Appendix K to the report of the 1983 Greenspan Commission on Social Security Reform
Appendix K- Section I
SUMMARY OF SECTION I - OTHER OPTIONS FOR BENEFIT CHANGES |
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OASDI Cost 1983-89 (billions) |
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Option No. |
Description |
II-B |
III |
Long-Term Cost |
I-1 |
Eliminate child's benefits for early-retirement cases. | -$3 |
-$3 |
-.02% |
I-2 |
Eliminate all auxiliary benefits for early-retirement cases. | -6 |
-7 |
-.02 |
I-3 |
Apply same Maximum Family Benefit for OASI cases as currently used for DI cases. | -4 |
-4 |
-.10 |
I -4 |
Phase out retirement earnings test for persons aged 65 and over in 1988, with annual exempt amount increasing in 1985 -87. | +15 |
+17 |
+.14 |
I-5 |
Maintain age 72 as age at which earnings test does not apply. | -5 |
-6 |
-.03 |
I-6 |
Increase delayed-retirement credit from 3% to 6% for each year that retirement is postponed past age 65. | +1 |
+1 |
+.07 |
I-7 |
Provide partial refundable income tax credit at ages 65 and over when benefits are withheld under the earnings test. | 0 |
0 |
0 |
I-8 |
Provide 10% benefit increase for beneficiaries when they reach age 80, gradually phased in. | +6 |
+7 |
+.25 |
I. OTHER OPTIONS REGARDING BENEFIT CHANGES
I-1 Eliminate benefits for children of retired workers who have not attained age 65, effective for persons attaining age 62 in 1984.
Cost (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
-.1 |
-.2 |
-.4 |
-.6 |
-.7 |
-.8 |
-2.8 |
III |
0 |
-.1 |
-.2 |
-.4 |
-.7 |
-.8 |
-.9 |
-3.1 |
Long-Term Cost: -.02% of taxable payroll
I-2 Eliminate all auxiliary benefits for early-retirement cases, effective for persons attaining age 62 in 1984.
Cost (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
-.1 |
-.4 |
-.8 |
-1.4 |
-1.7 |
-1.8 |
-6.2 |
III |
0 |
-.1 |
-.4 |
-.9 |
-1.6 |
-1.9 |
-2.0 |
-6.9 |
Long-Term Cost: -.02% of taxable payroll
I-3 Apply same Maximum Family Benefit for OASI cases as is currently used for DI cases, effective for persons attaining age 62 after 1983 and for deaths before age 62 occurring after 1983. (In DI cases, family benefits are limited to the lesser of 85% of AIME or 150% of PIA, but never less than 100% of PIA.)
Cost (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
-.1 |
-.3 |
-.5 |
-.7 |
-1.0 |
-1.3 |
-3.9 |
III |
0 |
-.1 |
-.3 |
-.5 |
-.8 |
-1.1 |
-1.4 |
-4.2 |
Long-Term Cost: -.10% of taxable payroll
I-4 Phase out retirement earnings test for beneficiaries aged 65 and over, with annual exempt amount increasing to $10,000 in 1985, $15,000 in 1986, and $20,000 in 1987, and with elimination of test in 1988.
Cost (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
0 |
+.8 |
+1.6 |
+2.4 |
+5.1 |
+5.5 |
+15.4 |
III |
0 |
0 |
+.8 |
+1.7 |
+2.7 |
+5.8 |
+6.4 |
+17.4 |
Long-Term Cost: +.14% of taxable payroll
I-5 Maintain age 72 as age at which earnings test no longer applies.
Cost (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
-.6 |
-.6 |
-.7 |
-.7 |
-.8 |
-.9 |
-.9 |
-5.2 |
III |
-.6 |
-.6 |
-.7 |
-.8 |
-.9 |
-1.0 |
-1.1 |
-5.7 |
25-Year Cost: -.02% of taxable payroll
50-Year Cost: -.03% of taxable payroll
Long-Term Cost: -.03% of taxable payroll
I-6 Increase the delayed-retirement credit from 3% to 6% for each year that receipt of benefits is postponed past age 65 up until age 70, beginning in 1983.
Cost (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
+.0 |
+.0 |
+.0 |
+.1 |
+.2 |
+.4 |
+.6 |
+1.3 |
III |
+.0 |
+.0 |
+.0 |
+.1 |
+.2 |
+.4 |
+.7 |
+1.4 |
25-Year Cost: +.02% of taxable payroll
50-Year Cost: +.05% of taxable payroll
Long-Term Cost: +.07% of taxable payroll
I-7 Provide a partial refundable income tax credit for persons aged 65 and over who do not receive benefits because of the earnings test (recommendation of 1981 National Commission on Social Security)' effective in 1983.
No short-term or long-term cost to trust funds
I-8 Provide a 10% increase in benefit amounts for beneficiaries when they attain age 80, phased in over a 10-year period (i.e., a 1% increase during 1984, rising to 10% during 1993 and after).
Cost (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
+.2 |
+.5 |
+.9 |
+1.3 |
+1.6 |
+2.0 |
+6.5 |
III |
0 |
+.2 |
+.5 |
+1.0 |
+1.5 |
+1.8 |
+2.3 |
+7.3 |
Long-Term Cost: +.25% of taxable payroll