Plan 3-V--2-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
$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
4.1
4.2
4.2
5.5
5.7
4.6
6.0
6.3
5.0
6.4
6.7
% 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
$739
$740
$1,199
$1,214
$1,217
$1,587
$1,608
$1,612
$1,895
$1,922
$1,927
% of Present Law
Scheduled Benefit
101.2
102.1
102.3
100.4
101.7
101.9
100.6
101.9
102.2
101.1
102.6
102.9
% of Present Law
Payable Benefit
101.2
102.1
102.3
100.4
101.7
101.9
100.6
101.9
102.2
101.1
102.6
102.9
% of 2001
Real Benefit
114.9
115.9
116.1
114.0
115.4
115.7
116.2
117.7
118.0
123.2
125.0
125.3
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
13.5
14.4
12.5
18.2
19.4
12.3
17.7
18.8
12.2
17.5
18.6
% 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
$838
$845
$1,214
$1,287
$1,302
$1,596
$1,688
$1,706
$1,901
$2,009
$2,031
% of Present Law
Scheduled Benefit
105.0
109.3
110.2
95.9
101.6
">102.8
95.4
100.9
102.0
93.9
99.2
100.3
% of Present Law
Payable Benefit
105.0
109.3
110.2
95.9
101.6
102.8
95.4
100.9
102.0
93.9
99.2
100.3
% of 2001
Real Benefit
126.5
131.6
132.6
115.5
122.3
123.7
116.9
123.5
124.9
123.6
130.6
132.0
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
27.4
29.7
22.6
36.8
40.0
21.6
34.9
37.9
21.0
33.8
36.6
% 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
$911
$930
$1,260
$1,451
$1,493
$1,649
$1,885
$1,938
$1,935
$2,211
$2,272
% of Present Law
Scheduled Benefit
101.5
112.1
114.4
93.8
108.1
111.2
93.0
106.3
109.2
90.0
102.8
105.6
% of Present Law
Payable Benefit
101.5
112.1
114.4
93.8
108.1
111.2
93.0
106.3
109.2
90.0
102.8
105.6
% of 2001
Real Benefit
129.6
143.1
146.1
119.8
137.9
142.0
120.7
138.0
141.9
125.8
143.7
147.7
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
42.9
47.5
31.9
57.8
64.0
31.1
56.5
62.6
30.7
55.8
61.8
% 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
$1,061
$1,102
$1,372
$1,755
$1,847
$1,808
$2,304
$2,423
$2,152
$2,745
$2,888
% of Present Law
Scheduled Benefit
99.2
118.4
123.0
92.8
118.7
124.9
92.6
118.0
124.1
91.0
116.1
122.1
% of Present Law
Payable Benefit
135.6
162.0
168.3
126.9
162.4
170.9
126.6
161.4
169.7
124.5
158.8
167.0
% of 2001
Real Benefit
139.4
166.5
173.0
130.4
166.9
175.6
132.4
168.7
177.4
139.9
178.5
187.8
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
49.8
55.7
35.3
67.1
74.9
35.3
67.9
76.0
35.8
69.4
77.7
% 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
$1,176
$1,233
$1,465
$1,983
$2,111
$1,939
$2,639
$2,813
$2,341
$3,215
$3,434
% of Present Law
Scheduled Benefit
95.6
119.2
125.1
90.0
121.8
129.7
90.1
122.7
130.8
89.9
123.5
131.8
% of Present Law
Payable Benefit
132.1
164.7
172.8
124.3
168.3
179.1
124.5
169.5
180.7
124.2
170.5
182.1
% of 2001
Real Benefit
148.0
184.6
193.6
139.3
188.5
200.7
141.9
193.2
206.0
152.2
209.1
223.3
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
48.5
54.2
34.1
65.2
72.9
34.1
66.0
74.0
34.6
67.4
75.7
% 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
$1,347
$1,417
$1,655
$2,288
$2,445
$2,194
$3,050
$3,263
$2,658
$3,726
$3,993
% of Present Law
Scheduled Benefit
86.3
109.4
115.1
81.5
112.6
120.3
81.7
113.6
121.6
81.8
114.6
122.9
% of Present Law
Payable Benefit
128.7
163.2
171.7
121.5
168.0
179.5
121.9
169.5
181.3
122.0
171.0
183.3
% of 2001
Real Benefit
166.7
211.4
222.4
157.3
217.5
232.4
160.6
223.3
238.9
172.8
242.3
259.6
* 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

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