Office of the Chief Actuary 

Social Security AdministraƟon 

 Based on the 2023 Trustees Report Intermediate AssumpƟons 

These provisions modify the formula used for calculaƟng the basic Social Security 

monthly benefit called the Primary Insurance Amount (PIA). For each provision, we 

provide an esƟmate of the financial effect on the OASDI program over the long-range 

period (the next 75 years) and for the 75th year. We base all esƟmates on the 

intermediate assumpƟons described in the 2023 Trustees Report. 

We group these provisions as follows: 

 B1: PIA bend point and factor changes, adjusƟng for inflaƟon.

These provisions reduce benefits for some future beneficiaries.

Future PIA bend points and formula factors change so that the growth 

in benefits from one cohort to the next reflect some degree of 

inflaƟon, rather than growth in average wages as specified in current 

law. 

 B2: PIA bend point and factor changes, adjusƟng for longevity

These provisions reduce benefits for some future beneficiaries.

Future PIA formula factors decrease as a result of increased longevity 

(people living longer). 

 B3: PIA bend point and factor changes, other adjustments.

These provisions specify other changes in future PIA bend points and

formula factors. 

 B4: ComputaƟon year changes.

These provisions specify changes to the number of years used in

determining benefits. 

 B5: Minimum benefits.

These provisions provide an increase in benefits to targeted

individuals, generally those with low earnings and full work careers. 

 B6: Benefit increases for older beneficiaries.

These provisions provide an increase in benefits for beneficiaries who

have been on the rolls for at least 20 years. 

 B7: Other benefit adjustments.

B Provisions AffecƟng Level of Monthly Benefits
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B1.1 2.87 7.51 80% 173%

B1.2 1.58 4.16 44% 96%

B1.3 1.35 3.55 37% 82%

B1.4 1.11 2.79 31% 64%

B1.5 0.84 1.89 23% 44%

B2.1 0.57 1.68 16% 39%

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Category B: Level of Monthly Benefits (2023 Trustees Report intermediate assumptions)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Price indexing of PIA factors beginning with those newly eligible for 

OASDI benefits in 2030: Reduce factors so that initial benefits grow by 

inflation rather than by the SSA average wage index.

Progressive price indexing (30th percentile) of PIA factors beginning 

with individuals newly eligible for OASDI benefits in 2030: Create a new 

bend point at the 30th percentile of the AIME distribution of newly 

retired workers. Maintain current-law benefits for earners at the 30th 

percentile and below. Reduce the 32 and 15 percent factors above the 

30th percentile such that the initial benefit for a worker with AIME equal 

to the taxable maximum grows by inflation rather than the growth in the 

SSA average wage index.

Progressive price indexing (40th percentile) of PIA factors beginning 

with individuals newly eligible for OASDI benefits in 2030: Create a new 

bend point at the 40th percentile of the AIME distribution of newly 

retired workers. Maintain current-law benefits for earners at the 40th 

percentile and below. Reduce the 32 and 15 percent factors above the 

40th percentile such that the initial benefit for a worker with AIME equal 

to the taxable maximum grows by inflation rather than the growth in the 

SSA average wage index.

Progressive price indexing (50th percentile) of PIA factors beginning 

with individuals newly eligible for OASDI benefits in 2030: Create a new 

bend point at the 50th percentile of the AIME distribution of newly 

retired workers. Maintain current-law benefits for earners at the 50th 

percentile and below. Reduce the 32 and 15 percent factors above the 

50th percentile such that the initial benefit for a worker with AIME equal 

to the taxable maximum grows by inflation rather than the growth in the 

SSA average wage index.

Progressive price indexing (60th percentile) of PIA factors beginning 

with individuals newly eligible for OASDI benefits in 2030: Create a new 

bend point at the 60th percentile of the AIME distribution of newly 

retired workers. Maintain current-law benefits for earners at the 60th 

percentile and below. Reduce the 32 and 15 percent factors above the 

60th percentile such that the initial benefit for a worker with AIME equal 

to the taxable maximum grows by inflation rather than the growth in the 

SSA average wage index.

Beginning with those newly eligible for OASI benefits in 2033, multiply the 

PIA factors by the ratio of life expectancy at 67 for 2028 to the life 

expectancy at age 67 for the 4th year prior to the year of benefit 

eligibility. Unisex life expectancies, based on period life tables as 

computed by SSA's Office of the Chief Actuary, are used to determine the 

ratio. Disabled workers are: (a) not affected prior to normal retirement 

age; and (b) subject to a proportional reduction in benefits, based on the 

worker's years of disability, upon conversion to retired-worker beneficiary 

status.

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B3.8 1.01 2.35 28% 54%

B3.9 0.10 0.27 3% 6%

B3.10 -0.39 -0.69 -11% -16%

B3.11 -0.25 -0.26 -7% -6%

B3.12 0.20 0.31 6% 7%

B3.13 0.10 0.20 3% 5%

B3.14 0.37 0.55 10% 13%

B3.15 -0.29 -0.43 -8% -10%

Increase the first PIA factor from 90 percent to 93 percent for all 

beneficiaries eligible as of January 2025 and for those newly eligible for 

benefits after 2024.

Use an annualized mini-PIA formula beginning with retired workers newly 

eligible in 2030. For each indexed earnings year, compute an individual 

AIME and an individual PIA. Sum these individual PIAs for the 40 highest 

years of indexed earnings and divide that total amount by 37 to get the 

PIA for this provision. Phase-in over five years, meaning that in 2030, 80 

percent of the benefit would be based on the old 35-year average PIA 

formula and 20 percent on the new mini-PIA formula, shifting by 20 

percentage points each year until 100 percent is based on the new miniPIA formula for those attaining age 62 in 2034. Disabled worker benefits 

are unchanged under this provision.

For retired worker beneficiaries newly eligible in 2030 (excluding disabled 

workers), add a new bend point at the wage-indexed equivalent of the 

50th percentile of the AIME distribution minus $100 (for 2015 eligibility) 

and change the PIA factors to 95/32/15/5. Also move the current-law first 

bend point from the wage-indexed equivalent of $1,115 in 2023 to 

$1,417 in 2023. Phase this provision in over 10 years (2030-2039). The 

phase-in would work on a weighted-average basis: 90% of CL formula + 

10% of proposal formula for 2030, 80% of CL formula + 20% of proposal 

formula for 2031, and so on.

Beginning with those newly eligible for OASDI benefits in 2025, reduce 

the 15 percent PIA factor by 2 percentage points per year so that it 

reaches 5 percent for those newly eligible in 2029 and later.

Increase the 90 percent PIA formula factor to 91 percent for beneficiaries 

newly eligible in 2028, 92 percent for those newly eligible in 2029, ..., 

reaching 95 percent for those newly eligible in 2032 and later.

Beginning with those newly eligible for OASDI benefits in 2030, create a 

new bend point at the 50th percentile of the AIME distribution of newly 

retired workers and gradually reduce all PIA factors except for the 90 

percent factor. By 2063: a) the 32 percent PIA factor below the new bend 

point reduces to 30 percent; b) the 32 percent PIA factor above the new 

bend point reduces to 10 percent; and c) the 15 percent PIA factor 

reduces to 5 percent.

Beginning with those newly eligible for OASDI benefits in 2036, gradually 

reduce the 15 percent PIA factor in each year so that it reaches 10 

percent for those newly eligible in 2065 and later.

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Beginning with those newly eligible for OASDI benefits in 2030, gradually 

increase the first PIA bend point in each year so that it is 15 percent 

higher for those newly eligible in 2044 and later.

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B3.16 1.00 1.72 28% 40%

B3.17 -1.49 -1.54 -41% -35%

B4.1 0.27 0.37 8% 9%

B4.2 0.45 0.63 12% 15%

B4.3 0.59 0.87 16% 20%

B4.4 -0.06 -0.06 -2% -1%

B4.5 0.36 0.50 10% 11%

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

For retired and disabled workers, reduce the maximum number of 

dropout years to 4 for workers newly eligible in 2025, to 3 for workers 

newly eligible in 2026, and to 2 for workers newly eligible in 2027 and 

later.

For retired worker and disabled worker beneficiaries becoming initially 

eligible in January 2030 or later, phase in a new benefit formula (from 

2030 to 2039). Replace the existing two primary insurance amount (PIA) 

bend points with three new bend points as follows: (1) 25% AWI/12 from 

2 years prior to initial eligibility; (2) 100% AWI/12 from 2 years prior to 

initial eligibility; and (3) 125% AWI/12 from 2 years prior to initial 

eligibility. The new PIA factors are 95%, 27.5%, 5% and 2%. During the 

phase in, those becoming newly eligible for benefits will receive an 

increasing portion of their benefits based on the new formula, reaching 

100% of the new formula in 2039.

Increase the current-law first bend point by 22 percent and increase the 

90 percent PIA factor to 95 percent for all beneficiaries eligible for 

benefits as of January 2024 and for those newly eligible for benefits after 

2023. This provision will result in an approximate $257 increase in PIA for 

most workers newly eligible for retirement or disability benefits in 2024.

Increase the number of years used to calculate benefits for retirees and 

survivors (but not for disabled workers) from 35 to 38, phased in over the 

years 2024-2028.

Increase the number of years used to calculate benefits for retirees and 

survivors (but not for disabled workers) from 35 to 40, phased in over the 

years 2024-2032.

For the OASI and DI computation of the PIA, gradually reduce the 

maximum number of drop-out years from 5 to 0, phased in over the years 

2025-2033.

Reduce the number of computation years (increase dropout years) for 

parents having a child in care under the age of 6. The parent must have 

no earnings (covered or non-covered) for the year to be eligible for the 

credit. Only one parent can claim the childcare added dropout year for a 

given earnings year. Each parent can earn at most 2 dropout years per 

child, and a maximum of 5 dropout years in total. The years designated as 

childcare years do not have to be the years that could otherwise be 

included in the computation of the average indexed monthly earnings 

(AIME). The provision would be effective for all benefits payable for 

entitlement in January 2025 and later (without regard for when the 

beneficiary became initially eligible).

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B5.1 -0.00 -0.00 -0% -0%

B5.2 -0.17 -0.24 -5% -6%

B5.3 -0.25 -0.34 -7% -8%

B5.4 -0.13 -0.20 -3% -5%

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Increase the PIA to a level such that a worker with 30 years of earnings at 

the minimum wage level receives an adjusted PIA equal to 120 percent of 

the Federal poverty level for an aged individual. This provision takes full 

effect for all newly eligible OASDI workers in 2041, and is phased in for 

new eligibles in 2032 through 2040. The percentage increase in PIA is 

lowered proportionately for those with fewer than 30 years of earnings, 

down to no enhancement for workers with 20 or fewer years of earnings. 

(Year-of-work requirements are scaled for disabled workers based on 

their years of potential work from age 22 to benefit eligibility). The 

benefit enhancement percentage is reduced proportionately for workers 

with higher average indexed monthly earnings (AIME), down to no 

enhancement for those with AIME at least twice that of a 35-year steady 

minimum wage earner.

Beginning for those newly eligible in 2024, reconfigure the special 

minimum benefit: (a) A year of coverage is defined as a year in which 4 

quarters of coverage are earned. (b) At implementation, set the PIA for 30 

years of coverage equal to 125 percent of the monthly poverty level 

(about $1,416 in 2022). For those with under 30 years of coverage, the 

PIA per year of coverage over 10 years is $1,416/20 = $70.80. (c) Index 

the initial PIA per year of coverage by wage growth for successive cohorts.

Beginning for those newly eligible in 2024, reconfigure the special 

minimum benefit: (a) A year of coverage is defined to be either a year in 

which 4 quarters of coverage are earned or a child is in care. Childcare 

years are granted to parents who have a child under 5, with a limit of 8 

such years. (b) At implementation, set the PIA for 30 years of coverage 

equal to 125 percent of the monthly poverty level (about $1,416 in 2022). 

For those with under 30 years of coverage, the PIA per year of coverage 

over 10 years is $1,416/20 = $70.80. (c) Index the initial PIA per year of 

coverage by wage growth for successive cohorts.

Beginning for those newly eligible in 2030, reconfigure the special 

minimum benefit: (a) A year of coverage is defined as a year in which 4 

quarters of coverage are earned. (b) At implementation, set the PIA for 30 

years of coverage equal to 125 percent of the monthly poverty level 

(about $1,416 in 2022). For those with under 30 years of coverage, the 

PIA per year of coverage over 10 years is $1,416/20 = $70.80. (c) From 

2022 to the year of implementation, 2030, index the PIA per year of 

coverage using the chain-CPI index. Then, for later years, index the PIA 

per year of coverage by wage growth for successive cohorts. (d) Scale 

work requirements for disabled workers, based on the number of years of 

non-disabled potential work.

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B5.5 -0.00 -0.01 -0% -0%

B5.6 -0.09 -0.13 -3% -3%

B5.7 -0.02 -0.01 -1% -0%

Beginning for those newly eligible in 2025, reconfigure the special 

minimum benefit: (a) A year of coverage is defined as a year in which 

either 20 percent of the old law maximum is earned or a child is in care. 

Childcare years are granted to parents who have a child under 6, with a 

limit of 8 such years. (b) At implementation, set the PIA for 30 years of 

coverage equal to 133 percent of the Census monthly poverty level 

(about $1,556 in 2022). For those with under 30 years of coverage, the 

PIA per year of coverage over 19 years is $1,556/11 = $141.40. (c) Index 

the initial PIA per year of coverage by wage growth for successive cohorts. 

(d) Scale work requirements for disabled workers, based on the number 

of years of non-disabled potential work.

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Beginning for those newly eligible in 2024, reconfigure the special 

minimum benefit: (a) A year of coverage is defined to be either a year in 

which 4 quarters of coverage are earned or a child is in care. Childcare 

years are granted to parents who have a child under 6, with a limit of 5 

such years. (b) At implementation, set the PIA for 30 years of coverage 

equal to 100 percent of the monthly poverty level (about $1,215 in 2023). 

For those with under 30 years of coverage, the PIA per year of coverage 

over 10 years is $1,215/20 = $60.75. (c) From 2023 to the year of 

implementation, 2024, index the PIA per year of coverage using the CPI 

index. Then, for later years, index the PIA per year of coverage by wage 

growth for successive cohorts. (d) Scale work requirements for disabled 

workers, based on the number of years of non-disabled potential work.

Beginning for those newly eligible in 2026, reconfigure the special 

minimum benefit: (a) The number of years of work (YOWs) is determined 

as total quarters of coverage divided by 4, ignoring any fraction. Childcare 

years are granted to parents who have a child under 6, with a limit of 5 

such years. (b) At implementation, set the PIA for 30+ YOWs equal to 100 

percent of the monthly HHS poverty level for the year prior to eligibility. 

For workers between 11 and 29 YOWs, reduce the special minimum by 3 

1/3 percentage points per YOW so that at 29 YOWs the minimum would 

be 96 2/3% of poverty, ..., down to 11 YOWs at 36 2/3% of poverty. No 

minimum for 10 or fewer YOWs.

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B5.8 -0.21 -0.24 -6% -6%

B5.9 -0.23 -0.36 -6% -8%

Beginning in 2028, create a Basic Minimum Benefit (BMB) within Social 

Security (i.e., the cost of the BMB would be charged as a cost to the OASI 

Trust Fund), with the following specifications: (1) Eligibility for the BMB 

would be limited to OASI beneficiaries who have attained normal 

retirement age (NRA) or above. OASI beneficiaries under NRA would not 

be eligible for the BMB. (2) The BMB would be calculated on a household 

basis and split equally between members of the household. In the case of 

a married couple, both spouses would need to claim any Social Security 

benefits for which they are eligible before they could receive the BMB. If 

both spouses have claimed and one is NRA or above and the other has 

not yet attained NRA, only the half of the BMB for the spouse over NRA 

would be payable. (3) The BMB amount for single beneficiaries would be 

equal to either: 1) the BMB base ($604 in 2015) - 0.70 * current monthly 

OASI benefit (not including any BMB), if positive; or 2) zero. (4) The BMB 

amount for married beneficiaries would be equal to either: 1) the BMB 

base ($906 in 2015) - 0.70 * total household monthly OASI benefits (not 

including any BMB), if positive; or 2) zero. (5) The BMB bases for singles 

and couples would be updated annually for changes in the average wage 

index (AWI). (6) Single filers with Adjusted Gross Income (AGI) over 

$30,000 and joint filers with AGI (including taxable SS benefits) over 

$45,000 would be subject to clawback of the BMB through the income tax 

system. Any BMB would be reduced by one dollar for every dollar of 

income above the thresholds. (Thresholds, in 2015 dollars, would be 

indexed to chained CPI-U.) Clawbacks would be credited back to the OASI 

Trust Fund.

Beginning for those newly eligible in 2025, reconfigure the special 

minimum benefit: (a) A year of coverage is defined as a year in which 4 

quarters of coverage are earned. (b) At implementation, set the PIA for 40 

years of coverage equal to 125 percent of the monthly Aged Federal 

poverty level (about $1,462 in 2022). For those with 20 or fewer years of 

coverage, phase up linearly from 0 percent of the poverty level for 10 

years of coverage to 100 percent of the poverty level. For those having 

between 20 and 40 years of coverage, phase up linearly from 100 percent 

of the poverty level at 20 years of coverage to 125% of the poverty level 

for 40 or more years of coverage. (c) For newly eligible workers in 2025 

and 2026, index the applicable poverty level using the CPI index, to the 

year prior to eligibility. Then, for newly eligible workers in 2027 and later, 

index the PIA per year of coverage by wage growth for successive cohorts. 

(d) Disabled workers have a somewhat similar minimum benefit, with 

work requirements scaled based on the number of years of non-disabled 

potential work.

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B5.10 -0.37 -0.63 -10% -14%

B5.11 -0.10 -0.14 -3% -3%

B6.1 -0.13 -0.17 -4% -4%

B6.2 -0.13 -0.17 -4% -4%

B6.3 -0.16 -0.20 -4% -5%

Provide a 5 percent increase to the monthly benefit amount (MBA) of any 

beneficiary who is 85 or older at the beginning of 2024 or who reaches 

their 85th birthday after the beginning of 2024.

Provide the same dollar amount increase to the monthly benefit amount 

(MBA) of any beneficiary who is 85 or older at the beginning of 2024 or 

who reaches their 85th birthday after the beginning of 2024. The dollar 

amount of increase equals 5 percent of the average retired-worker MBA 

in the prior year.

Provide an increase in the benefit level of any beneficiary who is 85 or 

older at the beginning of 2025 or who reaches their 85th birthday after 

the beginning of 2025. Increase the beneficiary's PIA based on an amount 

equal to the average retired-worker PIA at the end of 2024, or at the end 

of the year age 80 if later. Increase the beneficiary's PIA by 5 percent of 

this amount for those older than 85 at the beginning of 2025 and by 5 

percent of this amount at age 85 for others, phased in at 1 percent per 

year for ages 81-85.

Reconfigure the special minimum benefit, phased in for retired and 

disabled workers newly eligible from 2030 through 2039: (a) A year of 

work (YOW) coverage is equal to earnings at or above $10,875 in 2023 

(reflecting a full-time worker earning the federal minimum wage), 

adjusted thereafter for wage growth. (b) At implementation, set the 

minimum PIA at zero percent of AWI for those with 10 or fewer YOWs to 

15 percent of AWI for those with 15 YOWs, increasing linearly so that it 

reaches 19 percent for 19 YOWs. Then the minimum PIA would jump up 

to 25 percent of AWI for those with 20 YOWs, increasing linearly so that it 

equals 35 percent of AWI for those with 35 or more YOWs. (c) Use the 

AWI for two years prior to the year of initial eligibility in the minimum PIA 

calculation with COLA increase after the year of initial eligibility. (d) Scale 

the YOW requirements for disabled workers, based on the number of 

years of non-disabled potential work.

Beginning for those newly eligible in 2024, reconfigure the special 

minimum benefit: (a) The number of years of work (YOWs) is determined 

as total quarters of coverage divided by 4, ignoring any fraction. Childcare 

years are granted to parents who have a child under 6, with a limit of 5 

such years. (b) For beneficiaries becoming newly eligible in 2024, set the 

initial special minimum benefit for 30+ YOWs equal to 100 percent of the 

monthly HHS poverty level for 2023. For beneficiaries becoming newly 

eligible after 2024, the initial special minimum benefit is indexed by the 

AWI. For workers between 11 and 29 YOWs, reduce the special minimum 

by 3 1/3 percentage points per YOW so that at 29 YOWs the minimum 

would be 96 2/3% of poverty, ..., down to 11 YOWs at 36 2/3% of poverty. 

No minimum for 10 or fewer YOWs.

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B6.4 -0.18 -0.23 -5% -5%

B6.5 -0.27 -0.33 -8% -8%

B6.6 -0.23 -0.31 -6% -7%

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Starting in 2024, provide a 5 percent uniform benefit increase 24 years 

after initial benefit eligibility. Phase in the benefit increase at 1 percent 

per year from the 20th through 24th years after eligibility. For disabled 

workers, the eligibility age is the initial entitlement year to the benefit. 

The benefit increase is equal to 5 percent of the PIA of a worker assumed 

to have career-average earnings equal to SSA's average wage index. 

Auxiliary beneficiaries receive benefit enhancement based on the PIA of 

the governing worker.

Starting in 2026, provide a 5 percent uniform PIA increase 20 years after 

benefit eligibility. Phase in the PIA increase at 1 percent per year from the 

16th through 20th years after eligibility. The full PIA increase is equal to 5 

percent of the PIA of a worker assumed to have career-average earnings 

equal to the SSA average wage index. Auxiliary beneficiaries receive 

benefit enhancement based on the PIA of the governing worker.

Starting in 2030, provide a uniform PIA increase in the 24th year of 

benefit eligibility. Phase in the PIA increase at 0.5 percent per year from 

the 15th through the 24th years of eligibility. The full PIA increase is equal 

to 5 percent of the average retired worker PIA in December of the 14th 

year of benefit eligibility. A similar additional PIA increase applies in the 

43rd year of benefit eligibility (age 104), phased in from the 34th through 

the 43rd years of eligibility. For those past the 15th year of eligibility in 

2029 (over age 76 for retirees), phase in the PIA enhancement over 10 

years starting in 2030. Auxiliary beneficiaries receive benefit 

enhancement based on the PIA of the governing worker.

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B6.7 -0.06 -0.08 -2% -2%

B6.8 -0.29 -0.36 -8% -8%

B7.2 0.63 0.84 17% 19%

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Starting in January 2030, provide an addition to monthly benefits for all 

beneficiaries who have been eligible for at least 20 years, with the 

following specifications: (1) Augment benefits (not the PIA) for those of 

qualifying age and eligibility duration with a MAGI below about $29,400 if 

single and $58,800 if married. MAGI is set to equal the IRMAA definition 

(AGI plus tax-exempt interest income). Index these thresholds after 2030 

by the increase in the C-CPI-U; (2) The full additional amount is applicable 

for those born 1963 and later, once 24 years elapse from initial eligibility. 

The basic additional amount is calculated as 5 percent of the PIA for a 

hypothetical worker with earnings equal to the AWI each year; (3) For 

those born prior to 1963, the full additional amount is multiplied by the 

number of years they have been affected by the C-CPI-U, divided by 24; 

(4) Beneficiaries will receive 20 percent of their additional amount in their 

20th year after initial eligibility, 40 percent in their 21st year after initial 

eligibility,..., and 100 percent of their additional amount in their 24th and 

later years after benefit eligibility; (5) Retired and disabled worker 

beneficiaries, dually entitled spouse beneficiaries, and all survivor 

beneficiaries received their addition as described above. Spousal 

beneficiaries (aged or with child in care) and child beneficiaries of a living 

retired or disabled worker receive 50 percent of the additional amount 

described above. Other beneficiary types (such as parents of deceased 

workers) will receive the percentage of the flat benefit that equals the 

percentage of the insured worker's PIA that they receive; (6) The AWI 

used is for the second year prior to the beneficiary's initial eligibility year, 

with applicable COLAs applied up to the age when the addition is 

received; and (7) The additional amount is added to the monthly benefit 

after reductions for early claiming or increases for delayed claiming have 

been applied.

Starting in 2025, provide an additional monthly benefit equal to 1/12th of 

2 percent of the AWI for the second prior year. This additional benefit 

would be available to those meeting any of the following four 

requirements: (a) Social Security beneficiaries who have attained age 82; 

(b) Social Security beneficiaries who have attained NRA and have both 

AIME at or below the first PIA bend point ($1,115 for 2023 initial 

eligibility) and at least 11 years of coverage as used for Windfall 

Elimination Provision purposes (earnings above $29,700 for 2023); (c) 

Individuals who have received Social Security benefits and/or SSI 

payments for at least 240 distinct months after attaining age 19; or (d) SSI 

recipients who have attained the Social Security NRA. This additional 

benefit would be paid out of the applicable Social Security OASI or DI 

Trust Fund for any month in which the individual is in receipt of a Social 

Security benefit; it would be paid out of the General Fund of the Treasury 

for any month in which the individual is in receipt of an SSI monthly 

payment but not a Social Security monthly benefit.

Reduce benefits by 5 percent for those newly eligible for benefits in 2024 

and later.

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B7.3 -0.23 -0.31 -6% -7%

B7.5 -0.81 -0.83 -22% -19%

B7.7 0.54 0.73 15% 17%

B7.8 0.08 0.12 2% 3%

B7.9 -0.00 -0.27 -0% -6%

B7.10 0.05 0.08 1% 2%

B7.11 0.02 0.12 1% 3%

B7.12 -0.00 0.00 -0% 0%

B7.13 -0.10 -0.11 -3% -3%

Category B: Level of Monthly Benefits (continued)

Replace the Windfall Elimination Provision (WEP) and Government 

Pension Offset (GPO) with a revised reduction for most OASI benefits 

based on all earnings, beginning with beneficiaries newly eligible in 2030.

Beginning for newly eligible retired workers and spouses in 2030, all 

claimants who are married would receive a specified joint-and-survivor 

annuity benefit (i.e., surviving spouses would receive 75 percent of the 

decedents' benefits, in addition to their own) that would be payable if 

both were still alive. Initial benefits would be actuarially adjusted to keep 

the expected value of benefits equivalent to what would otherwise be 

current law.

Replace the current-law WEP with a new calculation for most OASI and DI 

benefits based on covered and non-covered earnings, phased in for 

beneficiaries becoming newly eligible in 2030 through 2039. For this new 

approach, compute a PIA based on all past earnings (covered and noncovered), and multiply by the non-covered earnings ratio. This ratio is 

equal to the current-law concept of the average indexed monthly 

earnings computed without non-covered earnings divided by a modified 

average indexed monthly earnings that includes both covered and noncovered earnings in agency records.

Beginning in January 2026, eliminate the retirement earnings test for all 

beneficiaries under normal retirement age, including retired workers, 

aged spouses, aged widow(er)s, young spouses with a child in care, young 

surviving spouses with a child in care, and children.

Provide an option to split the 8-percent delayed retirement credit (DRC) 

to offer a lump sum benefit at initial entitlement equal to 2 percent of the 

8 percent DRC earned, and a 6 percent DRC on subsequent monthly 

benefits, effective for workers newly entitled to retired worker benefits in 

2026 and later. Widows are held harmless from the lump-sum decision.

Eliminate the DI 5-month waiting period for disabled workers and 

disabled surviving spouses, and eliminate the 24-month Medicare (HI) 

waiting period for individuals who have become entitled to Social Security 

disability benefits. Effective with 2024 applications.

Give credit to parents with a child under 6 for earnings for up to five 

years. The earnings credited for a childcare year equal one half of the SSA 

average wage index (about $33,074 in 2023). The credits are available for 

all past years to newly eligible retired-worker and disabled-worker 

beneficiaries starting in 2024. The 5 years are chosen to yield the largest 

increase in AIME.

Increase benefits by 5 percent for all beneficiaries as of the beginning of 

2024 and for those newly eligible for benefits after the beginning of 2024.

Reduce individual Social Security benefits if modified adjusted gross 

income, or MAGI (AGI less taxable Social Security benefits plus nontaxable 

interest income) is above $60,000 for single taxpayers or $120,000 for 

taxpayers filing jointly. This provision is effective for individuals newly 

eligible for benefits in 2028 or later. The percentage reduction increases 

linearly up to 50 percent for single/joint filers with MAGI of 

$180,000/$360,000 or above. Index the MAGI thresholds for years after 

2028, based on changes in the SSA average wage index.

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions
Long-range 

actuarial 

balance

Annual 

balance in 

75th year

Long-range 

actuarial 

balance

Annual 

balance in 

75th year

B7.14 -0.13 -0.12 -3% -3%

Category B: Level of Monthly Benefits (continued)

Current law shortfall in long-range actuarial balance is 3.61 percent of payroll and in annual balance for the 75th year is 4.35 percent of payroll.

Description of proposed provisions

Change from current law

(percent of payroll)

Shortfall eliminated

Eliminate completely the Windfall Elimination Provision (WEP) and 

Government Pension Offset (GPO), effective 2024.

Office of the Chief Actuary

Social Security Administration

Based on the 2023 Trustees Report Intermediate Assumptions