1994-96 Advisory Council Report

Table 3A. StdVal NoTaxAdj

Comparison of "Moneys Worth" for the OASDI Program for Present Law and Advisory Council Options with Reduced CPI*

Ratio of Benefits to Taxes (in present value) for Composite Workers and Married Couples with Two Earners


AGE 22 IN 1971
Composite Workers Married, Two Earner Couples
Package (TF Int) Low
Erns		 Avge
Erns		 High
Erns		 Max
Erns		 Total Low/
Low		 Avge/
Low		 Avge/
Avge		 High/
Avge		 High/
High
Present Law (2.3) 99 78 68 71 77 94 86 70 67 58
5% PSA-401K (2.3) 100 76 65 65 74 97 83 70 64 59
5% PSA-US Bond (2.3) 99 74 64 63 73 96 81 68 63 57
1.6% IA-401KAn (2.3) 94 74 64 64 72 91 81 68 63 57
1.6% IA-US Bond (2.3) 94 73 63 63 72 91 81 67 63 56
MB (4.2) 99 78 68 70 76 94 86 70 67 58
MTR (2.3) 94 73 62 62 71 91 80 66 62 55
LTR (2.3) 99 72 60 60 70 95 80 65 60 53



AGE 22 IN 1995
Composite Workers Married, Two Earner Couples
(TF Int) Low
Erns		 Avge
Erns		 High
Erns		 Max
Erns		 Total Low/
Low		 Avge/
Low		 Avge/
Avge		 High/
Avge		 High/
High
Present Law (2.3) 121 95 82 78 92 116 105 86 82 71
PL PAYGO (2.3) 115 90 78 74 87 110 100 82 78 68
5% PSA-401K (2.3) 145 106 90 81 103 145 117 101 93 86
5% PSA-US Bond (2.3) 129 91 75 66 87 129 101 85 77 71
1.6% IA-401KAn (2.3) 122 95 77 70 89 122 103 90 79 70
1.6% IA-US Bond (2.3) 115 88 70 63 83 115 96 83 72 63
MB (4.2) 121 95 82 78 92 116 105 86 82 71
MTR (2.3) 116 85 65 58 79 115 93 80 67 57
LTR (2.3) 141 84 60 48 79 140 98 75 63 54



AGE 22 IN 2019
Composite Workers Married, Two Earner Couples
(TF Int) Low
Erns		 Avge
Erns		 High
Erns		 Max
Erns		 Total Low/
Low		 Avge/
Low		 Avge/
Avge		 High/
Avge		 High/
High
Present Law (2.3) 129 101 87 82 98 124 112 92 88 76
PL PAYGO (2.3) 104 82 70 66 79 100 91 75 71 62
5% PSA-401K (2.3) 150 111 94 85 107 152 122 106 97 91
5% PSA-US Bond (2.3) 132 92 76 67 89 133 104 87 79 72
1.6% IA-401KAn (2.3) 127 99 80 72 93 129 107 95 83 73
1.6% IA-US Bond (2.3) 119 90 71 64 84 120 99 86 74 65
MB (4.2) 126 99 85 80 96 121 110 90 86 75
MTR (2.3) 119 86 65 57 80 120 96 82 68 58
LTR (2.3) 146 84 58 44 79 148 101 75 62 52


* The moneys worth ratio is the ratio of expected benefits to expected employee plus employer taxes, both in present value.
* Assuming 0.21% lower COLA starting Dec 97; no change in nominal wage or interest.
All values based in intermediate assumptions of the 1995 Trustees Report*.

Office of the Actuary / Social Security Administration
July 28, 1996

NOTE: Tables 3A, 3As, and 3Am provide comparisons of "money's worth" ratios derived from contributions and benefits from both the OASDI program and the individual accounts under the various plans. Backup information may be obtained by selection of the following :

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