Plan 2--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
CPI Indexed PIA Starting in 2009
|
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
|
1.2
|
1.2
|
1.2
|
-0.9
|
-0.9
|
-0.9
|
-0.9
|
-0.9
|
-0.9
|
-0.9
|
-0.9
|
-0.9
|
% for PA Annuity**
|
2.4
|
2.7
|
2.7
|
2.8
|
3.1
|
3.2
|
2.1
|
2.4
|
2.4
|
1.8
|
2.0
|
2.0
|
% for Benefit Offset
|
-2.2
|
-2.2
|
-2.2
|
-2.5
|
-2.5
|
-2.5
|
-1.9
|
-1.9
|
-1.9
|
-1.6
|
-1.6
|
-1.6
|
Proposed Benefit
|
$1,093
|
$1,097
|
$1,097
|
$1,769
|
$1,775
|
$1,775
|
$2,336
|
$2,342
|
$2,342
|
$2,772
|
$2,778
|
$2,779
|
% of Present Law Scheduled Benefit
|
101.4
|
101.7
|
101.7
|
99.4
|
99.7
|
99.7
|
99.3
|
99.5
|
99.6
|
99.3
|
99.5
|
99.5
|
% of Present Law Payable Benefit
|
101.4
|
101.7
|
101.7
|
99.4
|
99.7
|
99.7
|
99.3
|
99.5
|
99.6
|
99.3
|
99.5
|
99.5
|
% of 2001 Real Benefit
|
114.4
|
114.8
|
114.8
|
112.1
|
112.5
|
112.5
|
114.0
|
114.3
|
114.3
|
120.2
|
120.4
|
120.4
|
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
|
9.2
|
9.2
|
9.2
|
-9.9
|
-9.9
|
-9.9
|
-9.9
|
-9.9
|
-9.9
|
-9.9
|
-9.9
|
-9.9
|
% for PA Annuity**
|
7.1
|
8.9
|
9.2
|
7.1
|
8.7
|
9.0
|
5.4
|
6.6
|
6.8
|
4.4
|
5.5
|
5.6
|
% for Benefit Offset
|
-6.2
|
-6.2
|
-6.2
|
-6.2
|
-6.2
|
-6.2
|
-4.7
|
-4.7
|
-4.7
|
-3.9
|
-3.9
|
-3.9
|
Proposed Benefit
|
$1,255
|
$1,275
|
$1,279
|
$1,713
|
$1,744
|
$1,749
|
$2,258
|
$2,289
|
$2,294
|
$2,728
|
$2,759
|
$2,764
|
% of Present Law Scheduled Benefit
|
110.1
|
111.9
|
112.2
|
91.0
|
92.7
|
93.0
|
90.8
|
92.1
|
92.3
|
90.7
|
91.7
|
91.9
|
% of Present Law Payable Benefit
|
110.1
|
111.9
|
112.2
|
91.0
|
92.7
|
93.0
|
90.8
|
92.1
|
92.3
|
90.7
|
91.7
|
91.9
|
% of 2001 Real Benefit
|
131.3
|
133.5
|
133.8
|
108.5
|
110.5
|
110.8
|
110.2
|
111.7
|
112.0
|
118.2
|
119.6
|
119.8
|
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
|
-0.9
|
-0.9
|
-0.9
|
-18.2
|
-18.2
|
-18.2
|
-18.2
|
-18.2
|
-18.2
|
-18.2
|
-18.2
|
-18.2
|
% for PA Annuity**
|
13.0
|
18.1
|
19.0
|
12.3
|
16.9
|
17.8
|
9.3
|
12.8
|
13.5
|
7.7
|
10.6
|
11.1
|
% for Benefit Offset
|
-10.8
|
-10.8
|
-10.8
|
-10.3
|
-10.3
|
-10.3
|
-7.8
|
-7.8
|
-7.8
|
-6.4
|
-6.4
|
-6.4
|
Proposed Benefit
|
$1,220
|
$1,281
|
$1,293
|
$1,667
|
$1,759
|
$1,776
|
$2,189
|
$2,282
|
$2,299
|
$2,646
|
$2,739
|
$2,756
|
% of Present Law Scheduled Benefit
|
101.3
|
106.4
|
107.4
|
83.8
|
88.5
|
89.3
|
83.3
|
86.9
|
87.5
|
83.1
|
86.0
|
86.5
|
% of Present Law Payable Benefit
|
101.3
|
106.4
|
107.4
|
83.8
|
88.5
|
89.3
|
83.3
|
86.9
|
87.5
|
83.1
|
86.0
|
86.5
|
% of 2001 Real Benefit
|
127.6
|
134.1
|
135.3
|
105.6
|
111.5
|
112.6
|
106.9
|
111.4
|
112.2
|
114.7
|
118.7
|
119.5
|
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
|
-10.0
|
-10.0
|
-10.0
|
-25.7
|
-25.7
|
-25.7
|
-25.7
|
-25.7
|
-25.7
|
-25.7
|
-25.7
|
-25.7
|
% for PA Annuity**
|
18.3
|
28.3
|
30.4
|
17.9
|
27.8
|
29.9
|
13.6
|
21.1
|
22.6
|
11.2
|
17.4
|
18.7
|
% for Benefit Offset
|
-14.7
|
-14.7
|
-14.7
|
-14.4
|
-14.4
|
-14.4
|
-10.9
|
-10.9
|
-10.9
|
-9.0
|
-9.0
|
-9.0
|
Proposed Benefit
|
$1,241
|
$1,374
|
$1,401
|
$1,704
|
$1,920
|
$1,965
|
$2,226
|
$2,443
|
$2,488
|
$2,680
|
$2,896
|
$2,941
|
% of Present Law Scheduled Benefit
|
93.6
|
103.6
|
105.7
|
77.8
|
87.7
|
89.8
|
77.0
|
84.5
|
86.0
|
76.5
|
82.7
|
84.0
|
% of Present Law Payable Benefit
|
128.0
|
141.7
|
144.5
|
106.4
|
120.0
|
122.8
|
105.3
|
115.5
|
117.7
|
104.7
|
113.1
|
114.9
|
% of 2001 Real Benefit
|
129.9
|
143.8
|
146.7
|
108.0
|
121.7
|
124.5
|
108.7
|
119.2
|
121.4
|
116.2
|
125.5
|
127.5
|
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
|
-18.2
|
-18.2
|
-18.2
|
-32.5
|
-32.5
|
-32.5
|
-32.5
|
-32.5
|
-32.5
|
-32.5
|
-32.5
|
-32.5
|
% for PA Annuity**
|
20.2
|
32.7
|
35.4
|
20.7
|
34.0
|
36.9
|
16.2
|
27.0
|
29.4
|
13.1
|
21.6
|
23.4
|
% for Benefit Offset
|
-16.0
|
-16.0
|
-16.0
|
-16.3
|
-16.3
|
-16.3
|
-12.8
|
-12.8
|
-12.8
|
-10.3
|
-10.3
|
-10.3
|
Proposed Benefit
|
$1,255
|
$1,438
|
$1,477
|
$1,732
|
$2,053
|
$2,123
|
$2,261
|
$2,605
|
$2,681
|
$2,710
|
$3,038
|
$3,109
|
% of Present Law Scheduled Benefit
|
85.9
|
98.5
|
101.2
|
71.9
|
85.2
|
88.1
|
71.0
|
81.8
|
84.2
|
70.3
|
78.8
|
80.6
|
% of Present Law Payable Benefit
|
118.7
|
136.0
|
139.8
|
99.3
|
117.7
|
121.7
|
98.0
|
113.0
|
116.3
|
97.1
|
108.8
|
111.4
|
% of 2001 Real Benefit
|
131.3
|
150.5
|
154.6
|
109.8
|
130.1
|
134.6
|
110.3
|
127.1
|
130.8
|
117.5
|
131.7
|
134.8
|
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
|
-34.5
|
-34.5
|
-34.5
|
-45.9
|
-45.9
|
-45.9
|
-45.9
|
-45.9
|
-45.9
|
-45.9
|
-45.9
|
-45.9
|
% for PA Annuity**
|
19.5
|
31.7
|
34.3
|
20.0
|
32.9
|
35.7
|
15.7
|
26.2
|
28.5
|
12.6
|
20.9
|
22.7
|
% for Benefit Offset
|
-15.4
|
-15.4
|
-15.4
|
-15.7
|
-15.7
|
-15.7
|
-12.3
|
-12.3
|
-12.3
|
-9.9
|
-9.9
|
-9.9
|
Proposed Benefit
|
$1,269
|
$1,490
|
$1,537
|
$1,755
|
$2,144
|
$2,228
|
$2,285
|
$2,701
|
$2,793
|
$2,733
|
$3,130
|
$3,216
|
% of Present Law Scheduled Benefit
|
69.6
|
81.8
|
84.4
|
58.3
|
71.3
|
74.1
|
57.5
|
68.0
|
70.3
|
56.8
|
65.0
|
66.8
|
% of Present Law Payable Benefit
|
103.8
|
122.0
|
125.8
|
87.0
|
106.3
|
110.5
|
85.7
|
101.4
|
104.8
|
84.7
|
97.0
|
99.7
|
% of 2001 Real Benefit
|
132.8
|
155.9
|
160.9
|
111.2
|
135.9
|
141.2
|
111.5
|
131.9
|
136.3
|
118.5
|
135.7
|
139.4
|
* 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
|