13.30 | -3.53 | ---- | -0.09 | -0.00 | 0.08 | ||
| 2063 | 16.88 | 13.30 | -3.57 | ---- | -0.09 | -0.00 | 0.08 | ||
| 2064 | 16.93 | 13.31 | -3.62 | ---- | -0.09 | -0.00 | 0.08 | ||
| 2065 | 16.98 | 13.31 | -3.67 | ---- | -0.09 | -0.00 | 0.08 | ||
| 2066 | 17.04 | 13.31 | -3.72 | ---- | -0.09 | -0.00 | 0.08 | ||
| 2067 | 17.09 | 13.32 | -3.78 | ---- | -0.09 | -0.01 | 0.08 | ||
| 2068 | 17.15 | 13.32 | -3.83 | ---- | -0.09 | -0.01 | 0.08 | ||
| 2069 | 17.21 | 13.33 | -3.89 | ---- | -0.09 | -0.01 | 0.08 | ||
| 2070 | 17.27 | 13.33 | -3.94 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2071 | 17.33 | 13.33 | -4.00 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2072 | 17.38 | 13.34 | -4.04 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2073 | 17.42 | 13.34 | -4.08 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2074 | 17.46 | 13.34 | -4.12 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2075 | 17.49 | 13.35 | -4.15 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2076 | 17.52 | 13.35 | -4.17 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2077 | 17.53 | 13.35 | -4.18 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2078 | 17.53 | 13.35 | -4.18 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2079 | 17.53 | 13.35 | -4.18 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2080 | 17.51 | 13.35 | -4.16 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2081 | 17.50 | 13.35 | -4.15 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2082 | 17.48 | 13.35 | -4.13 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2083 | 17.46 | 13.35 | -4.11 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2084 | 17.45 | 13.35 | -4.10 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2085 | 17.44 | 13.35 | -4.09 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2086 | 17.44 | 13.35 | -4.09 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2087 | 17.44 | 13.35 | -4.09 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2088 | 17.45 | 13.35 | -4.11 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2089 | 17.48 | 13.35 | -4.13 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2090 | 17.51 | 13.35 | -4.16 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2091 | 17.54 | 13.35 | -4.19 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2092 | 17.58 | 13.36 | -4.23 | ---- | -0.09 | -0.01 | 0.09 | ||
| 2093 | 17.63 | 13.36 | -4.27 | ---- | -0.09 | -0.01 | 0.09 | ||
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 | 16.63% | 13.84% | -2.79% | 2034 | -0.05% | -0.00% | 0.05% | ||
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.