Beginning in 2006, redirect 3% of first $10,000 in OASDI taxable earnings and 2% of earnings above $10,000 up to wage cap to individual accounts for workers under age 55 in 2006-wage index $10,000 threshold for years after 2006

Disbursements from individual accounts are considered OASDI benefits for income tax purposes

Reduce the 32 and 15 percent PIA formula factors by 2.5 percent (multiply by 0.975) for each year from 2012 to 2030. Reduce the 90, 32, and 15 percent formula factors by 1.5 percent (multiply by 0.985) from 2031-2060. This provision does not apply to disabled worker beneficiaries. In addition, only a proportion of the amount of reduction due to this provision would apply to the benefits of retired worker beneficiaries who convert from disabled worker beneficiary status

Reduce the COLA for OASDI benefits by 0.22 percentage point beginning December 2004

Transfer amounts (specified as percentages of taxable payroll) to the OASI Trust Funds from the General Fund of the Treasury for years after 2004

Eliminate the hiatus in the normal retirement age

Increase early retirement reduction factors such that, ultimately, the maximum reduction in the PIA for a retired worker increases from 30 percent to 37 percent. Increase the delayed retirement credits to an ultimate of 10 percent per year

Starting with new eligibles in 2012, adjust the PIA levels of retired worker beneficiaries to reflect changes in life expectancy based on period life expectancy at age 62. This provision does not apply to disabled worker beneficiaries. In addition, only a proportion of the amount of reduction due to this provision would apply to the benefits of retired worker beneficiaries who convert from disabled worker beneficiary

Increase the benefit computation period by up to 5 additional years for new eligibles by adding one year in each year 2005, 2007, 2009, 2011, and 2013. In conjunction with increasing the benefit period, phase in including earnings for all years in calculating the AIME by adding 2 years every other year. The lower earner of a married couple would have the benefit computation period (denominator of AIME computation) retained at 35 years

Credit all revenue from taxation of OASDI benefits to the OASDI Trust Funds by 2019 (phase revenue from HI to OASDI during the period 2010-2019)

Establish an ultimate minimum PIA level for newly eligible beneficiaries with quarters of coverage equal to twice their number of elapsed years (reduced for any years of disabled worker entitlement) at 80% of the applicable poverty level. This would phase down linearly to a minimum benefit of 0% of poverty level for those with QCs equal to the number of elapsed years (reduced for any years of disabled worker entitlement). This minimum PIA level would be fully phased in by 2013, and would increase by 2 percentage points of the applicable poverty level for each additional year of work up to 120% of the applicable poverty level for newly eligible beneficiaries with quarters of coverage equal to four times their number of elapsed years (reduced for any years of disabled worker entitlement). For eligibility years up to 2012, CPI-index the poverty level. For eligibility years after 2012, the applicable poverty level would be indexed by changes in SSA's average wage index. The minimum PIA is phased in over the period 2009 through 2012 and would be determined from the following formula: Ultimate percentage of poverty level * (year - 2008)/5.

Disabled workers and survivors not yet age 62 would have the same minimum benefit, except that the years of work requirement would be scaled to their elapsed years. At conversion, the person would receive the same minimum benefit (adjusted for COLAs) with no subsequent recomputation of the minimum benefit at NRA

Over the period 2004-2008, gradually increase the contribution and benefit base so that by the end of the period 87 percent of all covered earnings is taxable. After 2008, maintain this level of 87 percent

Establish a new bend point in the PIA formula equal to 183.8% of the present-law first bend point. PIA formula factors would be initially set at 90, 32, 32, and 15 percent (yielding the same benefit as current law). Beginning with new eligibles in 2006, the second formula factor would be increased each year by 3.8 percentage points, and the third formula factor would be decreased each year by 1.2 percentage points, until reaching factors of 90, 70, 20, and 15 percent for newly eligible beneficiaries in 2015 and later

Increase widow(er)'s benefit to 75% of the couple's benefit, effective for all benefit payments in 2006 or later. Does not affect cases where the decedent is not insured (survivor is in a widowed state but not eligible for widow(er)'s benefits

Beginning with 2005, limit spousal benefits so that the combined benefits of a married couple do not exceed the maximum PIA determined by eligibility year for a single worker retiring at age 62. For dually-entitled spouses, the provision can only reduce the excess spousal benefit over the worker benefit

Total for provisions 1 through 14 (including interaction among provisions)