Plan 3--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
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
|
$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
|
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**
|
3.1
|
3.5
|
3.5
|
4.2
|
4.7
|
4.8
|
4.6
|
5.2
|
5.2
|
5.0
|
5.5
|
5.6
|
% for Benefit Offset
|
-2.2
|
-2.2
|
-2.2
|
-2.9
|
-2.9
|
-2.9
|
-3.1
|
-3.1
|
-3.1
|
-2.6
|
-2.6
|
-2.6
|
Proposed Benefit
|
$732
|
$734
|
$735
|
$1,199
|
$1,205
|
$1,206
|
$1,587
|
$1,595
|
$1,596
|
$1,895
|
$1,905
|
$1,907
|
% of Present Law Scheduled Benefit
|
101.2
|
101.6
|
101.6
|
100.4
|
100.9
|
101.0
|
100.6
|
101.1
|
101.2
|
101.1
|
101.7
|
101.8
|
% of Present Law Payable Benefit
|
101.2
|
101.6
|
101.6
|
100.4
|
100.9
|
101.0
|
100.6
|
101.1
|
101.2
|
101.1
|
101.7
|
101.8
|
% of 2001 Real Benefit
|
114.9
|
115.3
|
115.4
|
114.0
|
114.6
|
114.6
|
116.2
|
116.8
|
116.9
|
123.2
|
123.9
|
124.0
|
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
|
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**
|
9.3
|
11.6
|
12.0
|
12.5
|
15.6
|
16.1
|
12.3
|
15.2
|
15.7
|
12.2
|
15.0
|
15.5
|
% for Benefit Offset
|
-6.4
|
-6.4
|
-6.4
|
-8.6
|
-8.6
|
-8.6
|
-7.6
|
-7.6
|
-7.6
|
-6.3
|
-6.3
|
-6.3
|
Proposed Benefit
|
$806
|
$823
|
$826
|
$1,214
|
$1,254
|
$1,261
|
$1,596
|
$1,646
|
$1,654
|
$1,901
|
$1,958
|
$1,968
|
% of Present Law Scheduled Benefit
|
105.0
|
107.4
|
107.8
|
95.9
|
99.1
|
99.6
|
95.4
|
98.4
|
98.8
|
93.9
|
96.8
|
97.2
|
% of Present Law Payable Benefit
|
105.0
|
107.4
|
107.8
|
95.9
|
99.1
|
99.6
|
95.4
|
98.4
|
98.8
|
93.9
|
96.8
|
97.2
|
% of 2001 Real Benefit
|
126.5
|
129.3
|
129.7
|
115.5
|
119.2
|
119.9
|
116.9
|
120.5
|
121.1
|
123.6
|
127.3
|
128.0
|
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
|
-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**
|
16.8
|
23.4
|
24.7
|
22.6
|
31.5
|
33.2
|
21.6
|
29.9
|
31.4
|
21.0
|
28.9
|
30.4
|
% for Benefit Offset
|
-11.4
|
-11.4
|
-11.4
|
-15.3
|
-15.3
|
-15.3
|
-13.1
|
-13.1
|
-13.1
|
-10.8
|
-10.8
|
-10.8
|
Proposed Benefit
|
$825
|
$879
|
$889
|
$1,260
|
$1,380
|
$1,402
|
$1,649
|
$1,796
|
$1,824
|
$1,935
|
$2,106
|
$2,138
|
% of Present Law Scheduled Benefit
|
101.5
|
108.1
|
109.4
|
93.8
|
102.8
|
104.4
|
93.0
|
101.3
|
102.8
|
90.0
|
97.9
|
99.4
|
% of Present Law Payable Benefit
|
101.5
|
108.1
|
109.4
|
93.8
|
102.8
|
104.4
|
93.0
|
101.3
|
102.8
|
90.0
|
97.9
|
99.4
|
% of 2001 Real Benefit
|
129.6
|
138.0
|
139.6
|
119.8
|
131.2
|
133.3
|
120.7
|
131.5
|
133.5
|
125.8
|
136.9
|
139.0
|
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
|
-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**
|
23.7
|
36.7
|
39.3
|
31.9
|
49.3
|
52.9
|
31.1
|
48.3
|
51.8
|
30.7
|
47.6
|
51.1
|
% for Benefit Offset
|
-15.9
|
-15.9
|
-15.9
|
-21.4
|
-21.4
|
-21.4
|
-18.9
|
-18.9
|
-18.9
|
-15.6
|
-15.6
|
-15.6
|
Proposed Benefit
|
$888
|
$1,004
|
$1,028
|
$1,372
|
$1,630
|
$1,684
|
$1,808
|
$2,143
|
$2,212
|
$2,152
|
$2,552
|
$2,636
|
% of Present Law Scheduled Benefit
|
99.2
|
112.1
|
114.8
|
92.8
|
110.3
|
113.9
|
92.6
|
109.7
|
113.3
|
91.0
|
107.9
|
111.4
|
% of Present Law Payable Benefit
|
135.6
|
153.4
|
157.1
|
126.9
|
150.8
|
155.8
|
126.6
|
150.1
|
154.9
|
124.5
|
147.6
|
152.4
|
% of 2001 Real Benefit
|
139.4
|
157.7
|
161.4
|
130.4
|
155.0
|
160.1
|
132.4
|
156.9
|
162.0
|
139.9
|
166.0
|
171.4
|
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
|
-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**
|
26.2
|
42.4
|
45.9
|
35.3
|
57.1
|
61.8
|
35.3
|
57.8
|
62.7
|
35.8
|
59.1
|
64.1
|
% for Benefit Offset
|
-17.5
|
-17.5
|
-17.5
|
-23.5
|
-23.5
|
-23.5
|
-21.6
|
-21.6
|
-21.6
|
-18.1
|
-18.1
|
-18.1
|
Proposed Benefit
|
$943
|
$1,103
|
$1,137
|
$1,465
|
$1,821
|
$1,897
|
$1,939
|
$2,423
|
$2,527
|
$2,341
|
$2,947
|
$3,079
|
% of Present Law Scheduled Benefit
|
95.6
|
111.9
|
115.3
|
90.0
|
111.9
|
116.6
|
90.1
|
112.6
|
117.5
|
89.9
|
113.2
|
118.2
|
% of Present Law Payable Benefit
|
132.1
|
154.5
|
159.3
|
124.3
|
154.5
|
161.0
|
124.5
|
155.6
|
162.3
|
124.2
|
156.3
|
163.3
|
% of 2001 Real Benefit
|
148.0
|
173.2
|
178.5
|
139.3
|
173.1
|
180.4
|
141.9
|
177.4
|
185.0
|
152.2
|
191.6
|
200.2
|
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
|
-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**
|
25.3
|
41.1
|
44.4
|
34.1
|
55.3
|
59.8
|
34.1
|
56.0
|
60.7
|
34.6
|
57.1
|
62.0
|
% for Benefit Offset
|
-16.9
|
-16.9
|
-16.9
|
-22.7
|
-22.7
|
-22.7
|
-20.9
|
-20.9
|
-20.9
|
-17.4
|
-17.4
|
-17.4
|
Proposed Benefit
|
$1,062
|
$1,255
|
$1,297
|
$1,655
|
$2,086
|
$2,178
|
$2,194
|
$2,779
|
$2,905
|
$2,658
|
$3,391
|
$3,550
|
% of Present Law Scheduled Benefit
|
86.3
|
102.0
|
105.4
|
81.5
|
102.7
|
107.2
|
81.7
|
103.5
|
108.2
|
81.8
|
104.3
|
109.2
|
% of Present Law Payable Benefit>
|
128.7
|
152.2
|
157.2
|
121.5
|
153.1
|
159.9
|
121.9
|
154.4
|
161.5
|
122.0
|
155.7
|
163.0
|
% of 2001 Real Benefit
|
166.7
|
197.1
|
203.6
|
157.3
|
198.3
|
207.0
|
160.6
|
203.5
|
212.7
|
172.8
|
220.5
|
230.8
|
* 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
|