Plan 3-V--1-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets With a Variable Annuity Invested as Before Retirement
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
|
2.7
|
2.8
|
2.8
|
3.7
|
3.8
|
3.1
|
4.0
|
4.2
|
3.3
|
4.3
|
4.5
|
% 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
|
$1,094
|
$1,096
|
$1,781
|
$1,796
|
$1,798
|
$2,354
|
$2,375
|
$2,380
|
$2,804
|
$2,831
|
$2,836
|
% of Present Law Scheduled Benefit
|
100.9
|
101.5
|
101.6
|
100.0
|
100.9
|
101.0
|
100.1
|
101.0
|
101.1
|
100.4
|
101.4
|
101.5
|
% of Present Law Payable Benefit
|
100.9
|
101.5
|
101.6
|
100.0
|
100.9
|
101.0
|
100.1
|
101.0
|
101.1
|
100.4
|
101.4
|
101.5
|
% of 2001 Real Benefit
|
113.8
|
114.5
|
114.7
|
112.8
|
113.8
|
114.0
|
114.9
|
115.9
|
116.1
|
121.5
|
122.7
|
122.9
|
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
|
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
|
9.1
|
9.7
|
8.4
|
12.2
|
13.0
|
8.2
|
11.9
|
12.7
|
8.2
|
11.8
|
12.5
|
% 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
|
$1,219
|
$1,225
|
$1,781
|
$1,853
|
$1,868
|
$2,335
|
$2,426
|
$2,445
|
$2,767
|
$2,875
|
$2,897
|
% of Present Law Scheduled Benefit
|
104.1
|
106.9
|
107.5
|
94.6
|
98.5
|
99.3
|
93.9
|
97.6
|
98.3
|
92.0
|
95.6
|
96.3
|
% of Present Law Payable Benefit
|
104.1
|
106.9
|
107.5
|
94.6
|
98.5
|
99.3
|
93.9
|
97.6
|
98.3
|
92.0
|
95.6
|
96.3
|
% of 2001 Real Benefit
|
124.2
|
127.6
|
128.3
|
112.9
|
117.4
|
118.4
|
114.0
|
118.4
|
119.3
|
120.0
|
124.6
|
125.6
|
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
|
18.5
|
20.1
|
15.3
|
24.9
|
27.0
|
14.6
|
23.6
|
25.6
|
14.2
|
22.8
|
24.7
|
% 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
|
$1,287
|
$1,306
|
$1,818
|
$2,010
|
$2,052
|
$2,369
|
$2,606
|
$2,658
|
$2,760
|
$3,036
|
$3,097
|
% of Present Law Scheduled Benefit
|
99.7
|
106.9
|
108.5
|
91.5
|
101.1
|
103.2
|
90.2
|
99.2
|
101.2
|
86.6
|
95.3
|
97.2
|
% of Present Law Payable Benefit
|
99.7
|
106.9
|
108.5
|
91.5
|
101.1
|
103.2
|
90.2
|
99.2
|
101.2
|
86.6
|
95.3
|
97.2
|
% of 2001 Real Benefit
|
125.7
|
134.7
|
136.7
|
115.2
|
127.4
|
130.1
|
115.6
|
127.2
|
129.7
|
119.6
|
131.6
|
134.2
|
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
|
29.0
|
32.1
|
21.5
|
39.0
|
43.2
|
21.0
|
38.2
|
42.3
|
20.7
|
37.7
|
41.7
|
% 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
|
$1,454
|
$1,495
|
$1,957
|
$2,340
|
$2,432
|
$2,563
|
$3,059
|
$3,178
|
$3,015
|
$3,608
|
$3,751
|
% of Present Law Scheduled Benefit
|
96.6
|
109.6
|
112.7
|
89.4
|
106.9
|
111.1
|
88.6
|
105.8
|
109.9
|
86.1
|
103.0
|
107.1
|
% of Present Law Payable Benefit
|
132.2
|
150.0
|
154.2
|
122.3
|
146.2
|
152.0
|
121.2
|
144.6
|
150.3
|
117.8
|
140.9
|
146.5
|
% of 2001 Real Benefit
|
134.1
|
152.2
|
156.5
|
124.0
|
148.3
|
154.1
|
125.1
|
149.3
|
155.1
|
130.7
|
156.4
|
162.6
|
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
|
33.6
|
37.6
|
23.8
|
45.3
|
50.6
|
23.9
|
45.9
|
51.3
|
24.2
|
46.8
|
52.5
|
% 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
|
$1,588
|
$1,645
|
$2,078
|
$2,596
|
$2,724
|
$2,729
|
$3,430
|
$3,604
|
$3,245
|
$4,119
|
$4,337
|
% of Present Law Scheduled Benefit
|
92.8
|
108.7
|
112.7
|
86.2
|
107.7
|
113.0
|
85.7
|
107.7
|
113.1
|
84.1
|
106.8
|
112.5
|
% of Present Law Payable Benefit
|
128.2
|
150.2
|
155.6
|
119.1
|
148.8
|
156.1
|
118.3
|
148.7
|
156.3
|
116.2
|
147.5
|
155.4
|
% of 2001 Real Benefit
|
141.8
|
166.2
|
172.2
|
131.7
|
164.5
|
172.6
|
133.2
|
167.4
|
175.9
|
140.7
|
178.5
|
188.0
|
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
|
32.7
|
36.6
|
23.0
|
44.0
|
49.2
|
23.1
|
44.6
|
50.0
|
23.3
|
45.5
|
51.1
|
% 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
|
$1,807
|
$1,878
|
$2,340
|
$2,973
|
$3,129
|
$3,077
|
$3,933
|
$4,146
|
$3,668
|
$4,736
|
$5,003
|
% of Present Law Scheduled Benefit
|
83.5
|
99.2
|
103.0
|
77.8
|
98.8
|
104.0
|
77.4
|
98.9
|
104.3
|
76.2
|
98.4
|
104.0
|
% of Present Law Payable Benefit
|
124.6
|
147.9
|
153.7
|
116.0
|
147.4
|
155.2
|
115.5
|
147.6
|
155.6
|
113.7
|
146.8
|
155.1
|
% of 2001 Real Benefit
|
159.3
|
189.1
|
196.5
|
148.3
|
188.4
|
198.3
|
150.2
|
192.0
|
202.4
|
159.0
|
205.3
|
216.9
|
* 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
|