Social Security

Memorandum

Date: September 17, 2008 

To: Mark Warshawsky 

From: Stephen C. Goss, Chief Actuary 

Alice H. Wade, Deputy Chief Actuary 

Christopher J. Chaplain, Supervisory Actuary 

Subject: Estimated Financial Effects of “A Reform Proposal to 

Make Social Security Financially Sound, Fairer, and More 

Progressive” by Mark Warshawsky --INFORMATION 

This memorandum provides estimates of the financial effects of your plan for 

modifying the benefit and financing provisions of the Social Security program and 

adding a voluntary personal savings account with matching contributions from 

the General Fund of the Treasury. Certain aspects of your proposal that do not 

directly affect Social Security financing but are intended to alter requirements for 

and taxation of private pensions are not addressed in this memorandum. 

Under the plan specifications described below the Social Security program would 

be expected to be solvent and to meet its benefit obligations throughout the longrange period 2008 through 2082. The long-range OASDI actuarial deficit of 1.70 

percent of payroll and the OASDI long-range unfunded obligation of $4.3 trillion 

in present value would be eliminated. In addition, trust fund assets expressed as 

a percentage of annual program cost are projected to be rising at the end of the 

75-year period (see Figure 1 below). Thus, the proposal meets the long-range

criteria for sustainable solvency and the program would be expected to remain

solvent for the foreseeable future.

Figure 1. Present Law and Proposal OASDI Trust Fund Assets as Percent of 

Annual Cost

0

50

100

150

200

250

300

350

400

450

2010 2020 2030 2040 2050 2060 2070 2080

PL TF Ratio

Prop TF Ratio
2

Estimates reflect the intermediate assumptions of the 2008 Trustees Report and 

are provided using two different sets of assumptions regarding the return on 

investments in the voluntary individual accounts. Summary descriptions of the 

provisions and estimates of their effects on the OASDI actuarial balance and the 

75th year annual balance are provided in Table A. More detailed estimates are 

provided in Tables 1 for OASDI financial status, and for individual account 

aggregate operations using both (1) the long-term average expected returns on 

equities and corporate bonds for the future, and (2) a lower yield on these 

investments equivalent to a risk-adjusted basis where all investments are 

assumed to yield the expected return on long-term Treasury Bonds. 

Plan Specification 

1. Reduce Payroll Tax Rate to 11.4 Percent 

Currently the combined payroll tax rate for OASDI taxable earnings is 12.4 

percent (6.2 percent each for employees and employers). This provision would 

reduce the combined payroll tax rate to 11.4 percent starting for earnings in 2009 

(5.7 percent each for employees and employers). 

The effect of this provision, taken alone, would be to increase the size of the 

long-range OASDI actuarial deficit by 0.98 percent of taxable payroll, and the 75th

year annual deficit by 1.00 percent of payroll. 

2. Exemption from Paying Payroll Tax after Working 45 Years 

This provision would exempt workers and their employers from the OASDI 

payroll tax starting in 2009, after the employee has earned 180 quarters of 

coverage. Earnings not subject to the payroll tax under this provision would not 

be used for the computation of the PIA for the worker. 

The effect of this provision, taken alone, would be to increase the size of the 

long-range OASDI actuarial deficit by 0.28 percent of taxable payroll, and the 75th

year annual deficit by 0.49 percent of payroll. 

 

3. Increase the Taxable Maximum Amount 

This provision would raise the contribution and benefit base (taxable maximum) 

to a level equivalent to $110,000 in 2008, gradually between 2009 and 2011. 

After 2011, the base would be indexed in the normal fashion reflecting only 

increases in the total economy average-wage index (AWI). Additional earnings 

subject to the payroll tax as a result of this provision would be credited for use in 

determining the PIA benefit level for the worker. 
3

The effect of this provision, taken alone, would be to reduce the size of the longrange OASDI actuarial deficit by 0.15 percent of taxable payroll, and the 75th year 

annual deficit by 0.13 percent of payroll. 

4. Tax Benefits Like Private Pensions and Phase Out Thresholds 

Beginning in 2009, tax OASDI benefits like private pensions. The nominal 

amounts of employee (after tax) and one half of self-employee payroll tax 

payments would be summed and divided by the unisex life expectancy at benefit 

entitlement, with this amount being deductible from benefits payable for the 

original number of years of life expectancy. The remaining amount of benefits 

would be included as income in the computation of personal income tax liability, 

but would increase that income by no more than the excess of the sum of AGI 

plus non-taxable interest income plus these earnings over the thresholds of 

$25,000 for single tax returns and $32,000 for married filing joint returns. These 

thresholds would apply but would be reduced to zero over the period 2009 

through 2028. 

The effect of this provision, taken alone, would be to reduce the size of the longrange OASDI actuarial deficit by 0.24 percent of taxable payroll, and the 75th year 

annual deficit by 0.16 percent of payroll. 

5. Phase Out OASDI PIA-Computation Drop-Out Years 

Currently the OASDI primary insurance amount (PIA) is computed using average 

indexed monthly earnings (AIME) reflecting an averaging period for the number 

of elapsed years after the year of attaining 21 and before the year of attaining 

benefit eligibility reduced by a number of “drop-out” years. The number of 

dropout years is set at 1 for each full 5 elapsed years, but not more than a total of 

5 drop-out years. 

Under this provision the maximum number of drop-out years would be reduced to 

4 for all OASDI beneficiaries becoming eligible in 2010, to 3 years for those 

becoming eligible in 2012, to 2 years for eligibility in 2014, 1 year for eligibility in 

2016, and zero for eligibility in 2018 and later. 

The effect of this provision, taken alone, would be to reduce the size of the longrange OASDI actuarial deficit by 0.65 percent of taxable payroll, and the 75th year 

annual deficit by 1.03 percent of payroll. 

6. Cover State and Local Government Employees 

Currently, and in the future, about 25 percent of all State and local government 

employees are not covered under the OASDI program. Under this provision, any 

individual hired by a State or local government after 2008 would be covered 

under OASDI. 
4

The effect of this provision taken alone would be to reduce the size of the longrange OASDI actuarial deficit by 0.22 percent of taxable payroll, and the 75th year 

annual deficit by a negligible amount (less than 0.005 percent of taxable payroll). 

7. Increase NRA and EEA 

This provision would start the increase in NRA from 66 to 67 earlier than 

currently scheduled by 5 years, starting for those attaining 62 in 2012, and 

reaching 67 for those attaining 62 in 2017. In addition, the earliest eligibility age 

(EEA) for retired worker and aged spouse benefits would be increased 

commensurately, maintaining the EEA at 4 years younger than NRA. Also, the 

maximum age up to which the delayed retirement credit (DRC) may be earned 

(currently 70) would be maintained at 4 years older then the NRA. 

After 2017, the NRA would be indexed to maintain the then estimated ratio of life 

expectancy at NRA to the difference NRA-20 (the number of potential working 

years before NRA). Currently this provision is expected to result in further 

increase in the NRA of about 1 month every 2 years. The EEA would still be 

maintained at 4 years earlier than the NRA. 

For any year for which individuals attaining 62 would have an increase in their 

EEA for retirement benefits, individuals attaining 50 would have the same 

increase applied for the EEA for disabled widow(er) benefits, and those attaining 

60 would have the EEA for aged widow(er) benefits increased similarly. 

The effect of this provision, taken alone, would be to reduce the size of the longrange OASDI actuarial deficit by 0.56 percent of taxable payroll, and the 75th year 

annual deficit by 1.18 percent of taxable payroll. 

8. Change in Age of Conversion from Disabled Worker Benefits to Retired 

Worker Benefits 

This provision would, beginning in 2012, convert all disabled worker beneficiaries 

to retired worker status upon attaining their EEA. For conversion at EEA, a 

benefit reduction would apply as if the beneficiary was applying as a retiree at 

EEA, but this reduction would be phased in over 40 years. The reduction would 

be the reduction for EEA (currently 25 percent) multiplied by ratio of the number 

of years after 2011 (or years after attaining age 21, if later) and before the year of 

attaining age 62, to 40. This gradual phase in of the reduction would assure that 

the individual had had the full opportunity to participate in the IA plan to help 

offset the reduced benefit after conversion. 

For individuals converted at EEA, their Medicare coverage would still be 

extended to 65 as long as they have not medically recovered from their disabling 

state. Individuals not entitled to disabled worker benefits before their NRA would 

not be able to receive Medicare coverage until the statutory eligibility age. 
5

With this provision, applications for disabled worker benefits would not be 

accepted after 2011 for any claim where the period of potential disability 

entitlement started after attainment of the individual’s EEA. 

The effect of this provision, taken alone, would be to reduce the size of the longrange OASDI actuarial deficit by 0.37 percent of taxable payroll, and the 75th year 

annual deficit by 0.77 percent of taxable payroll. 

9. Reduce PIA Formula Factors 

This provision would, beginning in 2012, reduce the 3 PIA factors (90, 32, and 

15) successively by a factor of 0.991 through the formula for those becoming 

eligible in 2040. For those newly eligible in 2040, the reduction would be 23.06 

percent. 

For any year after 2040, the 0.991 factor would be applied again if the OASDI 

combined Trust Fund ratio (ratio of TF assets to the annual estimated cost of the 

program over the year) was below 100 percent for the beginning of the prior year. 

This provision is intended to provide additional assurance that the scheduled 

financing for the program would be sufficient to pay the benefits. 

Reductions under this provision would not apply to disabled worker beneficiaries, 

dependent beneficiaries of disabled workers, survivor child beneficiaries, or 

surviving spouses eligible based on having a child in care. 

Upon conversion of a disabled worker at EEA to retirement status the benefit 

would be reduced by the amount for a new retiree multiplied by the proportion of 

years between 22 and 62 the individual was not disabled. 

The effect of this provision, taken alone, would be to reduce the size of the longrange OASDI actuarial deficit by 1.46 percent of taxable payroll, and the 75th year 

annual deficit by 3.11 percent of taxable payroll. 

10. Voluntary Personal Accounts 

Establish voluntary personal accounts starting 2012 with contributions of 3 

percent of OASDI taxable earnings for workers with OASDI taxable earnings 

under $40,000; the earnings limit would be indexed by the average wage after 

2012. Contributions would be deducted by the employer on a default basis from 

the employee’s after-tax pay. Notice from the employee would be required to 

terminate participation. 

If an individual does not choose to stop the default withholding but earns above 

the limit for the year, then the entire amount that had been withheld would be 

returned to the individual, and no further withholding would be permitted for the 

year. At this point the employee should notify any other or subsequent employer 
6

that year that they should not have personal account withholding for the balance 

of the year. 

Accounts would be maintained and managed by a Central Administrative 

authority, like the Thrift Savings Plan (TSP). A range of investment options 

would be offered. Upon retiring the IA assets would be required to be used to 

purchase a CPI-indexed life annuity, a joint and survivor annuity if married. As 

an alternative to annuitization, the individual would be allowed to make 

scheduled withdrawals at a rate such that the funds would be estimated to be 

eliminated no earlier than 5 years after the anticipated age at death for the 

individual or couple. 

Tax treatment of the personal account and annuity would be as in the Roth IRA; 

that is, contributions are not tax deductible but distributions are tax-free. No 

direct financial effect on OASDI status is expected from this proposal. 

 

11.General Revenue Contributions To Personal Accounts 

This provision would provide for a matching general-revenue contribution for 

personal account contributors; the match would be $1 for $1 for those with total 

earnings up to 50 percent of the limit ($40,000 in 2012), and would phase to zero 

for total earnings between 50 percent and 100 percent of the limit. 

In addition, starting in 2012, contributions would be made to the personal 

accounts of all disabled worker beneficiaries entirely from general revenue, in 

amounts that would occur if the annualized AIME for the beneficiary, CPI indexed 

to the current year, were assumed to be current annual earnings. 

 

General revenue contributions for accounts would not have any direct effect on 

OASDI financial status. 

Assumptions 

As indicated above, estimates provided in this memorandum are based on the 

intermediate assumptions of the 2008 Trustees Report. In addition, the longterm ultimate average annual real yield assumed for equities is 6.4 percent. This 

is somewhat lower than the historical real equity yield over the last several 

decades. For corporate bonds an average annual real yield of 3.4 percent is 

assumed. The average investment portfolio is assumed to be 50 percent equity, 

25 percent high-grade corporate bonds, and 25 percent long-term Treasury 

bonds, providing an expected average annual real yield of 4.48 percent net of the 

0.3-percent administrative charge. 

For the low- or risk-adjusted yield, it is assumed that all invested assets would 

realize an average annual yield equal to that expected for long-termTreasury 
7

bonds. For this case the average annual net real yield is 2.6 percent, net of the 

annual charge for administration. 

Participation in the personal accounts is assumed to realize two thirds of the 

potential contributions. The government matching contribution would be a 

substantial incentive to make the voluntary contribution. Even with this incentive, 

however, we would not expect that a voluntary contribution of an additional 3 

percent of earnings out-of-pocket by individuals earning less than $40,000 would 

occur universally. 

Financial Effects of the Plan 

Summary Results by Provision 

Table A provides estimates for the plan in total and for the provisions individually. 

Summary estimates are provided both for the effect on the long-range OASDI 

actuarial balance and the effect on the annual balance between tax income and 

program cost for the 75th projection year, 2082. 

Achievement of sustainable solvency requires elimination of the present-law 

actuarial deficit, and at least a very substantial reduction in the projected annual 

deficit for the year 2082. These tables show that the plan would eliminate the 

present-law OASDI long-range actuarial deficit of 1.70 percent of taxable payroll, 

leaving a positive actuarial balance of 0.14 percent of payroll. The present-law 

projected annual deficit of 4.20 percent of taxable payroll for 2082 would be 

reduced by 4.02 percent of payroll, leaving an annual deficit of just 0.18 percent 

of payroll. Therefore, combined with an increasing trust fund ratio at the end of 

the 75-year period, the proposal meets the definition of sustainable solvency. 

Trust Fund Operations 

Table 1 indicates that under this proposal and the intermediate assumptions of 

the 2008 Trustees Report, the OASDI program is projected to be solvent 

throughout the 75-year projection period and beyond. The annual cost rate (cost 

of the OASDI program as a percent of payroll) declines from 14.28 percent of 

payroll for 2029 to about 12.3 percent of payroll by 2050, reflecting the increasing 

extent of benefit reductions (see Figure 2, below). The annual balance (net 

cash-flow balance as a percent of payroll) is projected to be close to zero for 

2050 and beyond. The trust fund ratio is projected to decline to 139 percent of 

annual program cost for 2036 and to gradually increase thereafter through 2082 

even when annual balances are negative, because the interest on the assets will 

be more than needed to maintain a constant trust fund ratio. 
8

Figure 2. Present Law and Proposal Cost and Tax Income as Percent of 

Taxable Payroll

8

9

10

11

12

13

14

15

16

17

18

2010 2020 2030 2040 2050 2060 2070 2080

Percent of Payroll

PL Cost

PL Tax Income

Prop Cost

Prop Tax Income

The projected trust fund ratio is still increasing in 2082, but at a slowing pace. 

The small increases in annual deficits would be expected to grow gradually in the 

very distant future eventually causing the trust fund ratio to begin declining. 

When the ratio declined below 100 percent provision 9 would resume reductions 

in the benefit formula. 

The actuarial deficit for the OASDI program over the 75-year projection period 

would be improved by an estimated 1.84 percent of taxable payroll, from an 

actuarial deficit of 1.70 percent of payroll projected under current law to a positive 

actuarial balance that rounds to 0.14 percent of payroll under the plan. 

General Fund Transfers and Assets 

Table 1a provides an analysis of General Fund transfers under the plan, net 

OASDI Trust Fund assets, and aggregate personal account (and annuity) assets. 

Column 1 shows the annual general fund transfers needed to provide the 

personal account contribution match in present value dollars for years 2012 and 

later. The cumulative total transfers through 2082 in present value is $843 

billion. Column 2 shows these transfers as a percentage of taxable payroll. 

Column 3 is in constant 2008 dollars. And column 4 shows transfers on a 

cumulative basis in constant 2008 dollars. 

Total projected OASDI Trust Fund assets are shown in column 5. For purpose of 

comparison, the net OASDI Trust Fund assets are also shown for a theoretical 

Social Security program where borrowing authority is assumed for the Trust 

Funds. The theoretical Social Security program with borrowing authority is 

presented both without and with the net General Fund transfers expected under 

this plan, in columns 8 and 9, respectively. 
9

If the individual accounts are considered as a part of a “total system”, along with 

the OASDI program, then it is reasonable to consider “total system assets”. 

These would be the sum of net OASDI trust fund assets and PSA assets 

(columns 5 and 6). Under the intermediate assumptions and assuming full 

annuitization of IA assets, total system assets are expected to be large and 

growing in real terms at the end of the 75-year projection period. Two versions of 

table 1a are provided. These differ only in the IA assets shown in column 6. The 

two tables present IA assets accumulated assuming the expected yield with the 

assumed average portfolio, and a low-or risk-adjusted yield, where IA assets are 

effectively assumed to yield the same as long-term Treasury Bonds regardless of 

how they are invested. Gross Domestic Product is shown in column 6 for 

comparison with other values in the table. 

Effect on the Federal Unified Budget 

Table 1b provides estimates of the effect on federal unified budget cash flows 

and balances under this plan and these assumptions in present value discounted 

dollars. These effects are also shown in constant 2008 dollars in table 1b.c. All 

values in these tables represent the amount of the change that would be 

expected as a result of implementing the proposal, from the level that would be 

projected under current law. The effect of the plan on annual unified budget cash 

flow (column 5) is expected to be negative through 2022, thereafter being 

positive. This total cash flow change is the combination of the specific plan 

effects shown in columns 1 through 4. Contributions to the personal accounts in 

column 1 affect the unified budget only to the extent that they come from general 

revenue, which accounts for one half of the total. It is important to note that 

these estimates are based on the intermediate assumptions of the 2008 Trustees 

Report and thus are not consistent with estimates made by the OMB or the CBO 

based on their assumptions. 

Column 6 provides the projected effect of implementing the plan on the Federal 

debt held by the public. Column 7 provides the projected effect on the annual 

unified budget balances, including both the cash flow effect in column 5 and the 

additional interest on the accumulated debt indicated in column 6. 

Cash Flow to the General Fund of the Treasury 

Table 1c provides estimates of the net cash flow from the OASDI Trust Funds to 

the General Fund of the Treasury. Revenue paid by the Treasury to the Trust 

Funds for the redemption of the special-issue Treasury obligations held by the 

Trust Funds is included here as a negative cash flow to the General Fund. 

Values in Table 1c are shown as a percent of taxable payroll, in current dollars, 

in present value dollars as of 1/1/2008, and in constant 2008 dollars (discounted 

to 2008 with the projected growth in the CPI). For comparison purposes, net 

cash flow is also shown for the Social Security program under current law. 
10

Effects on Trust Fund Assets and Unfunded Obligations 

Table 1d provides estimates of the changes in projected OASDI trust fund assets 

and, for years after trust fund exhaustion, the level of unfunded obligations 

through the year. The table illustrates the effect of various components of the 

proposal on assets/unfunded obligations. For the 75-year long-range period as a 

whole, the present law unfunded obligation of $4.3 trillion in present value is 

replaced with a positive trust fund balance of nearly $0.7 trillion in present value 

through the end of the period. This change is the result of a $5.0 trillion 

improvement in OASDI funding from changes in benefit payments and tax 

provisions (from the basic provisions 1 through 9) shown in column 2. The 

additional effects for IA contributions and general fund matches do not affect the 

trust fund balances. 

OASDI Effective Taxable Payroll 

Table 1e provides estimates of the OASDI effective taxable payroll under present 

law and the proposal, in both present value and current dollars. The amount of 

earnings subject to payroll tax is affected principally by the provisions that 

exempt long-time workers and raise the taxable maximum (provisions 2 and 3). 

In addition small effects on the taxable payroll result from the incentive effects of 

provisions that significantly affect the level of benefits being offered (such as the 

change in retirement ages in provision 7). The net effect on taxable payroll is an 

increase of about 3 percent. 

Operations as Percent of GDP 

In Table 1g, projected OASDI cost, expenditures (payable benefits), and tax 

income is shown as percent of GDP for present law (columns 1-3) and under the 

proposal (columns 4-6). In addition, personal account contributions (those from 

the employee and from general revenue are shown separately in columns 8 and 

9) plus personal account annuity disbursements (column 10) are shown as 

percent of GDP. 
11

Figure 3 . Present Law and Proposal OASD I Cost and Expendit ires as Percent of GD P

3.5

4.0

4.5

5.0

5.5

6.0

6.5

2010 2020 2030 2040 2050 2060 2070 2080

Percent of GDP

PL Cost

PL Expenditures

Prop Cost

Figure 3 shows that that OASDI cost under current law would rise from the 

current level of 4.3 percent of GDP to just over 6 percent by 2035, then returning 

to a level of about 5.8 percent of GDP after 2047. Because tax income 

scheduled in current law is less than 5 percent of GDP, actual payable 

expenditures (column 2 in table 1g) would be less than projected program cost 

after the trust funds are depleted in 2041 and thus are no longer able to augment 

current tax income in the payment of scheduled benefits. 

Under the proposal, the cost of the OASDI program is reduced from the currently 

scheduled cost of 5.8 percent of GDP to 4.2 percent of GDP by 2064. By that 

time, tax income for the program is also reduced, but to a level that is projected 

to be sufficient to fully pay scheduled benefits under the proposal. 

F igure 4. P resent Law and P ro po sal OA SD I T ax Inco me as P ercent o f GD P

3.5

4.0

4.5

5.0

5.5

6.0

6.5

2010 2020 2030 2040 2050 2060 2070 2080

Percent of GDP

PL Tax Income

Prop Tax Income

 Sensitivity Analysis 
12

The solvency of the OASDI program is not affected directly by variations in equity 

and corporate bond yields either under current law or the proposal. The personal 

account assets are, however affected. Tables 2a and 2g are therefore presented 

with a low- or risk-adjusted yield, where yield on private securities is assumed to 

be the same as for long-term Treasury Bonds. 

It must be noted that the uncertainties associated with equity investments, bond 

yields, and mortality improvement, as well as with a number of additional 

variables mean that actual experience could vary from the illustrations provided 

in this analysis. 

Illustration of Effects on Benefit Levels and Potential Personal Account Annuity 

The table below compares the percentage reduction in the PIA under provision 9 

with the potential value of the monthly IA annuity (expressed as a percentage of 

the scheduled benefit) for those who voluntarily make contributions. The 

illustration is for the scaled low earner, with a career average earnings level of 

$21,253, wage indexed to 2011. The personal account annuities reflect the IA 

accumulation of both the 3-percent contribution the worker would have made and 

the match from general revenue. 

For this illustration, results are shown only for the scaled low earner because this 

earner has earnings below the $40,000 annual earnings limit for personal 

account contributions throughout his career. Other cases that we usually show, 

including the scaled medium earner, have earnings above $40,000 for much of 

their career. Thus, the personal account for such earners representing only the 

contributions with this limitation would not reflect the total personal savings that 

would be expected, assuming the individual continued to put aside 3 percent of 

annual earnings in another investment vehicle when earnings reach $40,000 or 

more. 

In the table, the value of the annuity that would be available, expressed as a 

percent of the scheduled OASI benefit, varies substantially depending on the 

yield assumed for the personal account accumulation, and on the family status. 

A low yield assumption is provided assuming that the account is accumulated 

with investment only in long-term Treasury bonds. This conservative portfolio 

also serves to illustrate the return on a risk-adjusted basis. The third portfolio, 

with 50 percent in equity, 25 percent in corporate bonds, and 25 percent in 

Treasury bonds is distributed as we would expect for all investments on average. 

Generally, the annuity value exceeds the reduction in the benefit from provision 

9. It should be noted that this does not necessarily mean that the total monthly 

payments (OASI plus IA annuity) under this plan would be better than currently 

scheduled. Benefits are further reduced by the plan for provisions 5 and 7, which 

address the career averaging period (increase from 35 to 40 years), and the 

NRA/EEA (which is accelerated and extended here.) The further reductions from 
13

these provisions vary depending on the worker’s year of birth and how consistent 

and long their career is. 

Comparison of PIA Reduction to Value of Personal Account Annuity 

 Expressed as Percentage of PL Scheduled benefits. 

 for Scaled Low Earner : Average earnings equal 

 to $21,253, wage indexed to 2011. 

 

 Percent of Assets Invested in Equities 

 0.0% 35.0% 50.0% 65.0% 

 Percent of Assets in Corporate Bonds 

 0.0% 0.0% 25.0% 35.0% 

 

Real Net Yield on Assets During 

Accumulation 

 2.6 3.825 4.475 5.050 

Year Attain 

Annuity Real Return Rate--(after 

Retirement) 

Age 65 2.6 2.6 2.6 2.6 

 PIA 

 Reduction Single Worker 

2019 -4.4 4.6 4.8 5.0 5.1 

2029 -12.7 14.7 16.4 17.5 18.4 

2039 -20.2 25.6 30.7 33.9 37.0 

2049 -23.1 36.8 47.1 54.0 61.1 

2059 -23.1 41.7 55.3 64.6 74.4 

 

 1-earner couple 

2019 -4.4 2.9 3.0 3.1 3.1 

2029 -12.7 9.2 10.3 10.9 11.5 

2039 -20.2 16.1 19.3 21.2 23.2 

2049 -23.1 23.1 29.6 33.9 38.4 

2059 -23.1 26.2 34.8 40.6 46.8 

 

 2-earner couple 

2019 -4.4 4.3 4.5 4.6 4.7 

2029 -12.7 13.6 15.3 16.2 17.1 

2039 -20.2 23.8 28.5 31.5 34.3

2049 -23.1 34.2 43.8 50.2 56.8 

2059 -23.1 38.8 51.5 60.2 69.3 

The personal account annuity replaces the smallest portion of the reduction in 

the scheduled benefit for the married couple with only one earner. The annuity 

would fall somewhat short of covering the PIA reduction for one-earner couples 

retiring at 65 in about 2030 or earlier. For single workers and two-earner couples 

retiring after 2039 with low career earnings, however, this approach would 

generally be expected to provide an overall increase in retirement income. 
14

 

 Stephen C. Goss 

 

 Alice H. Wade 

 

 Christopher J. Chaplain 

Attachments 
Table A--Estimated Long-Range OASDI Financial Effects of Proposal Developed by Mark Warshawsky 

Number Provision

Estimated Change in 

Long-Range OASDI 

Actuarial Balance 

(as a percent of payroll)

Estimated Change 

in Annual Balance 

in 75th year 

(as a percent of payroll)

1 Reduced Payroll Tax—Beginning in 2009, reduce the combined OASDI 

payroll tax rate from 12.4 percent to 11.4 percent .......................................... -0.98 -1.00 

2 Exemption of OASDI Payroll Tax for Individuals with a High 

Number of Earnings Years—Beginning in 2009, exempt individuals 

with more than 180 quarters of coverage from the OASDI payroll tax .......... -0.28 -0.49 

3 Increase in OASDI Contribution and Benefit Base—In 2009 through 

2011, raise the OASDI contribution and benefit base from $102,000 to 

$110,000 (in 2008 AWI indexed dollars). For years after 2011, the 

contribution and benefit base would be increased based on changes in 

SSA’s average wage index. Additional earnings subject to the OASDI 

payroll tax would be credited for benefit calculation purposes....................... 0.15 0.13 

4 Modify Taxation of OASDI Benefits--Tax Social Security benefits in a 

manner similar to private pension income beginning in 2009. Phase out the 

lower-income thresholds during 2009-2028 ................................................... 0.24 0.16 

5 Eliminate Dropout Years in Benefit Computation—Eliminate dropout 

years for OASI and DI computation of primary insurance amount (PIA) 

for individuals newly eligible for benefits from 2010 to 2018. 

Specifically, for OASDI benefit computation, reduce the maximum 

number of drop-out years from 5 for benefit eligibility in 2009, with a 

decrease of 1 computation year in 2010, 2012, 2014, 2016, and 2018............ 0.65 1.03 

6 State and Local Government Employee Coverage—Cover newly hired 

State and local government employees in 2009 .............................................. 0.22 1/ 

7 Changes in Earliest Eligibility Age (EEA) and Normal Retirement 

Age (NRA) –Shorten the hiatus in the NRA by 5 years, that is, start 

increasing the NRA from 66 to 67 for individuals age 62 in 2012, rather 

than in 2017. Beginning for those age 62 in 2012, increase the EEA and 

NRA for retired worker benefits by 2 months per year until the EEA 

reaches age 63 and the NRA reaches age 67 for those attaining age 62 in 

2017. Thereafter, increase both EEA and NRA by 1 month every 2 years. 

Finally, increase the earliest eligibility age for disabled widow(er)s and 

aged widow(er)s at the same rate as the increase in the EEA for retired 

worker benefits ............................................................................................... 0.56 1.18 

8 Change in Age of Conversion from Disabled Worker to Retired 

Worker Benefits--Starting in 2012, convert all disabled worker 

beneficiaries to retired worker status upon attainment of their EEA (rather 

than their NRA). After conversion, apply the early retirement reduction 

for retirement at EEA (currently 25%) times the ratio of years after 2011 

(or years after attaining age 21, if later) and before attaining age 62, to 40. 

Medicare eligibility would be extended to age 65 on the basis of disability. 

After 2011, disability applications would not be accepted for benefit 

entitlement that would start at an ages over EEA............................................ 0.37 0.77 
Table A--Estimated Long-Range OASDI Financial Effects of Proposal Developed by Mark Warshawsky 

Number Provision

Estimated Change in 

Long-Range OASDI 

Actuarial Balance 

(as a percent of payroll)

Estimated Change 

in Annual Balance 

in 75th year 

(as a percent of payroll)

9 Reduction in PIA Formula Factors—Multiply all PIA formula factors 

successively by 0.991 for new benefit eligibility in each year 2012 through 

2040. Disabled workers and young survivors (surviving spouses with a 

child-in-care and survivor children) would not be affected by this 

provision. Upon conversion from disabled worker to retired worker 

benefits, benefit levels would be proportionally reduced based on the 

fraction of years the individual was not disabled between ages 22 and 62. 

Multiply the factors further by 0.991 in any year after 2040 where the 

OASDI Trust Fund assets were below 100 percent of program cost at the 

beginning of the preceding year...................................................................... 1.46 3.11 

Total for all provisions, including interaction ...................... 1.84 4.02 

Notes: All estimates are based on the intermediate assumptions of the 2008 OASDI Trustees Report. 

Financial effects for each individual proposal are shown on a stand-alone basis, relative to present law, unless otherwise stated. 

1/ Increase in annual balance in the 75th year that is estimated to be negligible, i.e., less than 0.005 percent of taxable payroll. 

Social Security Administration 

Office of the Chief Actuary 

September 17, 2008
Table 1 - Basic Provisions plus Default Voluntary Individual Accounts Starting in 20121

Warshawsky Proposal - Expected Yield IA assets assumed to be invested in: IA Participation: 66.7%

IA Contribution : Ultimate Real Trust Fund Yield of 2.9% 50% equity Average IA Contribution: 1.24%

3% for those who earn <$40,000 Ultimate Real IA Yield of 4.475% 25% Corporate Bonds

(in 2012 dollars) Ultimate Annuity Yield of 2.6% 25% Treasury Bonds

OASDI OASDI General Total IA

Cost Income Annual TFR Contribution Contribution Revenue Contribution

Year Rate Rate Balance 1-1-yr Rate Change Rate Transfers2 Rate

2008 11.20 12.77 1.57 359 12.40 0

2009 11.37 11.88 0.52 369 -1.000 11.40 0

2010 11.39 11.92 0.53 370 11.40 0

2011 11.48 11.96 0.49 370 11.40 0

2012 11.73 12.02 0.29 367 11.40 1.00

2013 12.06 12.09 0.03 361 11.40 0.99

2014 12.38 12.14 -0.24 354 11.40 0.98

2015 12.64 12.19 -0.45 347 11.40 0.97

2016 12.82 12.24 -0.58 341 11.40 0.97

2017 12.93 12.27 -0.66 337 11.40 0.97

2018 13.04 12.30 -0.74 332 11.40 0.98

2019 13.16 12.33 -0.83 326 11.40 0.97

2020 13.31 12.35 -0.96 320 11.40 0.97

2021 13.45 12.37 -1.08 313 11.40 0.97

2022 13.60 12.39 -1.21 306 11.40 0.97

2023 13.75 12.41 -1.34 298 11.40 0.97

2024 13.88 12.42 -1.46 289 11.40 0.97

2025 14.01 12.43 -1.58 280 11.40 0.97

2026 14.14 12.44 -1.70 270 11.40 0.96

2027 14.22 12.44 -1.78 260 11.40 0.96

2028 14.26 12.44 -1.83 251 11.40 0.96

2029 14.28 12.43 -1.85 241 11.40 0.96

2030 14.27 12.42 -1.85 231 11.40 0.96

2031 14.24 12.41 -1.83 222 11.40 0.97

2032 14.19 12.39 -1.79 213 11.40 0.97

2033 14.13 12.38 -1.75 204 11.40 0.97

2034 14.05 12.37 -1.68 195 11.40 0.97

2035 13.96 12.35 -1.60 187 11.40 0.97

2036 13.85 12.34 -1.51 179 11.40 0.97

2037 13.72 12.32 -1.40 172 11.40 0.97

2038 13.59 12.31 -1.28 166 11.40 0.97

2039 13.46 12.29 -1.16 160 11.40 0.97

2040 13.32 12.28 -1.05 155 11.40 0.97

2041 13.19 12.26 -0.93 151 11.40 0.98

2042 13.06 12.25 -0.81 147 11.40 0.98

2043 12.93 12.23 -0.70 144 11.40 0.98

2044 12.81 12.22 -0.59 142 11.40 0.98

2045 12.71 12.21 -0.50 140 11.40 0.98

2046 12.61 12.20 -0.41 139 11.40 0.98

2047 12.51 12.19 -0.32 139 11.40 0.98

2048 12.41 12.18 -0.23 139 11.40 0.99

2049 12.33 12.17 -0.15 140 11.40 0.99

2050 12.25 12.17 -0.09 141 11.40 0.99

2051 12.19 12.16 -0.03 143 11.40 0.99

2052 12.13 12.15 0.02 145 11.40 0.99

2053 12.09 12.15 0.06 148 11.40 0.99

2054 12.05 12.14 0.09 151 11.40 0.99

2055 12.03 12.14 0.11 154 11.40 1.00

2056 12.02 12.14 0.12 157 11.40 1.00

2057 12.00 12.13 0.13 160 11.40 1.00

2058 11.99 12.13 0.15 163 11.40 1.00

2059 11.97 12.13 0.16 167 11.40 1.00

2060 11.96 12.13 0.16 171 11.40 1.00

2061 11.95 12.13 0.17 174 11.40 1.00

2062 11.95 12.12 0.18 178 11.40 1.00

2063 11.94 12.12 0.18 182 11.40 1.01

2064 11.94 12.12 0.18 186 11.40 1.01

2065 11.94 12.12 0.18 190 11.40 1.01

2066 11.95 12.12 0.17 194 11.40 1.01

2067 11.96 12.12 0.16 197 11.40 1.01

2068 11.98 12.12 0.14 201 11.40 1.01

2069 11.99 12.12 0.13 204 11.40 1.01

2070 12.01 12.12 0.11 208 11.40 1.01

2071 12.03 12.12 0.09 211 11.40 1.01

2072 12.05 12.12 0.07 214 11.40 1.01

2073 12.07 12.12 0.05 217 11.40 1.02

2074 12.09 12.12 0.03 220 11.40 1.02

2075 12.11 12.12 0.01 223 11.40 1.02

2076 12.14 12.12 -0.01 226 11.40 1.02

2077 12.16 12.12 -0.04 228 11.40 1.02

2078 12.19 12.13 -0.06 231 11.40 1.02

2079 12.21 12.13 -0.09 233 11.40 1.02

2080 12.24 12.13 -0.11 235 11.40 1.02

2081 12.28 12.13 -0.15 236 11.40 1.02

2082 12.31 12.13 -0.18 238 11.40 1.03

2083 12.34 12.13 -0.21 239 11.40 1.03

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2008 - 2082 12.87 13.01 0.14 1.84

Based on Intermediate Assumptions of the 2008 Trustees Report. All values are expressed as percents of taxable payroll, except TFR. 1

 Contributions funded from General Revenues (1) on a matched 1-to-1 basis for workers earning up to $20,000 (in 2012 dollars)

 phasing to no match for total earnings at $40,000; and (2) for disabled workers at up to 6% of their Average Indexed Monthly Earnings Office of the Actuary

 (AIME), CPI-Indexed to current year. Social Security Administration 2

 Amounts needed to maintain 100 percent Trust Fund Ratio. September 16, 2008
Table 1a - Proposal General Fund Transfers, OASDI Trust Fund Assets, IA Assets, and Theoretical OASDI Assets

Warshawsky Proposal - Expected Ultimate Annual Real Yield of 4.48 Percent

Total OASDI Individual

Trust Fund Account

Annual Percentage Annual Accumulated as Assets Assets1 Without General With Plan General

Amounts of Payroll Amounts of End of Year at End of Year at End of Year GDP Fund Transfers Fund Transfers

Calendar (1) (2) (3) (4) (5) (6) (7) (8) (9)

Year

2008 0.0 0.0 0.0 0 2,435 0 14,445 2,435 2,435

2009 0.0 0.0 0.0 0 2,526 0 14,793 2,583 2,583

2010 0.0 0.0 0.0 0 2,613 0 15,135 2,727 2,727

2011 0.0 0.0 0.0 0 2,702 0 15,451 2,869 2,869

2012 26.6 0.5 29.9 30 2,783 63 15,768 3,005 3,035

2013 25.9 0.5 29.9 61 2,851 128 16,093 3,132 3,192

2014 25.4 0.5 30.0 92 2,906 197 16,416 3,247 3,339

2015 24.9 0.5 30.2 124 2,948 269 16,724 3,349 3,474

2016 24.6 0.5 30.6 158 2,984 345 17,042 3,437 3,595

2017 24.5 0.5 31.2 194 3,017 425 17,363 3,510 3,704

2018 24.3 0.5 31.8 231 3,046 510 17,682 3,568 3,798

2019 24.0 0.5 32.2 269 3,070 598 18,001 3,609 3,878

2020 23.7 0.5 32.6 309 3,086 691 18,322 3,632 3,941

2021 23.3 0.5 33.1 351 3,094 789 18,644 3,637 3,988

2022 22.9 0.5 33.5 395 3,093 891 18,968 3,625 4,019

2023 22.5 0.5 33.9 440 3,081 997 19,295 3,592 4,032

2024 22.2 0.5 34.3 487 3,057 1,108 19,629 3,540 4,027

2025 21.9 0.5 34.8 536 3,022 1,224 19,964 3,466 4,002

2026 21.5 0.5 35.2 587 2,974 1,344 20,306 3,372 3,959

2027 21.2 0.5 35.7 639 2,916 1,469 20,651 3,257 3,897

2028 20.9 0.5 36.3 694 2,850 1,599 21,003 3,121 3,815

2029 20.7 0.5 36.9 751 2,778 1,733 21,364 2,964 3,715

2030 20.4 0.5 37.5 810 2,702 1,873 21,732 2,786 3,596

2031 20.2 0.5 38.2 872 2,623 2,017 22,111 2,589 3,461

2032 20.0 0.5 38.8 936 2,542 2,167 22,498 2,373 3,309

2033 19.7 0.5 39.5 1,003 2,460 2,321 22,897 2,139 3,142

2034 19.5 0.5 40.2 1,072 2,379 2,481 23,305 1,889 2,961

2035 19.3 0.5 40.9 1,144 2,301 2,646 23,720 1,624 2,768

2036 19.1 0.5 41.6 1,219 2,227 2,816 24,140 1,345 2,563

2037 18.9 0.5 42.4 1,296 2,158 2,991 24,568 1,051 2,347

2038 18.7 0.5 43.2 1,377 2,097 3,171 25,007 744 2,121

2039 18.6 0.5 44.1 1,461 2,043 3,356 25,456 425 1,886

2040 18.4 0.5 45.0 1,549 1,997 3,546 25,914 94 1,643

2041 18.3 0.5 45.9 1,639 1,961 3,741 26,379 -248 1,392

2042 18.1 0.5 46.9 1,734 1,934 3,941 26,852 -601 1,133

2043 18.0 0.5 47.8 1,832 1,916 4,146 27,333 -966 866

2044 17.8 0.5 48.8 1,934 1,908 4,355 27,824 -1,344 590

2045 17.6 0.5 49.6 2,040 1,909 4,569 28,319 -1,735 305

2046 17.4 0.5 50.5 2,149 1,919 4,787 28,818 -2,139 10

2047 17.2 0.5 51.4 2,263 1,939 5,009 29,324 -2,559 -296

2048 17.1 0.5 52.4 2,381 1,968 5,236 29,838 -2,994 -613

2049 16.9 0.5 53.4 2,503 2,006 5,466 30,357 -3,445 -942

2050 16.7 0.5 54.4 2,630 2,053 5,699 30,882 -3,914 -1,284

2051 16.5 0.5 55.4 2,762 2,108 5,936 31,413 -4,402 -1,640

2052 16.4 0.5 56.4 2,899 2,170 6,176 31,955 -4,911 -2,012

2053 16.2 0.5 57.4 3,040 2,239 6,419 32,508 -5,441 -2,401

2054 16.0 0.5 58.4 3,187 2,314 6,665 33,069 -5,994 -2,807

2055 15.9 0.5 59.5 3,339 2,393 6,914 33,638 -6,571 -3,232

2056 15.7 0.5 60.6 3,496 2,477 7,167 34,213 -7,173 -3,677

2057 15.5 0.5 61.7 3,659 2,564 7,422 34,800 -7,803 -4,144

2058 15.4 0.5 62.8 3,828 2,656 7,681 35,397 -8,460 -4,632

2059 15.2 0.5 63.9 4,003 2,753 7,943 36,008 -9,146 -5,143

2060 15.0 0.5 65.0 4,184 2,854 8,209 36,626 -9,861 -5,677

2061 14.9 0.5 66.1 4,371 2,958 8,478 37,253 -10,607 -6,236

2062 14.7 0.5 67.3 4,565 3,067 8,752 37,893 -11,385 -6,820

2063 14.5 0.5 68.5 4,766 3,180 9,029 38,544 -12,196 -7,430

2064 14.4 0.5 69.7 4,974 3,297 9,311 39,207 -13,041 -8,067

2065 14.2 0.5 71.0 5,189 3,417 9,597 39,881 -13,923 -8,733

2066 14.1 0.5 72.3 5,412 3,539 9,888 40,563 -14,842 -9,429

2067 13.9 0.5 73.7 5,643 3,664 10,185 41,258 -15,799 -10,157

2068 13.8 0.5 75.0 5,882 3,790 10,487 41,966 -16,798 -10,916

2069 13.6 0.5 76.2 6,128 3,918 10,794 42,682 -17,837 -11,709

2070 13.4 0.5 77.3 6,383 4,047 11,119 43,406 -18,921 -12,538

2071 13.3 0.5 78.6 6,647 4,177 11,450 44,140 -20,051 -13,404

2072 13.1 0.5 79.9 6,920 4,307 11,790 44,892 -21,227 -14,308

2073 13.0 0.5 81.3 7,202 4,438 12,137 45,656 -22,453 -15,252

2074 12.8 0.5 82.7 7,493 4,570 12,494 46,430 -23,730 -16,237

2075 12.7 0.5 84.1 7,795 4,702 12,860 47,217 -25,059 -17,265

2076 12.5 0.5 85.5 8,106 4,835 13,235 48,013 -26,444 -18,338

2077 12.4 0.5 87.0 8,428 4,967 13,622 48,823 -27,885 -19,457

2078 12.2 0.5 88.4 8,761 5,098 14,020 49,641 -29,385 -20,624

2079 12.1 0.5 89.9 9,105 5,229 14,429 50,473 -30,947 -21,842

2080 11.9 0.5 91.4 9,460 5,359 14,852 51,316 -32,572 -23,112

2081 11.8 0.5 93.0 9,828 5,485 15,288 52,175 -34,263 -24,436

2082 11.6 0.5 94.5 10,207 5,609 15,738 53,047 -36,023 -25,815

2083 11.5 0.5 96.1 10,599 5,730 16,203 53,931 -37,852 -27,253

Total 2008-82 1,269.3

Based on Intermediate Assumptions of the 2008 Trustees Report

1

 Including annuity assets, assuming all annuitize fully Office of the Actuary

2

 Theoretical Social Security is the current Social Security program with the assumption Social Security Administration

 that the law is modified to permit borrowing from the General Fund of the Treasury. September 16, 2008

Theoretical Social Security2

with Borrowing Authority

et OASDI Trust Fund Assets at End of Year 

Present Value as of 1-1-08

Proposal General Fund Transfers

Billions of Constant 2008 Dollars Billions of Constant 2008 Dollars
Table 1b - IA Contributions, Offset, OASDI Changes, & Budget Effect (Present Value Dollars)

Warshawsky Proposal - Expected Yield Average IA Worker Contribution: 1.24%

 Amount Contributed Change Change in Change

to IA: Worker + Offset to Other Changes Federal in Annual Debt Held in Annual

Federal Government OASDI Benefit in OASDI Government IA Unified Budget by Public at Unified Budget

IA Contribution from IA Cash Flow Contribution Cash Flow End of Year Balance

(1) (2) (3) (4) (5)=(2)+(3)-(4) (6) (7)

Year

2009 0.0 0.0 -52.8 0.0 -52.8 52.8 -52.8

2010 0.0 0.0 -50.6 0.0 -50.6 103.4 -53.2

2011 0.0 0.0 -44.7 0.0 -44.7 148.2 -49.8

2012 54.1 0.0 -44.0 26.6 -70.6 218.7 -78.0

2013 53.3 0.0 -45.2 25.9 -71.1 289.8 -82.1

2014 52.6 0.0 -44.6 25.4 -70.1 359.9 -84.8

2015 52.0 0.0 -40.9 24.9 -65.9 425.8 -84.3

2016 51.4 0.0 -32.8 24.6 -57.4 483.2 -79.4

2017 51.1 0.0 -21.6 24.5 -46.2 529.3 -71.5

2018 50.6 0.0 -11.2 24.3 -35.5 564.8 -63.4

2019 50.0 0.0 -2.0 24.0 -26.0 590.8 -56.1

2020 49.4 0.0 5.7 23.7 -18.0 608.7 -49.7

2021 48.7 0.0 12.6 23.3 -10.7 619.4 -43.7

2022 48.0 0.0 18.1 22.9 -4.9 624.3 -38.7

2023 47.3 0.0 23.0 22.5 0.5 623.8 -33.6

2024 46.7 0.0 27.6 22.2 5.4 618.4 -28.7

2025 46.0 0.0 31.7 21.9 9.9 608.5 -23.9

2026 45.3 0.0 35.1 21.5 13.6 594.9 -19.7

2027 44.7 0.0 39.5 21.2 18.3 576.6 -14.2

2028 44.1 0.0 45.2 20.9 24.3 552.3 -7.2

2029 43.6 0.0 50.8 20.7 30.1 522.2 0.0

2030 43.0 0.0 56.4 20.4 36.0 486.2 7.4

2031 42.5 0.0 62.0 20.2 41.8 444.4 15.2

2032 42.0 0.0 67.1 20.0 47.2 397.2 22.9

2033 41.5 0.0 71.6 19.7 51.9 345.3 30.2

2034 41.0 0.0 75.5 19.5 56.0 289.4 37.1

2035 40.5 0.0 79.2 19.3 59.9 229.5 44.1

2036 40.1 0.0 82.9 19.1 63.8 165.6 51.3

2037 39.6 0.0 86.5 18.9 67.6 98.0 58.6

2038 39.2 0.0 89.9 18.7 71.2 26.8 65.8

2039 38.8 0.0 92.6 18.6 74.0 -47.2 72.6

2040 38.4 0.0 94.7 18.4 76.3 -123.5 78.9

2041 38.0 0.0 96.7 18.3 78.4 -202.0 85.2

2042 37.6 0.0 98.6 18.1 80.5 -282.5 91.5

2043 37.2 0.0 100.3 18.0 82.3 -364.8 97.8

2044 36.8 0.0 101.6 17.8 83.8 -448.6 103.7

2045 36.4 0.0 102.5 17.6 84.9 -533.5 109.4

2046 35.9 0.0 103.6 17.4 86.2 -619.7 115.3

2047 35.5 0.0 104.7 17.2 87.5 -707.1 121.3

2048 35.1 0.0 105.7 17.1 88.6 -795.8 127.3

2049 34.7 0.0 106.4 16.9 89.5 -885.3 133.0

2050 34.3 0.0 106.9 16.7 90.2 -975.5 138.6

2051 33.9 0.0 107.5 16.5 91.0 -1,066.5 144.3

2052 33.5 0.0 107.9 16.4 91.5 -1,158.0 149.8

2053 33.1 0.0 108.1 16.2 91.9 -1,249.8 155.2

2054 32.7 0.0 108.0 16.0 92.0 -1,341.8 160.3

2055 32.3 0.0 107.8 15.9 92.0 -1,433.7 165.3

2056 31.9 0.0 107.4 15.7 91.7 -1,525.4 170.1

2057 31.5 0.0 107.1 15.5 91.5 -1,617.0 174.9

2058 31.2 0.0 106.7 15.4 91.3 -1,708.3 179.7

2059 30.8 0.0 106.3 15.2 91.1 -1,799.4 184.5

2060 30.4 0.0 105.8 15.0 90.8 -1,890.2 189.1

2061 30.0 0.0 105.3 14.9 90.4 -1,980.7 193.7

2062 29.7 0.0 104.8 14.7 90.1 -2,070.7 198.3

2063 29.3 0.0 104.2 14.5 89.6 -2,160.4 202.8

2064 28.9 0.0 103.4 14.4 89.1 -2,249.4 207.1

2065 28.6 0.0 102.7 14.2 88.5 -2,337.9 211.4

2066 28.3 0.0 102.0 14.1 87.9 -2,425.8 215.7

2067 27.9 0.0 101.1 13.9 87.2 -2,513.0 219.8

2068 27.6 0.0 100.0 13.8 86.2 -2,599.2 223.6

2069 27.2 0.0 99.2 13.6 85.6 -2,684.8 227.6

2070 26.9 0.0 98.2 13.4 84.8 -2,769.6 231.5

2071 26.5 0.0 97.3 13.3 84.0 -2,853.6 235.4

2072 26.2 0.0 96.4 13.1 83.3 -2,936.9 239.3

2073 25.8 0.0 95.5 13.0 82.6 -3,019.5 243.1

2074 25.5 0.0 94.7 12.8 81.9 -3,101.4 246.9

2075 25.2 0.0 93.8 12.7 81.2 -3,182.6 250.7

2076 24.9 0.0 93.0 12.5 80.4 -3,263.0 254.4

2077 24.6 0.0 92.1 12.4 79.7 -3,342.7 258.1

2078 24.3 0.0 91.2 12.2 79.0 -3,421.7 261.7

2079 23.9 0.0 90.4 12.1 78.3 -3,500.0 265.3

2080 23.6 0.0 89.6 11.9 77.6 -3,577.7 268.9

2081 23.3 0.0 88.5 11.8 76.7 -3,654.3 272.2

2082 23.0 0.0 87.5 11.6 75.9 -3,730.2 275.6

2083 22.7 0.0 86.7 11.5 75.2 -3,805.4 279.0

Total 2008-82 2,590.0 0.0 4,988.0 1,257.8

Based on Intermediate Assumptions of the 2008 Trustees Report. Ultimate Real Trust Fund Yield of 2.9%. Office of the Chief Actuary

Ultimate Real Individual Account Yield of 4.475%. Social Security Administration

Ultimate Annuity Yield of 2.6%.

Billions of Present Value Dollars as of 1-1-2008

September 16, 2008
Table 1b.c - IA Contributions, Offset, OASDI Changes, & Budget Effect (Constant Dollars)

Warshawsky Proposal - Expected Yield Average IA Worker Contribution: 1.24%

 Amount Contributed Change Change in Change

to IA: Worker + Offset to Other Changes Federal in Annual Debt Held in Annual

Federal Government OASDI Benefit in OASDI Government IA Unified Budget by Public at Unified Budget

IA Contribution from IA Cash Flow Contribution Cash Flow End of Year Balance

(1) (2) (3) (4) (5)=(2)+(3)-(4) (6) (7)

Year

2009 0.0 0.0 -55.5 0.0 -55.5 56.9 -56.9

2010 0.0 0.0 -54.4 0.0 -54.4 113.9 -58.6

2011 0.0 0.0 -49.2 0.0 -49.2 167.0 -56.1

2012 60.8 0.0 -49.5 29.9 -79.4 252.4 -89.9

2013 61.4 0.0 -52.0 29.9 -81.9 342.5 -97.0

2014 62.1 0.0 -52.7 30.0 -82.7 435.9 -102.7

2015 62.8 0.0 -49.5 30.2 -79.7 528.7 -104.7

2016 63.8 0.0 -40.6 30.6 -71.2 615.5 -101.2

2017 65.0 0.0 -27.6 31.2 -58.8 692.3 -93.5

2018 66.1 0.0 -14.6 31.8 -46.4 758.6 -85.2

2019 67.2 0.0 -2.6 32.2 -34.9 815.4 -77.4

2020 68.2 0.0 7.9 32.6 -24.8 863.7 -70.5

2021 69.2 0.0 17.9 33.1 -15.2 904.0 -63.8

2022 70.1 0.0 26.4 33.5 -7.1 937.5 -58.1

2023 71.1 0.0 34.6 33.9 0.7 963.9 -52.0

2024 72.2 0.0 42.7 34.3 8.4 983.3 -45.6

2025 73.2 0.0 50.5 34.8 15.7 995.6 -39.1

2026 74.2 0.0 57.4 35.2 22.2 1,001.6 -33.1

2027 75.3 0.0 66.6 35.7 30.9 998.9 -24.6

2028 76.5 0.0 78.4 36.3 42.1 984.6 -12.9

2029 77.7 0.0 90.6 36.9 53.8 957.8 -0.1

2030 79.0 0.0 103.5 37.5 66.0 917.7 14.1

2031 80.3 0.0 117.0 38.2 78.9 863.1 29.5

2032 81.6 0.0 130.5 38.8 91.7 793.9 45.7

2033 83.0 0.0 143.2 39.5 103.7 710.2 62.1

2034 84.4 0.0 155.3 40.2 115.2 612.3 78.5

2035 85.8 0.0 167.7 40.9 126.8 499.7 96.0

2036 87.3 0.0 180.7 41.6 139.1 371.1 115.0

2037 88.9 0.0 194.0 42.4 151.6 226.0 135.1

2038 90.5 0.0 207.4 43.2 164.2 63.7 156.2

2039 92.1 0.0 219.8 44.1 175.7 -115.3 177.2

2040 93.8 0.0 231.3 45.0 186.4 -310.3 198.2

2041 95.5 0.0 243.1 45.9 197.2 -522.1 220.2

2042 97.3 0.0 255.1 46.9 208.2 -751.3 243.5

2043 99.0 0.0 266.9 47.8 219.1 -998.5 267.6

2044 100.8 0.0 278.2 48.8 229.5 -1,263.4 292.2

2045 102.5 0.0 288.9 49.6 239.3 -1,546.2 317.2

2046 104.2 0.0 300.4 50.5 249.9 -1,848.0 343.9

2047 106.0 0.0 312.4 51.4 260.9 -2,170.0 372.3

2048 107.8 0.0 324.5 52.4 272.1 -2,512.8 401.9

2049 109.6 0.0 336.1 53.4 282.8 -2,876.5 432.1

2050 111.5 0.0 347.6 54.4 293.3 -3,261.6 463.4

2051 113.4 0.0 359.6 55.4 304.3 -3,669.1 496.4

2052 115.3 0.0 371.3 56.4 314.9 -4,099.4 530.3

2053 117.2 0.0 382.8 57.4 325.4 -4,552.9 565.2

2054 119.2 0.0 393.7 58.4 335.2 -5,029.7 600.8

2055 121.2 0.0 404.4 59.5 344.9 -5,530.3 637.6

2056 123.2 0.0 414.4 60.6 353.9 -6,054.6 675.0

2057 125.2 0.0 425.2 61.7 363.5 -6,604.0 714.3

2058 127.3 0.0 436.0 62.8 373.2 -7,179.4 755.2

2059 129.4 0.0 447.0 63.9 383.1 -7,781.6 797.8

2060 131.5 0.0 457.9 65.0 392.8 -8,411.3 841.6

2061 133.7 0.0 468.8 66.1 402.7 -9,069.4 887.2

2062 135.8 0.0 479.9 67.3 412.6 -9,756.8 934.4

2063 138.1 0.0 491.0 68.5 422.6 -10,474.3 983.3

2064 140.4 0.0 501.7 69.7 432.0 -11,222.4 1,033.4

2065 142.7 0.0 512.7 71.0 441.7 -12,002.2 1,085.4

2066 145.2 0.0 523.8 72.3 451.5 -12,814.6 1,139.3

2067 147.6 0.0 534.4 73.7 460.7 -13,660.1 1,194.5

2068 150.1 0.0 544.0 75.0 469.0 -14,538.6 1,250.6

2069 152.4 0.0 555.0 76.2 478.8 -15,452.7 1,310.0

2070 154.7 0.0 565.6 77.3 488.2 -16,403.0 1,371.2

2071 157.1 0.0 576.5 78.6 498.0 -17,390.8 1,434.6

2072 159.6 0.0 587.9 79.9 508.0 -18,417.6 1,500.5

2073 162.1 0.0 599.4 81.3 518.1 -19,484.6 1,568.6

2074 164.8 0.0 611.3 82.7 528.6 -20,593.3 1,639.4

2075 167.4 0.0 623.3 84.1 539.2 -21,745.1 1,712.7

2076 170.1 0.0 635.4 85.5 549.9 -22,941.3 1,788.5

2077 172.8 0.0 647.7 87.0 560.8 -24,183.3 1,866.9

2078 175.5 0.0 660.2 88.4 571.8 -25,472.7 1,948.1

2079 178.3 0.0 673.2 89.9 583.3 -26,811.3 2,032.4

2080 181.1 0.0 686.4 91.4 595.0 -28,200.7 2,119.7

2081 184.0 0.0 697.6 93.0 604.7 -29,640.5 2,207.8

2082 186.8 0.0 710.2 94.5 615.7 -31,133.3 2,300.1

2083 189.8 0.0 723.6 96.1 627.5 -32,681.5 2,396.3

Based on Intermediate Assumptions of the 2008 Trustees Report. Ultimate Real Trust Fund Yield of 2.9%. Office of the Chief Actuary

Ultimate Real Individual Account Yield of 4.475%. Social Security Administration

Ultimate Annuity Yield of 2.6%.

Billions of Constant 2008 Dollars

September 16, 2008
Table 1c - OASDI Cash Flow to General Fund of the Treasury - Proposal vs. Theoretical OASDI

Warshawsky Proposal - Expected Yield

Percentage Percentage

Year of Payroll Current $ 1-1-2008 PV Constant 2008 $ of Payroll Current $ 1-1-2008 PV Constant 2008 $

2008 1.4 80 78 80 1.4 80 78 80

2009 0.5 31 29 30 1.5 88 82 86

2010 0.5 31 28 30 1.4 89 78 84

2011 0.5 31 26 28 1.3 84 70 77

2012 0.3 19 15 17 1.1 74 59 67

2013 0.0 1 1 1 0.9 61 46 53

2014 -0.3 -19 -14 -16 0.6 43 31 37

2015 -0.5 -36 -25 -30 0.3 24 16 19

2016 -0.6 -49 -31 -39 0.0 2 1 2

2017 -0.7 -58 -35 -45 -0.3 -22 -14 -17

2018 -0.7 -67 -39 -51 -0.5 -48 -28 -36

2019 -0.8 -79 -43 -58 -0.8 -75 -41 -56

2020 -1.0 -94 -49 -68 -1.1 -105 -55 -76

2021 -1.1 -111 -55 -77 -1.4 -136 -67 -95

2022 -1.2 -129 -60 -88 -1.6 -168 -78 -114

2023 -1.3 -150 -66 -99 -1.9 -202 -89 -134

2024 -1.5 -170 -71 -110 -2.1 -237 -99 -153

2025 -1.6 -192 -76 -121 -2.3 -273 -108 -171

2026 -1.7 -216 -80 -132 -2.5 -310 -116 -189

2027 -1.8 -236 -83 -140 -2.7 -348 -123 -207

2028 -1.8 -253 -84 -146 -2.9 -388 -129 -224

2029 -1.9 -268 -84 -150 -3.1 -429 -135 -241

2030 -1.9 -280 -83 -153 -3.2 -469 -140 -256

2031 -1.8 -288 -81 -153 -3.3 -508 -143 -270

2032 -1.8 -295 -79 -153 -3.5 -547 -146 -283

2033 -1.8 -300 -75 -151 -3.5 -585 -147 -294

2034 -1.7 -302 -72 -148 -3.6 -620 -147 -303

2035 -1.6 -301 -68 -143 -3.6 -653 -147 -311

2036 -1.5 -296 -63 -137 -3.6 -686 -146 -318

2037 -1.4 -288 -58 -130 -3.7 -719 -144 -324

2038 -1.3 -275 -52 -121 -3.6 -749 -142 -328

2039 -1.2 -261 -47 -111 -3.6 -777 -139 -331

2040 -1.1 -246 -42 -102 -3.6 -804 -136 -333

2041 -0.9 -228 -37 -92 -3.6 -831 -133 -335

2042 -0.8 -208 -32 -82 -3.5 -858 -130 -337

2043 -0.7 -187 -27 -71 -3.5 -887 -127 -338

2044 -0.6 -166 -23 -62 -3.4 -916 -124 -340

2045 -0.5 -147 -19 -53 -3.4 -947 -121 -342

2046 -0.4 -126 -15 -44 -3.4 -981 -119 -345

2047 -0.3 -103 -12 -35 -3.4 -1,017 -116 -347

2048 -0.2 -79 -9 -26 -3.3 -1,055 -114 -351

2049 -0.2 -57 -6 -18 -3.3 -1,096 -112 -354

2050 -0.1 -36 -3 -11 -3.3 -1,141 -110 -359

2051 0.0 -15 -1 -5 -3.3 -1,190 -109 -364

2052 0.0 4 0 1 -3.3 -1,244 -108 -370

2053 0.1 20 2 6 -3.3 -1,302 -106 -377

2054 0.1 34 3 10 -3.3 -1,364 -105 -384

2055 0.1 45 3 12 -3.3 -1,431 -105 -392

2056 0.1 51 4 14 -3.4 -1,504 -104 -401

2057 0.1 60 4 15 -3.4 -1,580 -103 -410

2058 0.1 68 4 17 -3.4 -1,661 -103 -419

2059 0.1 77 4 19 -3.4 -1,745 -102 -428

2060 0.2 85 5 20 -3.5 -1,834 -101 -438

2061 0.2 92 5 21 -3.5 -1,927 -100 -447

2062 0.2 100 5 23 -3.5 -2,026 -100 -457

2063 0.2 107 5 23 -3.5 -2,129 -99 -468

2064 0.2 111 5 24 -3.6 -2,237 -99 -478

2065 0.2 113 5 24 -3.6 -2,353 -98 -489

2066 0.2 114 4 23 -3.6 -2,477 -98 -501

2067 0.1 110 4 22 -3.6 -2,607 -97 -513

2068 0.1 100 4 19 -3.7 -2,744 -97 -525

2069 0.1 94 3 18 -3.7 -2,888 -96 -537

2070 0.1 82 3 15 -3.7 -3,042 -96 -551

2071 0.1 67 2 12 -3.8 -3,206 -95 -565

2072 0.1 53 1 9 -3.8 -3,378 -95 -579

2073 0.0 37 1 6 -3.8 -3,560 -95 -593

2074 0.0 19 0 3 -3.9 -3,752 -94 -608

2075 0.0 -1 0 0 -3.9 -3,954 -94 -623

2076 0.0 -26 -1 -4 -4.0 -4,168 -94 -639

2077 0.0 -53 -1 -8 -4.0 -4,394 -93 -656

2078 -0.1 -85 -2 -12 -4.0 -4,633 -93 -673

2079 -0.1 -118 -2 -17 -4.1 -4,886 -93 -690

2080 -0.1 -155 -3 -21 -4.1 -5,152 -92 -708

2081 -0.2 -211 -4 -28 -4.2 -5,432 -92 -726

2082 -0.2 -263 -4 -34 -4.2 -5,727 -92 -744

2083 -0.2 -320 -5 -40 -4.3 -6,038 -91 -763

Total 2008-82 -1,563 -6,551

Based on Intermediate Assumptions of the 2008 Trustees Report. Office of the Actuary

Social Security Administration 1

 Equals net investment in special Treasury Bonds by the Trust Fund September 16, 2008

Billions of Dollars Billions of Dollars

Treasury During the Year1

Net Amount of Cash-Flow from the OASDI 

Trust Funds to the General Fund of the

Treasury During the Year1

 Proposal Social Security under Present Law

Net Amount of Cash-Flow from the OASDI 

Trust Funds to the General Fund of the
Table 1d - Change in Long-Range Trust Fund Assets / Unfunded Obligation IA Participation: 66.7%

Warshawsky Proposal - Expected Yield Average IA Worker Contribution: 1.24%

Present Law OASDI Basic Total Amount Proposal OASDI

Trust Fund Assets / Changes Contributed to IA: Offset to General Fund Total Change Trust Fund Assets /

Unfunded Obligation in OASDI Worker + General OASDI Benefits Contributions Through Unfunded Obligation

Through End of Year Cash Flow Fund Contributions from IA to Accounts End of Year Through End of Year

(1) (2) (3) (4) (5) (6)=sum(2) (7)

Year

2009 2,397.3 -52.8 0.0 0.0 0.0 -52.8 2,344.5

2010 2,475.3 -50.6 0.0 0.0 0.0 -103.4 2,371.9

2011 2,545.3 -44.7 0.0 0.0 0.0 -148.2 2,397.2

2012 2,604.4 -44.0 54.1 0.0 26.6 -192.1 2,412.3

2013 2,650.1 -45.2 53.3 0.0 25.9 -237.3 2,412.8

2014 2,680.9 -44.6 52.6 0.0 25.4 -281.9 2,399.0

2015 2,696.8 -40.9 52.0 0.0 24.9 -322.8 2,374.0

2016 2,697.9 -32.8 51.4 0.0 24.6 -355.6 2,342.3

2017 2,684.0 -21.6 51.1 0.0 24.5 -377.3 2,306.8

2018 2,656.2 -11.2 50.6 0.0 24.3 -388.4 2,267.8

2019 2,614.6 -2.0 50.0 0.0 24.0 -390.4 2,224.3

2020 2,559.7 5.7 49.4 0.0 23.7 -384.7 2,175.0

2021 2,492.4 12.6 48.7 0.0 23.3 -372.1 2,120.3

2022 2,413.9 18.1 48.0 0.0 22.9 -354.0 2,059.9

2023 2,324.9 23.0 47.3 0.0 22.5 -331.0 1,993.9

2024 2,226.2 27.6 46.7 0.0 22.2 -303.4 1,922.8

2025 2,118.5 31.7 46.0 0.0 21.9 -271.6 1,846.9

2026 2,003.0 35.1 45.3 0.0 21.5 -236.6 1,766.4

2027 1,880.2 39.5 44.7 0.0 21.2 -197.0 1,683.1

2028 1,750.7 45.2 44.1 0.0 20.9 -151.8 1,598.9

2029 1,615.6 50.8 43.6 0.0 20.7 -101.0 1,514.6

2030 1,476.0 56.4 43.0 0.0 20.4 -44.6 1,431.4

2031 1,332.9 62.0 42.5 0.0 20.2 17.4 1,350.3

2032 1,187.2 67.1 42.0 0.0 20.0 84.5 1,271.7

2033 1,040.1 71.6 41.5 0.0 19.7 156.2 1,196.3

2034 892.8 75.5 41.0 0.0 19.5 231.7 1,124.4

2035 745.9 79.2 40.5 0.0 19.3 310.8 1,056.8

2036 600.0 82.9 40.1 0.0 19.1 393.8 993.8

2037 455.7 86.5 39.6 0.0 18.9 480.3 936.0

2038 313.5 89.9 39.2 0.0 18.7 570.2 883.7

2039 174.0 92.6 38.8 0.0 18.6 662.8 836.8

2040 37.5 94.7 38.4 0.0 18.4 757.5 795.1

2041 -95.8 96.7 38.0 0.0 18.3 854.3 758.5

2042 -226.0 98.6 37.6 0.0 18.1 952.9 726.9

2043 -353.1 100.3 37.2 0.0 18.0 1053.2 700.1

2044 -477.2 101.6 36.8 0.0 17.8 1154.8 677.6

2045 -598.6 102.5 36.4 0.0 17.6 1257.3 658.7

2046 -717.4 103.6 35.9 0.0 17.4 1360.9 643.5

2047 -833.9 104.7 35.5 0.0 17.2 1465.6 631.8

2048 -948.1 105.7 35.1 0.0 17.1 1571.3 623.2

2049 -1,060.3 106.4 34.7 0.0 16.9 1677.7 617.4

2050 -1,170.7 106.9 34.3 0.0 16.7 1784.6 614.0

2051 -1,279.6 107.5 33.9 0.0 16.5 1892.2 612.6

2052 -1,387.1 107.9 33.5 0.0 16.4 2000.0 612.9

2053 -1,493.5 108.1 33.1 0.0 16.2 2108.1 614.6

2054 -1,598.9 108.0 32.7 0.0 16.0 2216.1 617.2

2055 -1,703.5 107.8 32.3 0.0 15.9 2323.9 620.5

2056 -1,807.3 107.4 31.9 0.0 15.7 2431.3 624.0

2057 -1,910.5 107.1 31.5 0.0 15.5 2538.4 627.9

2058 -2,013.0 106.7 31.2 0.0 15.4 2645.1 632.1

2059 -2,114.8 106.3 30.8 0.0 15.2 2751.4 636.6

2060 -2,216.0 105.8 30.4 0.0 15.0 2857.2 641.3

2061 -2,316.5 105.3 30.0 0.0 14.9 2962.5 646.1

2062 -2,416.3 104.8 29.7 0.0 14.7 3067.3 651.0

2063 -2,515.5 104.2 29.3 0.0 14.5 3171.5 656.0

2064 -2,614.0 103.4 28.9 0.0 14.4 3274.9 660.8

2065 -2,712.0 102.7 28.6 0.0 14.2 3377.6 665.6

2066 -2,809.5 102.0 28.3 0.0 14.1 3479.6 670.0

2067 -2,906.6 101.1 27.9 0.0 13.9 3580.7 674.1

2068 -3,003.1 100.0 27.6 0.0 13.8 3680.7 677.6

2069 -3,099.1 99.2 27.2 0.0 13.6 3779.9 680.8

2070 -3,194.8 98.2 26.9 0.0 13.4 3878.1 683.3

2071 -3,290.1 97.3 26.5 0.0 13.3 3975.4 685.3

2072 -3,385.0 96.4 26.2 0.0 13.1 4071.8 686.8

2073 -3,479.6 95.5 25.8 0.0 13.0 4167.4 687.8

2074 -3,573.8 94.7 25.5 0.0 12.8 4262.0 688.3

2075 -3,667.6 93.8 25.2 0.0 12.7 4355.9 688.2

2076 -3,761.2 93.0 24.9 0.0 12.5 4448.8 687.7

2077 -3,854.4 92.1 24.6 0.0 12.4 4540.9 686.5

2078 -3,947.3 91.2 24.3 0.0 12.2 4632.1 684.8

2079 -4,039.9 90.4 23.9 0.0 12.1 4722.5 682.6

2080 -4,132.3 89.6 23.6 0.0 11.9 4812.1 679.8

2081 -4,224.3 88.5 23.3 0.0 11.8 4900.5 676.2

2082 -4,316.0 87.5 23.0 0.0 11.6 4988.0 672.0

Total 2008-2082 4,988.0 2,590.0 0.0 1,257.8

Based on Intermediate Assumptions of the 2008 Trustees Report. Ultimate Real Trust Fund Yield of 2.9%. Office of the Actuary

Ultimate Real Individual Account Yield of 4.475%. Social Security Administration

Ultimate Annuity Yield of 2.6%. September 16, 2008

(Billions of $, Present Value on 1-1-08)
Table 1e - Projected Effective Taxable Payroll under Proposal and Present Law

Warshawsky Proposal - Expected Yield

Present Law Proposal Present Law Proposal

Year Percent Change

2008 5,431 5,431 5,569 5,569 0.0

2009 5,440 5,390 5,861 5,807 -0.9

2010 5,439 5,428 6,157 6,145 -0.2

2011 5,420 5,444 6,451 6,479 0.4

2012 5,390 5,426 6,748 6,794 0.7

2013 5,354 5,401 7,057 7,119 0.9

2014 5,313 5,369 7,375 7,454 1.1

2015 5,266 5,330 7,704 7,798 1.2

2016 5,214 5,288 8,042 8,156 1.4

2017 5,158 5,238 8,393 8,524 1.6

2018 5,102 5,189 8,762 8,912 1.7

2019 5,042 5,136 9,145 9,316 1.9

2020 4,980 5,079 9,543 9,734 2.0

2021 4,915 5,020 9,956 10,169 2.1

2022 4,847 4,956 10,385 10,617 2.2

2023 4,779 4,891 10,831 11,084 2.3

2024 4,713 4,829 11,298 11,576 2.5

2025 4,646 4,765 11,782 12,083 2.6

2026 4,581 4,702 12,288 12,614 2.7

2027 4,516 4,641 12,815 13,169 2.8

2028 4,453 4,580 13,365 13,746 2.9

2029 4,391 4,521 13,942 14,353 2.9

2030 4,330 4,462 14,545 14,987 3.0

2031 4,272 4,405 15,178 15,651 3.1

2032 4,215 4,350 15,840 16,348 3.2

2033 4,159 4,296 16,535 17,079 3.3

2034 4,105 4,243 17,264 17,845 3.4

2035 4,052 4,192 18,024 18,646 3.5

2036 3,999 4,140 18,818 19,483 3.5

2037 3,947 4,090 19,648 20,358 3.6

2038 3,897 4,040 20,517 21,274 3.7

2039 3,847 3,990 21,429 22,227 3.7

2040 3,799 3,941 22,382 23,221 3.7

2041 3,751 3,893 23,377 24,261 3.8

2042 3,704 3,845 24,417 25,348 3.8

2043 3,657 3,797 25,504 26,482 3.8

2044 3,611 3,750 26,640 27,663 3.8

2045 3,565 3,702 27,823 28,888 3.8

2046 3,520 3,654 29,054 30,166 3.8

2047 3,474 3,607 30,338 31,499 3.8

2048 3,430 3,561 31,678 32,890 3.8

2049 3,385 3,514 33,075 34,336 3.8

2050 3,341 3,468 34,528 35,843 3.8

2051 3,297 3,422 36,042 37,411 3.8

2052 3,253 3,377 37,627 39,052 3.8

2053 3,211 3,332 39,282 40,766 3.8

2054 3,169 3,288 41,009 42,553 3.8

2055 3,127 3,244 42,810 44,415 3.7

2056 3,086 3,201 44,684 46,352 3.7

2057 3,045 3,158 46,643 48,377 3.7

2058 3,005 3,116 48,689 50,491 3.7

2059 2,965 3,075 50,829 52,701 3.7

2060 2,926 3,034 53,060 55,002 3.7

2061 2,888 2,993 55,385 57,403 3.6

2062 2,850 2,953 57,816 59,912 3.6

2063 2,812 2,914 60,355 62,529 3.6

2064 2,775 2,875 63,006 65,260 3.6

2065 2,739 2,836 65,772 68,114 3.6

2066 2,703 2,798 68,654 71,085 3.5

2067 2,667 2,761 71,663 74,186 3.5

2068 2,632 2,724 74,807 77,423 3.5

2069 2,597 2,687 78,083 80,795 3.5

2070 2,562 2,650 81,492 84,302 3.4

2071 2,528 2,614 85,048 87,956 3.4

2072 2,494 2,579 88,769 91,779 3.4

2073 2,461 2,544 92,649 95,767 3.4

2074 2,428 2,509 96,694 99,923 3.3

2075 2,396 2,475 100,915 104,258 3.3

2076 2,363 2,441 105,310 108,770 3.3

2077 2,331 2,407 109,896 113,476 3.3

2078 2,300 2,374 114,671 118,370 3.2

2079 2,268 2,341 119,652 123,479 3.2

2080 2,238 2,309 124,843 128,815 3.2

2081 2,207 2,277 130,264 134,372 3.2

2082 2,177 2,245 135,915 140,160 3.1

2083 2,147 2,214 141,812 146,198 3.1

Based on Intermediate Assumptions of the 2008 Trustees Report. Office of the Actuary

Social Security Administration

September 16, 2008

(Billions of $, Present Value on 1-1-08) (Billions of Current $)

Effective Taxable Payroll
Table 1g - Present Law and Proposal Cost, Expenditures, and Income: As Percent of GDP

Warshawsky Proposal - Expected Ultimate Annual Real Yield of 4.48 Percent

Present Law OASDI Proposal OASDI

Expenditures Tax Expenditures Tax General Rev Contributions

Calendar Cost (Payable) Income Cost1 (Payable)

1 Income2 Transfers EE/ER3 General Rev Disbursements4

Year (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

2009 4.4 4.4 4.9 4.4 4.4 4.6 0.0 0.0 0.0 0.0

2010 4.4 4.4 4.9 4.4 4.4 4.6 0.0 0.0 0.0 0.0

2011 4.4 4.4 4.9 4.4 4.4 4.6 0.0 0.0 0.0 0.0

2012 4.5 4.5 4.9 4.5 4.5 4.6 0.0 0.2 0.2 0.0

2013 4.6 4.6 4.9 4.7 4.7 4.7 0.0 0.2 0.2 0.0

2014 4.7 4.7 4.9 4.8 4.8 4.7 0.0 0.2 0.2 0.0

2015 4.8 4.8 4.9 4.9 4.9 4.7 0.0 0.2 0.2 0.0

2016 4.9 4.9 4.9 4.9 4.9 4.7 0.0 0.2 0.2 0.0

2017 5.0 5.0 4.9 5.0 5.0 4.7 0.0 0.2 0.2 0.0

2018 5.1 5.1 4.9 5.0 5.0 4.7 0.0 0.2 0.2 0.0

2019 5.2 5.2 4.9 5.0 5.0 4.7 0.0 0.2 0.2 0.0

2020 5.3 5.3 4.9 5.1 5.1 4.7 0.0 0.2 0.2 0.0

2021 5.4 5.4 4.9 5.1 5.1 4.7 0.0 0.2 0.2 0.0

2022 5.5 5.5 4.9 5.2 5.2 4.7 0.0 0.2 0.2 0.0

2023 5.6 5.6 4.9 5.2 5.2 4.7 0.0 0.2 0.2 0.0

2024 5.6 5.6 4.9 5.3 5.3 4.7 0.0 0.2 0.2 0.0

2025 5.7 5.7 4.9 5.3 5.3 4.7 0.0 0.2 0.2 0.0

2026 5.8 5.8 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.0

2027 5.8 5.8 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.0

2028 5.9 5.9 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.0

2029 6.0 6.0 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.1

2030 6.0 6.0 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.1

2031 6.0 6.0 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.1

2032 6.1 6.1 4.8 5.3 5.3 4.7 0.0 0.2 0.2 0.1

2033 6.1 6.1 4.8 5.3 5.3 4.6 0.0 0.2 0.2 0.1

2034 6.1 6.1 4.8 5.3 5.3 4.6 0.0 0.2 0.2 0.1

2035 6.1 6.1 4.8 5.2 5.2 4.6 0.0 0.2 0.2 0.1

2036 6.1 6.1 4.8 5.2 5.2 4.6 0.0 0.2 0.2 0.1

2037 6.1 6.1 4.8 5.1 5.1 4.6 0.0 0.2 0.2 0.1

2038 6.1 6.1 4.8 5.1 5.1 4.6 0.0 0.2 0.2 0.1

2039 6.0 6.0 4.7 5.0 5.0 4.6 0.0 0.2 0.2 0.2

2040 6.0 6.0 4.7 4.9 4.9 4.6 0.0 0.2 0.2 0.2

2041 6.0 5.1 4.7 4.9 4.9 4.5 0.0 0.2 0.2 0.2

2042 6.0 4.7 4.7 4.8 4.8 4.5 0.0 0.2 0.2 0.2

2043 5.9 4.7 4.7 4.8 4.8 4.5 0.0 0.2 0.2 0.2

2044 5.9 4.7 4.7 4.7 4.7 4.5 0.0 0.2 0.2 0.2

2045 5.9 4.7 4.7 4.7 4.7 4.5 0.0 0.2 0.2 0.2

2046 5.9 4.7 4.7 4.6 4.6 4.5 0.0 0.2 0.2 0.2

2047 5.9 4.7 4.7 4.6 4.6 4.5 0.0 0.2 0.2 0.3

2048 5.8 4.7 4.7 4.5 4.5 4.5 0.0 0.2 0.2 0.3

2049 5.8 4.7 4.7 4.5 4.5 4.4 0.0 0.2 0.2 0.3

2050 5.8 4.6 4.6 4.5 4.5 4.4 0.0 0.2 0.2 0.3

2051 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.3

2052 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.4

2053 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.4

2054 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.4

2055 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.4

2056 5.8 4.6 4.6 4.3 4.3 4.4 0.0 0.2 0.2 0.4

2057 5.8 4.6 4.6 4.3 4.3 4.4 0.0 0.2 0.2 0.4

2058 5.8 4.6 4.6 4.3 4.3 4.4 0.0 0.2 0.2 0.5

2059 5.8 4.6 4.6 4.3 4.3 4.4 0.0 0.2 0.2 0.5

2060 5.8 4.6 4.6 4.3 4.3 4.3 0.0 0.2 0.2 0.5

2061 5.8 4.6 4.6 4.3 4.3 4.3 0.0 0.2 0.2 0.5

2062 5.8 4.6 4.6 4.3 4.3 4.3 0.0 0.2 0.2 0.5

2063 5.8 4.6 4.6 4.3 4.3 4.3 0.0 0.2 0.2 0.5

2064 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.5

2065 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.6

2066 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.6

2067 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.6

2068 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.6

2069 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.6

2070 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.6

2071 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.6

2072 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.6

2073 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.6

2074 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.6

2075 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.6

2076 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.7

2077 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.7

2078 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.7

2079 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.7

2080 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.7

2081 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.7

2082 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.7

2083 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.7

Based on Intermediate Assumptions of the 2008 Trustees Report.

1

 Reduced by any Individual Account offset or "clawback". 2

 Reduced by any amount redirected to Individual Accounts. Office of the Actuary

3

 Including any amount redirected from the OASDI Trust Fund. Social Security Administration

4

 Including any amount for "clawback" to the OASDI Trust Fund. September 16, 2008

Proposal Individual Account
Table 2a - Proposal General Fund Transfers, OASDI Trust Fund Assets, IA Assets, and Theoretical OASDI Assets

Warshawsky Proposal - Low/Risk-Adjusted Ultimate Annual Real Yield of 2.6 Percent

Total OASDI Individual

Trust Fund Account

Annual Percentage Annual Accumulated as Assets Assets1 Without General With Plan General

Amounts of Payroll Amounts of End of Year at End of Year at End of Year GDP Fund Transfers Fund Transfers

Calendar (1) (2) (3) (4) (5) (6) (7) (8) (9)

Year

2008 0.0 0.0 0.0 0 2,435 0 14,445 2,435 2,435

2009 0.0 0.0 0.0 0 2,526 0 14,793 2,583 2,583

2010 0.0 0.0 0.0 0 2,613 0 15,135 2,727 2,727

2011 0.0 0.0 0.0 0 2,702 0 15,451 2,869 2,869

2012 26.6 0.5 29.9 30 2,783 62 15,768 3,005 3,035

2013 25.9 0.5 29.9 61 2,851 127 16,093 3,132 3,192

2014 25.4 0.5 30.0 92 2,906 193 16,416 3,247 3,339

2015 24.9 0.5 30.2 124 2,948 261 16,724 3,349 3,474

2016 24.6 0.5 30.6 158 2,984 332 17,042 3,437 3,595

2017 24.5 0.5 31.2 194 3,017 406 17,363 3,510 3,704

2018 24.3 0.5 31.8 231 3,046 482 17,682 3,568 3,798

2019 24.0 0.5 32.2 269 3,070 561 18,001 3,609 3,878

2020 23.7 0.5 32.6 309 3,086 642 18,322 3,632 3,941

2021 23.3 0.5 33.1 351 3,094 727 18,644 3,637 3,988

2022 22.9 0.5 33.5 395 3,093 814 18,968 3,625 4,019

2023 22.5 0.5 33.9 440 3,081 904 19,295 3,592 4,032

2024 22.2 0.5 34.3 487 3,057 996 19,629 3,540 4,027

2025 21.9 0.5 34.8 536 3,022 1,090 19,964 3,466 4,002

2026 21.5 0.5 35.2 587 2,974 1,187 20,306 3,372 3,959

2027 21.2 0.5 35.7 639 2,916 1,286 20,651 3,257 3,897

2028 20.9 0.5 36.3 694 2,850 1,388 21,003 3,121 3,815

2029 20.7 0.5 36.9 751 2,778 1,492 21,364 2,964 3,715

2030 20.4 0.5 37.5 810 2,702 1,598 21,732 2,786 3,596

2031 20.2 0.5 38.2 872 2,623 1,707 22,111 2,589 3,461

2032 20.0 0.5 38.8 936 2,542 1,818 22,498 2,373 3,309

2033 19.7 0.5 39.5 1,003 2,460 1,932 22,897 2,139 3,142

2034 19.5 0.5 40.2 1,072 2,379 2,048 23,305 1,889 2,961

2035 19.3 0.5 40.9 1,144 2,301 2,166 23,720 1,624 2,768

2036 19.1 0.5 41.6 1,219 2,227 2,286 24,140 1,345 2,563

2037 18.9 0.5 42.4 1,296 2,158 2,408 24,568 1,051 2,347

2038 18.7 0.5 43.2 1,377 2,097 2,533 25,007 744 2,121

2039 18.6 0.5 44.1 1,461 2,043 2,659 25,456 425 1,886

2040 18.4 0.5 45.0 1,549 1,997 2,788 25,914 94 1,643

2041 18.3 0.5 45.9 1,639 1,961 2,918 26,379 -248 1,392

2042 18.1 0.5 46.9 1,734 1,934 3,051 26,852 -601 1,133

2043 18.0 0.5 47.8 1,832 1,916 3,185 27,333 -966 866

2044 17.8 0.5 48.8 1,934 1,908 3,321 27,824 -1,344 590

2045 17.6 0.5 49.6 2,040 1,909 3,458 28,319 -1,735 305

2046 17.4 0.5 50.5 2,149 1,919 3,597 28,818 -2,139 10

2047 17.2 0.5 51.4 2,263 1,939 3,737 29,324 -2,559 -296

2048 17.1 0.5 52.4 2,381 1,968 3,879 29,838 -2,994 -613

2049 16.9 0.5 53.4 2,503 2,006 4,021 30,357 -3,445 -942

2050 16.7 0.5 54.4 2,630 2,053 4,165 30,882 -3,914 -1,284

2051 16.5 0.5 55.4 2,762 2,108 4,310 31,413 -4,402 -1,640

2052 16.4 0.5 56.4 2,899 2,170 4,455 31,955 -4,911 -2,012

2053 16.2 0.5 57.4 3,040 2,239 4,602 32,508 -5,441 -2,401

2054 16.0 0.5 58.4 3,187 2,314 4,749 33,069 -5,994 -2,807

2055 15.9 0.5 59.5 3,339 2,393 4,897 33,638 -6,571 -3,232

2056 15.7 0.5 60.6 3,496 2,477 5,046 34,213 -7,173 -3,677

2057 15.5 0.5 61.7 3,659 2,564 5,196 34,800 -7,803 -4,144

2058 15.4 0.5 62.8 3,828 2,656 5,347 35,397 -8,460 -4,632

2059 15.2 0.5 63.9 4,003 2,753 5,499 36,008 -9,146 -5,143

2060 15.0 0.5 65.0 4,184 2,854 5,653 36,626 -9,861 -5,677

2061 14.9 0.5 66.1 4,371 2,958 5,808 37,253 -10,607 -6,236

2062 14.7 0.5 67.3 4,565 3,067 5,964 37,893 -11,385 -6,820

2063 14.5 0.5 68.5 4,766 3,180 6,122 38,544 -12,196 -7,430

2064 14.4 0.5 69.7 4,974 3,297 6,281 39,207 -13,041 -8,067

2065 14.2 0.5 71.0 5,189 3,417 6,442 39,881 -13,923 -8,733

2066 14.1 0.5 72.3 5,412 3,539 6,606 40,563 -14,842 -9,429

2067 13.9 0.5 73.7 5,643 3,664 6,771 41,258 -15,799 -10,157

2068 13.8 0.5 75.0 5,882 3,790 6,938 41,966 -16,798 -10,916

2069 13.6 0.5 76.2 6,128 3,918 7,108 42,682 -17,837 -11,709

2070 13.4 0.5 77.3 6,383 4,047 7,280 43,406 -18,921 -12,538

2071 13.3 0.5 78.6 6,647 4,177 7,455 44,140 -20,051 -13,404

2072 13.1 0.5 79.9 6,920 4,307 7,632 44,892 -21,227 -14,308

2073 13.0 0.5 81.3 7,202 4,438 7,812 45,656 -22,453 -15,252

2074 12.8 0.5 82.7 7,493 4,570 7,995 46,430 -23,730 -16,237

2075 12.7 0.5 84.1 7,795 4,702 8,182 47,217 -25,059 -17,265

2076 12.5 0.5 85.5 8,106 4,835 8,372 48,013 -26,444 -18,338

2077 12.4 0.5 87.0 8,428 4,967 8,566 48,823 -27,885 -19,457

2078 12.2 0.5 88.4 8,761 5,098 8,763 49,641 -29,385 -20,624

2079 12.1 0.5 89.9 9,105 5,229 8,964 50,473 -30,947 -21,842

2080 11.9 0.5 91.4 9,460 5,359 9,170 51,316 -32,572 -23,112

2081 11.8 0.5 93.0 9,828 5,485 9,380 52,175 -34,263 -24,436

2082 11.6 0.5 94.5 10,207 5,609 9,594 53,047 -36,023 -25,815

2083 11.5 0.5 96.1 10,599 5,730 9,813 53,931 -37,852 -27,253

Total 2008-82 1,269.3

Based on Intermediate Assumptions of the 2008 Trustees Report

1

 Including annuity assets, assuming all annuitize fully Office of the Actuary

2

 Theoretical Social Security is the current Social Security program with the assumption Social Security Administration

 that the law is modified to permit borrowing from the General Fund of the Treasury. September 16, 2008

Present Value as of 1-1-08 Billions of Constant 2008 Dollars Billions of Constant 2008 Dollars

Theoretical Social Security2

Proposal General Fund Transfers with Borrowing Authority

et OASDI Trust Fund Assets at End of Year 
Table 2g - Present Law and Proposal Cost, Expenditures, and Income: As Percent of GDP

Warshawsky Proposal - Low/Risk-Adjusted Ultimate Annual Real Yield of 2.6 Percent

Present Law OASDI Proposal OASDI

Expenditures Tax Expenditures Tax General Rev Contributions

Calendar Cost (Payable) Income Cost1 (Payable)

1 Income2 Transfers EE/ER3 General Rev Disbursements4

Year (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

2009 4.4 4.4 4.9 4.4 4.4 4.6 0.0 0.0 0.0 0.0

2010 4.4 4.4 4.9 4.4 4.4 4.6 0.0 0.0 0.0 0.0

2011 4.4 4.4 4.9 4.4 4.4 4.6 0.0 0.0 0.0 0.0

2012 4.5 4.5 4.9 4.5 4.5 4.6 0.0 0.2 0.2 0.0

2013 4.6 4.6 4.9 4.7 4.7 4.7 0.0 0.2 0.2 0.0

2014 4.7 4.7 4.9 4.8 4.8 4.7 0.0 0.2 0.2 0.0

2015 4.8 4.8 4.9 4.9 4.9 4.7 0.0 0.2 0.2 0.0

2016 4.9 4.9 4.9 4.9 4.9 4.7 0.0 0.2 0.2 0.0

2017 5.0 5.0 4.9 5.0 5.0 4.7 0.0 0.2 0.2 0.0

2018 5.1 5.1 4.9 5.0 5.0 4.7 0.0 0.2 0.2 0.0

2019 5.2 5.2 4.9 5.0 5.0 4.7 0.0 0.2 0.2 0.0

2020 5.3 5.3 4.9 5.1 5.1 4.7 0.0 0.2 0.2 0.0

2021 5.4 5.4 4.9 5.1 5.1 4.7 0.0 0.2 0.2 0.0

2022 5.5 5.5 4.9 5.2 5.2 4.7 0.0 0.2 0.2 0.0

2023 5.6 5.6 4.9 5.2 5.2 4.7 0.0 0.2 0.2 0.0

2024 5.6 5.6 4.9 5.3 5.3 4.7 0.0 0.2 0.2 0.0

2025 5.7 5.7 4.9 5.3 5.3 4.7 0.0 0.2 0.2 0.0

2026 5.8 5.8 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.0

2027 5.8 5.8 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.0

2028 5.9 5.9 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.0

2029 6.0 6.0 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.1

2030 6.0 6.0 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.1

2031 6.0 6.0 4.8 5.4 5.4 4.7 0.0 0.2 0.2 0.1

2032 6.1 6.1 4.8 5.3 5.3 4.7 0.0 0.2 0.2 0.1

2033 6.1 6.1 4.8 5.3 5.3 4.6 0.0 0.2 0.2 0.1

2034 6.1 6.1 4.8 5.3 5.3 4.6 0.0 0.2 0.2 0.1

2035 6.1 6.1 4.8 5.2 5.2 4.6 0.0 0.2 0.2 0.1

2036 6.1 6.1 4.8 5.2 5.2 4.6 0.0 0.2 0.2 0.1

2037 6.1 6.1 4.8 5.1 5.1 4.6 0.0 0.2 0.2 0.1

2038 6.1 6.1 4.8 5.1 5.1 4.6 0.0 0.2 0.2 0.1

2039 6.0 6.0 4.7 5.0 5.0 4.6 0.0 0.2 0.2 0.1

2040 6.0 6.0 4.7 4.9 4.9 4.6 0.0 0.2 0.2 0.1

2041 6.0 5.1 4.7 4.9 4.9 4.5 0.0 0.2 0.2 0.1

2042 6.0 4.7 4.7 4.8 4.8 4.5 0.0 0.2 0.2 0.2

2043 5.9 4.7 4.7 4.8 4.8 4.5 0.0 0.2 0.2 0.2

2044 5.9 4.7 4.7 4.7 4.7 4.5 0.0 0.2 0.2 0.2

2045 5.9 4.7 4.7 4.7 4.7 4.5 0.0 0.2 0.2 0.2

2046 5.9 4.7 4.7 4.6 4.6 4.5 0.0 0.2 0.2 0.2

2047 5.9 4.7 4.7 4.6 4.6 4.5 0.0 0.2 0.2 0.2

2048 5.8 4.7 4.7 4.5 4.5 4.5 0.0 0.2 0.2 0.2

2049 5.8 4.7 4.7 4.5 4.5 4.4 0.0 0.2 0.2 0.2

2050 5.8 4.6 4.6 4.5 4.5 4.4 0.0 0.2 0.2 0.2

2051 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.2

2052 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.3

2053 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.3

2054 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.3

2055 5.8 4.6 4.6 4.4 4.4 4.4 0.0 0.2 0.2 0.3

2056 5.8 4.6 4.6 4.3 4.3 4.4 0.0 0.2 0.2 0.3

2057 5.8 4.6 4.6 4.3 4.3 4.4 0.0 0.2 0.2 0.3

2058 5.8 4.6 4.6 4.3 4.3 4.4 0.0 0.2 0.2 0.3

2059 5.8 4.6 4.6 4.3 4.3 4.4 0.0 0.2 0.2 0.3

2060 5.8 4.6 4.6 4.3 4.3 4.3 0.0 0.2 0.2 0.3

2061 5.8 4.6 4.6 4.3 4.3 4.3 0.0 0.2 0.2 0.3

2062 5.8 4.6 4.6 4.3 4.3 4.3 0.0 0.2 0.2 0.3

2063 5.8 4.6 4.6 4.3 4.3 4.3 0.0 0.2 0.2 0.4

2064 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.4

2065 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.4

2066 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.4

2067 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.4

2068 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.4

2069 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.4

2070 5.8 4.5 4.5 4.2 4.2 4.3 0.0 0.2 0.2 0.4

2071 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2072 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2073 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2074 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2075 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2076 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2077 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2078 5.8 4.5 4.5 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2079 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2080 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2081 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2082 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.4

2083 5.8 4.4 4.4 4.2 4.2 4.2 0.0 0.2 0.2 0.4

Based on Intermediate Assumptions of the 2008 Trustees Report.

1

 Reduced by any Individual Account offset or "clawback". 2

 Reduced by any amount redirected to Individual Accounts. Office of the Actuary

3

 Including any amount redirected from the OASDI Trust Fund. Social Security Administration

4

 Including any amount for "clawback" to the OASDI Trust Fund. September 16, 2008

Proposal Individual Account