Plan 1-V--2-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
|
$723
|
$723
|
$723
|
$1,194
|
$1,194
|
$1,194
|
$1,578
|
$1,578
|
$1,578
|
$1,873
|
$1,873
|
$1,873
|
% 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**
|
1.8
|
2.3
|
2.4
|
2.4
|
3.1
|
3.3
|
2.9
|
3.8
|
3.9
|
4.6
|
5.9
|
6.1
|
% for Benefit Offset
|
-2.0
|
-2.0
|
-2.0
|
-2.7
|
-2.7
|
-2.7
|
-3.3
|
-3.3
|
-3.3
|
-5.1
|
-5.1
|
-5.1
|
Proposed Benefit
|
$722
|
$725
|
$726
|
$1,191
|
$1,199
|
$1,201
|
$1,572
|
$1,586
|
$1,589
|
$1,863
|
$1,888
|
$1,893
|
% of Present Law Scheduled Benefit
|
99.8
|
100.3
|
100.4
|
99.7
|
100.4
|
100.6
|
99.7
|
100.5
|
100.7
|
99.5
|
100.8
|
101.1
|
% of Present Law Payable Benefit
|
99.8
|
100.3
|
100.4
|
99.7
|
100.4
|
100.6
|
99.7
|
100.5
|
100.7
|
99.5
|
100.8
|
101.1
|
% of 2001 Real Benefit
|
113.3
|
113.9
|
114.0
|
113.2
|
114.0
|
114.2
|
115.1
|
116.1
|
116.3
|
121.1
|
122.8
|
123.1
|
2022 Retiree
|
Present Law Scheduled Benefit
|
$767
|
$767
|
$767
|
$1,266
|
$1,266
|
$1,266
|
$1,673
|
$1,673
|
$1,673
|
$2,024
|
$2,024
|
$2,024
|
% 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**
|
5.3
|
7.7
|
8.2
|
7.1
|
10.4
|
11.1
|
8.6
|
12.6
|
13.4
|
11.2
|
16.0
|
17.0
|
% for Benefit Offset
|
-6.2
|
-6.2
|
-6.2
|
-8.4
|
-8.4
|
-8.4
|
-10.1
|
-10.1
|
-10.1
|
-13.0
|
-13.0
|
-13.0
|
Proposed Benefit
|
$760
|
$778
|
$782
|
$1,250
|
$1,292
|
$1,300
|
$1,648
|
$1,714
|
$1,728
|
$1,986
|
$2,085
|
$2,105
|
% of Present Law Scheduled Benefit
|
99.1
|
101.5
|
102.0
|
98.8
|
102.0
|
102.7
|
98.5
|
102.4
|
103.3
|
98.1
|
103.0
|
104.0
|
% of Present Law Payable Benefit
|
99.1
|
101.5
|
102.0
|
98.8
|
102.0
|
102.7
|
98.5
|
102.4
|
103.3
|
98.1
|
103.0
|
104.0
|
% of 2001 Real Benefit
|
119.3
|
122.2
|
122.8
|
118.9
|
122.8
|
123.6
|
120.6
|
125.5
|
126.5
|
129.1
|
135.6
|
136.9
|
2032 Retiree
|
Present Law Scheduled Benefit
|
$813
|
$813
|
$813
|
$1,343
|
$1,343
|
$1,343
|
$1,774
|
$1,774
|
$1,774
|
$2,151
|
$2,151
|
$2,151
|
% 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**
|
9.6
|
15.6
|
17.0
|
12.9
|
21.0
|
22.9
|
15.6
|
25.5
|
27.7
|
19.3
|
31.0
|
33.6
|
% for Benefit Offset
|
-11.8
|
-11.8
|
-11.8
|
-15.9
|
-15.9
|
-15.9
|
-19.2
|
-19.2
|
-19.2
|
-23.6
|
-23.6
|
-23.6
|
Proposed Benefit
|
$795
|
$845
|
$855
|
$1,303
|
$1,412
|
$1,436
|
$1,710
|
$1,885
|
$1,924
|
$2,059
|
$2,312
|
$2,368
|
% of Present Law Scheduled Benefit
|
97.8
|
103.8
|
105.2
|
97.0
|
105.2
|
107.0
|
96.4
|
106.3
|
108.5
|
95.7
|
107.5
|
110.1
|
% of Present Law Payable Benefit
|
97.8
|
103.8
|
105.2
|
97.0
|
105.2
|
107.0
|
96.4
|
106.3
|
108.5
|
95.7
|
107.5
|
110.1
|
% of 2001 Real Benefit
|
124.9
|
132.6
|
134.3
|
123.8
|
134.2
|
136.5
|
125.2
|
138.0
|
140.9
|
133.8
|
150.3
|
153.9
|
2042 Retiree
|
Present Law Scheduled Benefit
|
$896
|
$896
|
$896
|
$1,478
|
$1,478
|
$1,478
|
$1,953
|
$1,953
|
$1,953
|
$2,365
|
$2,365
|
$2,365
|
% 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**
|
13.5
|
24.5
|
27.2
|
18.2
|
33.0
|
36.6
|
22.1
|
40.0
|
44.3
|
28.2
|
51.2
|
56.7
|
% for Benefit Offset
|
-17.4
|
-17.4
|
-17.4
|
-23.4
|
-23.4
|
-23.4
|
-28.3
|
-28.3
|
-28.3
|
-36.2
|
-36.2
|
-36.2
|
Proposed Benefit
|
$861
|
$960
|
$983
|
$1,402
|
$1,621
|
$1,673
|
$1,831
|
$2,181
|
$2,265
|
$2,175
|
$2,720
|
$2,851
|
% of Present Law Scheduled Benefit
|
96.2
|
107.2
|
109.8
|
94.8
|
109.6
|
113.2
|
93.7
|
111.7
|
116.0
|
92.0
|
115.0
|
120.5
|
% of Present Law Payable Benefit
|
131.5
|
146.6
|
150.2
|
129.7
|
150.0
|
154.8
|
128.2
|
152.7
|
158.6
|
125.8
|
157.3
|
164.9
|
% of 2001 Real Benefit
|
135.2
|
150.7
|
154.4
|
133.3
|
154.1
|
159.1
|
134.0
|
159.7
|
165.8
|
141.4
|
176.9
|
185.3
|
2052 Retiree
|
Present Law Scheduled Benefit
|
$986
|
$986
|
$986
|
$1,628
|
$1,628
|
$1,628
|
$2,151
|
$2,151
|
$2,151
|
$2,604
|
$2,604
|
$2,604
|
% 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**
|
15.0
|
28.5
|
31.8
|
20.1
|
38.3
|
42.8
|
24.4
|
46.4
|
51.8
|
32.8
|
63.7
|
71.4
|
% for Benefit Offset
|
-19.6
|
-19.6
|
-19.6
|
-26.4
|
-26.4
|
-26.4
|
-31.9
|
-31.9
|
-31.9
|
-43.3
|
-43.3
|
-43.3
|
Proposed Benefit
|
$940
|
$1,074
|
$1,106
|
$1,526
|
$1,822
|
$1,895
|
$1,989
|
$2,462
|
$2,579
|
$2,332
|
$3,134
|
$3,335
|
% of Present Law Scheduled Benefit
|
95.4
|
108.9
|
112.2
|
93.8
|
112.0
|
116.4
|
92.5
|
114.5
|
119.9
|
89.5
|
120.3
|
128.0
|
% of Present Law Payable Benefit
|
131.7
|
150.4
|
155.0
|
129.5
|
154.6
|
160.8
|
127.7
|
158.1
|
165.6
|
123.7
|
166.2
|
176.9
|
% of 2001 Real Benefit
|
147.6
|
168.6
|
173.7
|
145.1
|
173.2
|
180.2
|
145.6
|
180.3
|
188.8
|
151.6
|
203.8
|
216.8
|
2075 Retiree
|
Present Law Scheduled Benefit
|
$1,231
|
$1,231
|
$1,231
|
$2,032
|
$2,032
|
$2,032
|
$2,685
|
$2,685
|
$2,685
|
$3,250
|
$3,250
|
$3,250
|
% 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**
|
14.5
|
27.7
|
31.0
|
19.5
|
37.3
|
41.7
|
23.6
|
45.1
|
50.5
|
31.7
|
61.9
|
69.5
|
% for Benefit Offset
|
-19.0
|
-19.0
|
-19.0
|
-25.6
|
-25.6
|
-25.6
|
-30.9
|
-30.9
|
-30.9
|
-42.0
|
-42.0
|
-42.0
|
Proposed Benefit
|
$1,175
|
$1,338
|
$1,378
|
$1,908
|
$2,270
|
$2,359
|
$2,486
|
$3,065
|
$3,208
|
$2,917
|
$3,898
|
$4,143
|
% of Present Law Scheduled Benefit
|
95.5
|
108.7
|
112.0
|
93.9
|
111.7
|
116.1
|
92.6
|
114.2
|
119.5
|
89.8
|
119.9
|
127.5
|
% of Present Law Payable Benefit
|
142.4
|
162.2
|
167.0
|
140.1
|
166.7
|
173.2
|
138.2
|
170.3
|
178.3
|
133.9
|
178.9
|
190.2
|
% of 2001 Real Benefit
|
184.5
|
210.0
|
216.4
|
181.4
|
215.8
|
224.3
|
182.0
|
224.4
|
234.9
|
189.7
|
253.4
|
269.4
|
* 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
|