Plan 2-V--2-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 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
|
4.6
|
4.8
|
4.2
|
5.4
|
5.7
|
3.2
|
4.1
|
4.3
|
2.7
|
3.5
|
3.6
|
% 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
|
$742
|
$743
|
$1,188
|
$1,203
|
$1,205
|
$1,568
|
$1,583
|
$1,586
|
$1,861
|
$1,876
|
$1,878
|
% of Present Law Scheduled Benefit
|
101.5
|
102.6
|
102.8
|
99.5
|
100.7
|
100.9
|
99.4
|
100.3
|
100.5
|
99.3
|
100.1
|
100.3
|
% of Present Law Payable Benefit
|
101.5
|
102.6
|
102.8
|
99.5
|
100.7
|
100.9
|
99.4
|
100.3
|
100.5
|
99.3
|
100.1
|
100.3
|
% of 2001 Real Benefit
|
115.3
|
116.5
|
116.7
|
112.9
|
114.3
|
114.6
|
114.8
|
115.9
|
116.1
|
121.0
|
122.0
|
122.1
|
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
|
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
|
15.4
|
16.4
|
10.5
|
15.1
|
16.0
|
8.0
|
11.4
|
12.2
|
6.6
|
9.5
|
10.0
|
% 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
|
$885
|
$893
|
$1,158
|
$1,216
|
$1,228
|
$1,525
|
$1,583
|
$1,595
|
$1,841
|
$1,899
|
$1,911
|
% of Present Law Scheduled Benefit
|
110.6
|
115.4
|
116.4
|
91.5
|
96.1
|
97.0
|
91.1
|
94.6
|
95.3
|
91.0
|
93.8
|
94.4
|
% of Present Law Payable Benefit
|
110.6
|
115.4
|
116.4
|
91.5
|
96.1
|
97.0
|
91.1
|
94.6
|
95.3
|
91.0
|
93.8
|
94.4
|
% of 2001 Real Benefit
|
133.1
|
138.9
|
140.1
|
110.1
|
115.6
|
116.8
|
111.6
|
115.9
|
116.8
|
119.7
|
123.5
|
124.3
|
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
|
31.3
|
34.0
|
18.2
|
29.3
|
31.7
|
13.8
|
22.2
|
24.0
|
11.4
|
18.3
|
19.8
|
% 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
|
$930
|
$952
|
$1,138
|
$1,287
|
$1,320
|
$1,491
|
$1,640
|
$1,674
|
$1,800
|
$1,949
|
$1,982
|
% of Present Law Scheduled Benefit
|
102.3
|
114.4
|
117.1
|
84.8
|
95.9
|
98.3
|
84.1
|
92.5
|
94.3
|
83.7
|
90.6
|
92.1
|
% of Present Law Payable Benefit
|
102.3
|
114.4
|
117.1
|
84.8
|
95.9
|
98.3
|
84.1
|
92.5
|
94.3
|
83.7
|
90.6
|
92.1
|
% of 2001 Real Benefit
|
130.6
|
146.1
|
149.5
|
108.2
|
122.4
|
125.5
|
109.2
|
120.1
|
122.5
|
117.0
|
126.7
|
128.9
|
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
|
-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
|
49.1
|
54.3
|
26.6
|
48.3
|
53.5
|
20.1
|
36.5
|
40.5
|
16.6
|
30.2
|
33.4
|
% 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
|
$1,051
|
$1,098
|
$1,175
|
$1,496
|
$1,573
|
$1,528
|
$1,849
|
$1,926
|
$1,834
|
$2,155
|
$2,232
|
% of Present Law Scheduled Benefit
|
95.3
|
117.3
|
122.6
|
79.5
|
101.2
|
106.4
|
78.2
|
94.7
|
98.6
|
77.6
|
91.1
|
94.4
|
% of Present Law Payable Benefit
|
130.3
|
160.5
|
167.6
|
108.7
|
138.4
|
145.6
|
107.0
|
129.5
|
134.9
|
106.1
|
124.7
|
129.1
|
% of 2001 Real Benefit
|
134.0
|
164.9
|
172.3
|
111.7
|
142.2
|
149.6
|
111.9
|
135.4
|
141.0
|
119.3
|
140.1
|
145.1
|
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
|
56.9
|
63.6
|
30.6
|
59.1
|
66.2
|
24.0
|
47.0
|
52.8
|
19.4
|
37.5
|
42.1
|
% 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
|
$1,134
|
$1,199
|
$1,204
|
$1,668
|
$1,783
|
$1,563
|
$2,057
|
$2,181
|
$1,865
|
$2,338
|
$2,456
|
% of Present Law Scheduled Benefit
|
88.0
|
115.0
|
121.6
|
73.9
|
102.4
|
109.6
|
72.6
|
95.6
|
101.4
|
71.6
|
89.8
|
94.3
|
% of Present Law Payable Benefit
|
121.5
|
158.8
|
168.0
|
102.1
|
141.5
|
151.3
|
100.4
|
132.1
|
140.1
|
98.9
|
124.0
|
130.3
|
% of 2001 Real Benefit
|
136.2
|
178.0
|
188.3
|
114.4
|
158.5
|
169.5
|
114.4
|
150.6
|
159.7
|
121.2
|
152.0
|
159.7
|
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
|
55.4
|
61.9
|
29.6
|
57.5
|
64.4
|
23.2
|
45.7
|
51.4
|
18.7
|
36.5
|
40.9
|
% 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
|
$1,207
|
$1,287
|
$1,227
|
$1,794
|
$1,935
|
$1,587
|
$2,191
|
$2,343
|
$1,888
|
$2,466
|
$2,610
|
% of Present Law Scheduled Benefit
|
71.6
|
98.0
|
104.6
|
60.4
|
88.3
|
95.3
|
59.1
|
81.6
|
87.3
|
58.1
|
75.9
|
80.3
|
% of Present Law Payable Benefit
|
106.8
|
146.2
|
156.0
|
90.1
|
131.7
|
142.1
|
88.2
|
121.7
|
130.2
|
86.7
|
113.2
|
119.8
|
% of 2001 Real Benefit
|
138.3
|
189.4
|
202.0
|
116.6
|
170.5
|
184.0
|
116.2
|
160.4
|
171.5
|
122.7
|
160.3
|
169.7
|
* 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
|