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
|