Plan 2--2-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
|
$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
|
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**
|
3.6
|
4.0
|
4.0
|
4.2
|
4.7
|
4.7
|
3.2
|
3.6
|
3.6
|
2.7
|
3.0
|
3.0
|
% for Benefit Offset
|
-3.2
|
-3.2
|
-3.2
|
-3.8
|
-3.8
|
-3.8
|
-2.9
|
-2.9
|
-2.9
|
-2.4
|
-2.4
|
-2.4
|
Proposed Benefit
|
$734
|
$737
|
$738
|
$1,188
|
$1,194
|
$1,194
|
$1,568
|
$1,574
|
$1,575
|
$1,861
|
$1,867
|
$1,867
|
% of Present Law Scheduled Benefit
|
101.5
|
101.9
|
102.0
|
99.5
|
100.0
|
100.0
|
99.4
|
99.8
|
99.8
|
99.3
|
99.6
|
99.7
|
% of Present Law Payable Benefit
|
101.5
|
101.9
|
102.0
|
99.5
|
100.0
|
100.0
|
99.4
|
99.8
|
99.8
|
99.3
|
99.6
|
99.7
|
% of 2001 Real Benefit
|
115.3
|
115.7
|
115.8
|
112.9
|
113.5
|
113.5
|
114.8
|
115.2
|
115.3
|
121.0
|
121.4
|
121.4
|
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
|
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**
|
10.6
|
13.3
|
13.7
|
10.5
|
13.0
|
13.4
|
8.0
|
9.8
|
10.1
|
6.6
|
8.1
|
8.4
|
% for Benefit Offset
|
-9.2
|
-9.2
|
-9.2
|
-9.1
|
-9.1
|
-9.1
|
-6.9
|
-6.9
|
-6.9
|
-5.7
|
-5.7
|
-5.7
|
Proposed Benefit
|
$848
|
$868
|
$872
|
$1,158
|
$1,189
|
$1,194
|
$1,525
|
$1,556
|
$1,561
|
$1,841
|
$1,872
|
$1,877
|
% of Present Law Scheduled Benefit
|
110.6
|
113.2
|
113.7
|
91.5
|
93.9
|
94.3
|
91.1
|
93.0
|
93.3
|
91.0
|
92.5
|
92.8
|
% of Present Law Payable Benefit
|
110.6
|
113.2
|
113.7
|
91.5
|
93.9
|
94.3
|
91.1
|
93.0
|
93.3
|
91.0
|
92.5
|
92.8
|
% of 2001 Real Benefit
|
133.1
|
136.3
|
136.8
|
110.1
|
113.0
|
113.5
|
111.6
|
113.9
|
114.3
|
119.7
|
121.7
|
122.1
|
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
|
-0.9
|
-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**
|
19.2
|
26.8
|
28.2
|
18.2
|
25.1
|
26.3
|
13.8
|
19.0
|
20.0
|
11.4
|
15.7
|
16.5
|
% for Benefit Offset
|
-16.0
|
-16.0
|
-16.0
|
-15.2
|
-15.2
|
-15.2
|
-11.6
|
-11.6
|
-11.6
|
-9.5
|
-9.5
|
-9.5
|
Proposed Benefit
|
$832
|
$894
|
$905
|
$1,138
|
$1,231
|
$1,248
|
$1,491
|
$1,584
|
$1,601
|
$1,800
|
$1,892
|
$1,910
|
% of Present Law Scheduled Benefit
|
102.3
|
109.9
|
111.3
|
84.8
|
91.7
|
93.0
|
84.1
|
89.3
|
90.3
|
83.7
|
88.0
|
88.8
|
% of Present Law Payable Benefit
|
102.3
|
109.9
|
111.3
|
84.8
|
91.7
|
93.0
|
84.1
|
89.3
|
90.3
|
83.7
|
88.0
|
88.8
|
% of 2001 Real Benefit
|
130.6
|
140.3
|
142.1
|
108.2
|
117.0
|
118.6
|
109.2
|
116.0
|
117.2
|
117.0
|
123.0
|
124.2
|
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
|
-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**
|
27.1
|
41.9
|
44.9
|
26.6
|
41.2
|
44.2
|
20.1
|
31.2
|
33.5
|
16.6
|
25.8
|
27.7
|
% for Benefit Offset
|
-21.8
|
-21.8
|
-21.8
|
-21.4
|
-21.4
|
-21.4
|
-16.2
|
-16.2
|
-16.2
|
-13.4
|
-13.4
|
-13.4
|
Proposed Benefit
|
$853
|
$986
|
$1,014
|
$1,175
|
$1,392
|
$1,437
|
$1,528
|
$1,745
|
$1,790
|
$1,834
|
$2,051
|
$2,096
|
% of Present Law Scheduled Benefit
|
95.3
|
110.1
|
113.2
|
79.5
|
94.1
|
97.2
|
78.2
|
89.3
|
91.6
|
77.6
|
86.7
|
88.6
|
% of Present Law Payable Benefit
|
130.3
|
150.6
|
154.8
|
108.7
|
128.8
|
132.9
|
107.0
|
122.2
|
125.3
|
106.1
|
118.6
|
121.2
|
% of 2001 Real Benefit
|
134.0
|
154.8
|
159.1
|
111.7
|
132.3
|
136.6
|
111.9
|
127.8
|
131.0
|
119.3
|
133.4
|
136.3
|
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
|
-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**
|
29.9
|
48.5
|
52.5
|
30.6
|
50.3
|
54.6
|
24.0
|
40.0
|
43.6
|
19.4
|
32.0
|
34.7
|
% for Benefit Offset
|
-23.7
|
-23.7
|
-23.7
|
-24.1
|
-24.1
|
-24.1
|
-18.9
|
-18.9
|
-18.9
|
-15.3
|
-15.3
|
-15.3
|
Proposed Benefit
|
$867
|
$1,050
|
$1,090
|
$1,204
|
$1,525
|
$1,595
|
$1,563
|
$1,907
|
$1,983
|
$1,865
|
$2,193
|
$2,264
|
% of Present Law Scheduled Benefit
|
88.0
|
106.5
|
110.5
|
73.9
|
93.7
|
98.0
|
72.6
|
88.7
|
92.2
|
71.6
|
84.2
|
86.9
|
% of Present Law Payable Benefit
|
121.5
|
147.2
|
152.6
|
102.1
|
129.4
|
135.3
|
100.4
|
122.5
|
127.3
|
98.9
|
116.3
|
120.1
|
% of 2001 Real Benefit
|
136.2
|
164.9
|
171.1
|
114.4
|
145.0
|
151.6
|
114.4
|
139.6
|
145.1
|
121.2
|
142.6
|
147.2
|
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
|
-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**
|
28.9
|
46.9
|
50.8
|
29.6
|
48.7
|
52.8
|
23.2
|
38.7
|
42.1
|
18.7
|
30.9
|
33.6
|
% for Benefit Offset
|
-22.9
|
-22.9
|
-22.9
|
-23.3
|
-23.3
|
-23.3
|
-18.2
|
-18.2
|
-18.2
|
-14.7
|
-14.7
|
-14.7
|
Proposed Benefit
|
$881
|
$1,102
|
$1,150
|
$1,227
|
$1,615
|
$1,700
|
$1,587
|
$2,003
|
$2,095
|
$1,888
|
$2,284
|
$2,371
|
% of Present Law Scheduled Benefit
|
71.6
|
89.6
|
93.4
|
60.4
|
79.5
|
83.7
|
59.1
|
74.6
|
78.0
|
58.1
|
70.3
|
72.9
|
% of Present Law Payable Benefit
|
106.8
|
133.6
|
139.3
|
90.1
|
118.6
|
124.8
|
88.2
|
111.3
|
116.4
|
86.7
|
104.9
|
108.8
|
% of 2001 Real Benefit
|
138.3
|
173.1
|
180.5
|
116.6
|
153.6
|
161.6
|
116.2
|
146.7
|
153.3
|
122.7
|
148.5
|
154.1
|
* 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
|