Plan 2-V--1-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets With a Variable Annuity Invested as Before Retirement
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(turn it off and on)Yield
Low(turn it off and on)Yield
50%(turn it off and on)Equity
High(turn it off and on)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
3.1
3.2
2.8
3.6
3.8
2.1
2.8
2.9
1.8
2.3
2.4
% 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
$1,101
$1,103
$1,769
$1,784
$1,786
$2,336
$2,351
$2,353
$2,772
$2,787
$2,790
% of Present Law
Scheduled Benefit
101.4
102.1
102.3
99.4
100.2
100.3
99.3
99.9
100.0
99.3
99.8
99.9
% of Present Law
Payable Benefit
101.4
102.1
102.3
99.4
100.2
100.3
99.3
99.9
100.0
99.3
99.8
99.9
% of 2001
Real Benefit
114.4
115.2
115.4
112.1
113.0
113.2
114.0
114.7
114.9
120.2
120.8
120.9
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
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
10.4
11.1
7.1
10.2
10.8
5.4
7.7
8.2
4.4
6.4
6.8
% 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
$1,292
$1,300
$1,713
$1,771
$1,783
$2,258
$2,316
$2,328
$2,728
$2,786
$2,798
% of Present Law
Scheduled Benefit
110.1
113.4
114.0
91.0
94.1
94.8
90.8
93.2
93.6
90.7
92.6
93.0
% of Present Law
Payable Benefit
110.1
113.4
114.0
91.0
94.1
94.8
90.8
93.2
93.6
90.7
92.6
93.0
% of 2001
Real Benefit
131.3
135.2
136.0
108.5
112.2
113.0
110.2
113.0
113.6
118.2
120.8
121.3
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
21.1
22.9
12.3
19.8
21.4
9.3
15.0
16.2
7.7
12.4
13.4
% 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
$1,318
$1,340
$1,667
$1,816
$1,849
$2,189
$2,339
$2,372
$2,646
$2,796
$2,829
% of Present Law
Scheduled Benefit
101.3
109.4
111.3
83.8
91.3
93.0
83.3
89.0
90.3
83.1
87.8
88.8
% of Present Law
Payable Benefit
101.3
109.4
111.3
83.8
91.3
93.0
83.3
89.0
90.3
83.1
87.8
88.8
% of 2001
Real Benefit
127.6
137.9
140.2
105.6
115.1
117.2
106.9
114.1
115.8
114.7
121.2
122.6
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
33.1
36.7
17.9
32.6
36.1
13.6
24.7
27.3
11.2
20.4
22.6
% 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
$1,438
$1,485
$1,704
$2,024
$2,101
$2,226
$2,547
$2,624
$2,680
$3,001
$3,078
% of Present Law
Scheduled Benefit
93.6
108.4
112.0
77.8
92.5
96.0
77.0
88.1
90.7
76.5
85.7
87.9
% of Present Law
Payable Benefit
128.0
148.3
153.2
106.4
126.5
131.3
105.3
120.5
124.1
104.7
117.2
120.2
% of 2001
Real Benefit
129.9
150.5
155.4
108.0
128.3
133.2
108.7
124.3
128.1
116.2
130.1
133.4
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
38.5
43.0
20.7
39.9
44.7
16.2
31.8
35.6
13.1
25.3
28.4
% 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
$1,521
$1,587
$1,732
$2,196
$2,312
$2,261
$2,755
$2,879
$2,710
$3,183
$3,301
% of Present Law
Scheduled Benefit
85.9
104.2
108.7
71.9
91.1
95.9
71.0
86.5
90.4
70.3
82.5
85.6
% of Present Law
Payable Benefit
118.7
143.9
150.1
99.3
125.8
132.5
98.0
119.5
124.9
97.1
114.0
118.2
% of 2001
Real Benefit
131.3
159.2
166.1
109.8
139.2
146.5
110.3
134.5
140.5
117.5
138.0
143.1
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
37.4
41.8
20.0
38.8
43.5
15.7
30.9
34.7
12.6
24.6
27.6
% 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
$1,594
$1,675
$1,755
$2,322
$2,464
$2,285
$2,889
$3,041
$2,733
$3,311
$3,455
% of Present Law
Scheduled Benefit
69.6
87.5
91.9
58.3
77.2
81.9
57.5
72.7
76.5
56.8
68.8
71.8
% of Present Law
Payable Benefit
103.8
130.5
137.1
87.0
115.1
122.2
85.7
108.4
114.1
84.7
102.6
107.1
% of 2001
Real Benefit
132.8
166.8
175.3
111.2
147.2
156.1
111.5
141.0
148.4
118.5
143.5
149.8
* 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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