Long Range Solvency Provisions

Description of Proposed Provision:
F4: Expand covered earnings to include contributions to voluntary salary reduction plans (such as Cafeteria 125 plans and Flexible Spending Accounts). Starting in 2019, subject these contributions to the OASDI payroll tax, making the payroll tax treatment of these contributions like 401(k) contributions.

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	Trust fund ratio as of January 1	Cost rate	Income rate	Annual balance
2018	13.81	12.64	-1.17	288	0.00	0.00	0.00
2019	13.95	13.28	-0.67	272	0.00	0.41	0.41
2020	14.12	13.33	-0.79	259	-0.00	0.44	0.44
2021	14.27	13.36	-0.92	245	0.00	0.44	0.44
2022	14.44	13.39	-1.05	231	0.00	0.44	0.44
2023	14.62	13.41	-1.22	217	0.00	0.44	0.44
2024	14.81	13.44	-1.37	202	0.01	0.45	0.44
2025	14.99	13.46	-1.53	187	0.01	0.45	0.44
2026	15.17	13.59	-1.58	172	0.01	0.46	0.44
2027	15.38	13.61	-1.77	158	0.02	0.46	0.44
2028	15.61	13.63	-1.97	143	0.02	0.46	0.44
2029	15.82	13.65	-2.17	129	0.03	0.47	0.44
2030	16.02	13.67	-2.35	114	0.03	0.47	0.43
2031	16.20	13.69	-2.51	99	0.04	0.47	0.43
2032	16.37	13.70	-2.66	84	0.05	0.48	0.43
2033	16.51	13.72	-2.79	68	0.06	0.48	0.42
2034	16.63	13.73	-2.90	52	0.07	0.48	0.42
2035	16.73	13.74	-2.99	35	0.08	0.49	0.41
2036	16.81	13.75	-3.06	18	0.09	0.49	0.40
2037	16.88	13.76	-3.12	1	0.10	0.49	0.40
2038	16.93	13.77	-3.17	----	0.11	0.50	0.39
2039	16.95	13.77	-3.18	----	0.12	0.50	0.38
2040	16.96	13.78	-3.19	----	0.13	0.50	0.37
2041	16.96	13.78	-3.18	----	0.15	0.50	0.36
2042	16.93	13.78	-3.15	----	0.16	0.51	0.35
2043	16.90	13.78	-3.12	----	0.17	0.51	0.34
2044	16.88	13.78	-3.10	----	0.18	0.51	0.33
2045	16.85	13.78	-3.07	----	0.19	0.51	0.32
2046	16.83	13.78	-3.05	----	0.20	0.52	0.31
2047	16.82	13.78	-3.03	----	0.22	0.52	0.30
2048	16.81	13.79	-3.02	----	0.23	0.52	0.29
2049	16.80	13.79	-3.01	----	0.24	0.52	0.28
2050	16.80	13.79	-3.01	----	0.25	0.52	0.27
2051	16.80	13.79	-3.01	----	0.27	0.52	0.26
2052	16.81	13.80	-3.02	----	0.28	0.53	0.25
2053	16.83	13.80	-3.04	----	0.29	0.53	0.24
2054	16.86	13.80	-3.06	----	0.30	0.53	0.23
2055	16.91	13.81	-3.10	----	0.32	0.53	0.22
2056	16.95	13.81	-3.14	----	0.33	0.53	0.21
2057	17.01	13.82	-3.19	----	0.34	0.54	0.20
2058	17.06	13.83	-3.24	----	0.35	0.54	0.19
2059	17.12	13.83	-3.29	----	0.36	0.54	0.18
2060	17.18	13.84	-3.34	----	0.37	0.55	0.17
2061	17.24	13.85	-3.40	----	0.39	0.55	0.16
2062	17.30	13.85	-3.45	----	0.39	0.55	0.16
2063	17.37	13.86	-3.50	----	0.40	0.56	0.15
2064	17.43	13.87	-3.56	----	0.41	0.56	0.15
2065	17.49	13.88	-3.61	----	0.42	0.56	0.14
2066	17.55	13.89	-3.67	----	0.43	0.57	0.14
2067	17.62	13.90	-3.72	----	0.44	0.57	0.14
2068	17.69	13.91	-3.78	----	0.44	0.58	0.13
2069	17.75	13.91	-3.84	----	0.45	0.58	0.13
2070	17.82	13.92	-3.90	----	0.46	0.59	0.13
2071	17.88	13.93	-3.95	----	0.46	0.59	0.13
2072	17.94	13.94	-4.00	----	0.47	0.60	0.13
2073	17.98	13.95	-4.04	----	0.47	0.60	0.13
2074	18.03	13.96	-4.07	----	0.47	0.61	0.13
2075	18.06	13.96	-4.10	----	0.48	0.61	0.14
2076	18.09	13.97	-4.12	----	0.48	0.62	0.14
2077	18.11	13.98	-4.13	----	0.48	0.62	0.14
2078	18.11	13.99	-4.12	----	0.48	0.63	0.15
2079	18.10	13.99	-4.11	----	0.49	0.63	0.15
2080	18.09	14.00	-4.10	----	0.49	0.64	0.15
2081	18.08	14.00	-4.08	----	0.49	0.65	0.16
2082	18.06	14.00	-4.06	----	0.49	0.65	0.16
2083	18.05	14.01	-4.04	----	0.49	0.66	0.16
2084	18.03	14.01	-4.02	----	0.50	0.66	0.17
2085	18.03	14.02	-4.01	----	0.50	0.67	0.17
2086	18.03	14.02	-4.01	----	0.50	0.67	0.17
2087	18.04	14.03	-4.01	----	0.50	0.68	0.17
2088	18.05	14.03	-4.02	----	0.51	0.68	0.18
2089	18.08	14.04	-4.04	----	0.51	0.69	0.18
2090	18.11	14.05	-4.07	----	0.51	0.69	0.18
2091	18.15	14.05	-4.10	----	0.52	0.70	0.18
2092	18.20	14.06	-4.14	----	0.52	0.70	0.18
2093	18.25	14.06	-4.19	----	0.53	0.70	0.17

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	16.94%	14.37%	-2.57%	2037	0.25%	0.53%	0.28%
¹ Under current law, the year of Trust Fund reserve depletion is 2034.

Based on Intermediate Assumptions of the 2018 Trustees Report.

Detailed Single Year Tables

Financial Estimates for the OASDI Trust Fund Program

Summarized Estimates