Social Security History 1994-96 Advisory Council

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	1994-96 Advisory Council Report

Table 3Am. 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 Married Couples with One Earner

		AGE 22 IN 1971
		Married, Male Worker Only				Married, Female Worker Only
		----------------------------				----------------------------
Package	(TF Int)	Low Erns	Ave Erns	High Erns	Max Erns	Low Erns	Ave Erns	High Erns	Max Erns
Present Law	(2.3)	164	123	103	89	143	107	89	78
5% PSA-401K	(2.3)	155	109	90	78	135	95	79	68
5% PSA-USBond	(2.3)	153	108	89	76	133	93	78	67
1.6% IA-401KAn	(2.3)	144	107	90	77	124	92	77	67
1.6% IA-USBond	(2.3)	144	107	89	77	124	92	77	66
MB	(4.2)	164	123	103	88	143	107	89	77
MTR	(2.3)	145	107	89	76	124	91	76	65
LTR	(2.3)	158	109	88	74	136	93	76	63

		AGE 22 IN 1995
		Married, Male Worker Only				Married, Female Worker Only
		----------------------------				----------------------------
	(TF Int)	Low Erns	Ave Erns	High Erns	Max Erns	Low Erns	Ave Erns	High Erns	Max Erns
Present Law	(2.3)	202	151	125	100	177	132	109	87
PL PAYGO	(2.3)	192	144	119	95	167	125	103	82
5% PSA-401K	(2.3)	193	127	104	90	170	112	93	80
5% PSA-USBond	(2.3)	177	111	88	74	155	97	77	65
1.6% IA-401KAn	(2.3)	168	121	100	83	146	105	87	73
1.6% IA-USBond	(2.3)	160	114	93	76	139	98	81	66
MB	(4.2)	202	151	125	100	177	132	109	87
MTR	(2.3)	165	113	90	71	142	97	77	60
LTR	(2.3)	210	112	78	57	179	93	65	47

		AGE 22 IN 2019
		Married, Male Worker Only				Married, Female Worker Only
		--------------------------				--------------------------
	(TF Int)	Low Erns	Ave Erns	High Erns	Max Erns	Low Erns	Ave Erns	High Erns	Max Erns
Present Law	(2.3)	213	159	131	106	188	140	116	93
PL PAYGO	(2.3)	173	129	107	86	152	113	94	75
5% PSA-401K	(2.3)	196	128	106	92	173	114	95	83
5% PSA-USBond	(2.3)	178	109	87	73	155	96	77	65
1.6% IA-401KAn	(2.3)	170	123	102	85	148	107	89	75
1.6% IA-USBond	(2.3)	161	114	93	76	140	99	81	67
MB	(4.2)	209	156	129	104	184	137	113	91
MTR	(2.3)	166	113	90	70	143	97	77	60
LTR	(2.3)	215	109	74	53	183	90	61	43

* 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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1994-96 Advisory Council Report