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

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