Plan 1--1-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets at Retirement With a CPI-Indexed Life Annuity on a Joint and 2/3 Survivor Basis
No Basic Benefit Changes
|
PA Portfolio/Yield*
|
Scaled LOW Earner ($15,875 in 2002)
|
Scaled MEDIUM Earner ($35,277 in 2002)
|
Scaled HIGH Earner ($56,443 in 2002)
|
Scaled MAXIMUM Earner ($84,900 in 2002)
|
Low Yield
|
50% Equity
|
High Yield
|
Low Yield
|
50% Equity
|
High Yield
|
Low Yield
|
50% Equity
|
High Yield
|
Low Yield
|
50% Equity
|
High Yield
|
|
(Billions of Constant 2001 Dollars)
|
2012 Retiree
|
Present Law Scheduled Benefit
|
$1,078
|
$1,078
|
$1,078
|
$1,780
|
$1,780
|
$1,780
|
$2,353
|
$2,353
|
$2,353
|
$2,793
|
$2,793
|
$2,793
|
% Basic Change for All
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
% for PA Annuity**
|
1.2
|
1.3
|
1.4
|
1.6
|
1.8
|
1.8
|
1.9
|
2.2
|
2.2
|
3.1
|
3.4
|
3.4
|
% for Benefit Offset
|
-1.3
|
-1.3
|
-1.3
|
-1.8
|
-1.8
|
-1.8
|
-2.2
|
-2.2
|
-2.2
|
-3.4
|
-3.4
|
-3.4
|
Proposed Benefit
|
$1,077
|
$1,078
|
$1,078
|
$1,777
|
$1,780
|
$1,781
|
$2,347
|
$2,353
|
$2,353
|
$2,783
|
$2,793
|
$2,794
|
% of Present Law Scheduled Benefit
|
99.9
|
100.0
|
100.0
|
99.8
|
100.0
|
100.0
|
99.8
|
100.0
|
100.0
|
99.6
|
100.0
|
100.0
|
% of Present Law Payable Benefit
|
99.9
|
100.0
|
100.0
|
99.8
|
100.0
|
100.0
|
99.8
|
100.0
|
100.0
|
99.6
|
100.0
|
100.0
|
% of 2001 Real Benefit
|
112.7
|
112.9
|
112.9
|
112.6
|
112.8
|
112.9
|
114.6
|
114.8
|
114.9
|
120.6
|
121.1
|
121.1
|
2022 Retiree
|
Present Law Scheduled Benefit
|
$1,140
|
$1,140
|
$1,140
|
$1,881
|
$1,881
|
$1,881
|
$2,486
|
$2,486
|
$2,486
|
$3,008
|
$3,008
|
$3,008
|
% Basic Change for All
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
% for PA Annuity**
|
3.6
|
4.5
|
4.6
|
4.8
|
6.0
|
6.2
|
5.8
|
7.3
|
7.5
|
7.5
|
9.3
|
9.6
|
% for Benefit Offset
|
-4.2
|
-4.2
|
-4.2
|
-5.6
|
-5.6
|
-5.6
|
-6.8
|
-6.8
|
-6.8
|
-8.8
|
-8.8
|
-8.8
|
Proposed Benefit
|
$1,133
|
$1,143
|
$1,144
|
$1,866
|
$1,888
|
$1,892
|
$2,461
|
$2,497
|
$2,503
|
$2,970
|
$3,023
|
$3,032
|
% of Present Law Scheduled Benefit
|
99.4
|
100.3
|
100.4
|
99.2
|
100.4
|
100.6
|
99.0
|
100.4
|
100.7
|
98.7
|
100.5
|
100.8
|
% of Present Law Payable Benefit
|
99.4
|
100.3
|
100.4
|
99.2
|
100.4
|
100.6
|
99.0
|
100.4
|
100.7
|
98.7
|
100.5
|
100.8
|
% of 2001 Real Benefit
|
118.5
|
119.6
|
119.8
|
118.2
|
119.7
|
119.9
|
120.1
|
121.9
|
122.2
|
128.7
|
131.0
|
131.4
|
2032 Retiree
|
Present Law Scheduled Benefit
|
$1,204
|
$1,204
|
$1,204
|
$1,988
|
$1,988
|
$1,988
|
$2,627
|
$2,627
|
$2,627
|
$3,185
|
$3,185
|
$3,185
|
% Basic Change for All
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
% for PA Annuity**
|
6.5
|
9.0
|
9.5
|
8.7
|
12.2
|
12.8
|
10.6
|
14.7
|
15.5
|
13.0
|
17.9
|
18.9
|
% for Benefit Offset
|
-8.0
|
-8.0
|
-8.0
|
-10.7
|
-10.7
|
-10.7
|
-13.0
|
-13.0
|
-13.0
|
-15.9
|
-15.9
|
-15.9
|
Proposed Benefit
|
$1,186
|
$1,217
|
$1,223
|
$1,948
|
$2,017
|
$2,030
|
$2,563
|
$2,673
|
$2,694
|
$3,093
|
$3,250
|
$3,279
|
% of Present Law Scheduled Benefit
|
98.5
|
101.1
|
101.6
|
98.0
|
101.4
|
102.1
|
97.6
|
101.8
|
102.5
|
97.1
|
102.0
|
102.9
|
% of Present Law Payable Benefit
|
98.5
|
101.1
|
101.6
|
98.0
|
101.4
|
102.1
|
97.6
|
101.8
|
102.5
|
97.1
|
102.0
|
102.9
|
% of 2001 Real Benefit
|
124.2
|
127.4
|
128.0
|
123.5
|
127.8
|
128.6
|
125.1
|
130.5
|
131.5
|
134.1
|
140.9
|
142.1
|
2042 Retiree
|
Present Law Scheduled Benefit
|
$1,326
|
$1,326
|
$1,326
|
$2,189
|
$2,189
|
$2,189
|
$2,893
|
$2,893
|
$2,893
|
$3,502
|
$3,502
|
$3,502
|
% Basic Change for All
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
% for PA Annuity**
|
9.1
|
14.1
|
15.2
|
12.3
|
19.0
|
20.4
|
14.9
|
23.1
|
24.7
|
19.0
|
29.5
|
31.7
|
% for Benefit Offset
|
-11.7
|
-11.7
|
-11.7
|
-15.8
|
-15.8
|
-15.8
|
-19.1
|
-19.1
|
-19.1
|
-24.5
|
-24.5
|
-24.5
|
Proposed Benefit
|
$1,292
|
$1,358
|
$1,372
|
$2,113
|
$2,260
|
$2,291
|
$2,770
|
$3,006
|
$3,055
|
$3,312
|
$3,680
|
$3,756
|
% of Present Law Scheduled Benefit
|
97.4
|
102.4
|
103.4
|
96.5
|
103.2
|
104.6
|
95.8
|
103.9
|
105.6
|
94.6
|
105.1
|
107.3
|
% of Present Law Payable Benefit
|
133.2
|
140.1
|
141.5
|
132.0
|
141.2
|
143.1
|
131.0
|
142.2
|
144.5
|
129.4
|
143.7
|
146.7
|
% of 2001 Real Benefit
|
135.2
|
142.1
|
143.6
|
133.9
|
143.2
|
145.2
|
135.2
|
146.7
|
149.1
|
143.6
|
159.5
|
162.8
|
2052 Retiree
|
Present Law Scheduled Benefit
|
$1,460
|
$1,460
|
$1,460
|
$2,410
|
$2,410
|
$2,410
|
$3,185
|
$3,185
|
$3,185
|
$3,856
|
$3,856
|
$3,856
|
% Basic Change for All
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
% for PA Annuity**
|
10.1
|
16.4
|
17.7
|
13.6
|
22.0
|
23.9
|
16.5
|
26.7
|
28.9
|
22.2
|
36.6
|
39.8
|
% for Benefit Offset
|
-13.2
|
-13.2
|
-13.2
|
-17.8
|
-17.8
|
-17.8
|
-21.6
|
-21.6
|
-21.6
|
-29.3
|
-29.3
|
-29.3
|
Proposed Benefit
|
$1,415
|
$1,506
|
$1,526
|
$2,309
|
$2,512
|
$2,556
|
$3,023
|
$3,348
|
$3,418
|
$3,584
|
$4,140
|
$4,261
|
% of Present Law Scheduled Benefit
|
96.9
|
103.1
|
104.5
|
95.8
|
104.2
|
106.0
|
94.9
|
105.1
|
107.3
|
92.9
|
107.4
|
110.5
|
% of Present Law Payable Benefit
|
133.8
|
142.5
|
144.3
|
132.3
|
144.0
|
146.5
|
131.1
|
145.2
|
148.2
|
128.4
|
148.3
|
152.6
|
% of 2001 Real Benefit
|
148.0
|
157.6
|
159.7
|
146.3
|
159.2
|
162.0
|
147.5
|
163.4
|
166.8
|
155.3
|
179.5
|
184.7
|
2075 Retiree
|
Present Law Scheduled Benefit
|
$1,823
|
$1,823
|
$1,823
|
$3,009
|
$3,009
|
$3,009
|
$3,975
|
$3,975
|
$3,975
|
$4,812
|
$4,812
|
$4,812
|
% Basic Change for All
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
% for PA Annuity**
|
9.8
|
15.8
|
17.1
|
13.1
|
21.3
|
23.1
|
15.9
|
25.8
|
27.9
|
21.4
|
35.4
|
38.5
|
% for Benefit Offset
|
-12.8
|
-12.8
|
-12.8
|
-17.3
|
-17.3
|
-17.3
|
-20.9
|
-20.9
|
-20.9
|
-28.3
|
-28.3
|
-28.3
|
Proposed Benefit
|
$1,767
|
$1,878
|
$1,901
|
$2,885
|
$3,131
|
$3,183
|
$3,777
|
$4,171
|
$4,255
|
$4,480
|
$5,153
|
$5,299
|
% of Present Law Scheduled Benefit
|
96.9
|
103.0
|
104.3
|
95.9
|
104.1
|
105.8
|
95.0
|
104.9
|
107.0
|
93.1
|
107.1
|
110.1
|
% of Present Law Payable Benefit
|
144.6
|
153.7
|
155.6
|
143.0
|
155.2
|
157.9
|
141.7
|
156.5
|
159.7
|
138.9
|
159.7
|
164.3
|
% of 2001 Real Benefit
|
184.9
|
196.5
|
199.0
|
182.8
|
198.4
|
201.8
|
184.4
|
203.6
|
207.7
|
194.2
|
223.4
|
229.7
|
* Low Yield assumes the Treasury Bond yield on all assets, or risk adjusted returns. High Yield reflects a higher 7.1% ultimate real yield on equities, OR investing 60% of PA in equities at the assumed 6.5% yield. ** Annuity is assumed to have a net real yield equal to Long-Term Treasury Bonds, except for 100% Treasury case, where gross annuity yield is equal to Treasury.
Note: Based on 2001 Trustees Intermediate assumptions, including 3.0% Treasury ultimate real yield; plus 6.5% equity, 3.5% corporate bond ultimate real yields, and 0.3% annual ultimate PA and annuity administrative cost. For portfolios with part equity, balance is assumed 60% corporate and 40% Treasury bonds.
|
Office of the Actuary Social Security Administration January 29, 2002
|