Table 2--Financial Effects of the Representative Nick Smith Proposal Assuming a 67% PRSA Participation Rate
PRSA proceeds go to estate if worker dies before entitlement
Ultimate Real Trust Fund Interest Rate 3.00
Ultimate Real PRSA Rate for Offset 3.70
Assumed PRSA Participation Rate 67%
Year
OASDI
TFR
1-1-yr
Marginal Change in OASDI
Contribution Rate
Net
OASDI
Contribution
Rate 2/
PRSA Contribution Rate
Cost
Rate 1/
Income
Rate
Annual
Balance
Total
Redirection
to PRSAs
Reimbursement
for Minimum
DI Benefits
Specified
General Fund
Transfers
From
Trust Funds
Refundable
Credit from
General Fund
Average
PRSA
Contribution
Rate
2003
10.90
12.71
1.80
288
 
 
 
 
12.40
 
 
 
2004
10.83
12.69
1.86
309
 
 
 
 
12.40
 
 
 
2005
10.99
11.05
0.06
320
-1.662
-1.667
0.005
 
10.74
1.67
0.23
1.89
2006
10.85
11.16
0.31
326
0.112
 
0.010
0.102
10.85
1.67
0.23
1.89
2007
10.80
11.58
0.79
331
0.409
 
0.003
0.405
11.26
1.67
0.23
1.89
2008
10.79
12.05
1.26
341
0.450
 
-0.002
0.453
11.71
1.67
0.23
1.89
2009
10.81
12.51
1.70
354
0.456
 
-0.002
0.458
12.17
1.67
0.23
1.89
2010
10.84
12.95
2.11
371
0.428
 
-0.001
0.429
12.59
1.67
0.23
1.89
2011
10.89
13.51
2.62
393
0.520
 
0.000
0.520
13.11
1.67
0.23
1.89
2012
10.95
14.18
3.23
418
0.653
 
0.000
0.653
13.77
1.67
0.23
1.89
2013
11.03
14.10
3.07
448
-0.088
 
0.000
-0.088
13.68
1.67
0.23
1.89
2014
11.13
11.18
0.05
477
-2.933
 
-0.001
-2.932
10.75
1.67
0.23
1.89
2015
11.23
11.19
-0.04
479
0.000
 
0.000
 
10.75
1.67
0.23
1.89
2016
11.36
11.20
-0.16
480
0.000
 
0.000
 
10.75
1.67
0.23
1.89
2017
11.50
11.22
-0.29
479
0.001
 
0.001
 
10.75
1.67
0.23
1.89
2018
11.65
11.23
-0.42
478
0.001
 
0.001
 
10.75
1.67
0.23
1.89
2019
11.78
11.24
-0.54
475
0.001
 
0.001
 
10.75
1.67
0.23
1.89
2020
11.94
11.26
-0.68
471
0.001
 
0.001
 
10.75
1.67
0.23
1.89
2021
12.10
11.27
-0.82
466
0.002
 
0.002
 
10.75
1.67
0.23
1.89
2022
12.24
11.29
-0.95
461
0.002
 
0.002
 
10.75
1.67
0.23
1.89
2023
12.35
11.30
-1.05
456
0.002
 
0.002
 
10.76
1.67
0.23
1.89
2024
12.45
11.32
-1.13
451
0.002
 
0.002
 
10.76
1.67
0.23
1.89
2025
12.53
11.33
-1.20
446
0.003
 
0.003
 
10.76
1.67
0.23
1.89
2026
12.59
11.18
-1.42
441
-0.164
-0.167
0.003
 
10.60
1.83
0.23
2.06
2027
12.63
11.19
-1.45
436
0.003
 
0.003
 
10.60
1.83
0.23
2.06
2028
12.66
11.20
-1.46
430
0.003
 
0.003
 
10.60
1.83
0.23
2.06
2029
12.67
11.21
-1.46
424
0.003
 
0.003
 
10.61
1.83
0.23
2.06
2030
12.66
11.22
-1.44
420
0.003
 
0.003
 
10.61
1.83
0.23
2.06
2031
12.61
11.23
-1.39
416
0.003
 
0.003
 
10.61
1.83
0.23
2.06
2032
12.54
11.24
-1.31
414
0.003
 
0.003
 
10.62
1.83
0.23
2.06
2033
12.45
11.24
-1.21
413
0.003
 
0.003
 
10.62
1.83
0.23
2.06
2034
12.34
11.25
-1.09
413
0.004
 
0.004
 
10.62
1.83
0.23
2.06
2035
12.22
11.25
-0.97
414
0.004
 
0.004
 
10.63
1.83
0.23
2.06
2036
12.08
11.26
-0.83
417
0.004
 
0.004
 
10.63
1.83
0.23
2.06
2037
11.93
11.26
-0.67
422
0.004
 
0.004
 
10.63
1.83
0.23
2.06
2038
11.77
11.26
-0.51
429
0.004
 
0.004
 
10.64
1.83
0.23
2.06
2039
11.60
10.77
-0.83
438
-0.495
-0.500
0.005
 
10.14
2.33
0.23
2.56
2040
11.43
10.44
-1.00
444
-0.329
-0.333
0.005
 
9.82
2.67
0.23
2.89
2041
11.25
10.11
-1.15
449
-0.328
-0.333
0.005
 
9.49
3.00
0.23
3.23
2042
11.07
9.61
-1.46
454
-0.495
-0.500
0.005
 
8.99
3.50
0.23
3.73
2043
10.88
9.11
-1.76
456
-0.494
-0.500
0.006
 
8.50
4.00
0.23
4.23
2044
10.68
8.62
-2.06
455
-0.494
-0.500
0.006
 
8.00
4.50
0.23
4.73
2045
10.50
8.12
-2.38
451
-0.493
-0.500
0.007
 
7.51
5.00
0.23
5.23
2046
10.32
7.80
-2.52
444
-0.326
-0.333
0.007
 
7.18
5.33
0.23
5.56
2047
10.13
7.80
-2.33
435
0.008
 
0.008
 
7.19
5.33
0.23
5.56
2048
9.94
7.81
-2.13
428
0.008
 
0.008
 
7.20
5.33
0.23
5.56
2049
9.76
7.82
-1.94
421
0.009
 
0.009
 
7.21
5.33
0.23
5.56
2050
9.58
7.83
-1.75
416
0.010
 
0.010
 
7.22
5.33
0.23
5.56
2051
9.40
7.84
-1.56
413
0.010
 
0.010
 
7.23
5.33
0.23
5.56
2052
9.23
7.85
-1.38
411
0.011
 
0.011
 
7.24
5.33
0.23
5.56
2053
9.06
7.86
-1.20
410
0.011
 
0.011
 
7.25
5.33
0.23
5.56
2054
8.89
7.87
-1.01
412
0.011
 
0.011
 
7.26
5.33
0.23
5.56
2055
8.74
7.89
-0.85
414
0.012
 
0.012
 
7.27
5.33
0.23
5.56
2056
8.59
7.90
-0.69
419
0.012
 
0.012
 
7.29
5.33
0.23
5.56
2057
8.44
7.92
-0.52
425
0.012
 
0.012
 
7.30
5.33
0.23
5.56
2058
8.29
7.93
-0.36
434
0.012
 
0.012
 
7.31
5.33
0.23
5.56
2059
8.14
7.94
-0.19
445
0.012
 
0.012
 
7.32
5.33
0.23
5.56
2060
7.99
7.96
-0.03
458
0.012
 
0.012
 
7.33
5.33
0.23
5.56
2061
7.83
7.97
0.14
475
0.012
 
0.012
 
7.35
5.33
0.23
5.56
2062
7.68
7.99
0.30
494
0.012
 
0.012
 
7.36
5.33
0.23
5.56
2063
7.54
8.00
0.47
516
0.012
 
0.012
 
7.37
5.33
0.23
5.56
2064
7.39
8.02
0.63
541
0.013
 
0.013
 
7.38
5.33
0.23
5.56
2065
7.27
8.04
0.77
568
0.013
 
0.013
 
7.40
5.33
0.23
5.56
2066
7.15
8.05
0.91
597
0.013
 
0.013
 
7.41
5.33
0.23
5.56
2067
7.03
8.07
1.04
630
0.012
 
0.012
 
7.42
5.33
0.23
5.56
2068
6.92
8.09
1.17
666
0.012
 
0.012
 
7.43
5.33
0.23
5.56
2069
6.81
8.11
1.30
705
0.012
 
0.012
 
7.44
5.33
0.23
5.56
2070
6.72
8.13
1.41
746
0.011
 
0.011
 
7.46
5.33
0.23
5.56
2071
6.63
8.15
1.51
789
0.011
 
0.011
 
7.47
5.33
0.23
5.56
2072
6.55
8.16
1.62
836
0.011
 
0.011
 
7.48
5.33
0.23
5.56
2073
6.47
8.18
1.72
885
0.011
 
0.011
 
7.49
5.33
0.23
5.56
2074
6.39
8.20
1.82
938
0.010
 
0.010
 
7.50
5.33
0.23
5.56
2075
6.31
8.22
1.91
994
0.010
 
0.010
 
7.51
5.33
0.23
5.56
2076
6.24
8.24
2.01
1053
0.010
 
0.010
 
7.52
5.33
0.23
5.56
2077
6.16
8.26
2.10
1116
0.010
 
0.010
 
7.53
5.33
0.23
5.56
2078
6.10
8.28
2.19
1182
0.009
 
0.009
 
7.54
5.33
0.23
5.56
 
Summarized
 
Change in
Actuarial
Balance
 
 
 
 
 
 
 
Cost
Rate
Income
Rate
Actuarial
Balance
 
 
 
 
 
 
 
2003-
2077
10.62
11.09
0.47
 
2.38
 
 
 
 
 
 
 
Based on Intermediate Assumptions of the 2003 Trustees Report.
1/ Net of Benefit Cost Reductions from PRSA Offsets.
2/ Includes payroll tax contributions plus reimbursement for minimum DI benefits plus specified General Fund transfers (expressed as a percent of taxable payroll)
 
Office of the Chief Actuary
Social Security Administration
September 9, 2003

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