Plan 1-V--1-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets With a Variable Annuity Invested as Before Retirement
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
|
1.6
|
1.6
|
1.6
|
2.1
|
2.2
|
1.9
|
2.5
|
2.6
|
3.1
|
4.0
|
4.1
|
% 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
|
$1,081
|
$1,081
|
$1,777
|
$1,786
|
$1,787
|
$2,347
|
$2,361
|
$2,363
|
$2,783
|
$2,808
|
$2,813
|
% of Present Law Scheduled Benefit
|
99.9
|
100.2
|
100.3
|
99.8
|
100.3
|
100.4
|
99.8
|
100.4
|
100.5
|
99.6
|
100.5
|
100.7
|
% of Present Law Payable Benefit
|
99.9
|
100.2
|
100.3
|
99.8
|
100.3
|
100.4
|
99.8
|
100.4
|
100.5
|
99.6
|
100.5
|
100.7
|
% of 2001 Real Benefit
|
112.7
|
113.1
|
113.2
|
112.6
|
113.2
|
113.3
|
114.6
|
115.2
|
115.4
|
120.6
|
121.7
|
121.9
|
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
|
5.2
|
5.5
|
4.8
|
7.0
|
7.4
|
5.8
|
8.5
|
9.0
|
7.5
|
10.8
|
11.5
|
% 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
|
$1,151
|
$1,155
|
$1,866
|
$1,907
|
$1,916
|
$2,461
|
$2,527
|
$2,541
|
$2,970
|
$3,069
|
$3,089
|
% of Present Law Scheduled Benefit
|
99.4
|
101.0
|
101.3
|
99.2
|
101.4
|
101.8
|
99.0
|
101.6
|
102.2
|
98.7
|
102.0
|
102.7
|
% of Present Law Payable Benefit
|
99.4
|
101.0
|
101.3
|
99.2
|
101.4
|
101.8
|
99.0
|
101.6
|
102.2
|
98.7
|
102.0
|
102.7
|
% of 2001 Real Benefit
|
118.5
|
120.5
|
120.9
|
118.2
|
120.9
|
121.4
|
120.1
|
123.3
|
124.0
|
128.7
|
133.0
|
133.9
|
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
|
10.6
|
11.5
|
8.7
|
14.2
|
15.4
|
10.6
|
17.2
|
18.7
|
13.0
|
21.0
|
22.7
|
% 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
|
$1,236
|
$1,246
|
$1,948
|
$2,057
|
$2,082
|
$2,563
|
$2,738
|
$2,777
|
$3,093
|
$3,346
|
$3,402
|
% of Present Law Scheduled Benefit
|
98.5
|
102.6
|
103.5
|
98.0
|
103.5
|
104.7
|
97.6
|
104.2
|
105.7
|
97.1
|
105.0
|
106.8
|
% of Present Law Payable Benefit
|
98.5
|
102.6
|
103.5
|
98.0
|
103.5
|
104.7
|
97.6
|
104.2
|
105.7
|
97.1
|
105.0
|
106.8
|
% of 2001 Real Benefit
|
124.2
|
129.3
|
130.5
|
123.5
|
130.4
|
131.9
|
125.1
|
133.6
|
135.5
|
134.1
|
145.0
|
147.5
|
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
|
16.6
|
18.3
|
12.3
|
22.3
|
24.7
|
14.9
|
27.0
|
29.9
|
19.0
|
34.6
|
38.3
|
% 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
|
$1,390
|
$1,414
|
$2,113
|
$2,332
|
$2,384
|
$2,770
|
$3,120
|
$3,204
|
$3,312
|
$3,857
|
$3,988
|
% of Present Law Scheduled Benefit
|
97.4
|
104.8
|
106.6
|
96.5
|
106.5
|
108.9
|
95.8
|
107.9
|
110.8
|
94.6
|
110.1
|
113.9
|
% of Present Law Payable Benefit
|
133.2
|
143.4
|
145.8
|
132.0
|
145.7
|
149.0
|
131.0
|
147.6
|
151.5
|
129.4
|
150.6
|
155.7
|
% of 2001 Real Benefit
|
135.2
|
145.5
|
148.0
|
133.9
|
147.8
|
151.1
|
135.2
|
152.3
|
156.4
|
143.6
|
167.2
|
172.9
|
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
|
19.2
|
21.5
|
13.6
|
25.9
|
28.9
|
16.5
|
31.3
|
35.0
|
22.2
|
43.0
|
48.2
|
% 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
|
$1,548
|
$1,581
|
$2,309
|
$2,605
|
$2,678
|
$3,023
|
$3,496
|
$3,613
|
$3,584
|
$4,386
|
$4,587
|
% of Present Law Scheduled Benefit
|
96.9
|
106.0
|
108.2
|
95.8
|
108.1
|
111.1
|
94.9
|
109.8
|
113.4
|
92.9
|
113.7
|
118.9
|
% of Present Law Payable Benefit
|
133.8
|
146.4
|
149.5
|
132.3
|
149.3
|
153.5
|
131.1
|
151.6
|
156.7
|
128.4
|
157.1
|
164.3
|
% of 2001 Real Benefit
|
148.0
|
162.0
|
165.4
|
146.3
|
165.1
|
169.7
|
147.5
|
170.7
|
176.3
|
155.3
|
190.1
|
198.8
|
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
|
18.7
|
20.9
|
13.1
|
25.2
|
28.1
|
15.9
|
30.5
|
34.1
|
21.4
|
41.8
|
46.9
|
% 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
|
$1,930
|
$1,970
|
$2,885
|
$3,247
|
$3,336
|
$3,777
|
$4,356
|
$4,499
|
$4,480
|
$5,460
|
$5,706
|
% of Present Law Scheduled Benefit
|
96.9
|
105.9
|
108.1
|
95.9
|
107.9
|
110.9
|
95.0
|
109.6
|
113.2
|
93.1
|
113.5
|
118.6
|
% of Present Law Payable Benefit
|
144.6
|
158.0
|
161.2
|
143.0
|
161.0
|
165.4
|
141.7
|
163.5
|
168.8
|
138.9
|
169.3
|
176.9
|
% of 2001 Real Benefit
|
184.9
|
202.0
|
206.2
|
182.8
|
205.8
|
211.4
|
184.4
|
212.6
|
219.6
|
194.2
|
236.7
|
247.3
|
* 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
|