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
|