Plan 3--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
Index PIAby 0.995% 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
|
0.2
|
0.2
|
0.2
|
-0.9
|
-0.9
|
-0.9
|
-1.0
|
-1.0
|
-1.0
|
-1.2
|
-1.2
|
-1.2
|
% for PA Annuity**
|
2.1
|
2.3
|
2.4
|
2.8
|
3.2
|
3.2
|
3.1
|
3.5
|
3.5
|
3.3
|
3.7
|
3.8
|
% for Benefit Offset
|
-1.5
|
-1.5
|
-1.5
|
-2.0
|
-2.0
|
-2.0
|
-2.1
|
-2.1
|
-2.1
|
-1.7
|
-1.7
|
-1.7
|
Proposed Benefit
|
$1,088
|
$1,090
|
$1,091
|
$1,781
|
$1,786
|
$1,787
|
$2,354
|
$2,362
|
$2,363
|
$2,804
|
$2,814
|
$2,815
|
% of Present Law Scheduled Benefit
|
100.9
|
101.1
|
101.2
|
100.0
|
100.3
|
100.4
|
100.1
|
100.4
|
100.5
|
100.4
|
100.8
|
100.8
|
% of Present Law Payable Benefit
|
100.9
|
101.1
|
101.2
|
100.0
|
100.3
|
100.4
|
100.1
|
100.4
|
100.5
|
100.4
|
100.8
|
100.8
|
% of 2001 Real Benefit
|
113.8
|
114.1
|
114.2
|
112.8
|
113.2
|
113.3
|
114.9
|
115.3
|
115.4
|
121.5
|
122.0
|
122.0
|
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
|
2.1
|
2.1
|
2.1
|
-8.0
|
-8.0
|
-8.0
|
-9.2
|
-9.2
|
-9.2
|
-11.9
|
-11.9
|
-11.9
|
% for PA Annuity**
|
6.2
|
7.8
|
8.1
|
8.4
|
10.5
|
10.9
|
8.2
|
10.2
|
10.6
|
8.2
|
10.1
|
10.4
|
% for Benefit Offset
|
-4.3
|
-4.3
|
-4.3
|
-5.8
|
-5.8
|
-5.8
|
-5.1
|
-5.1
|
-5.1
|
-4.3
|
-4.3
|
-4.3
|
Proposed Benefit
|
$1,186
|
$1,204
|
$1,207
|
$1,781
|
$1,820
|
$1,827
|
$2,335
|
$2,384
|
$2,392
|
$2,767
|
$2,825
|
$2,834
|
% of Present Law Scheduled Benefit
|
104.1
|
105.7
|
105.9
|
94.6
|
96.8
|
97.1
|
93.9
|
95.9
|
96.2
|
92.0
|
93.9
|
94.2
|
% of Present Law Payable Benefit
|
104.1
|
105.7
|
105.9
|
94.6
|
96.8
|
97.1
|
93.9
|
95.9
|
96.2
|
92.0
|
93.9
|
94.2
|
% of 2001 Real Benefit
|
124.2
|
126.0
|
126.3
|
112.9
|
115.4
|
115.8
|
114.0
|
116.4
|
116.8
|
120.0
|
122.5
|
122.9
|
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
|
-3.9
|
-3.9
|
-3.9
|
-13.5
|
-13.5
|
-13.5
|
-15.5
|
-15.5
|
-15.5
|
-20.2
|
-20.2
|
-20.2
|
% for PA Annuity**
|
11.3
|
15.8
|
16.7
|
15.3
|
21.3
|
22.4
|
14.6
|
20.2
|
21.2
|
14.2
|
19.5
|
20.5
|
% for Benefit Offset
|
-7.7
|
-7.7
|
-7.7
|
-10.3
|
-10.3
|
-10.3
|
-8.8
|
-8.8
|
-8.8
|
-7.3
|
-7.3
|
-7.3
|
Proposed Benefit
|
$1,201
|
$1,255
|
$1,265
|
$1,818
|
$1,938
|
$1,961
|
$2,369
|
$2,517
|
$2,544
|
$2,760
|
$2,931
|
$2,963
|
% of Present Law Scheduled Benefit
|
99.7
|
104.2
|
105.0
|
91.5
|
97.5
|
98.6
|
90.2
|
95.8
|
96.9
|
86.6
|
92.0
|
93.0
|
% of Present Law Payable Benefit
|
99.7
|
104.2
|
105.0
|
91.5
|
97.5
|
98.6
|
90.2
|
95.8
|
96.9
|
86.6
|
92.0
|
93.0
|
% of 2001 Real Benefit
|
125.7
|
131.3
|
132.4
|
115.2
|
122.8
|
124.3
|
115.6
|
122.8
|
124.2
|
119.6
|
127.0
|
128.4
|
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
|
-8.6
|
-8.6
|
-8.6
|
-17.7
|
-17.7
|
-17.7
|
-19.7
|
-19.7
|
-19.7
|
-24.1
|
-24.1
|
-24.1
|
% for PA Annuity**
|
16.0
|
24.8
|
26.6
|
21.5
|
33.3
|
35.8
|
21.0
|
32.6
|
35.0
|
20.7
|
32.2
|
34.5
|
% for Benefit Offset
|
-10.7
|
-10.7
|
-10.7
|
-14.4
|
-14.4
|
-14.4
|
-12.7
|
-12.7
|
-12.7
|
-10.5
|
-10.5
|
-10.5
|
Proposed Benefit
|
$1,282
|
$1,398
|
$1,422
|
$1,957
|
$2,215
|
$2,269
|
$2,563
|
$2,897
|
$2,967
|
$3,015
|
$3,415
|
$3,499
|
% of Present Law Scheduled Benefit
|
96.6
|
105.4
|
107.2
|
89.4
|
101.2
|
103.6
|
88.6
|
100.2
|
102.6
|
86.1
|
97.5
|
99.9
|
% of Present Law Payable Benefit<
|
132.2
|
144.2
|
146.6
|
122.3
|
138.4
|
141.8
|
121.2
|
137.0
|
140.3
|
117.8
|
133.4
|
136.6
|
% of 2001 Real Benefit
|
134.1
|
146.3
|
148.8
|
124.0
|
140.4
|
143.8
|
125.1
|
141.4
|
144.8
|
130.7
|
148.0
|
151.6
|
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
|
-13.1
|
-13.1
|
-13.1
|
-21.7
|
-21.7
|
-21.7
|
-23.6
|
-23.6
|
-23.6
|
-27.8
|
-27.8
|
-27.8
|
% for PA Annuity**
|
17.7
|
28.7
|
31.0
|
23.8
|
38.6
|
41.7
|
23.9
|
39.1
|
42.3
|
24.2
|
39.9
|
43.3
|
% for Benefit Offset
|
-11.8
|
-11.8
|
-11.8
|
-15.9
|
-15.9
|
-15.9
|
-14.6
|
-14.6
|
-14.6
|
-12.2
|
-12.2
|
-12.2
|
Proposed Benefit
|
$1,355
|
$1,515
|
$1,549
|
$2,078
|
$2,434
|
$2,510
|
$2,729
|
$3,213
|
$3,317
|
$3,245
|
$3,851
|
$3,983
|
% of Present Law Scheduled Benefit
|
92.8
|
103.8
|
106.1
|
86.2
|
101.0
|
104.1
|
85.7
|
100.9
|
104.2
|
84.1
|
99.9
|
103.3
|
% of Present Law Payable Benefit
|
128.2
|
143.3
|
146.6
|
119.1
|
139.5
|
143.8
|
118.3
|
139.3
|
143.9
|
116.2
|
137.9
|
142.7
|
% of 2001 Real Benefit
|
141.8
|
158.6
|
162.1
|
131.7
|
154.3
|
159.1
|
133.2
|
156.8
|
161.9
|
140.7
|
166.9
|
172.7
|
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
|
-22.2
|
-22.2
|
-22.2
|
-29.9
|
-29.9
|
-29.9
|
-31.6
|
-31.6
|
-31.6
|
-35.4
|
-35.4
|
-35.4
|
% for PA Annuity**
|
17.1
|
27.7
|
30.0
|
23.0
|
37.3
|
40.4
|
23.1
|
37.8
|
41.0
|
23.3
|
38.6
|
41.9
|
% for Benefit Offset
|
-11.4
|
-11.4
|
-11.4
|
-15.3
|
-15.3
|
-15.3
|
-14.1
|
-14.1
|
-14.1
|
-11.8
|
-11.8
|
-11.8
|
Proposed Benefit
|
$1,522
|
$1,716
|
$1,757
|
$2,340
|
$2,771
|
$2,863
|
$3,077
|
$3,662
|
$3,789
|
$3,668
|
$4,401
|
$4,561
|
% of Present Law Scheduled Benefit
|
83.5
|
94.2
|
96.4
|
77.8
|
92.1
|
95.1
|
77.4
|
92.1
|
95.3
|
76.2
|
91.5
|
94.8
|
% of Present Law Payable Benefit
|
124.6
|
140.5
|
143.8
|
116.0
|
137.4
|
141.9
|
115.5
|
137.4
|
142.2
|
113.7
|
136.4
|
141.4
|
% of 2001 Real Benefit
|
159.3
|
179.6
|
183.9
|
148.3
|
175.6
|
181.4
|
150.2
|
178.7
|
184.9
|
159.0
|
190.8
|
197.7
|
* 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
|