SOCIAL SECURITY

MEMORANDUM 

Date: March 16, 2006 Refer To: TCA 

To: Senator Robert Bennett, Vice Chairman 

Joint Economic Committee of Congress 

From: Stephen C. Goss, Chief Actuary 

Alice H. Wade, Deputy Chief Actuary 

Subject: Estimated Financial Effects of a Proposal to Restore Sustainable Solvency for the 

Social Security Program --INFORMATION 

This memorandum presents estimates for the plan discussed with Tom Miller and Jeff 

Schlagenhauf of the staff for the Joint Economic Committee. The plan would provide for 

progressive indexing of scheduled Old-Age and Survivor’s Insurance (OASI) benefits, 

accelerate the increase in the normal retirement age to 67, provide for a life-expectancy 

adjustment (longevity indexing) for OASI benefits, and provide for transfers from the 

General Fund of the Treasury when needed to maintain a contingency trust fund reserve. 

All estimates are based on the intermediate assumptions of the 2005 Trustees Report and 

reflect our understanding of your intent for this proposal. This plan would eliminate the 

long-range OASDI actuarial deficit, which is estimated at 1.92 percent of taxable payroll 

under current law, leaving the OASDI program in actuarial balance for the long-range 75-

year projection period. In addition, the OASDI program would meet the criteria for 

sustainable solvency under these assumptions because the projected assets in the OASDI 

Trust Funds would be projected to be stable as a percentage of annual program cost at the 

end of the period. Thus, the program would be expected to be solvent for the foreseeable 

future under this proposal. 

Plan Specifications

Provision 1. Progressive Indexing of OASI Benefits

The Progressive Indexing PIA Formula 

Under this provision, basic benefits for OASI beneficiaries above the 30th percentile of 

career-average earners would be modified in the law to provide for slower growth in 
2

benefits across succeeding cohorts of retirees starting in 2012. The largest reductions 

would be for workers with steady maximum taxable earnings. For these maximum earners 

reductions would be equivalent to the effect of full CPI-indexing of starting benefits, as 

included in Model 2 from the President’s Commission to Strengthen Social Security of 

2001. Reductions in starting benefit levels would be smaller for earners with lower careeraverage earnings. This progressive indexing provision is modeled after the provision 

developed for Robert Pozen in 2003, but differs in that it would not reduce benefits for 

disabled worker beneficiaries or for young survivor beneficiaries. 

To accomplish progressive indexing, the PIA formula would be modified in four steps as 

detailed below. 

1. Step 1: Establish a new bend point at the 30th percentile: A new PIA bend point 

would be established for those newly eligible in 2012. The new bend point would 

be set at the level of: 

• The current-law first bend point plus 

• 28.6 percent of the difference between the current-law first and second bend 

points. 

This level has been determined by the Office of the Chief Actuary to be at about 

the 30th percentile of average indexed monthly earnings (AIME) for workers 

becoming entitled for retired worker benefits in the years 2001 through 2003. In 

addition, the specified new bend point is expected to be at about the 30th percentile 

of career-average earnings for retired workers newly entitled in 2012 based on 

projections under the intermediate assumptions of the 2005 Trustees Report. This 

level is equivalent to about $20,000 annual earnings in 2005. The new bend point 

would be wage indexed in the future, as is done for the other bend points in current 

law. 

2. Step 2: Compute PIA for “maximum” earner two ways: The PIA would be 

computed two ways for each of the cohorts of theoretical “maximum” earners 

retiring at 62 in 2012 and later. The “maximum” earner who retirees at age 62 in 

2012 is defined as a worker with a career-average earnings level (AIME) equal to 

the OASDI taxable maximum amount for 2010. This level of AIME would be 

wage indexed for subsequent cohorts of theoretical “maximum” earners. The first 

PIA calculation would be as in current law, and would be referred to as the wageindexed PIA. The second calculation would be computed with each of the three 

marginal PIA factors (90, 32, and 15) being reduced successively by the annual 

real increase in the national average wage index (AWI). This would be referred to 

as the CPI-indexed PIA. The annual real increase in the AWI would be calculated 

as: 

• The ratio of the CPI-W (the index level) for the second year prior to benefit 

eligibility to the CPI-W for 2009, divided by 

• The ratio of the AWI for the second year prior to the year of benefit eligibility 

to the AWI for 2009. 
3

3. Step 3: Calculate the PIA for 30th percentile worker: Calculate the PIA for 

cohorts of workers becoming newly eligible for retirement benefits in 2012 and 

later and having an AIME equal to the level of the applicable new bend point. 

4. Step 4: Determine the upper two PIA formula factors: For the actual progressive 

indexed PIA formula, the marginal PIA factors that apply above the new bend 

point would be reduced at the rate needed so that the PIA computed for the 

theoretical “maximum” earner would be equal to the CPI-indexed PIA for those 

newly eligible in 2012 and later. The PIA factors (90 and 32) that apply below the 

new bend point would be unaffected. For each worker attaining age 62 in 2012 

and later, the formula factors above the new bend point (32 and 15) would be 

multiplied by an amount equal to: 

• The difference between the CPI-indexed PIA for the theoretical maximum 

earner retiring at 62 in the year and the PIA for the worker with an AIME equal 

to the new bend point, divided by 

• The difference between the wage-indexed PIA for the theoretical maximum 

earner and the PIA for the worker with an AIME equal to the new bend point. 

Benefits Not Subject to Full Progressive Indexing 

As stated above, the progressive indexed PIA applies for OASI benefits that are subject to 

reduction for early-age entitlement: retired worker, aged spouse and aged widow(er) 

benefits. Benefits payable to young survivors (children and spouses under NRA with a 

child in care) would be based on the current wage-indexed PIA. All benefits payable from 

the DI Trust Fund would also be based on the current law wage-indexed PIA formula. 

However, upon attainment of the normal retirement age (NRA), disabled worker 

beneficiaries are converted to retired worker status and are thereafter paid benefits from 

the OASI Trust Fund. Under this proposal, disabled worker beneficiaries would become 

subject to a proportional application of the progressive indexed PIA at the time of 

conversion to retired worker status (or at entitlement to any retired worker benefit if 

recovered from disability before NRA or for survivor benefits if deceased before NRA). In 

such cases, the proportion of years between attainment of age 22 (or 2006 if later) and the 

attainment of 62 (or age at death if earlier) for which the worker was entitled to disabled 

worker benefits would be determined (PropDIS). The PIA payable to a worker upon 

conversion to retired worker status (or at entitlement to any retired worker benefit if 

recovered from disability before NRA or for survivor benefits if deceased before NRA) 

would be computed as: 

• The product of PropDIS and the PIA that had been payable from the DI 

program (with continued COLAs) plus 

• The product of (1 - PropDIS ) and the PIA that would be payable to a retiree of 

the same age with full progressive indexing and an AIME equal to that for the 

worker with the benefit computation years reduced by the years of disabled 

worker entitlement between ages 22 and 62. 

This resulting proportional “weighted average” benefit would, however, be limited in 

cases where the beneficiary is entitled to disabled worker benefits up to conversion to 
4

retired worker status at NRA. In this case, the PIA would be set no higher than the PIA 

provided before conversion, and then increased by appropriate COLAs. 

Stopping and Restarting Progressive Indexing 

Under the complete proposal, it is expected that sustainable solvency will be achieved 

(solvency through 75 years and a stable or rising ratio of trust fund assets to annual 

program cost at the end of the period). Under the plan, if projections under the 

intermediate assumptions for the OASDI program in any future Trustees Report indicate 

that sustainable solvency is projected and that no transfers from the General Fund of the 

Treasury are expected to be needed within the next 75 years, then the incremental effects 

of progressive indexing may be suspended for the succeeding year. The determination of 

whether to suspend progressive indexing for the following year will be in the affirmative if 

the OASDI program would still be projected to meet sustainable solvency under the 

intermediate assumptions of the Trustees Report. 

This stabilizing provision may cause the incremental effects of progressive indexing to be 

added only intermittently after some time in the future. If progressive indexing is 

suspended in a year, then the potential incremental effects for that year will not be applied 

in any future year. That is, if the progressive indexing is restarted in any future year, the 

effect of CPI-indexing the PIA for the theoretical maximum earner in the formulas above 

will be omitted for the suspension period. 

Provision 2. Start Increase for NRA to 67 in 2012

Under current law, the normal retirement age (NRA) is scheduled to increase by 2 months 

per year for those attaining retirement eligibility age (62) in years 2017 through 2022, 

reaching the ultimate NRA of 67 for those reaching age 62 in 2022 and later. This 

provision would move the transition 5 years earlier, increasing the NRA by 2 months per 

year for those attaining retirement eligibility age (62) in years 2012 through 2017, 

reaching the ultimate NRA of 67 for those reaching age 62 in 2017 and later. 

Provision 3. Indexing OASI Benefits for Increases in Life Expectancy

For OASI beneficiaries becoming eligible for aged OASI benefits (as described for 

progressive indexing above) in 2018 and later, the PIA marginal factors (90, 32, and the 

modified 32 and 15 from progressive indexing) would all be multiplied by the ratio of: 

• Life expectancy at 67 (ultimate NRA) for 2013 

 to 

• Life expectancy at 67 (ultimate NRA) for the 4th year prior to the year of benefit 

eligibility. 

Unisex life expectancies would be computed using the best available data by the Office of 

the Chief Actuary of the Social Security Administration. Life expectancies would be 
5

based on period life tables for these years so that final, complete actual data would be 

available for the calculations. Life expectancies projected under the intermediate 

assumptions of the 2005 Trustees Report result in an expected average annual reduction in 

the PIA benefit level under this provision of about 0.3 percent. 

While benefits payable from the Disability Insurance Trust Fund would not be affected by 

the longevity indexing, such benefits would be affected on a proportional basis (as 

described above for progressive indexing) starting at conversion to retired worker status at 

NRA (or at entitlement to any retired worker benefit, or at death for aged survivor 

benefits, if earlier). 

Provision 4. Provide Transfers from the General Fund of the Treasury as Needed

If in any future year the assets of the combined OASDI Trust Funds during the following 

year are projected to fall below a level equal to 100 percent of the cost of the program in 

the ensuing year, then transfers from the General Fund of the Treasury will be made in 

sufficient amount and timing to prevent the trust funds from falling below 100 percent of 

the annual program cost. 

Assumptions

All estimates for this proposal provided in this memorandum and in the attached tables 

reflect the intermediate assumptions and projections from the 2005 Trustees Report 

Results

OASDI Trust Fund and Unified Budget Effects 

Tables 1 through 1d provide detailed estimates for the expected effects of the complete 

plan on OASDI financial status and on the unified budget. Table 2 provides OASDI 

financial status assuming enactment of all but provision 4, thus omitting general fund 

transfers. Finally, table 3 provides OASDI financial status assuming enactment of only 

provision 1, progressive indexing of the PIA formula for OASI benefits. 

Table 1 indicates that the complete plan would be expected to result in solvency for the 

OASDI program through the next 75 years. The actuarial deficit is projected to be entirely 

eliminated. Moreover, the trust fund assets level shown as a ratio to annual program cost 

(trust fund ratio, or TFR) is projected to be stable at the end of the 75-year period. Thus, 

the plan would meet the criteria for sustainable solvency under the intermediate 

assumptions of the 2005 Trustees Report. 

Table 1 also indicates that general fund transfers are expected to be needed starting 2046 

and lasting through about 2080, in order to maintain a 100 TFR. After 2080, however, 

additional transfers are not expected to be necessary. The TFR is projected to be stable 
6

through 2080 at a level of 100 percent of annual program cost. In addition, table 1 

indicates that annual program cash-flow balances (annual balance) are projected to be 

improving (getting to be smaller negatives) and are approaching positive annual balances. 

It is anticipated that before annual balances reach a positive level, the TFR will again start 

rising, within a few years after 2080. At that point, the incremental effects of progressive 

indexing (see description above) would be suspended as long as additional general fund 

transfers are not projected to be needed. If the TFR were to at some point to continue 

rising even with the continued suspension of progressive indexing, then the program 

would be somewhat over financed with the specified tax rates. 

On the other hand, if the program at any point would not be adequately financed with the 

application of provisions 1 through 3 of this plan, then provision 4 would provide a 

failsafe in the form of general fund transfers as needed to maintain a 100 percent TFR. 

Table 1 indicates that the OASDI actuarial deficit of 1.92 percent of payroll would be 

eliminated under the proposal. The effect on the actuarial deficit of the provisions 

affecting benefits alone (provisions 1 through 3) would be an improvement (reduction) in 

the actuarial deficit by 1.64 percent of taxable payroll, or more than enough to eliminate 

the OASI program actuarial deficit of 1.60 percent of payroll projected under current law. 

Table 1a provides an analysis of the general fund transfers to the trust funds under the 

plan, as well as projected levels of OASDI Trust Fund assets. Columns 1 through 3 

provide the estimated amounts of general fund transfers to the trust funds for years 2046 

through 2080, expressed in constant 2005 dollars, in present value as of January 1, 2005, 

and as a percentage of annual OASDI taxable payroll. The total amount of transfers in 

present value through 2079 (the end of the 75-year valuation period) is shown as $627 

billion at the bottom of column 1. Column 4 provides the cumulative total amount of 

these transfers through the end of each year (with interest), in constant 2005 dollars. 

The projected OASDI Trust Fund assets under the proposal are shown in column 5 of 

Table 1a. For the purpose of comparison, the projected OASDI Trust Fund assets are also 

shown for a theoretical Social Security program with borrowing authority in two separate 

ways. The theoretical trust fund assets are shown without any general fund transfers in 

column 7. In addition, the theoretical trust fund assets are shown with the inclusion of 

general fund transfers for solvency under the proposal in column 8. The projected level of 

GDP in constant 2005 dollars is shown in column 6 as an additional point of reference. 

Tables 1b and 1bc provide estimated effects on the federal government unified budget 

deficit due to enacting the proposal. These estimates indicate the change from the unified 

budget projections that would be made under current law (under the standard budget 

conventions). It should be noted that these estimates are based on the Trustees 

assumptions and thus are not directly comparable with those made by OMB and CBO 

under their own assumptions. Annual unified budget cash flow would be improved for 

years 2012 and later due to the substantial and increasing reductions in benefit obligations 

under the OASDI program.. The total debt held by the public is reduced to an increasing 
7

degree through 2080. Annual unified budget balances are also improved for all years after 

2011. 

Table 1c provides estimates of the annual cash flow from the trust funds to the General 

Fund of the Treasury. Under the proposal, the cash flow to the general fund is unchanged 

through 2011. After 2011, cash flow to the general fund improves to an increasing degree 

as the benefit reductions grow. For the period 2005 through 2079 as a whole, the net cash 

flow from the OASDI Trust Funds to the general fund is increased from a negative $5.7 

trillion in present value under current law modified to provide general fund transfers for 

solvency to negative $2.1 trillion under the proposal. 

Table 1d illustrates the effects of the components of the proposal on the annual OASDI 

Trust Fund levels, and on the projected unfunded obligations through each year after trust 

fund assets are projected to be exhausted. The estimated OASDI unfunded obligation for 

the long-range period of $4.0 trillion in present value under current law is eliminated by a 

net reduction in benefits of $3.6 trillion and general revenue transfers of $0.6 trillion, in 

present value. The resulting positive trust fund balance at the end of 2079 is estimated at 

$0.2 trillion under the proposal. 

Table 2 provides the projected OASDI Trust Fund status for the plan, but excluding the 

transfers from the General Fund of the Treasury. Without the transfers, the OASDI Trust 

Fund exhaustion date would be extended from 2041 until 2056, and the actuarial deficit 

would be improved by 1.64 percent of taxable payroll, leaving an actuarial deficit of 0.28 

percent of payroll. As stated earlier, the reduction in the actuarial deficit excluding the 

general fund transfers would be greater than the actuarial deficit for the OASI program 

alone under current law. 

Table 3 provides projected OASDI Trust Fund status reflecting only provision 1, 

progressive indexing of the PIA formula. For this provision alone, the OASDI Trust Fund 

exhaustion date would be extended from 2041 until 2048, and the actuarial deficit would 

be improved by 1.21 percent of taxable payroll, leaving an actuarial deficit of 0.71 percent 

of payroll. 

Estimated Effects on Benefit Levels

Table B1 provides projected levels of retired worker benefits for retirement at age 65 for 

several theoretical worker examples. Benefit levels at age 65 are presented in constant 

2005 dollars (discounted for CPI increase back to 2005). Theoretical workers are 

presented with scaled low, medium, and high career earnings levels, as well as for a career 

steady maximum earner (earnings at or above the OASDI taxable maximum each year). 

These four hypothetical workers represent about the 28, 58, 85 and 100 percentiles of the 

distribution of career earnings levels for recent retired workers. See Actuarial Note 2004.3 

at http://www.ssa.gov/OACT/NOTES/ran3/an2004-3.pdf for details on the nature of these 

worker examples. 
8

Benefit levels are shown only for retired worker beneficiaries. Percentage reductions in 

benefits would be similar for other affected benefits. Comparison is provided to both 

present-law scheduled and present-law payable benefits. Comparison to present-law 

payable benefits is particularly appropriate for this proposal, as the means to achieving 

solvency for the OASDI program is almost entirely reductions in scheduled benefits. 

 

 

 

 Stephen C. Goss 

 

 

 Alice H. Wade 
Table 1 - Bennett Solvency Proposal

"Effective" Net 

Change in OASDI OASDI General 

Cost Income Annual TFR Contribution Contribution Revenue

Year Rate Rate1 Balance 1-1-yr Rate Rate1 Transfers

2005 11.13 12.72 1.59 320 12.40

2006 11.00 12.73 1.73 337 0.00 12.40

2007 10.95 12.74 1.79 355 0.00 12.40

2008 10.99 12.78 1.80 370 0.00 12.40

2009 11.13 12.77 1.65 382 0.00 12.40

2010 11.25 12.79 1.54 394 0.00 12.40

2011 11.42 12.84 1.42 404 0.00 12.40

2012 11.66 12.87 1.21 410 0.00 12.40

2013 11.91 12.90 0.99 415 0.00 12.40

2014 12.17 12.92 0.75 419 0.00 12.40

2015 12.41 12.93 0.53 421 0.00 12.40

2016 12.65 12.95 0.30 421 0.00 12.40

2017 12.90 12.97 0.07 420 0.00 12.40

2018 13.15 12.98 -0.17 418 0.00 12.40

2019 13.40 13.00 -0.40 415 0.00 12.40

2020 13.66 13.01 -0.64 410 0.00 12.40

2021 13.92 13.03 -0.89 404 0.00 12.40

2022 14.18 13.05 -1.14 397 0.00 12.40

2023 14.44 13.06 -1.37 388 0.00 12.40

2024 14.68 13.08 -1.61 378 0.00 12.40

2025 14.92 13.09 -1.83 368 0.00 12.40

2026 15.16 13.11 -2.05 356 0.00 12.40

2027 15.36 13.12 -2.24 344 0.00 12.40

2028 15.53 13.13 -2.40 331 0.00 12.40

2029 15.67 13.14 -2.53 319 0.00 12.40

2030 15.79 13.15 -2.64 305 0.00 12.40

2031 15.88 13.16 -2.72 292 0.00 12.40

2032 15.95 13.16 -2.78 279 0.00 12.40

2033 15.98 13.17 -2.81 265 0.00 12.40

2034 15.98 13.17 -2.81 252 0.00 12.40

2035 15.97 13.17 -2.80 239 0.00 12.40

2036 15.94 13.17 -2.76 226 0.00 12.40

2037 15.89 13.17 -2.72 213 0.00 12.40

2038 15.82 13.17 -2.65 200 0.00 12.40

2039 15.74 13.17 -2.58 187 0.00 12.40

2040 15.66 13.16 -2.50 175 0.00 12.40

2041 15.58 13.16 -2.42 163 0.00 12.40

2042 15.50 13.16 -2.34 150 0.00 12.40

2043 15.42 13.15 -2.26 139 0.00 12.40

2044 15.33 13.15 -2.18 127 0.00 12.40

2045 15.25 13.15 -2.10 115 0.00 12.40

2046 15.17 14.14 -1.03 104 1.00 13.40 1.00

2047 15.09 14.84 -0.25 100 0.70 14.10 1.70

2048 15.01 14.74 -0.27 100 -0.10 14.00 1.60

2049 14.94 14.63 -0.30 100 -0.10 13.90 1.50

2050 14.86 14.53 -0.33 100 -0.10 13.80 1.40

2051 14.79 14.43 -0.37 100 -0.10 13.70 1.30

2052 14.73 14.43 -0.30 100 0.00 13.70 1.30

2053 14.67 14.42 -0.24 100 0.00 13.70 1.30

2054 14.61 14.32 -0.29 100 -0.10 13.60 1.20

2055 14.55 14.22 -0.33 100 -0.10 13.50 1.10

2056 14.49 14.22 -0.28 100 0.00 13.50 1.10

2057 14.44 14.11 -0.33 100 -0.10 13.40 1.00

2058 14.39 14.11 -0.28 100 0.00 13.40 1.00

2059 14.34 14.11 -0.23 100 0.00 13.40 1.00

2060 14.29 14.01 -0.28 100 -0.10 13.30 0.90

2061 14.24 14.00 -0.23 100 0.00 13.30 0.90

2062 14.19 13.90 -0.29 100 -0.10 13.20 0.80

2063 14.15 13.90 -0.25 100 0.00 13.20 0.80

2064 14.11 13.80 -0.31 100 -0.10 13.10 0.70

2065 14.07 13.80 -0.27 100 0.00 13.10 0.70

2066 14.03 13.80 -0.24 100 0.00 13.10 0.70

2067 13.99 13.69 -0.30 100 -0.10 13.00 0.60

2068 13.95 13.69 -0.26 100 0.00 13.00 0.60

2069 13.91 13.69 -0.22 100 0.00 13.00 0.60

2070 13.86 13.59 -0.27 100 -0.10 12.90 0.50

2071 13.82 13.49 -0.33 100 -0.10 12.80 0.40

2072 13.77 13.48 -0.29 100 0.00 12.80 0.40

2073 13.72 13.48 -0.24 100 0.00 12.80 0.40

2074 13.68 13.38 -0.30 100 -0.10 12.70 0.30

2075 13.63 13.38 -0.26 100 0.00 12.70 0.30

2076 13.59 13.37 -0.22 100 0.00 12.70 0.30

2077 13.55 13.27 -0.27 100 -0.10 12.60 0.20

2078 13.50 13.27 -0.23 100 0.00 12.60 0.20

2079 13.46 13.17 -0.29 100 -0.10 12.50 0.10

2080 13.42 13.17 -0.25 100 0.00 12.50 0.10

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2005 - 2079 14.06 14.06 0.00 1.92

Based on Intermediate Assumptions of the 2005 Trustees Report. 

All values are expressed as percents of taxable payroll, except TFR. Office of the Actuary

Ultimate Real Trust Fund Interest Rate of 3 percent. Social Security Administration

1

 Including General Revenue Transfer March 14, 2006
Table 1a Proposal General Fund Transfers, OASDI Trust Fund Assets, and Theoretical OASDI Assets

Proposal General Fund Transfers Total OASDI

Accumulated Trust Fund

Present Value Percent of Annual as of Assets Without General With Plan General 

as of 1-1-2005Taxable Payroll Transfers End of Year at End of Year GDP Fund Transfers Fund Transfers

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

Year Billions Billions of Constant 2005 $ Billions of Constant 2005 Dollars

2005 0.0 0.0 0.0 0 1,850 12,359 1,850 1,850

2006 0.0 0.0 0.0 0 1,995 12,746 1,995 1,995

2007 0.0 0.0 0.0 0 2,139 13,080 2,139 2,139

2008 0.0 0.0 0.0 0 2,285 13,389 2,285 2,285

2009 0.0 0.0 0.0 0 2,429 13,690 2,429 2,429

2010 0.0 0.0 0.0 0 2,574 13,989 2,574 2,574

2011 0.0 0.0 0.0 0 2,719 14,286 2,719 2,719

2012 0.0 0.0 0.0 0 2,858 14,573 2,858 2,858

2013 0.0 0.0 0.0 0 2,991 14,850 2,989 2,989

2014 0.0 0.0 0.0 0 3,114 15,125 3,110 3,110

2015 0.0 0.0 0.0 0 3,230 15,398 3,222 3,222

2016 0.0 0.0 0.0 0 3,339 15,669 3,322 3,322

2017 0.0 0.0 0.0 0 3,438 15,942 3,409 3,409

2018 0.0 0.0 0.0 0 3,528 16,214 3,483 3,483

2019 0.0 0.0 0.0 0 3,607 16,489 3,543 3,543

2020 0.0 0.0 0.0 0 3,673 16,759 3,584 3,584

2021 0.0 0.0 0.0 0 3,724 17,032 3,606 3,606

2022 0.0 0.0 0.0 0 3,760 17,302 3,609 3,609

2023 0.0 0.0 0.0 0 3,779 17,574 3,591 3,591

2024 0.0 0.0 0.0 0 3,782 17,843 3,551 3,551

2025 0.0 0.0 0.0 0 3,768 18,111 3,490 3,490

2026 0.0 0.0 0.0 0 3,737 18,383 3,405 3,405

2027 0.0 0.0 0.0 0 3,690 18,665 3,298 3,298

2028 0.0 0.0 0.0 0 3,628 18,955 3,169 3,169

2029 0.0 0.0 0.0 0 3,552 19,245 3,019 3,019

2030 0.0 0.0 0.0 0 3,463 19,537 2,847 2,847

2031 0.0 0.0 0.0 0 3,362 19,836 2,654 2,654

2032 0.0 0.0 0.0 0 3,251 20,147 2,441 2,441

2033 0.0 0.0 0.0 0 3,132 20,468 2,208 2,208

2034 0.0 0.0 0.0 0 3,006 20,792 1,957 1,957

2035 0.0 0.0 0.0 0 2,874 21,116 1,689 1,689

2036 0.0 0.0 0.0 0 2,738 21,446 1,404 1,404

2037 0.0 0.0 0.0 0 2,599 21,785 1,102 1,102

2038 0.0 0.0 0.0 0 2,457 22,132 785 785

2039 0.0 0.0 0.0 0 2,315 22,486 452 452

2040 0.0 0.0 0.0 0 2,172 22,842 105 105

2041 0.0 0.0 0.0 0 2,028 23,204 -259 -259

2042 0.0 0.0 0.0 0 1,884 23,573 -639 -639

2043 0.0 0.0 0.0 0 1,740 23,948 -1,036 -1,036

2044 0.0 0.0 0.0 0 1,595 24,325 -1,451 -1,451

2045 0.0 0.0 0.0 0 1,451 24,702 -1,884 -1,884

2046 26.9 1.0 89.4 89 1,399 25,081 -2,336 -2,247

2047 45.0 1.7 154.0 246 1,417 25,466 -2,809 -2,563

2048 41.7 1.6 146.9 400 1,432 25,857 -3,302 -2,902

2049 38.5 1.5 139.5 552 1,445 26,248 -3,818 -3,266

2050 35.3 1.4 132.0 700 1,455 26,640 -4,357 -3,656

2051 32.3 1.3 124.1 846 1,462 27,040 -4,920 -4,075

2052 31.7 1.3 125.8 997 1,474 27,447 -5,510 -4,513

2053 31.2 1.3 127.4 1,154 1,493 27,860 -6,127 -4,973

2054 28.3 1.2 119.2 1,308 1,507 28,281 -6,772 -5,464

2055 25.6 1.1 110.7 1,458 1,517 28,705 -7,448 -5,990

2056 25.1 1.1 112.1 1,614 1,532 29,132 -8,154 -6,541

2057 22.5 1.0 103.3 1,765 1,542 29,567 -8,894 -7,128

2058 22.1 1.0 104.6 1,923 1,557 30,008 -9,667 -7,744

2059 21.7 1.0 106.0 2,087 1,577 30,455 -10,476 -8,389

2060 19.2 0.9 96.6 2,246 1,592 30,907 -11,321 -9,075

2061 18.9 0.9 97.9 2,411 1,613 31,364 -12,203 -9,792

2062 16.5 0.8 88.1 2,571 1,627 31,831 -13,126 -10,554

2063 16.3 0.8 89.3 2,738 1,645 32,308 -14,089 -11,352

2064 14.0 0.7 79.1 2,899 1,657 32,790 -15,096 -12,197

2065 13.8 0.7 80.2 3,066 1,673 33,279 -16,147 -13,081

2066 13.5 0.7 81.2 3,239 1,693 33,765 -17,244 -14,005

2067 11.4 0.6 70.5 3,407 1,706 34,259 -18,389 -14,982

2068 11.2 0.6 71.4 3,581 1,724 34,772 -19,582 -16,002

2069 11.0 0.6 72.3 3,760 1,747 35,294 -20,826 -17,066

2070 9.0 0.5 61.1 3,934 1,764 35,822 -22,121 -18,187

2071 7.1 0.4 49.5 4,102 1,773 36,355 -23,470 -19,368

2072 7.0 0.4 50.1 4,275 1,788 36,895 -24,873 -20,598

2073 6.9 0.4 50.8 4,454 1,808 37,445 -26,333 -21,879

2074 5.1 0.3 38.6 4,626 1,821 38,003 -27,851 -23,225

2075 5.0 0.3 39.1 4,804 1,840 38,566 -29,430 -24,626

2076 4.9 0.3 39.6 4,988 1,864 39,137 -31,072 -26,084

2077 3.2 0.2 26.7 5,164 1,881 39,714 -32,778 -27,614

2078 3.2 0.2 27.1 5,346 1,903 40,300 -34,551 -29,205

2079 1.6 0.1 13.7 5,520 1,917 40,894 -36,394 -30,873

2080 1.5 0.1 13.9 5,700 1,937 41,496 -38,308 -32,608

Total 2005-2079 627.0

Based on Intermediate Assumptions of the 2005 Trustees Report Office of the Chief Actuary

1

 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. March 14, 2006

Annual Transfers

Theoretical Social Security 1

with Borrowing Authority

Net OASDI Trust Fund Assets at EOY
Table 1b Bennett Solvency Proposal - Unified Budget Effect

Change in 

 Annual Debt Held Annual 

OASDI Unified Budget by Public Unified Budget

 Cash Flow Cash Flow (EOY) Balance

(1) (2) (3) (4)

Year

2006 0.0 0.0 0.0 0.0

2007 0.0 0.0 0.0 0.0

2008 0.0 0.0 0.0 0.0

2009 0.0 0.0 0.0 0.0

2010 0.0 0.0 0.0 0.0

2011 0.0 0.0 0.0 0.0

2012 0.3 0.3 -0.3 0.3

2013 0.9 0.9 -1.2 0.9

2014 1.9 1.9 -3.1 2.0

2015 3.4 3.4 -6.5 3.5

2016 5.5 5.5 -11.9 5.8

2017 7.8 7.8 -19.7 8.4

2018 10.0 10.0 -29.7 11.1

2019 12.2 12.2 -41.8 13.8

2020 14.3 14.3 -56.1 16.6

2021 16.2 16.2 -72.3 19.3

2022 17.6 17.6 -89.9 21.6

2023 19.0 19.0 -109.0 24.0

2024 20.6 20.6 -129.5 26.6

2025 22.2 22.2 -151.7 29.4

2026 23.8 23.8 -175.5 32.2

2027 25.5 25.5 -201.1 35.3

2028 27.4 27.4 -228.5 38.6

2029 29.3 29.3 -257.8 42.0

2030 31.4 31.4 -289.1 45.7

2031 33.7 33.7 -322.8 49.7

2032 36.0 36.0 -358.8 54.0

2033 38.3 38.3 -397.1 58.2

2034 40.5 40.5 -437.6 62.5

2035 42.6 42.6 -480.2 66.9

2036 44.7 44.7 -524.9 71.4

2037 46.7 46.7 -571.7 75.9

2038 48.6 48.6 -620.3 80.4

2039 50.4 50.4 -670.7 84.8

2040 52.0 52.0 -722.7 89.3

2041 53.6 53.6 -776.3 93.8

2042 55.1 55.1 -831.5 98.3

2043 56.6 56.6 -888.1 102.8

2044 58.1 58.1 -946.2 107.5

2045 59.5 59.5 -1,005.7 112.1

2046 61.0 61.0 -1,066.7 116.9

2047 62.4 62.4 -1,129.1 121.7

2048 63.7 63.7 -1,192.8 126.5

2049 65.1 65.1 -1,257.9 131.4

2050 66.4 66.4 -1,324.3 136.3

2051 67.7 67.7 -1,392.0 141.3

2052 68.9 68.9 -1,460.9 146.3

2053 70.1 70.1 -1,531.0 151.3

2054 71.3 71.3 -1,602.4 156.4

2055 72.4 72.4 -1,674.8 161.5

2056 73.5 73.5 -1,748.3 166.6

2057 74.6 74.6 -1,822.9 171.7

2058 75.5 75.5 -1,898.4 176.8

2059 76.4 76.4 -1,974.8 181.9

2060 77.2 77.2 -2,052.0 186.9

2061 77.9 77.9 -2,129.9 192.0

2062 78.7 78.7 -2,208.6 197.0

2063 79.3 79.3 -2,287.9 202.1

2064 79.9 79.9 -2,367.9 207.1

2065 80.5 80.5 -2,448.3 212.0

2066 80.9 80.9 -2,529.3 217.0

2067 81.4 81.4 -2,610.6 221.9

2068 81.8 81.8 -2,692.4 226.8

2069 82.1 82.1 -2,774.5 231.7

2070 82.4 82.4 -2,856.8 236.5

2071 82.5 82.5 -2,939.4 241.3

2072 82.7 82.7 -3,022.1 246.0

2073 82.8 82.8 -3,104.8 250.7

2074 82.8 82.8 -3,187.7 255.4

2075 82.9 82.9 -3,270.6 260.0

2076 82.9 82.9 -3,353.4 264.6

2077 82.8 82.8 -3,436.2 269.2

2078 82.8 82.8 -3,519.0 273.7

2079 82.7 82.7 -3,601.6 278.2

2080 82.5 82.5 -3,684.2 282.7

Total 2005-79 3,601.6

 Based on the Intermediate Assumptions of the 2005 Trustees Report Office of the Chief Actuary

 Ultimate Real Trust Fund Interest Rate of 3.0 percent. Social Security Administration

March 14, 2006

Billions of present value dollars as of 1-1-2005
Table 1b.c Bennett Solvency Proposal - Unified Budget Effect

 Change in 

 Annual Debt Held Annual 

 OASDI Unified Budget by Public Unified Budget

 Cash Flow Cash Flow (EOY) Balance

 (1) (2) (3) (4)

Year (Billions of Constant 2005 $)

2006 0.0 0.0 0.0 0.0

2007 0.0 0.0 0.0 0.0

2008 0.0 0.0 0.0 0.0

2009 0.0 0.0 0.0 0.0

2010 0.0 0.0 0.0 0.0

2011 0.0 0.0 0.0 0.0

2012 0.3 0.3 -0.3 0.3

2013 1.1 1.1 -1.5 1.2

2014 2.5 2.5 -4.1 2.7

2015 4.5 4.5 -8.9 4.9

2016 7.5 7.5 -16.8 8.2

2017 11.0 11.0 -28.6 12.2

2018 14.5 14.5 -44.3 16.5

2019 18.2 18.2 -64.3 21.2

2020 22.0 22.0 -88.9 26.3

2021 25.7 25.7 -118.0 31.5

2022 28.7 28.7 -151.1 36.3

2023 32.0 32.0 -188.6 41.6

2024 35.7 35.7 -230.9 47.5

2025 39.6 39.6 -278.6 54.0

2026 43.7 43.7 -332.0 60.9

2027 48.3 48.3 -391.7 68.8

2028 53.4 53.4 -458.4 77.4

2029 58.9 58.9 -532.8 86.8

2030 64.9 64.9 -615.5 97.2

2031 71.8 71.8 -707.8 109.1

2032 79.1 79.1 -810.4 121.9

2033 86.6 86.6 -923.7 135.4

2034 94.2 94.2 -1,048.4 149.9

2035 102.2 102.2 -1,185.0 165.2

2036 110.5 110.5 -1,334.3 181.5

2037 118.9 118.9 -1,496.6 198.7

2038 127.4 127.4 -1,672.6 216.8

2039 135.9 135.9 -1,862.7 235.6

2040 144.6 144.6 -2,067.4 255.5

2041 153.5 153.5 -2,287.4 276.3

2042 162.6 162.6 -2,523.4 298.3

2043 172.1 172.1 -2,776.2 321.5

2044 181.8 181.8 -3,046.5 346.0

2045 191.9 191.9 -3,335.4 371.9

2046 202.4 202.4 -3,643.7 399.2

2047 213.3 213.3 -3,972.5 428.0

2048 224.5 224.5 -4,322.7 458.4

2049 236.1 236.1 -4,695.3 490.3

2050 248.0 248.0 -5,091.3 524.0

2051 260.4 260.4 -5,512.0 559.4

2052 273.2 273.2 -5,958.5 596.6

2053 286.4 286.4 -6,432.0 635.7

2054 299.9 299.9 -6,933.5 676.7

2055 313.7 313.7 -7,464.4 719.7

2056 328.0 328.0 -8,025.8 764.8

2057 342.6 342.6 -8,619.1 811.9

2058 357.4 357.4 -9,245.5 861.1

2059 372.4 372.4 -9,906.1 912.4

2060 387.6 387.6 -10,602.2 965.9

2061 403.1 403.1 -11,335.0 1,021.6

2062 419.0 419.0 -12,106.2 1,079.9

2063 435.3 435.3 -12,917.3 1,140.8

2064 451.8 451.8 -13,769.7 1,204.2

2065 468.4 468.4 -14,664.8 1,270.1

2066 485.2 485.2 -15,604.0 1,338.6

2067 502.4 502.4 -16,589.1 1,410.1

2068 520.0 520.0 -17,621.8 1,484.6

2069 537.9 537.9 -18,704.0 1,562.1

2070 555.8 555.8 -19,837.0 1,642.4

2071 573.7 573.7 -21,022.4 1,725.8

2072 592.0 592.0 -22,262.2 1,812.4

2073 610.5 610.5 -23,558.2 1,902.4

2074 629.2 629.2 -24,912.4 1,995.9

2075 648.3 648.3 -26,326.9 2,093.0

2076 667.6 667.6 -27,803.7 2,193.9

2077 687.3 687.3 -29,345.0 2,298.7

2078 707.4 707.4 -30,953.3 2,407.5

2079 727.8 727.8 -32,630.7 2,520.6

2080 748.5 748.5 -34,379.9 2,637.9

 Based on the Intermediate Assumptions of the 2005 Trustees Report Office of the Chief Actuary

 Ultimate Real Trust Fund Interest Rate of 3.0 percent. Social Security Administration

March 14, 2006
Table 1c OASDI Cash Flow to General Fund of the Treasury--- Proposal vs. Theoretical OASDI

Proposal Theoretical Social Security with PAYGO Transfers

Net Amount of Cash-Flow from the OASDI Net Amount of Cash-Flow from the OASDI

Trust Funds to the General Fund of the Trust Funds to the General Fund of the

Treasury During the Year 1 Treasury During the Year 1

Percent Billions of Dollars Percent Billions of Dollars

Year of Payroll Current $ 1/1/2005 PV Const 2005 $ of Payroll Current $ 1/1/2005 PV Const 2005 $

2005 1.5 70 68 70 1.5 70 68 70

2006 1.8 88 81 86 1.8 88 81 86

2007 1.8 94 82 89 1.8 94 82 89

2008 1.8 98 82 91 1.8 98 82 91

2009 1.6 94 74 85 1.6 94 74 85

2010 1.5 92 69 81 1.5 92 69 81

2011 1.4 90 64 77 1.4 90 64 77

2012 1.2 80 54 67 1.2 80 54 66

2013 1.0 68 43 55 1.0 67 43 54

2014 0.7 53 32 42 0.7 50 30 40

2015 0.5 39 22 30 0.4 33 19 25

2016 0.3 23 12 17 0.2 12 7 9

2017 0.1 4 2 3 -0.1 -11 -5 -8

2018 -0.2 -15 -8 -11 -0.4 -36 -17 -25

2019 -0.4 -37 -17 -25 -0.7 -64 -29 -44

2020 -0.7 -62 -27 -41 -1.0 -95 -41 -63

2021 -0.9 -88 -36 -57 -1.3 -128 -52 -83

2022 -1.1 -117 -45 -74 -1.6 -163 -63 -103

2023 -1.4 -148 -54 -91 -1.9 -200 -73 -123

2024 -1.6 -180 -62 -107 -2.2 -239 -82 -143

2025 -1.8 -213 -69 -124 -2.4 -281 -91 -163

2026 -2.1 -248 -76 -140 -2.7 -325 -100 -184

2027 -2.3 -282 -82 -155 -3.0 -370 -107 -203

2028 -2.4 -315 -86 -168 -3.2 -415 -114 -222

2029 -2.5 -346 -89 -180 -3.4 -459 -119 -239

2030 -2.7 -376 -92 -190 -3.6 -504 -123 -255

2031 -2.7 -404 -93 -199 -3.7 -550 -127 -270

2032 -2.8 -430 -94 -206 -3.9 -595 -130 -285

2033 -2.8 -453 -93 -211 -4.0 -639 -132 -297

2034 -2.8 -472 -92 -214 -4.1 -681 -132 -308

2035 -2.8 -489 -90 -216 -4.1 -722 -132 -318

2036 -2.8 -504 -87 -216 -4.2 -762 -132 -326

2037 -2.7 -517 -85 -215 -4.2 -802 -131 -334

2038 -2.7 -526 -81 -213 -4.3 -840 -130 -341

2039 -2.6 -533 -78 -210 -4.3 -877 -128 -346

2040 -2.5 -538 -74 -207 -4.3 -916 -126 -351

2041 -2.4 -544 -71 -203 -4.3 -955 -124 -356

2042 -2.4 -549 -68 -199 -4.3 -997 -123 -362

2043 -2.3 -553 -64 -195 -4.3 -1,040 -121 -367

2044 -2.2 -556 -61 -191 -4.3 -1,085 -119 -373

2045 -2.1 -558 -58 -187 -4.3 -1,133 -117 -378

2046 -2.0 -561 -55 -182 -4.3 -1,183 -116 -385

2047 -2.0 -563 -52 -178 -4.3 -1,237 -114 -391

2048 -1.9 -563 -49 -173 -4.3 -1,293 -113 -398

2049 -1.8 -564 -46 -169 -4.4 -1,353 -112 -405

2050 -1.7 -565 -44 -164 -4.4 -1,417 -110 -412

2051 -1.7 -566 -42 -160 -4.4 -1,486 -109 -421

2052 -1.6 -568 -39 -156 -4.4 -1,560 -108 -430

2053 -1.6 -569 -37 -153 -4.5 -1,639 -108 -439

2054 -1.5 -571 -35 -149 -4.5 -1,722 -107 -449

2055 -1.4 -572 -34 -145 -4.6 -1,810 -106 -459

2056 -1.4 -575 -32 -142 -4.6 -1,905 -105 -470

2057 -1.3 -577 -30 -138 -4.7 -2,005 -105 -481

2058 -1.3 -578 -29 -135 -4.7 -2,110 -104 -492

2059 -1.2 -579 -27 -131 -4.8 -2,220 -103 -504

2060 -1.2 -579 -25 -128 -4.8 -2,335 -103 -516

2061 -1.1 -580 -24 -125 -4.9 -2,457 -102 -528

2062 -1.1 -582 -23 -122 -4.9 -2,587 -101 -541

2063 -1.1 -584 -22 -119 -5.0 -2,726 -101 -554

2064 -1.0 -587 -21 -116 -5.0 -2,872 -100 -568

2065 -1.0 -587 -19 -113 -5.1 -3,023 -100 -581

2066 -0.9 -589 -18 -110 -5.1 -3,182 -99 -595

2067 -0.9 -589 -17 -107 -5.2 -3,350 -99 -610

2068 -0.9 -586 -16 -104 -5.2 -3,523 -98 -624

2069 -0.8 -580 -15 -100 -5.3 -3,704 -97 -638

2070 -0.8 -572 -14 -96 -5.3 -3,890 -97 -652

2071 -0.7 -563 -13 -92 -5.4 -4,084 -96 -665

2072 -0.7 -552 -12 -88 -5.4 -4,287 -95 -680

2073 -0.7 -539 -11 -83 -5.5 -4,498 -94 -694

2074 -0.6 -524 -10 -79 -5.5 -4,719 -93 -708

2075 -0.6 -508 -9 -74 -5.5 -4,951 -92 -722

2076 -0.5 -490 -9 -70 -5.6 -5,194 -91 -737

2077 -0.5 -470 -8 -65 -5.6 -5,448 -91 -752

2078 -0.4 -449 -7 -60 -5.7 -5,715 -90 -768

2079 -0.4 -425 -6 -56 -5.7 -5,996 -89 -783

2080 -0.4 -400 -6 -51 -5.8 -6,290 -88 -799

Total 2005-79 -2,098 -5,699

1 Equals net investment in special Treasury Bonds by the Trust Funds Office of the Chief Actuary

less the Amount of General Fund transfers specified in the proposal or in the theoretical Social Security Administration

plan (PAYGO Transfers) March 14, 2006
Table 1d Change in Long-Range Trust Fund Assets / Unfunded Obligation

Present Law OASDI

Trust Fund Assets Basic Proposal OASDI

or if Negative, Changes Trust Fund Assets/

Unfunded Obligation in OASDI General Total Change Unfunded Obligation

Through EOY Cash Flow Fund Transfers Through EOY1 Through EOY

(1) (2) (3) (4) (5) = (1) + (4)

Year (Billions of $, Present Value on 1-1-2005)

2006 1,835.2 0.0 0.0 0.0 1,835.2

2007 1,917.1 0.0 0.0 0.0 1,917.1

2008 1,998.4 0.0 0.0 0.0 1,998.4

2009 2,072.5 0.0 0.0 0.0 2,072.5

2010 2,141.5 0.0 0.0 0.0 2,141.5

2011 2,204.9 0.0 0.0 0.0 2,204.9

2012 2,258.4 0.3 0.0 0.3 2,258.7

2013 2,300.8 0.9 0.0 1.2 2,301.9

2014 2,331.0 1.9 0.0 3.1 2,334.1

2015 2,349.7 3.4 0.0 6.5 2,356.2

2016 2,356.4 5.5 0.0 11.9 2,368.3

2017 2,350.7 7.8 0.0 19.7 2,370.5

2018 2,333.1 10.0 0.0 29.7 2,362.8

2019 2,303.8 12.2 0.0 41.8 2,345.7

2020 2,262.7 14.3 0.0 56.1 2,318.9

2021 2,210.4 16.2 0.0 72.3 2,282.8

2022 2,147.5 17.6 0.0 89.9 2,237.4

2023 2,074.6 19.0 0.0 109.0 2,183.5

2024 1,992.1 20.6 0.0 129.5 2,121.6

2025 1,900.6 22.2 0.0 151.7 2,052.3

2026 1,800.6 23.8 0.0 175.5 1,976.1

2027 1,693.2 25.5 0.0 201.1 1,894.2

2028 1,579.5 27.4 0.0 228.5 1,808.0

2029 1,460.7 29.3 0.0 257.8 1,718.5

2030 1,337.6 31.4 0.0 289.1 1,626.7

2031 1,210.7 33.7 0.0 322.8 1,533.5

2032 1,080.9 36.0 0.0 358.8 1,439.8

2033 949.4 38.3 0.0 397.1 1,346.5

2034 817.0 40.5 0.0 437.6 1,254.7

2035 684.5 42.6 0.0 480.2 1,164.8

2036 552.4 44.7 0.0 524.9 1,077.3

2037 421.0 46.7 0.0 571.7 992.7

2038 291.1 48.6 0.0 620.3 911.4

2039 162.9 50.4 0.0 670.7 833.5

2040 36.6 52.0 0.0 722.7 759.3

2041 -87.9 53.6 0.0 776.3 688.4

2042 -210.7 55.1 0.0 831.5 620.8

2043 -331.6 56.6 0.0 888.1 556.5

2044 -450.7 58.1 0.0 946.2 495.5

2045 -568.1 59.5 0.0 1,005.7 437.6

2046 -684.0 61.0 26.9 1,093.6 409.7

2047 -798.4 62.4 45.0 1,201.1 402.7

2048 -911.3 63.7 41.7 1,306.5 395.2

2049 -1,022.9 65.1 38.5 1,410.1 387.2

2050 -1,133.2 66.4 35.3 1,511.8 378.5

2051 -1,242.5 67.7 32.3 1,611.7 369.2

2052 -1,350.9 68.9 31.7 1,712.4 361.5

2053 -1,458.4 70.1 31.2 1,813.7 355.3

2054 -1,565.1 71.3 28.3 1,913.4 348.3

2055 -1,671.0 72.4 25.6 2,011.4 340.3

2056 -1,776.3 73.5 25.1 2,110.0 333.7

2057 -1,881.0 74.6 22.5 2,207.0 326.1

2058 -1,985.0 75.5 22.1 2,304.7 319.7

2059 -2,088.4 76.4 21.7 2,402.8 314.5

2060 -2,191.0 77.2 19.2 2,499.3 308.2

2061 -2,293.1 77.9 18.9 2,596.1 303.0

2062 -2,394.6 78.7 16.5 2,691.3 296.8

2063 -2,495.5 79.3 16.3 2,786.9 291.4

2064 -2,596.0 79.9 14.0 2,880.9 284.9

2065 -2,695.9 80.5 13.8 2,975.1 279.2

2066 -2,795.2 80.9 13.5 3,069.6 274.4

2067 -2,893.9 81.4 11.4 3,162.3 268.5

2068 -2,991.9 81.8 11.2 3,255.3 263.4

2069 -3,089.3 82.1 11.0 3,348.4 259.2

2070 -3,185.8 82.4 9.0 3,439.9 254.0

2071 -3,281.6 82.5 7.1 3,529.5 248.0

2072 -3,376.5 82.7 7.0 3,619.2 242.7

2073 -3,470.6 82.8 6.9 3,708.9 238.3

2074 -3,563.7 82.8 5.1 3,796.8 233.1

2075 -3,656.1 82.9 5.0 3,884.7 228.6

2076 -3,747.6 82.9 4.9 3,972.4 224.9

2077 -3,838.2 82.8 3.2 4,058.5 220.3

2078 -3,928.0 82.8 3.2 4,144.4 216.4

2079 -4,017.0 82.7 1.6 4,228.6 211.6

Total 2005-2079 3,601.6 627.0

 Based on the Intermediate Assumptions of the 2005 Trustees Report

 Ultimate Real Trust Fund Interest Rate of 3.0 percent.

1

Total change through the year is the accumulation of changes in columns 2 and 3 Office of the Chief Actuary

Social Security Administration

March 14, 2006
Table 2 Bennett Solvency Proposal: Without General Fund Transfers for Solvency

"Effective" Net 

Change in OASDI OASDI General 

Cost Income Annual TFR Contribution Contribution Revenue

Year Rate Rate1 Balance 1-1-yr Rate Rate1 Transfers

2005 11.13 12.72 1.59 320 12.40

2006 11.00 12.73 1.73 337 0.00 12.40

2007 10.95 12.74 1.79 355 0.00 12.40

2008 10.99 12.78 1.80 370 0.00 12.40

2009 11.13 12.77 1.65 382 0.00 12.40

2010 11.25 12.79 1.54 394 0.00 12.40

2011 11.42 12.84 1.42 404 0.00 12.40

2012 11.66 12.87 1.21 410 0.00 12.40

2013 11.91 12.90 0.99 415 0.00 12.40

2014 12.17 12.92 0.75 419 0.00 12.40

2015 12.41 12.93 0.53 421 0.00 12.40

2016 12.65 12.95 0.30 421 0.00 12.40

2017 12.90 12.97 0.07 420 0.00 12.40

2018 13.15 12.98 -0.17 418 0.00 12.40

2019 13.40 13.00 -0.40 415 0.00 12.40

2020 13.66 13.01 -0.64 410 0.00 12.40

2021 13.92 13.03 -0.89 404 0.00 12.40

2022 14.18 13.05 -1.14 397 0.00 12.40

2023 14.44 13.06 -1.37 388 0.00 12.40

2024 14.68 13.08 -1.61 378 0.00 12.40

2025 14.92 13.09 -1.83 368 0.00 12.40

2026 15.16 13.11 -2.05 356 0.00 12.40

2027 15.36 13.12 -2.24 344 0.00 12.40

2028 15.53 13.13 -2.40 331 0.00 12.40

2029 15.67 13.14 -2.53 319 0.00 12.40

2030 15.79 13.15 -2.64 305 0.00 12.40

2031 15.88 13.16 -2.72 292 0.00 12.40

2032 15.95 13.16 -2.78 279 0.00 12.40

2033 15.98 13.17 -2.81 265 0.00 12.40

2034 15.98 13.17 -2.81 252 0.00 12.40

2035 15.97 13.17 -2.80 239 0.00 12.40

2036 15.94 13.17 -2.76 226 0.00 12.40

2037 15.89 13.17 -2.72 213 0.00 12.40

2038 15.82 13.17 -2.65 200 0.00 12.40

2039 15.74 13.17 -2.58 187 0.00 12.40

2040 15.66 13.16 -2.50 175 0.00 12.40

2041 15.58 13.16 -2.42 163 0.00 12.40

2042 15.50 13.16 -2.34 150 0.00 12.40

2043 15.42 13.15 -2.26 139 0.00 12.40

2044 15.33 13.15 -2.18 127 0.00 12.40

2045 15.25 13.15 -2.10 115 0.00 12.40

2046 15.17 13.14 -2.03 104 0.00 12.40

2047 15.09 13.14 -1.95 93 0.00 12.40

2048 15.01 13.14 -1.87 82 0.00 12.40

2049 14.94 13.13 -1.80 71 0.00 12.40

2050 14.86 13.13 -1.73 61 0.00 12.40

2051 14.79 13.13 -1.67 51 0.00 12.40

2052 14.73 13.13 -1.60 40 0.00 12.40

2053 14.67 13.12 -1.54 30 0.00 12.40

2054 14.61 13.12 -1.49 20 0.00 12.40

2055 14.55 13.12 -1.43 11 0.00 12.40

2056 14.49 13.12 -1.38 1 0.00 12.40

2057 14.44 13.11 -1.33 -- 0.00 12.40

2058 14.39 13.11 -1.28 -- 0.00 12.40

2059 14.34 13.11 -1.23 -- 0.00 12.40

2060 14.29 13.11 -1.18 -- 0.00 12.40

2061 14.24 13.10 -1.13 -- 0.00 12.40

2062 14.19 13.10 -1.09 -- 0.00 12.40

2063 14.15 13.10 -1.05 -- 0.00 12.40

2064 14.11 13.10 -1.01 -- 0.00 12.40

2065 14.07 13.10 -0.97 -- 0.00 12.40

2066 14.03 13.10 -0.94 -- 0.00 12.40

2067 13.99 13.09 -0.90 -- 0.00 12.40

2068 13.95 13.09 -0.86 -- 0.00 12.40

2069 13.91 13.09 -0.82 -- 0.00 12.40

2070 13.86 13.09 -0.77 -- 0.00 12.40

2071 13.82 13.09 -0.73 -- 0.00 12.40

2072 13.77 13.08 -0.69 -- 0.00 12.40

2073 13.72 13.08 -0.64 -- 0.00 12.40

2074 13.68 13.08 -0.60 -- 0.00 12.40

2075 13.63 13.08 -0.56 -- 0.00 12.40

2076 13.59 13.07 -0.52 -- 0.00 12.40

2077 13.55 13.07 -0.47 -- 0.00 12.40

2078 13.50 13.07 -0.43 -- 0.00 12.40

2079 13.46 13.07 -0.39 -- 0.00 12.40

2080 13.42 13.07 -0.35 -- 0.00 12.40

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2005 - 2079 14.06 13.78 -0.28 1.64

Based on Intermediate Assumptions of the 2005 Trustees Report. 

All values are expressed as percents of taxable payroll, except TFR. Office of the Chief Actuary

Ultimate Real Trust Fund Interest Rate of 3 percent. Social Security Administration

1

 Including General Revenue Transfer March 14, 2006
Table 3 Bennett Proposal: Progressive Indexing of OASI Benefits Provision Only

"Effective" Net 

Change in OASDI OASDI General 

Cost Income Annual TFR Contribution Contribution Revenue

Year Rate Rate1 Balance 1-1-yr Rate Rate1 Transfers

2005 11.13 12.72 1.59 320 12.40

2006 11.00 12.73 1.73 337 0.00 12.40

2007 10.95 12.74 1.79 355 0.00 12.40

2008 10.99 12.78 1.80 370 0.00 12.40

2009 11.13 12.77 1.65 382 0.00 12.40

2010 11.25 12.79 1.54 394 0.00 12.40

2011 11.42 12.84 1.42 404 0.00 12.40

2012 11.67 12.87 1.21 410 0.00 12.40

2013 11.93 12.90 0.98 415 0.00 12.40

2014 12.20 12.92 0.72 417 0.00 12.40

2015 12.47 12.94 0.47 418 0.00 12.40

2016 12.74 12.96 0.21 417 0.00 12.40

2017 13.03 12.97 -0.06 415 0.00 12.40

2018 13.31 12.99 -0.32 411 0.00 12.40

2019 13.59 13.01 -0.58 406 0.00 12.40

2020 13.87 13.03 -0.84 399 0.00 12.40

2021 14.14 13.04 -1.10 392 0.00 12.40

2022 14.40 13.06 -1.35 383 0.00 12.40

2023 14.66 13.07 -1.58 373 0.00 12.40

2024 14.90 13.09 -1.81 363 0.00 12.40

2025 15.14 13.10 -2.04 351 0.00 12.40

2026 15.37 13.12 -2.26 338 0.00 12.40

2027 15.58 13.13 -2.45 325 0.00 12.40

2028 15.75 13.14 -2.61 311 0.00 12.40

2029 15.90 13.15 -2.75 297 0.00 12.40

2030 16.03 13.16 -2.87 282 0.00 12.40

2031 16.14 13.17 -2.97 267 0.00 12.40

2032 16.23 13.18 -3.05 252 0.00 12.40

2033 16.29 13.18 -3.10 236 0.00 12.40

2034 16.31 13.19 -3.13 221 0.00 12.40

2035 16.32 13.19 -3.13 205 0.00 12.40

2036 16.32 13.19 -3.12 190 0.00 12.40

2037 16.29 13.19 -3.10 174 0.00 12.40

2038 16.25 13.19 -3.06 158 0.00 12.40

2039 16.19 13.19 -3.00 142 0.00 12.40

2040 16.13 13.19 -2.94 127 0.00 12.40

2041 16.07 13.19 -2.88 111 0.00 12.40

2042 16.00 13.18 -2.82 96 0.00 12.40

2043 15.94 13.18 -2.76 80 0.00 12.40

2044 15.87 13.18 -2.69 64 0.00 12.40

2045 15.81 13.18 -2.63 49 0.00 12.40

2046 15.75 13.18 -2.58 33 0.00 12.40

2047 15.70 13.17 -2.52 17 0.00 12.40

2048 15.64 13.17 -2.47 2 0.00 12.40

2049 15.59 13.17 -2.42 -- 0.00 12.40

2050 15.54 13.17 -2.38 -- 0.00 12.40

2051 15.50 13.17 -2.33 -- 0.00 12.40

2052 15.46 13.16 -2.30 -- 0.00 12.40

2053 15.43 13.16 -2.27 -- 0.00 12.40

2054 15.40 13.16 -2.23 -- 0.00 12.40

2055 15.37 13.16 -2.20 -- 0.00 12.40

2056 15.34 13.16 -2.18 -- 0.00 12.40

2057 15.32 13.16 -2.16 -- 0.00 12.40

2058 15.29 13.16 -2.13 -- 0.00 12.40

2059 15.27 13.16 -2.11 -- 0.00 12.40

2060 15.25 13.16 -2.09 -- 0.00 12.40

2061 15.23 13.16 -2.07 -- 0.00 12.40

2062 15.21 13.16 -2.05 -- 0.00 12.40

2063 15.20 13.16 -2.04 -- 0.00 12.40

2064 15.18 13.16 -2.03 -- 0.00 12.40

2065 15.17 13.16 -2.01 -- 0.00 12.40

2066 15.15 13.16 -2.00 -- 0.00 12.40

2067 15.14 13.16 -1.99 -- 0.00 12.40

2068 15.12 13.16 -1.97 -- 0.00 12.40

2069 15.10 13.16 -1.95 -- 0.00 12.40

2070 15.08 13.15 -1.93 -- 0.00 12.40

2071 15.06 13.15 -1.91 -- 0.00 12.40

2072 15.04 13.15 -1.88 -- 0.00 12.40

2073 15.01 13.15 -1.86 -- 0.00 12.40

2074 14.99 13.15 -1.84 -- 0.00 12.40

2075 14.96 13.15 -1.82 -- 0.00 12.40

2076 14.94 13.15 -1.79 -- 0.00 12.40

2077 14.92 13.15 -1.77 -- 0.00 12.40

2078 14.90 13.15 -1.75 -- 0.00 12.40

2079 14.88 13.15 -1.73 -- 0.00 12.40

2080 14.86 13.14 -1.71 -- 0.00 12.40

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2005 - 2079 14.51 13.80 -0.71 1.21

Based on Intermediate Assumptions of the 2005 Trustees Report. 

 All values are expressed as percents of taxable payroll, except TFR. Office of the Chief Actuary

Ultimate Real Trust Fund Interest Rate of 3 percent. Social Security Administration

1

 Including General Revenue Transfer March 14, 2006
For retired worker retiring at age 65 in indicated years at indicated career-average earnings levels

Proposal Scheduled Benefit

Year Payable Progressive NRA 67 Life Benefit

Attain Scheduled at 65 PIA start Expectancy Amount Scheduled Payable

Age 65 (constant 2005$) Indexing 2012 Indexing Total

Scaled Low Earner

2016 799 799 0.0 2.2 0.0 2.2 782 98 98

2026 825 825 0.0 0.0 2.0 2.0 808 98 98

2036 916 916 0.0 0.0 5.2 5.2 869 95 95

2046 1,022 758 0.0 0.0 8.1 8.1 940 92 124

2056 1,139 829 0.0 0.0 10.7 10.7 1,017 89 123

2075 1,396 963 0.0 0.0 15.0 15.0 1,186 85 123

Scaled Medium Earner

2016 1,318 1,318 1.3 2.2 0.0 3.5 1,272 97 97

2026 1,359 1,359 6.9 0.0 2.0 8.7 1,240 91 91

2036 1,510 1,510 12.0 0.0 5.2 16.6 1,259 83 83

2046 1,684 1,248 16.8 0.0 8.1 23.5 1,288 76 103

2056 1,877 1,366 21.0 0.0 10.7 29.5 1,324 71 97

2075 2,300 1,586 27.9 0.0 15.0 38.7 1,410 61 89

Scaled High Earner

2016 1,747 1,747 1.9 2.2 0.0 4.1 1,675 96 96

2026 1,802 1,802 10.3 0.0 2.0 12.1 1,584 88 88

2036 2,002 2,002 18.0 0.0 5.2 22.3 1,556 78 78

2046 2,233 1,655 25.2 0.0 8.1 31.2 1,536 69 93

2056 2,489 1,812 31.5 0.0 10.7 38.9 1,521 61 84

2075 3,049 2,103 41.8 0.0 15.0 50.5 1,508 49 72

Steady Maximum Earner

2016 2,118 2,118 2.3 2.2 0.0 4.5 2,023 96 96

2026 2,201 2,201 12.2 0.0 2.0 13.9 1,894 86 86

2036 2,449 2,449 21.3 0.0 5.2 25.4 1,828 75 75

2046 2,728 2,022 29.7 0.0 8.1 35.4 1,763 65 87

2056 3,037 2,211 37.2 0.0 10.7 44.0 1,702 56 77

2075 3,721 2,567 49.3 0.0 15.0 56.9 1,603 43 62

Scaled low, medium and high earners have career-average earnings levels equivalent to $16,470, $36,600, and $58,560 in 2005.

 These scaled earners represent the 28, 58, and 85 percentile of newly entitled retired workers.

The steady maximum earner is assumed to have earnings at the taxable maximum ($90,000 in 2005) starting at age 22.

All estimates based on the intermediate assumptions of the 2005 Trustees Report.

Office of the Chief Actuary

Social Security Administration

March 14, 2006

Table B1. Projected Retired Worker Benefits at Age 65 under Bennett Plan for OASDI Sustainable 

Solvency

(constant 2005$)

Percent of Present Law

Present Law Benefit Proposal Benefit Percentage Reduction