SOCIAL SECURITY

Office of the Chief Actuary

MEMORANDUM

Date: August 8, 2013 Refer To: TCC

To: Alice H. Wade, Deputy Chief Actuary

From: Sven Sinclair, Economist

Dan Nickerson, Actuary 

Subject: Estimated OASDI and HI Financial Effects of a Proposal to Cover Earnings of 

Individuals with Selected Non-Immigrant Visas 

The U.S. government grants non-immigrant temporary visas to qualified individuals from other 

countries. There are several different non-immigrant visa categories, some permitting individuals 

to work and exempt their earnings from Social Security and Medicare coverage. 

The proposal would extend Social Security and Medicare coverage to the following categories of 

non-immigrant visa holders, unless an existing coverage exclusion precludes coverage (e.g., 

work performed by students for an educational institution that has elected to exclude students 

from coverage):

• F-1—academic students

• H-2A—temporary agricultural workers

• J-1—exchange visitors

• M-1—vocational or non-academic students

• Q-1—international cultural exchange visitors

• Q-2—Irish peace process visitors

For the purpose of this estimate, we assume the proposal would be effective for work performed 

on or after January 1, 2014 under these visa categories. For 2014, we estimate that this proposal 

would extend coverage to about 290,000 visa holders and the average taxable wage for these visa 

holders would be about $12,400. The extra payroll tax from extending coverage would provide 

additional income to the combined Old-Age and Survivors Insurance and Disability Insurance

(OASDI) Trust Funds and the Hospital Insurance (HI) Trust Fund. Because most of these visa 

holders will ultimately have less than 10 years of coverage, we expect only a small offsetting 

effect for benefit payments from this extra coverage. The table below displays the year-by-year 

net OASDI savings from the proposal through 2022, as well as the projected increase in 

Medicare (Part A: Hospital Insurance) tax revenue: 
2

Calendar year

Net OASDI program savings

(in millions)

Increase in Medicare 

(HI) Tax Revenue

(in millions)

2013 $0 $0

2014 4251 105

2015 474 111

2016 503 118

2017 533 125

2018 563 132

2019 590 139

2020 618 145

2021 646 152

2022 674 159

Total, 2013-2022 5,026 1,186

Table 1, attached, details the OASDI financial effects of this proposal over the 75-year longrange period. The overall effect of this proposal would be to increase (improve) the long-range 

(75-year) OASDI actuarial balance by an estimated 0.01 percent of taxable payroll. We base all 

estimates on the intermediate assumptions of the 2013 Trustees Reports. 

 Sven Sinclair

 

 

Dan Nickerson

 1 The 2014 values for specific visa category are as follows:

Visa category Number of workers Average earnings

Net OASDI program 

savings (millions)

Increase in HI 

revenues (millions)

H-2A 73,000 $12,400 $106 $26

J-1 205,000 $12,800 $309 $76

M-1 10,000 $2,800 $3 $1

Q-1 2,000 $33,800 $7 $2

We assume no persons would be affected in the Q-2 visa category, and assume no effect from extending coverage to 

students on F-1 visa because their employment would be excluded based on other existing coverage exclusions.
Table 1 - OASDI Cost Rate, Income Rate, Annual Balance, and Trust Fund Ratio

Starting in 2014, extend OASDI coverage to immgrants with F-1, H-2A, J-1, M-1, Q-1, and Q-2 Visas.

Year Cost Rate

Income

Rate

Annual

Balance Cost Rate

Income

Rate

Annual

Balance

2013 13.95 12.69 -1.26 330 0.00 0.00 0.00

2014 14.04 12.84 -1.20 315 0.00 0.01 0.01

2015 13.97 12.87 -1.10 301 0.00 0.01 0.01

2016 13.91 12.89 -1.02 286 0.00 0.01 0.01

2017 13.88 12.91 -0.97 271 0.00 0.01 0.01

2018 13.91 12.94 -0.98 258 0.00 0.01 0.01

2019 14.06 12.96 -1.10 244 0.00 0.01 0.01

2020 14.26 12.97 -1.28 231 0.00 0.01 0.01

2021 14.44 13.00 -1.44 218 0.00 0.01 0.01

2022 14.70 13.03 -1.67 204 0.00 0.01 0.01

2023 14.97 13.05 -1.92 189 0.00 0.01 0.01

2024 15.23 13.06 -2.16 174 0.00 0.01 0.01

2025 15.48 13.08 -2.40 158 0.00 0.01 0.01

2026 15.71 13.09 -2.62 142 0.00 0.01 0.01

2027 15.93 13.10 -2.82 125 0.00 0.01 0.01

2028 16.14 13.12 -3.02 108 0.00 0.01 0.01

2029 16.33 13.13 -3.20 90 0.00 0.01 0.01

2030 16.49 13.14 -3.35 72 0.00 0.01 0.01

2031 16.63 13.15 -3.49 52 0.00 0.01 0.01

2032 16.75 13.16 -3.60 32 0.00 0.01 0.01

2033 16.86 13.16 -3.69 12 0.00 0.01 0.01

2034 16.93 13.17 -3.77 ---- 0.00 0.01 0.01

2035 16.98 13.17 -3.81 ---- 0.00 0.01 0.01

2036 17.01 13.17 -3.83 ---- 0.00 0.01 0.01

2037 17.02 13.18 -3.85 ---- 0.00 0.01 0.01

2038 17.02 13.18 -3.84 ---- 0.00 0.01 0.01

2039 16.99 13.18 -3.82 ---- 0.00 0.01 0.01

2040 16.96 13.18 -3.79 ---- 0.00 0.01 0.01

2041 16.93 13.18 -3.75 ---- 0.00 0.01 0.01

2042 16.89 13.18 -3.72 ---- 0.00 0.01 0.01

2043 16.86 13.18 -3.69 ---- 0.00 0.01 0.01

2044 16.84 13.18 -3.67 ---- 0.00 0.01 0.01

2045 16.83 13.18 -3.65 ---- 0.00 0.01 0.01

2046 16.82 13.18 -3.64 ---- 0.00 0.01 0.01

2047 16.81 13.18 -3.63 ---- 0.00 0.01 0.01

2048 16.79 13.18 -3.62 ---- 0.00 0.01 0.01

2049 16.79 13.18 -3.61 ---- 0.00 0.01 0.01

2050 16.78 13.18 -3.61 ---- 0.00 0.01 0.01

2051 16.79 13.18 -3.61 ---- 0.00 0.01 0.01

2052 16.81 13.18 -3.63 ---- 0.00 0.01 0.01

2053 16.84 13.18 -3.65 ---- 0.00 0.01 0.01

2054 16.87 13.18 -3.69 ---- 0.00 0.01 0.01

2055 16.91 13.19 -3.72 ---- 0.00 0.01 0.01

2056 16.96 13.19 -3.77 ---- 0.00 0.01 0.01

2057 17.00 13.19 -3.81 ---- 0.00 0.01 0.01

2058 17.05 13.20 -3.85 ---- 0.00 0.01 0.01

2059 17.10 13.20 -3.90 ---- 0.00 0.01 0.01

2060 17.14 13.20 -3.94 ---- 0.00 0.01 0.01

2061 17.19 13.20 -3.98 ---- 0.00 0.01 0.01

2062 17.23 13.21 -4.02 ---- 0.00 0.01 0.01

2063 17.27 13.21 -4.06 ---- 0.00 0.01 0.01

2064 17.31 13.21 -4.10 ---- 0.00 0.01 0.01

2065 17.36 13.22 -4.14 ---- 0.00 0.01 0.01

2066 17.40 13.22 -4.19 ---- 0.00 0.01 0.01

2067 17.45 13.22 -4.23 ---- 0.00 0.01 0.01

2068 17.50 13.22 -4.27 ---- 0.00 0.01 0.01

2069 17.54 13.23 -4.32 ---- 0.00 0.01 0.01

2070 17.59 13.23 -4.36 ---- 0.00 0.01 0.01

2071 17.62 13.23 -4.39 ---- 0.00 0.01 0.01

2072 17.66 13.23 -4.42 ---- 0.00 0.01 0.01

2073 17.68 13.23 -4.45 ---- 0.00 0.01 0.01

2074 17.71 13.24 -4.47 ---- 0.00 0.01 0.01

2075 17.72 13.24 -4.48 ---- 0.00 0.01 0.01

2076 17.73 13.24 -4.49 ---- 0.00 0.01 0.01

2077 17.74 13.24 -4.50 ---- 0.00 0.01 0.01

2078 17.74 13.24 -4.50 ---- 0.00 0.01 0.01

2079 17.75 13.24 -4.51 ---- 0.00 0.01 0.01

2080 17.76 13.24 -4.52 ---- 0.00 0.01 0.01

2081 17.78 13.24 -4.54 ---- 0.00 0.01 0.01

2082 17.80 13.24 -4.56 ---- 0.00 0.01 0.01

2083 17.83 13.24 -4.59 ---- 0.00 0.01 0.01

2084 17.87 13.25 -4.63 ---- 0.00 0.01 0.01

2085 17.92 13.25 -4.67 ---- 0.00 0.01 0.01

2086 17.96 13.25 -4.71 ---- 0.00 0.01 0.01

2087 18.02 13.25 -4.76 ---- 0.00 0.01 0.01

2088 18.07 13.26 -4.81 ---- 0.00 0.01 0.01

Cost Rate Income Rate

Actuarial 

Balance

Change in 

Cost rate

Change in 

Income Rate

Change in 

Actuarial

Balance

16.60% 13.88% -2.71% 2033 0.00% 0.01% 0.01%

1 Under present law the year of Trust Fund reserve depletion is 2033

August 8, 2013

Summarized Rates: OASDI

Year of reserve 

depletion1

Summarized Rates: OASDI

2013 - 2087

Based on Intermediate Assumptions of the 2013 Trustees Report Office of the Chief Actuary

Social Security Administration

Proposal Change from Present Law

Expressed as a percentage of present-law Trust Fund

Ratio

1-1-year

Expressed as a percentage of present-law