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
|