Table 1. Estimated Long-Range OASDI Financial Effect Social Security Stabilization and Enhancement Act of 2001, H.R. 3315 (Representative DeFazio)
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Provision
|
Estimated Change in
Long-range OASDI
Actuarial Balance
(percent of
taxable payroll)
|
|
1
|
Beginning in 2002, eliminate the OASDI contribution and benefit base in determining the amount of covered earnings subject to FICA and SECA payroll tax. Retain the base for benefit determination.
|
2.13
|
|
2
|
Beginning in 2002, establish an exempt amount ($4,000 for 2002) that would serve to exclude up to that amount of covered earnings from the employee portion (1/2 of the self-employed portion) of the Social Security payroll taxes. The $4,000 exempt amount would be increased in years after 2002 by increases in the average wage index.
|
-0.95
|
|
3
|
Beginning in calendar year 2003, increase the benefits of beneficiaries who are age 85 or older. For a given calendar year, benefit levels under present law would be increased by 0.25 percent for those who are age 85 as of the beginning of the calendar year, by 0.50 percent for those who are age 86 as of the beginning of the calendar year, .... , and by 5.00 percent who are age 104 as of the beginning of the calendar year.
|
-0.02
|
|
4a
|
For survivors and retirement benefits, reduce the number of dropout years (non-childcare) from 5 to 2; phased in by reducing one additional dropout year for new eligibles in each year 2007, 2009, and 2011. Thus, the benefit computation period for retirees who become eligible after 2010 and who have no periods of disability would be increased by 3 years.
|
0.23
|
|
4b
|
Provide up to 3 child-care dropout years when determining the AIME for OASDI benefits. These years would be granted to a parent who had earnings below a specified threshold during the year and provided care to his/her child under the age of 12. Also, these years must be includable in the parent's computation base years. Dropout years are phased in by one additional year for new eligibles in each year 2007, 2009, and 2011. (This provision reflects interaction with provision 4a.)
|
-0.14
|
|
Total for Provisions 1-4 (including interaction among provisions)
|
1.52
|
|
5
|
Invest a portion of the OASI Trust Funds in marketable securities beginning Oct 1, 2001, reaching 40 percent of assets in marketable securities for 2016 and later. The yield achieved on these marketable securities is assumed, on average, to be consistent with maintaining 50 percent in domestic corporate equities and 50 percent in long-term U.S Treasury bonds. (This provision reflects interaction with provisions 1- 4.)
|
0.37
|
|
Total for Provisions 1-5 (including interaction among provisions)
|
1.89
|