Social Security

Memorandum

Date: April 20, 2005 

To: Representative Paul Ryan 

Senator John Sununu 

From: Steve Goss, Chief Actuary 

Subject: Estimated Financial Effects of the “Social Security 

Personal Savings Guarantee and Prosperity Act of 

2005” --INFORMATION 

This memorandum provides estimates of the financial effects of the plan you 

have developed for modifying the benefit and financing provisions of the Social 

Security program. Included is a description of the plan reflecting the intent 

expressed by you, and Peter Fotos and Grant Bosse of your staff. Certain 

aspects of the plan that do not directly affect Social Security financing but are 

intended to alter budget scoring rules are not addressed in this memorandum. 

This plan would establish voluntary, progressive individual accounts for workers 

who are under age 55 on January 1, 2006 and would provide for a reduction in 

the Social Security retirement and aged survivor benefits for those who 

participate. All participating workers would be guaranteed that the total benefits 

available from the combination of the OASDI program and their personal account 

would be at least equal to OASDI benefits scheduled under current law, 

regardless of the investment option and portfolio allocation they choose. Those 

who never participate in the personal account option would be provided presentlaw scheduled benefits, but would not be guaranteed at this level. 

Personal savings account (PSA) assets would be invested by individual workers 

through a central administrative authority with a default allocation 65 percent in 

broad indexed equity funds and 35 percent in broad indexed corporate bond 

funds. Annuitization of the portion of the PSA accumulation sufficient to assure 

that total payments equal scheduled current-law benefits would be required at 

retirement. PSA contributions would be redirected from the OASDI Trust Funds. 

The ability of the Social Security Trust Funds to meet benefit obligations would 

be maintained through transfers from the General Fund of the Treasury that 

would be specified in the law. 

Under the plan specifications described below the Social Security program would 

be expected to be solvent and to meet its benefit obligations throughout the long-
2

range period 2004 through 2078 and beyond. All estimates are based on the 

intermediate assumptions of the 2004 Trustees Report plus additional 

assumptions described below. Estimates are not yet available based on the 

intermediate assumptions of the 2005 Trustees Report. However, such updated 

estimates, when available, are not expected to be materially different from those 

provided in this memorandum. 

 

Plan Specification 

Personal Savings Accounts 

Starting in 2006, all workers who will reach their 55th birthday on January 1, 2006 

or later will have the option to enroll in the personal savings account plan. 

Enrollees with earnings in OASDI (Social Security) covered employment will 

have a portion of their payroll tax contribution (12.4 percent of taxable earnings in 

total) redirected from the OASDI Trust Funds to an individual account. The 

percentage of taxable earnings to be redirected in 2006 will be 5 percent of the 

first $10,000 of covered earnings for the year, plus 2.5 percent of earnings in 

excess of $10,000 up to the OASDI taxable maximum amount (which is $90,000 

for 2005). The $10,000 threshold would be indexed by increases in the SSA 

national Average Wage Index (AWI) for years after 2006. For years 2016 and 

later, the size of the account contribution will be doubled, to 10 percent of taxable 

earnings up to the indexed level ($10,000 for 2006) and 5 percent over that level. 

The progressive scale for IA contributions redirected from the OASDI Trust 

Funds is estimated to amount to about 6.4 percentage points of the 12.4 percent 

payroll tax rate on average after 2015. The total amount redirected from the 

OASDI contribution rate indicated in Table 1 does not reach 6.4 percent of 

payroll until 2025 because workers age 55 and older at the beginning of 2006 

have no IA contributions. 

All individuals will be allowed to voluntarily enroll or disenroll from the individual 

account plan at any time during their working years. However, any amounts 

redirected to the account in earlier years would remain in the account until 

distribution as described below 

While participation in the PSA plan would be optional, and disenrollment allowed, 

the nature of the plan would provide a high likelihood for most workers that 

available retirement benefits will be more if enrollment is maintained. Total 

monthly retirement benefits for each worker who maintains enrollment throughout 

the period of eligibility would be guaranteed to be at least as large as benefits 

scheduled under current law for Social Security. In addition, personal account 

distributions are tax free, unlike Social Security benefits. Thus, participation is 

assumed to be universal for estimates presented in this memorandum. 

Individuals who never enroll would receive benefits scheduled under current law. 
3

PSA contributions directed to the PSA of a worker based on a year’s earnings 

are not determinable until earnings are reported to and tabulated by the Social 

Security Administration. Because this reporting is made by employers on an 

annual basis, after the end of the calendar year, amounts for individual workers 

are not determinable for somewhat over a year, on average, after the date on 

which earnings are paid. Under the proposal, PSA contributions during this initial 

period would be held in the Tier I fund and would be invested in long-term 

Treasury bonds, or similar securities. PSA contributions would be credited to the 

individual personal savings accounts as soon as current reporting permits. 

Under the plan, personal savings account (PSA) assets, once credited on an 

individual basis, would be automatically invested in the Tier II fund through a 

central administrative authority that would maintain all records of individual 

transactions and balances. Participants would be offered three investment 

options, including one with 80 percent in equities and another with 50 percent in 

equities. Unless otherwise specified, PSA balances would be maintained in the 

default portfolio with 65 percent in a specified broad index fund consisting of 

private equities for corporations based in the United States (such as the Wilshire 

5000) and 35 percent in a broad index of corporate bonds issued by companies 

based in the United States. The central administrative authority would group the 

assets of individuals for the purpose of transactions with private firms. Upon 

achieving a total PSA balance equivalent to $2,500 in 2005 (CPI-indexed 

thereafter) a broader range of investment options would be available in the Tier 

III fund. These options would be provided by qualified private investment 

companies, but would still be grouped by the central administrative authority for 

transactions with the investment firms. Due to the nature of the accounts, an 

ultimate administrative cost of 0.25 percent of assets is assumed to be 

reasonable. 

Annual changes in investment allocation would be allowed. Because the 

guaranteed benefit level is provided regardless of what investment portfolio is 

selected by the individual, substantial variation in investment patterns is assumed 

to occur. This variation will, in turn, result in a relatively wide distribution of 

achieved life-time investment returns among individuals. However, we assume 

that a large number of account holders will still retain the default portfolio. On 

average, we assume that the portfolio allocation for all accounts combined will be 

close to the default allocation. 

PSA Disbursements and Annuitization 

At retirement, the participating worker would be required to purchase a life 

annuity with CPI-indexed payments using the portion of PSA accumulated assets 

necessary to provide a total monthly payment (including any OASDI monthly 

benefit under the plan) that is at least equal to the benefits specified under 

current law from the OASDI program. The annuity would be administered by the 
4

central administrative authority, with private investment firms handling the 

investment of assets on an aggregated (group) basis. It is assumed that the 

annuity would be computed at retirement based on an assumption of investment 

of 65 percent in a broad equity index and 35 percent in a broad corporate-bond 

index, with an assumed administrative expense of 0.25 percent of assets each 

year. Assets supporting the annuity would, in fact, be invested 65 percent in 

equities and 35 percent in corporate bonds. 

The annuity would be computed using the assumed long-term future returns on 

equities and corporate bonds as determined by the central administrative 

authority at the time of annuitization. This central administrative authority would 

assume all risk associated with guaranteeing this yield on life annuities, 

regardless of what actual investment returns turn out to be. The central 

administrative authority would be backed by the Treasury of the United States 

government. Thus, the General Fund of the Treasury would provide the 

“insurance” that the full amount of the annuity will be paid for life regardless of 

actual investment returns. 

If less than the total amount of PSA assets is annuitized, the balance of PSA 

assets may be disbursed or held as the retired worker wishes. All accumulations 

in and disbursements from personal savings accounts, including annuity 

payments, would be exempt from Federal personal income tax. 

Upon entitlement to retirement or aged survivor benefits under the current rules 

of the OASDI program, a monthly CPI-indexed annuity amount based on the 

specifications described above would be computed by the central administrative 

authority. The annuity would reflect all potential benefits that might be payable 

under the OASDI program (i.e., retired worker, spouse, child, widow(er), and 

surviving spouse benefits). Annuity calculations would be made at benefit 

entitlement based on the then-current expected long-range future yield on 

invested assets and the then-current expected future death rates for the potential 

beneficiaries. 

For individuals who die before receiving retirement (retired worker or aged 

spouse) benefits, the IA assets will be transferred to the account of the surviving 

spouse, if any, but will be allocated as needed to provide annuities for any 

surviving children of the deceased. If there are no survivors, and the worker dies 

before such benefit entitlement, then the account balance goes to the worker’s 

estate, tax free. 

Social Security Recognition Bonds and Benefit Reduction 

OASI retirement and aged survivor benefits will be reduced based on the 

participation by the worker in the personal account option. Benefits payable to 

disabled worker beneficiaries (prior to conversion to retired worker status at the 
5

normal retirement age), to their dependents, and to survivors other than surviving 

spouse beneficiaries at age 60 or older are not subject to the reduction. 

Reductions in affected OASI benefits would be made based on the proportion of 

potential lifetime PSA contributions that was realized. Specifically, the benefit 

reduction would be equal to the present law scheduled OASI benefits multiplied 

by the ratio of (a) the present value of all contributions redirected to the worker’s 

PSA, to (b) the present value of all potential PSA contributions that might have 

been made if the plan had been in existence throughout the working lifetime of 

the worker. Present values would be computed using the realized OASDI annual 

Trust Fund yields. Potential contributions for years before 2006 would be 

computed by indexing the $10,000 threshold back to earlier years using the AWI. 

Based on the reduction described above, workers who first enter the workforce in 

2006 or later, and who choose to participate fully in the personal account through 

their working lifetime would have their affected OASI benefits reduced to zero. 

However, as noted above, the OASI program might still pay some benefits in 

cases where the annuity from fully annuitizing the PSA accumulation would be 

less than the present law scheduled OASI benefit. 

Recognition bonds would be issued to active workers who choose to participate 

in the PSA on the basis of earnings before January 1, 2006. The recognition 

bonds would not be marketable but would be redeemable to the trust funds for all 

benefits scheduled under the OASDI program immediately prior to enactment of 

this plan, subject to the reduction for plan participation described above. 

Personal Social Security Savings Account Board 

The personal accounts and special annuities (annuity required to make the total 

benefit at least equal to the present law scheduled OASI benefit) for all workers 

will be administered by a single entity, central administrative authority, under the 

direction of the Personal Social Security Savings Account Board. The central 

administrative authority would maintain records and issue periodic statements to 

account holders. The PSA management would be based on the design of the 

government employee Thrift Savings Plan (TSP), with limited reporting 

requirements. Aggregated assets would be invested by privately managed 

investment firms. Through this approach it is assumed that PSA administrative 

costs can be expected to be modest, ultimately around 0.25 percent of IA assets 

for each account holder. This might require some Federal subsidy in early years 

for the PSA, when account balances are low and start-up costs are incurred. 

General Fund Transfers to the Trust Funds 

The OASDI Trust Funds will receive transfers from the General Fund of the 

Treasury through three mechanisms. The first two mechanisms are designed to 
6

provide revenue in keeping with potential revenue gains associated with other 

provisions of the proposal that are not directly addressed in this analysis. The 

transfers from these three mechanisms would eventually be offset by a fourth 

mechanism for a “reverse” transfer from the Trust Funds to the General Fund. 

The first transfer mechanism would provide for amounts to be transferred to the 

OASDI Trust Funds equal to the potential corporate taxes that might result from 

investment of IA accumulations and annuities. The transfer amount would be 

computed assuming that all IA assets are invested in the default portfolio and 

that all IA accumulations available at retirement would be fully annuitized in the 

special life annuity offered by the central administrative authority. The 

computation of potential corporate tax revenue transfer would be specified in the 

law to follow the parameters adopted by former Senator Phil Gramm in his 

proposal. The parameters were laid out in the OCACT memorandum to Senator 

Gramm of April 16, 1999. 

“The “recapture of corporate tax” on individual 

account yield would be directed to the OASDI trust 

funds. This recapture would be specified in law, 

intending to reflect the additional corporate taxes 

resulting from the additional domestic corporate 

investment from account assets. The plan would 

specify that the recapture would be assumed to equal 

23.9 percent of the real, before tax, corporate return 

on investments. Because reported real yield on 

accounts would be after corporate tax, and the 23.9 

percent rate is intended to apply to corporate income 

before tax, the actual rate applied to after tax 

income would be 31.4% = 23.9% / (1-.239). This 

provision would provide a substantial and growing 

source of income to the OASDI program.” 

The value of 23.9 percent was derived from the assumption of an ultimate 

average 35 percent rate applied to 68.4 percent of invested IA assets. Thus, the 

General Fund transfer based on potential corporate tax resulting from IA and 

annuity investments would equal 31.4 percent of the yield on combined IA 

accumulation and annuity assets. 

The second transfer mechanism would specify transfers from the General Fund 

of the Treasury to the Trust Funds equal to the potential amount by which 

Federal Government spending would be reduced from a specific baseline, if 

growth in spending were reduced by 1 percent each year starting 2006 and 

lasting for at least 8 years (through 2013). The specified transfer amounts would 

be computed by a formula assuming that “baseline” Federal spending would 

equal 20 percent of GDP, and that the continuing 1-percent growth-rate 

reductions would continue as long as needed so that transfers to the OASDI 

program would result in combined Trust Fund ratios that would not be projected 
7

to fall below 100 percent under the provisions of the plan. Transfers would 

continue after the last year in which spending growth is assumed to be reduced, 

using that the cumulative percentage reduction computed for the last year for 

which an additional 1-percent growth-rate reduction was applied. 

The plan would provide direction to the Congress and the President that the 

growth rate in total actual Federal Government spending should be diminished as 

specified above for the computation of transfers. Specified transfers to the Trust 

Funds would, however, not be contingent on achieving these reductions in actual 

Federal spending. 

The third transfer mechanism would provide for the Treasury to issue additional 

bonds to the public in order to generate revenue to transfer to the Trust Funds if, 

at any time, the combined OASDI Trust Fund ratio (TFR) is projected to fall 

below 100 percent under the provisions of the plan, including the first two transfer 

mechanisms. This provision would guarantee solvency for the Trust Funds in 

any circumstance. 

The fourth transfer mechanism would provide for a “reverse” transfer from the 

Trust Funds to the Treasury. This transfer would become effective when it is 

determined that in order to maintain an OASDI annual cash-flow balance (noninterest income less program cost) that is positive or zero for the future 

(1) the third transfer above is not projected to be needed in the future and (2) the 

full amount of transfers from the first two mechanisms is not projected to be 

needed for any future year, under the Trustees intermediate assumptions. 

Cuts in OASDI Contribution Rate 

If for any year net transfers described above are set at zero and are not projected 

to be needed in any future year, then the combined payroll tax rate (12.4 percent 

under current law) will be reduced to a level that maintains the annual OASDI 

cash-flow balance (non-interest income less program cost) at zero. However, 

this reduction will apply for any year only to the extent that it does not result in 

projections of a negative OASDI annual cash-flow balance for any future year 

under the Trustees intermediate assumptions. In addition, the combined OASDI 

payroll tax rate would in no case be reduced below 3.5 percentage points, 

roughly consistent with the minimal cost of providing benefits for disabled 

workers and their families, and for young survivors, in the future. 

Assumptions 

The guarantee of total payments at the level of present-law scheduled benefits 

would be available for all individual-account participants regardless of the 

portfolio allocation they choose in the Tier II and Tier III funds. The guarantee 
8

would assure that their total benefits will be no lower than present-law scheduled 

benefits from OASDI based on the law in effect just prior to enactment of this 

plan. Workers who do not participate in the PSA plan, however, may be subject 

to changes in scheduled benefits in future years. As a result, universal 

participation in the personal savings account option has been assumed for 

estimates presented in this memorandum. It is further assumed that most 

participants will retain the default portfolio allocation provided automatically in the 

Tier II fund, and that those who select other options will, in aggregate, invest with 

an allocation that results in a similar yield to that for the default allocation. 

The cost of providing the guarantee for individual account participants is 

estimated assuming variation in realized account yields across years, 

generations, and individuals within generations. For individuals or generations 

with account yields substantially below the average expected return, the 

guarantee may result in additional payments from the Trust Funds. Individuals 

may be more likely to have yields below average if they choose to either invest 

conservatively, of if they attempt to make changes in portfolio allocations in an 

effort to “time the market.” For individuals and generations that experience 

higher than expected returns, little if any cost for the guarantee will be incurred. 

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

intermediate assumptions of the 2004 Trustees Report. Estimates based on the 

more recent 2005 Trustees Report are not yet available, but are not expected to 

be materially different from the results presented in this memorandum. In 

addition, the long-term ultimate average annual real yield assumed for equities is 

6.5 percent. This is somewhat lower than the historical real equity yield over the 

last several decades. 

A consensus is forming among economists that equity pricing, as indicated by 

price-to-earnings ratios, may average somewhat higher in the long-term future 

than in the long-term past. This is consistent with broader access to equity 

markets and the belief that equities may be viewed as somewhat less “risky” in 

the future than in the past. Equity pricing will vary in the future as in the past. 

Price-to-earnings ratios were very high through 1999, and are now lower. The 

average ultimate real equity yield assumed for estimates in this memorandum is 

consistent with an average ultimate level of equity pricing somewhat above the 

average level of the past. 

The assumption for an ultimate real equity yield of 7 percent that was used by the 

Office of the Chief Actuary until 2001 was developed in 1995 with the 1994-6 

Advisory Council. At that time, the Trustees assumption for the ultimate average 

real yield on long-term Treasury bonds was 2.3 percent. Real yields on 

corporate bonds are believed to bear a close relationship to Treasury bond yields 

of similar duration. The 2004 Trustees Report includes the assumption that the 

ultimate real yield on long-term Treasury bonds will average 3 percent, or 0.7 

percentage point higher than assumed in 1995. This increase in the assumed 
9

bond yield is consistent with a reduction in the perceived risk associated with 

equity investments. 

It should be noted that the precise effects of implementing a plan that would 

result in a large demand for equities and corporate bonds on the yields of these 

securities is not clear. This demand would likely be at least partially offset by 

reductions in demand for other investment mechanisms. For the purpose of 

these estimates, it is assumed that there will be no net dynamic feedback effects 

on the economy or on the financial markets. Moreover, the intended effects on 

growth in Federal spending are not reflected in these estimates. 

Financial Effects of the Plan 

Trust Fund Operations 

Table 1 indicates that under the intermediate assumptions of the 2004 Trustees 

Report and the assumed average yields for equities and corporate bonds 

described above, the OASDI program is projected to solvent throughout the 75-

year projection period and beyond. The annual cost rate (cost of the OASDI 

program as a percent of payroll) declines steadily after 2031, reflecting the 

increasing extent of benefit reductions associated with PSA participation. The 

annual balance (net cash-flow balance as a percent of payroll) is projected to 

reach zero for 2038 and beyond. The trust fund ratio is projected to reach a low 

point of 173 percent of annual program cost for 2036 and to gradually increase 

thereafter, because the retained interest on the assets will be more than needed 

to maintain a constant trust fund ratio. 

Net General Fund transfers expressed as a percent of taxable payroll are 

projected to rise to a peak of 7.92 percent for 2037 and decline thereafter, 

reaching zero for 2070 and later. The effective OASDI contribution rate is 

projected to be reduced from the nominal level of 12.4 percent by (1) the amount 

redirected to personal accounts, which reaches 6.4 percent of payroll for 2025 

and later, and (2) the cut in the contribution rate that is projected to be possible 

starting in 2070, while maintaining an OASDI annual cash-flow balance at zero. 

The net OASDI contribution rate is projected to decline to 5.25 percentage points 

for 2078. 

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

would be improved by an estimated 2.23 percent of taxable payroll, from an 

actuarial deficit of 1.89 percent of payroll projected under current law to a positive 

actuarial balance that rounds to 0.32 percent of payroll under the plan. 
10

Program Transfers and Assets 

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

of net OASDI Trust Fund assets. Columns 1 through 3 provide the estimated 

amounts of annual transfers under the first, second, and fourth transfer 

mechanisms described above. The reverse transfers (column 3) begin in 2038 

and reach the level of the other two transfers combined for 2070 and later. Note 

that the additional transfers permitted under the third mechanism are not 

projected to be needed under these assumptions. Column 4 provides the 

cumulative total amount of net transfers from the General Fund of the Treasury 

under the plan through the end of each year. Column 5 shows the net annual 

transfer in present value dollars, discounted to January 1, 2004. 

Total projected OASDI Trust Fund assets are shown in column 6. 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 9 and 10, respectively. 

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 6 and 7). 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. Gross 

Domestic product is shown in column 8 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 pi present value discounted 

dollars. These effects are also shown in constant 2004 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 unified budget cash flow 

(column 5) would be expected to be negative initially, but positive starting 2051. 

This total cash flow change is the combination of the specific plan effects shown 

in columns 1 through 4. It is important to note that these estimates are based on 

the intermediate assumptions of the 2004 Trustees Report and thus are not 

consistent with estimates made by the OMB or the CBO based of their 

assumptions. 
11

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. 

As noted above, these projections do not reflect any potential change from 

reductions in the growth of Federal spending or from possible net increases in 

corporate taxes due to the individual account investments that are intended to 

occur as a result of implementation of this plan. The cumulative amounts of 

transfers to the Trust Funds associated with these intended effects are presented 

in columns 8 and 9. If these transfers were fully offset by corresponding 

increases in corporate tax revenue or reductions in Federal spending, then the 

projected change in the debt held by the public under this plan (column 6) would 

be reduced by these amounts. 

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. 

Specified transfers from the General Fund under the plan also are shown as 

negative cash flow. 

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

in present value dollars as of 1/1/2004, and in constant 2004 dollars (discounted 

to 2004 with the projected growth in the CPI). For comparison purposes, net 

cash flow is also shown for a theoretical Social Security program where transfers 

from the General Fund of the Treasury to the OASDI Trust Funds are assumed 

to occur as needed to assure full payment of scheduled benefits in 2042 and 

later. 

Development of Transfers under the Plan 

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 an annual and 

cumulative basis. For the 75-year long-range period as a whole, the present law 

unfunded obligation of $3.7 trillion in present value is replaced with a positive 

trust fund balance of $0.7 trillion in present value at the end of the period. This 

change is the net effect of a $9 trillion reduction in OASI benefit payments 

(column 2) and an $8.5 trillion net transfer from the General fund of the treasury 

to the trust funds (column 6), which are partially offset by $11.5 trillion in 

contributions from the trust funds to the individual accounts (column 3), and $2 

trillion additional cost for the guaranteed benefit level (column 4). 
12

Development of Transfers under the Plan 

Table 1e provides estimates of the amounts of the specified transfers under the 

plan in present value discounted to January 1, 2004. Columns 1, 2, and 3 

develop the specified transfer based on the intended reduction in the growth in 

Federal spending. Column 1 provides the projected GDP under the Trustees 

intermediate assumptions. Column 2 provides what GDP would be if it grew 1 

percent slower in each of the years 2006 through 2013. Column 3 provides 20 

percent of the difference between columns 1 and 2, or the specified amount of 

transfer. Column 4 provides the estimated amount of annual transfers related to 

corporate tax on Individual Account investments. Column 5 provides the 

estimated reverse transfers, which are determined to offset the transfers in 

columns 3 and 4 when they are no longer needed. Column 6 provides the 

cumulative amount of net transfers from columns 3, 4, and 5 through the end of 

the year. Finally, the values in columns 7, 8, and 9 provide the annual net 

transfer amounts for the three mechanisms combined. 

Components of Cash Flow to the General Fund of the Treasury 

In Table 1f, total net cash flow from the trust funds to the general fund is 

shown in two components. The first is the cash flow due to the net 

amounts of the specified transfers to the trust funds under this proposal. 

The amounts of the specified transfers are detailed in columns (3), (4), 

and (5) of table 1d provided earlier. Under the specifications of the 

proposal, net specified transfers to the trust funds are expected to occur 

in years 2006 through 2069. 

The second component is the residual amount of cash flow due to the 

trust funds net purchase (or redemption) of assets held in the form of 

special-issue Treasury Securities. Net purchases of Treasury securities 

are projected to change to net redemptions starting in 2006, under the 

proposal. Net redemptions are projected to continue through 2037. For 

2038 and later, net redemptions of Treasury securities held be the trust 

funds are projected to be zero, consistent with the targeted zero OASDI 

annual cash-flow under the proposal. 

Sensitivity Analysis 

Tables 2, 2a, 2b, 2c, 2d, 2e and 2f provide an analysis of the implications of 

realizing actual real yields on individual account assets that are equal to the 

assumed average real yield on long-term Treasury bonds, or 3 percent. This 

may be viewed as either illustrating the case where the average real yield on 

equities and corporate bonds is no higher than on government bonds, or 

illustrating the effect of assuming risk-adjusted returns on equities and corporate 

bonds. In either case, the “expected” yield on annuitized assets is assumed to 
13

match the actual yield, on average. It should be noted that while average real 

yields for equities have been at or below average bond yields for periods of a 

decade or so, the likelihood of having such a low average yield for a period of 

several decades seems extremely low. 

Table 2 indicates that net General Fund transfers would be needed longer, 

throughout the 75-year projection period. This is largely due to the fact that, with 

the assumed low yield on individual account assets, the cost of providing the 

guarantee is far higher—see table 2b column 2. The low yield also results in 

lower projected transfers based on corporate tax on IA investments—see table 

2a column 2. As a result, the specified transfer based on a formula related to 

potential reductions in growth in total Federal spending is increased by extending 

reductions for the formula for years 2006 through 2016, or 3 years longer than 

under the assumptions of tables 1. Thus, with the low yield assumed on 

individual account assets, reverse transfers do not reach the point of fully 

offsetting transfers based on slowed growth in Federal spending and corporate 

tax on account investments by 2078 (see table 2a) and it is not possible to 

reduce the payroll tax rate within this period. 

Only one sensitivity example is provided because the financial status of the 

OASDI Trust Funds under the plan is relatively insensitive to individual account 

returns. Even the low average returns in tables 2 require only a 3 year extension 

of the period of annual increases for specified transfers. 

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 Tables 1 and 2. In any case, the plan would provide for adequate financing for 

the OASDI program through the provisions described above. 

 

 Stephen C. Goss 

Attachments
Table 1 Ryan/Sununu Proposal GF Trans for spend cut thru 2013 IA Cntrb 6.4 %, Ben Offset 100.0 % 

Expected Yield With Ult Real TF Int Rate of 3.0 CorpTax toTF as%of Pre Change IA Participation 100.0 %

1/2 Contribution With Ult Real IA Yld Rate of 5.2 tax IA RealYld 23.9 in OASDI Effective Cut in IA Contrib

To IA through 2015 With Annuity Net Yld Rate 5.2 Net GF Trans Effective OASDI Contrib Rate---

Cost Income Annual TFR to TF 1/ Contrib Contrib Rate for Redirected

Year Rate Rate 1/ Balance 1-1-yr (%ofPyrl) Rate Rate 2/ AnnBal from PyrlTax

2004 11.07 12.71 1.64 306 12.40 0

2005 10.87 12.73 1.86 325 12.40 0

2006 10.77 10.44 -0.33 347 0.29 -2.58 9.82 2.58

2007 10.75 10.81 0.06 346 0.84 -0.20 9.62 2.78

2008 10.80 11.34 0.54 346 1.38 -0.05 9.57 2.83

2009 10.95 11.83 0.88 348 1.94 -0.05 9.52 2.88

2010 11.08 12.36 1.28 354 2.49 -0.05 9.47 2.93

2011 11.25 12.92 1.67 363 3.04 -0.04 9.43 2.97

2012 11.50 13.46 1.96 373 3.60 -0.04 9.39 3.01

2013 11.77 14.02 2.24 385 4.15 -0.03 9.35 3.05

2014 12.03 14.07 2.04 399 4.22 -0.03 9.32 3.08

2015 12.33 14.14 1.82 410 4.30 -0.02 9.30 3.10

2016 12.62 11.13 -1.49 420 4.41 -3.14 6.16 6.24

2017 12.92 11.25 -1.67 404 4.55 -0.03 6.13 6.27

2018 13.21 11.39 -1.83 388 4.69 -0.03 6.10 6.30

2019 13.51 11.52 -1.99 372 4.82 -0.02 6.08 6.32

2020 13.80 11.66 -2.14 355 4.97 -0.02 6.06 6.34

2021 14.07 11.81 -2.26 339 5.11 -0.02 6.05 6.35

2022 14.33 11.96 -2.36 322 5.27 -0.01 6.03 6.37

2023 14.56 12.12 -2.44 306 5.42 -0.01 6.02 6.38

2024 14.78 12.28 -2.49 290 5.58 -0.01 6.01 6.39

2025 14.97 12.45 -2.52 275 5.75 -0.01 6.00 6.40

2026 15.14 12.63 -2.51 260 5.91 0.00 6.00 6.40

2027 15.27 12.81 -2.46 246 6.08 0.00 6.00 6.40

2028 15.37 12.99 -2.38 232 6.26 0.00 6.00 6.40

2029 15.42 13.17 -2.25 220 6.43 0.00 6.00 6.40

2030 15.45 13.35 -2.10 208 6.61 0.00 6.00 6.40

2031 15.45 13.54 -1.91 198 6.79 0.00 6.00 6.40

2032 15.41 13.72 -1.69 190 6.98 0.00 6.00 6.40

2033 15.34 13.90 -1.44 183 7.16 0.00 6.00 6.40

2034 15.24 14.09 -1.16 177 7.35 0.00 6.00 6.40

2035 15.11 14.27 -0.84 174 7.54 0.00 6.00 6.40

2036 14.96 14.45 -0.51 173 7.73 0.00 6.00 6.40

2037 14.78 14.63 -0.15 174 7.92 0.00 6.00 6.40

2038 14.58 14.59 0.00 178 7.88 0.00 6.00 6.40

2039 14.37 14.36 0.00 184 7.67 0.00 6.00 6.40

2040 14.13 14.13 0.00 190 7.44 0.00 6.00 6.40

2041 13.89 13.88 0.00 196 7.21 0.00 6.00 6.40

2042 13.63 13.63 0.00 203 6.97 0.00 6.00 6.40

2043 13.36 13.37 0.00 210 6.72 0.00 6.00 6.40

2044 13.08 13.08 0.00 218 6.45 0.00 6.00 6.40

2045 12.79 12.79 0.00 226 6.18 0.00 6.00 6.40

2046 12.49 12.49 0.00 236 5.89 0.00 6.00 6.40

2047 12.18 12.17 0.00 246 5.59 0.00 6.00 6.40

2048 11.86 11.85 0.00 256 5.29 0.00 6.00 6.40

2049 11.54 11.54 0.00 267 4.99 0.00 6.00 6.40

2050 11.23 11.23 0.00 279 4.69 0.00 6.00 6.40

2051 10.91 10.91 0.00 292 4.39 0.00 6.00 6.40

2052 10.60 10.59 0.00 306 4.09 0.00 6.00 6.40

2053 10.27 10.27 0.00 320 3.78 0.00 6.00 6.40

2054 9.95 9.95 0.00 336 3.48 0.00 6.00 6.40

2055 9.63 9.63 0.00 353 3.18 0.00 6.00 6.40

2056 9.34 9.33 0.00 370 2.90 0.00 6.00 6.40

2057 9.04 9.04 0.00 388 2.62 0.00 6.00 6.40

2058 8.75 8.75 0.00 408 2.35 0.00 6.00 6.40

2059 8.47 8.47 0.00 428 2.08 0.00 6.00 6.40

2060 8.20 8.20 0.00 450 1.83 0.00 6.00 6.40

2061 7.93 7.93 0.00 473 1.57 0.00 6.00 6.40

2062 7.68 7.68 0.00 497 1.33 0.00 6.00 6.40

2063 7.43 7.43 0.00 522 1.10 0.00 6.00 6.40

2064 7.19 7.20 0.00 548 0.87 0.00 6.00 6.40

2065 6.97 6.97 0.00 575 0.66 0.00 6.00 6.40

2066 6.80 6.81 0.00 599 0.51 0.00 6.00 6.40

2067 6.65 6.65 0.00 623 0.36 0.00 6.00 6.40

2068 6.50 6.50 0.00 648 0.21 0.00 6.00 6.40

2069 6.36 6.36 0.00 672 0.08 0.00 6.00 6.40

2070 6.24 6.24 0.00 697 0.00 -0.03 5.97 0.03 6.40

2071 6.12 6.12 0.00 722 0.00 -0.11 5.86 0.14 6.40

2072 6.01 6.01 0.00 747 0.00 -0.10 5.75 0.25 6.40

2073 5.91 5.91 0.00 773 0.00 -0.10 5.66 0.34 6.40

2074 5.81 5.81 0.00 799 0.00 -0.09 5.57 0.43 6.40

2075 5.72 5.72 0.00 825 0.00 -0.09 5.48 0.52 6.40

2076 5.64 5.64 0.00 851 0.00 -0.08 5.40 0.60 6.40

2077 5.56 5.56 0.00 878 0.00 -0.08 5.32 0.68 6.40

2078 5.48 5.48 0.00 905 0.00 -0.07 5.25 0.75 6.40

2079 5.41 5.41 0.00 933 0.00 -0.07 5.18 0.82 6.40

 Summarized

CostRt IncRt ActBal Change in

2004 OASDI OASDI OASDI ActBal

-2078 11.89 12.21 0.32 2.23

Based on Intermediate Assumptions of the 2004 Trustees Report

 With Ult Real Int Rate of 3.00 Office of the Actuary

1/ Includes Specified and CorpTax-based GF Transfers (see table .e) Social Security Administration

2/ Net payroll tax rate to the Trust Funds; reduced by amount redirected for IA contribution, and cut for annual balance April 19, 2005
Table 1 a Proposal GF Transfers, OASDI Trust Fund Assets, Individual Account Assets, and Theoretical OASDI Assets

Theoretical Social Security 2/

Proposal General Fund Transfers Accumulated Total OASDI Individual with Borrowing Authority;

Specified for Corp Reverse GF Transfers Net Trust Fund Account Net OASDI TF Assets End of Yr 

Calendar Slowed FedGov Tax Tran for at End of Annual Assets Assets 1/ Without GF With GF Transfer

Year Spending Recap Ann Balance Year Transfer at End of Yr at End of Yr GDP Transfer (amount for prop)

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

Billions of Constant 2004 Dollars PV1-1-04 Billions of Constant 2004 Dollars Billions of Constant 2004 Dollars

2004 0 0 0 0 0.0 1,684 0 11,544 1,543 1,543

2005 0 0 0 0 0.0 1,840 0 11,911 1,698 1,698

2006 12 2 0 14 12.5 1,884 129 12,246 1,862 1,876

2007 38 4 0 57 36.4 1,940 279 12,562 2,030 2,088

2008 64 6 0 130 59.9 2,019 441 12,870 2,203 2,334

2009 91 9 0 236 83.2 2,118 616 13,171 2,381 2,617

2010 119 12 0 377 106.2 2,242 806 13,466 2,560 2,937

2011 148 15 0 554 128.7 2,395 1,011 13,752 2,741 3,295

2012 177 18 0 771 150.5 2,570 1,230 14,024 2,922 3,693

2013 207 22 0 1,028 171.7 2,769 1,463 14,285 3,100 4,127

2014 211 26 0 1,300 172.6 2,964 1,712 14,547 3,271 4,571

2015 215 30 0 1,590 173.5 3,154 1,975 14,804 3,434 5,023

2016 219 37 0 1,899 175.9 3,157 2,442 15,061 3,586 5,485

2017 223 45 0 2,230 178.8 3,148 2,939 15,322 3,725 5,956

2018 226 54 0 2,585 181.8 3,130 3,466 15,586 3,849 6,434

2019 230 62 0 2,963 184.4 3,099 4,023 15,842 3,956 6,919

2020 234 72 0 3,367 187.0 3,056 4,610 16,100 4,045 7,411

2021 237 81 0 3,796 189.5 3,001 5,228 16,354 4,113 7,909

2022 241 92 0 4,252 192.1 2,937 5,877 16,610 4,159 8,411

2023 245 102 0 4,737 194.6 2,864 6,558 16,861 4,182 8,919

2024 249 114 0 5,252 197.1 2,782 7,271 17,117 4,183 9,435

2025 252 126 0 5,798 199.5 2,694 8,016 17,372 4,161 9,959

2026 256 138 0 6,378 202.0 2,602 8,795 17,634 4,116 10,493

2027 260 151 0 6,992 204.5 2,508 9,606 17,903 4,047 11,039

2028 264 164 0 7,642 206.9 2,416 10,451 18,174 3,954 11,596

2029 268 178 0 8,330 209.3 2,326 11,329 18,451 3,836 12,167

2030 272 193 0 9,058 211.6 2,244 12,241 18,733 3,695 12,753

2031 276 208 0 9,828 214.0 2,170 13,188 19,022 3,530 13,358

2032 281 223 0 10,641 216.3 2,109 14,168 19,319 3,342 13,983

2033 285 239 0 11,500 218.5 2,063 15,183 19,622 3,132 14,632

2034 289 256 0 12,406 220.7 2,036 16,232 19,929 2,901 15,307

2035 294 273 0 13,362 222.8 2,031 17,315 20,243 2,649 16,010

2036 299 291 0 14,369 224.9 2,051 18,432 20,564 2,376 16,745

2037 303 309 0 15,431 226.9 2,099 19,582 20,892 2,083 17,514

2038 308 328 18 16,530 222.3 2,162 20,764 21,226 1,771 18,301

2039 313 347 50 17,653 213.0 2,226 21,979 21,562 1,440 19,094

2040 318 367 85 18,801 203.6 2,291 23,224 21,904 1,090 19,891

2041 323 388 121 19,972 194.2 2,359 24,500 22,252 720 20,693

2042 328 408 158 21,167 184.8 2,429 25,804 22,605 331 21,497

2043 333 430 198 22,383 175.3 2,501 27,135 22,961 -80 22,303

2044 339 451 239 23,621 165.7 2,575 28,492 23,322 -513 23,108

2045 344 473 283 24,880 156.2 2,652 29,872 23,687 -969 23,911

2046 349 496 329 26,157 146.5 2,731 31,273 24,055 -1,450 24,707

2047 355 518 376 27,453 136.9 2,811 32,695 24,426 -1,957 25,495

2048 360 541 425 28,766 127.3 2,894 34,134 24,799 -2,493 26,273

2049 366 564 475 30,098 118.3 2,980 35,588 25,174 -3,058 27,039

2050 371 588 525 31,447 109.4 3,069 37,050 25,552 -3,654 27,793

2051 377 611 577 32,813 100.7 3,159 38,520 25,936 -4,283 28,530

2052 382 635 629 34,197 92.3 3,253 39,996 26,324 -4,947 29,250

2053 388 659 683 35,598 84.0 3,349 41,480 26,721 -5,648 29,950

2054 394 682 737 37,014 76.0 3,449 42,972 27,123 -6,387 30,628

2055 400 706 792 38,448 68.3 3,551 44,468 27,528 -7,166 31,282

2056 406 730 847 39,900 61.2 3,657 45,968 27,939 -7,987 31,912

2057 412 754 901 41,370 54.4 3,765 47,468 28,354 -8,851 32,519

2058 418 778 955 42,859 48.0 3,877 48,970 28,775 -9,759 33,100

2059 424 803 1,010 44,367 41.8 3,992 50,472 29,204 -10,713 33,654

2060 430 827 1,065 45,896 36.1 4,111 51,974 29,639 -11,713 34,183

2061 437 851 1,120 47,445 30.6 4,234 53,476 30,078 -12,761 34,684

2062 443 875 1,174 49,017 25.4 4,359 54,978 30,526 -13,859 35,157

2063 450 899 1,229 50,611 20.6 4,489 56,478 30,978 -15,009 35,602

2064 457 923 1,282 52,229 16.2 4,623 57,979 31,438 -16,212 36,017

2065 463 947 1,336 53,872 12.0 4,761 59,479 31,906 -17,472 36,400

2066 470 971 1,383 55,547 9.1 4,903 60,979 32,379 -18,790 36,757

2067 477 995 1,431 57,256 6.3 5,049 62,481 32,861 -20,169 37,087

2068 484 1,019 1,478 58,999 3.7 5,199 63,984 33,359 -21,611 37,388

2069 492 1,043 1,525 60,779 1.4 5,354 65,491 33,859 -23,120 37,659

2070 499 1,067 1,566 62,603 0.0 5,514 67,002 34,366 -24,698 37,905

2071 507 1,091 1,598 64,481 0.0 5,678 68,518 34,882 -26,347 38,134

2072 514 1,116 1,630 66,415 0.0 5,847 70,042 35,404 -28,070 38,345

2073 522 1,140 1,662 68,408 0.0 6,021 71,574 35,931 -29,870 38,537

2074 530 1,165 1,694 70,460 0.0 6,200 73,118 36,464 -31,751 38,709

2075 537 1,190 1,727 72,574 0.0 6,385 74,675 37,006 -33,714 38,860

2076 545 1,215 1,760 74,751 0.0 6,575 76,247 37,555 -35,763 38,988

2077 553 1,240 1,794 76,994 0.0 6,771 77,838 38,112 -37,901 39,093

2078 562 1,266 1,828 79,303 0.0 6,973 79,448 38,677 -40,131 39,173

2079 570 1,292 1,862 81,682 0.0 7,181 81,083 39,245 -42,456 39,226

Total 2004-78 8,495.4

Based on Intermediate Assumptions of the 2004 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. April 19, 2005
Table 1 b IA Contributions, OASI Benefit Changes, & Total Unified Budget Effect

Ave IA Cntrb 6.4 % Benefit Offset 100.0 %

 Amount Cost to guar Cut in Change Change Change

Contrib to IA: OASDI +IA OASI Benefit Contrib in Annual in Debt in Ann

% by FedGov benefits at Cut for IA Rate for UnifBudg Held by UnifBudg

 Year 100 PLSched Participation AnnBal CashFlow Public Balance

(EOY)

(Billions of $, Present Value on 1-1-04)

2005 0.0 0.0 0.0 0.0 0.0 0.0 0.0

2006 112.8 0.0 0.0 0.0 -112.8 118.9 -118.9

2007 120.8 0.0 0.0 0.0 -120.8 246.2 -133.5

2008 122.5 0.0 0.0 0.0 -122.5 375.7 -142.0

2009 124.0 0.0 0.0 0.0 -124.0 506.7 -150.5

2010 125.1 0.0 0.0 0.0 -125.1 638.9 -158.8

2011 125.8 0.0 0.0 0.0 -125.8 772.1 -166.9

2012 126.1 0.3 0.0 0.0 -126.4 905.9 -174.9

2013 126.0 0.7 0.2 0.0 -126.5 1,039.8 -182.3

2014 125.8 1.3 0.5 0.0 -126.5 1,173.9 -190.0

2015 125.2 2.1 1.0 0.0 -126.4 1,308.0 -197.5

2016 248.9 2.7 1.9 0.0 -249.7 1,572.8 -335.9

2017 246.8 3.5 3.2 0.0 -247.1 1,834.9 -348.4

2018 244.4 4.3 5.0 0.0 -243.6 2,093.6 -360.0

2019 241.5 5.2 7.4 0.0 -239.3 2,347.0 -369.7

2020 238.5 6.1 10.2 0.0 -234.4 2,595.2 -378.7

2021 235.4 7.1 13.4 0.0 -229.1 2,837.8 -386.8

2022 232.2 8.3 17.0 0.0 -223.4 3,074.4 -394.3

2023 228.9 9.4 21.1 0.0 -217.2 3,304.4 -400.8

2024 225.6 10.7 25.5 0.0 -210.7 3,527.5 -406.7

2025 222.2 12.0 30.4 0.0 -203.9 3,743.4 -411.9

2026 218.6 13.5 35.6 0.0 -196.5 3,951.4 -416.1

2027 215.1 14.9 41.2 0.0 -188.8 4,151.4 -419.5

2028 211.6 16.4 47.0 0.0 -180.9 4,342.9 -422.2

2029 208.2 17.9 53.1 0.0 -172.9 4,526.0 -424.4

2030 204.8 19.4 59.4 0.0 -164.8 4,700.5 -426.0

2031 201.5 20.9 66.0 0.0 -156.4 4,866.1 -426.8

2032 198.4 22.4 72.8 0.0 -148.0 5,022.8 -427.1

2033 195.2 23.9 79.5 0.0 -139.6 5,170.6 -427.0

2034 192.2 25.4 86.2 0.0 -131.4 5,309.7 -426.4

2035 189.2 26.9 93.0 0.0 -123.1 5,440.0 -425.4

2036 186.3 28.6 99.7 0.0 -115.2 5,562.0 -424.3

2037 183.4 30.3 106.4 0.0 -107.3 5,675.6 -422.7

2038 180.6 32.0 113.0 0.0 -99.6 5,781.1 -420.8

2039 177.8 33.7 119.6 0.0 -91.9 5,878.4 -418.6

2040 175.0 35.3 126.1 0.0 -84.3 5,967.6 -415.9

2041 172.3 36.9 132.7 0.0 -76.6 6,048.6 -412.7

2042 169.7 38.5 139.3 0.0 -68.8 6,121.5 -409.0

2043 167.0 40.0 146.0 0.0 -61.0 6,186.1 -404.8

2044 164.4 41.4 152.5 0.0 -53.3 6,242.5 -400.2

2045 161.8 42.8 159.1 0.0 -45.6 6,290.8 -395.1

2046 159.3 44.1 165.7 0.0 -37.7 6,330.7 -389.5

2047 156.7 45.1 172.1 0.0 -29.7 6,362.1 -383.3

2048 154.2 46.1 178.5 0.0 -21.9 6,385.3 -376.7

2049 151.7 47.0 184.6 0.0 -14.1 6,400.2 -369.8

2050 149.2 48.0 190.6 0.0 -6.6 6,407.2 -362.7

2051 146.8 48.7 196.4 0.0 0.9 6,406.2 -355.1

2052 144.4 49.2 202.0 0.0 8.4 6,397.3 -347.1

2053 142.0 49.4 207.3 0.0 15.9 6,380.4 -338.6

2054 139.7 49.3 212.2 0.0 23.2 6,355.8 -330.0

2055 137.4 49.2 216.8 0.0 30.2 6,323.8 -321.2

2056 135.1 49.2 221.0 0.0 36.7 6,285.0 -312.6

2057 132.9 49.0 224.8 0.0 42.9 6,239.6 -303.9

2058 130.7 48.6 228.1 0.0 48.7 6,188.0 -295.1

2059 128.5 48.1 230.9 0.0 54.2 6,130.6 -286.5

2060 126.4 47.5 233.3 0.0 59.4 6,067.7 -277.8

2061 124.3 46.6 235.2 0.0 64.2 5,999.7 -269.2

2062 122.3 45.7 236.8 0.0 68.9 5,926.8 -260.5

2063 120.3 44.6 238.1 0.0 73.3 5,849.2 -251.8

2064 118.3 43.4 238.9 0.0 77.3 5,767.4 -243.2

2065 116.3 42.0 239.2 0.0 80.9 5,681.7 -234.9

2066 114.4 41.6 239.2 0.0 83.2 5,593.7 -227.7

2067 112.5 41.2 238.9 0.0 85.2 5,503.4 -220.6

2068 110.7 40.6 238.4 0.0 87.1 5,411.2 -213.6

2069 108.8 40.0 237.4 0.0 88.6 5,317.4 -206.9

2070 107.1 39.3 236.2 0.6 89.2 5,223.0 -201.0

2071 105.3 38.6 234.7 2.4 88.4 5,129.3 -196.6

2072 103.6 37.8 233.0 4.0 87.6 5,036.5 -192.2

2073 101.8 36.9 231.1 5.5 86.9 4,944.5 -187.9

2074 100.2 36.0 229.1 6.8 86.1 4,853.4 -183.6

2075 98.5 35.1 227.0 8.0 85.4 4,763.0 -179.3

2076 96.9 34.1 224.7 9.1 84.6 4,673.4 -175.1

2077 95.3 33.1 222.3 10.1 83.9 4,584.6 -170.9

2078 93.7 32.1 219.9 11.0 83.1 4,496.5 -166.7

2079 92.1 31.1 217.4 11.8 82.4 4,409.2 -162.6

Based on Intermediate Assumptions of the 2004 Trustees Report Ultimate Real Yield Rate of IA 5.2

 With Ult Real Int Rate of 3 TF, Annuity Yield 5.2

Office of the Actuary

Social Security Administration

 April 19, 2005
Table 1 b.c IA Contributions, OASI Benefit Changes, & Total Unified Budget Effect--Plus Cumulative Gross GF Transfers 1/

Ave IA Cntrb 6.4 %, Benefit Offset 100.0 %

 Amount Cost to guar Cut in Change Change in Change Cumulative Transfers

Contrib to IA: OASDI +IA OASI Benefit Contrib in Annual Debt Held by in Ann Based on Based on

% by Fed Gov benefits at Cut for IA Rate for UnifBudg the Public UnifBudg Fed Spending CorpTax

 Year 100 PLSched Participation AnnBal CashFlow (EOY) Balance Slowdown 1/ Recap 1/

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

 (Billions of Constant 2004$)

2005 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0

2006 124.7 0.0 0.0 0.0 -124.7 128.1 -128.1 13 2

2007 137.5 0.0 0.0 0.0 -137.5 273.0 -148.0 52 5

2008 143.1 0.0 0.0 0.0 -143.1 427.1 -161.5 119 12

2009 148.5 0.0 0.0 0.0 -148.5 591.1 -175.6 215 21

2010 153.9 0.0 0.0 0.0 -153.9 765.1 -190.2 343 33

2011 159.0 0.0 0.0 0.0 -159.0 949.6 -205.3 505 50

2012 163.8 0.4 0.0 0.0 -164.2 1,144.7 -221.0 701 69

2013 168.2 1.0 0.2 0.0 -168.9 1,350.3 -236.8 934 94

2014 172.6 1.8 0.8 0.0 -173.7 1,567.1 -253.6 1,178 123

2015 176.8 2.9 1.4 0.0 -178.4 1,795.6 -271.2 1,433 157

2016 361.5 4.0 2.8 0.0 -362.7 2,221.1 -474.3 1,699 200

2017 369.0 5.2 4.8 0.0 -369.5 2,666.9 -506.3 1,978 252

2018 376.3 6.6 7.7 0.0 -375.2 3,132.9 -538.7 2,271 314

2019 383.1 8.2 11.7 0.0 -379.5 3,617.4 -569.8 2,576 388

2020 389.7 10.0 16.7 0.0 -383.0 4,120.0 -601.1 2,893 473

2021 396.1 12.0 22.6 0.0 -385.5 4,640.3 -632.5 3,225 571

2022 402.4 14.3 29.5 0.0 -387.2 5,177.9 -664.0 3,569 683

2023 408.5 16.8 37.6 0.0 -387.7 5,732.2 -695.3 3,929 809

2024 414.7 19.7 46.9 0.0 -387.4 6,302.9 -726.8 4,302 950

2025 420.8 22.8 57.5 0.0 -386.1 6,889.3 -758.0 4,691 1,108

2026 426.4 26.2 69.4 0.0 -383.3 7,490.3 -788.7 5,095 1,283

2027 432.1 30.0 82.7 0.0 -379.3 8,105.3 -819.1 5,515 1,476

2028 437.8 33.9 97.4 0.0 -374.4 8,733.7 -849.2 5,952 1,690

2029 443.7 38.1 113.2 0.0 -368.6 9,375.0 -879.1 6,407 1,924

2030 449.6 42.6 130.5 0.0 -361.7 10,028.4 -908.8 6,879 2,179

2031 455.7 47.3 149.3 0.0 -353.7 10,693.2 -937.9 7,369 2,458

2032 462.0 52.2 169.6 0.0 -344.7 11,368.7 -966.7 7,879 2,762

2033 468.4 57.4 190.8 0.0 -334.9 12,054.4 -995.4 8,409 3,091

2034 474.9 62.8 213.1 0.0 -324.6 12,750.0 -1,023.9 8,959 3,447

2035 481.5 68.4 236.6 0.0 -313.3 13,454.9 -1,052.2 9,530 3,832

2036 488.2 75.0 261.3 0.0 -302.0 14,169.3 -1,080.9 10,123 4,246

2037 495.1 81.9 287.3 0.0 -289.7 14,892.5 -1,109.2 10,739 4,692

2038 502.2 89.1 314.4 0.0 -276.9 15,624.2 -1,137.3 11,378 5,170

2039 509.2 96.5 342.5 0.0 -263.2 16,363.8 -1,165.2 12,042 5,683

2040 516.4 104.2 372.1 0.0 -248.6 17,110.5 -1,192.4 12,730 6,231

2041 523.7 112.2 403.2 0.0 -232.7 17,863.2 -1,218.8 13,445 6,817

2042 531.0 120.4 436.2 0.0 -215.3 18,620.7 -1,244.0 14,186 7,441

2043 538.4 128.9 470.6 0.0 -196.7 19,381.7 -1,268.2 14,955 8,106

2044 545.9 137.6 506.5 0.0 -177.0 20,145.3 -1,291.5 15,752 8,814

2045 553.5 146.5 544.2 0.0 -155.8 20,910.0 -1,313.4 16,578 9,565

2046 561.1 155.3 583.6 0.0 -132.7 21,673.9 -1,333.4 17,435 10,362

2047 568.7 163.8 624.6 0.0 -107.9 22,435.1 -1,351.5 18,323 11,206

2048 576.3 172.4 667.1 0.0 -81.7 23,192.2 -1,368.2 19,243 12,099

2049 583.9 181.1 710.8 0.0 -54.3 23,943.8 -1,383.3 20,197 13,043

2050 591.6 190.3 755.8 0.0 -26.2 24,689.1 -1,397.5 21,185 14,039

2051 599.4 199.0 802.2 0.0 3.7 25,425.9 -1,409.3 22,208 15,089

2052 607.3 207.1 849.8 0.0 35.4 26,152.2 -1,418.8 23,267 16,195

2053 615.3 213.8 898.2 0.0 69.1 26,865.7 -1,425.8 24,365 17,359

2054 623.4 220.1 947.1 0.0 103.6 27,565.1 -1,431.1 25,501 18,582

2055 631.6 225.9 996.5 0.0 139.0 28,249.0 -1,434.7 26,677 19,866

2056 639.8 232.7 1,046.2 0.0 173.6 28,917.8 -1,438.2 27,895 21,213

2057 648.1 238.9 1,096.1 0.0 209.1 29,570.2 -1,440.0 29,155 22,626

2058 656.5 244.3 1,145.6 0.0 244.8 30,205.4 -1,440.6 30,460 24,106

2059 665.0 249.0 1,194.5 0.0 280.5 30,822.9 -1,440.3 31,810 25,655

2060 673.7 252.9 1,242.9 0.0 316.4 31,422.1 -1,438.7 33,207 27,275

2061 682.4 256.0 1,290.9 0.0 352.6 32,001.9 -1,435.7 34,653 28,969

2062 691.3 258.2 1,338.8 0.0 389.4 32,561.4 -1,431.1 36,149 30,738

2063 700.2 259.6 1,386.5 0.0 426.7 33,099.1 -1,424.7 37,696 32,585

2064 709.3 260.0 1,432.7 0.0 463.4 33,615.3 -1,417.7 39,297 34,512

2065 718.5 259.6 1,477.7 0.0 499.6 34,109.6 -1,409.9 40,952 36,521

2066 727.8 264.9 1,521.9 0.0 529.2 34,588.4 -1,407.8 42,665 38,616

2067 737.2 269.8 1,565.7 0.0 558.6 35,051.2 -1,404.9 44,436 40,798

2068 747.0 274.3 1,609.0 0.0 587.8 35,497.9 -1,401.4 46,267 43,070

2069 756.8 278.2 1,650.9 0.0 615.9 35,929.1 -1,398.0 48,161 45,435

2070 766.6 281.7 1,691.3 4.1 638.9 36,349.5 -1,399.0 50,120 47,897

2071 776.7 284.6 1,731.1 17.5 652.3 36,768.7 -1,409.3 52,144 50,457

2072 786.8 287.1 1,770.1 30.4 665.9 37,186.6 -1,419.4 54,238 53,118

2073 797.0 289.0 1,808.6 42.8 679.8 37,602.7 -1,429.0 56,402 55,885

2074 807.3 290.4 1,846.6 54.7 694.1 38,016.6 -1,438.1 58,639 58,760

2075 817.8 291.4 1,884.1 66.3 708.7 38,427.9 -1,446.8 60,951 61,748

2076 828.3 291.8 1,921.3 77.6 723.5 38,836.3 -1,455.0 63,341 64,850

2077 839.0 291.8 1,958.3 88.7 738.8 39,241.2 -1,462.7 65,810 68,072

2078 849.8 291.3 1,995.0 99.5 754.3 39,642.2 -1,469.9 68,363 71,417

2079 860.8 290.3 2,031.6 110.1 770.4 40,038.8 -1,476.3 71,000 74,889

Based on Intermediate Assumptions of the 2004 Trustees Report Ultimate Real Yield Rate of IA 5.2

 With Ult Real Int Rate of 3.0 TF, Annuity Yield 5.2

1/ General Fund Transfers to the Trust Funds have no effect on Office of the Actuary

 the Unified Budget. See memorandum for discussion. Social Security Administration

 Transfers do not reflect reverse transfers--see table .d. April 19, 2005
Table 1 c OASDI Cash Flow to General Fund of the Treasury---Proposal vs. Theoretical OASDI

In Billions of Dollars

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/

% of Billions of Dollars --- % of Billions of Dollars ---

Pyrl Current $ PV Jan 1, 04 Const 2004$ Pyrl Current $ PV Jan 1, 04 Const 2004$

2004 1.4 65 63 65 1.4 65 63 65

2005 1.9 89 82 87 1.9 89 82 87

2006 -0.6 -32 -28 -31 1.9 97 85 94

2007 -0.8 -41 -34 -39 2.0 105 87 99

2008 -0.9 -47 -37 -43 2.0 109 86 100

2009 -1.1 -62 -46 -55 1.8 105 78 93

2010 -1.2 -74 -52 -64 1.7 103 73 89

2011 -1.4 -87 -58 -74 1.6 101 67 85

2012 -1.6 -108 -69 -89 1.4 91 58 75

2013 -1.9 -133 -79 -106 1.1 79 47 63

2014 -2.2 -158 -90 -123 0.9 65 37 50

2015 -2.5 -188 -101 -142 0.6 48 25 36

2016 -5.9 -465 -236 -342 0.3 27 14 20

2017 -6.2 -512 -245 -366 0.0 4 2 3

2018 -6.5 -560 -253 -390 -0.3 -22 -10 -15

2019 -6.8 -611 -261 -414 -0.6 -51 -22 -35

2020 -7.1 -664 -268 -437 -0.9 -84 -34 -55

2021 -7.4 -719 -274 -461 -1.2 -119 -45 -76

2022 -7.6 -774 -279 -483 -1.5 -155 -56 -97

2023 -7.9 -832 -283 -504 -1.8 -195 -66 -118

2024 -8.1 -890 -285 -525 -2.1 -236 -76 -139

2025 -8.3 -949 -287 -544 -2.4 -279 -85 -160

2026 -8.4 -1,007 -288 -562 -2.7 -324 -93 -181

2027 -8.6 -1,064 -288 -578 -3.0 -370 -100 -201

2028 -8.6 -1,120 -286 -591 -3.2 -416 -106 -220

2029 -8.7 -1,174 -283 -603 -3.4 -463 -112 -238

2030 -8.7 -1,226 -279 -613 -3.6 -510 -116 -255

2031 -8.7 -1,277 -274 -621 -3.8 -558 -120 -271

2032 -8.7 -1,325 -269 -627 -4.0 -606 -123 -287

2033 -8.6 -1,370 -263 -630 -4.1 -653 -125 -300

2034 -8.5 -1,412 -256 -632 -4.2 -699 -127 -313

2035 -8.4 -1,450 -248 -631 -4.3 -744 -127 -324

2036 -8.2 -1,486 -240 -629 -4.4 -788 -127 -334

2037 -8.1 -1,517 -231 -625 -4.4 -831 -127 -343

2038 -7.9 -1,544 -223 -619 -4.5 -873 -126 -350

2039 -7.7 -1,567 -213 -611 -4.5 -915 -124 -357

2040 -7.5 -1,587 -204 -602 -4.5 -956 -123 -363

2041 -7.2 -1,603 -195 -591 -4.5 -1,000 -121 -369

2042 -7.0 -1,614 -185 -579 -4.5 -1,045 -120 -375

2043 -6.7 -1,621 -176 -566 -4.5 -1,091 -118 -381

2044 -6.5 -1,623 -166 -551 -4.5 -1,139 -116 -387

2045 -6.2 -1,619 -156 -535 -4.5 -1,189 -115 -393

2046 -5.9 -1,609 -147 -517 -4.6 -1,241 -113 -399

2047 -5.6 -1,592 -137 -498 -4.6 -1,297 -112 -405

2048 -5.3 -1,570 -128 -477 -4.6 -1,355 -110 -412

2049 -5.0 -1,542 -118 -456 -4.6 -1,417 -109 -419

2050 -4.7 -1,511 -110 -435 -4.6 -1,483 -108 -427

2051 -4.4 -1,474 -101 -413 -4.6 -1,555 -107 -435

2052 -4.1 -1,430 -93 -389 -4.7 -1,634 -106 -445

2053 -3.8 -1,378 -84 -365 -4.7 -1,717 -105 -455

2054 -3.5 -1,320 -76 -340 -4.8 -1,805 -104 -465

2055 -3.2 -1,257 -69 -315 -4.8 -1,899 -104 -476

2056 -2.9 -1,194 -61 -291 -4.9 -1,999 -103 -487

2057 -2.6 -1,124 -55 -267 -4.9 -2,104 -102 -499

2058 -2.4 -1,049 -48 -242 -5.0 -2,214 -102 -511

2059 -2.1 -969 -42 -217 -5.0 -2,328 -101 -522

2060 -1.8 -884 -36 -193 -5.1 -2,447 -100 -534

2061 -1.6 -794 -31 -169 -5.1 -2,574 -100 -547

2062 -1.3 -701 -26 -145 -5.2 -2,709 -99 -560

2063 -1.1 -603 -21 -121 -5.2 -2,854 -98 -574

2064 -0.9 -500 -16 -98 -5.3 -3,003 -98 -587

2065 -0.7 -393 -12 -75 -5.3 -3,157 -97 -600

2066 -0.5 -315 -9 -58 -5.4 -3,319 -96 -614

2067 -0.4 -234 -6 -42 -5.4 -3,489 -96 -628

2068 -0.2 -149 -4 -26 -5.5 -3,665 -95 -641

2069 -0.1 -65 -2 -11 -5.5 -3,847 -94 -655

2070 0.0 -7 0 -1 -5.6 -4,037 -93 -669

2071 0.0 -7 0 -1 -5.6 -4,235 -92 -682

2072 0.0 -8 0 -1 -5.7 -4,442 -92 -696

2073 0.0 -8 0 -1 -5.7 -4,660 -91 -710

2074 0.0 -8 0 -1 -5.7 -4,888 -90 -725

2075 0.0 -9 0 -1 -5.8 -5,127 -89 -740

2076 0.0 -9 0 -1 -5.8 -5,377 -88 -755

2077 0.0 -9 0 -1 -5.9 -5,640 -87 -770

2078 0.0 -10 0 -1 -5.9 -5,915 -87 -785

2079 0.0 -10 0 -1 -6.0 -6,203 -86 -801

Total 2004-78 -9,274 -5,225

1/ Equals net investment in special Treasury Bonds by the 

 Trust Funds less the Amount of General Fund transfers Office of the Actuary

 included in the proposal or in the theoretical Social Security Administration

 plan (PAYGO Transfers). April 19, 2005
Table 1 d Change in Long-Range Trust Fund Assets / Unfunded Obligation

Present Law OASDI Ave IA Cntrb 6.4 % Benefit Offset 100.0 %

Trust Fund Assets Amount Cost to guar Net Proposal OASDI

or If Negative, OASI Benefit Contrib to IA: OASDI +IA General Total Change Trust Fund Assets /

Unfunded Obligation Cut for IA % by FedGov benefits at Fund Through Unfunded Obligation

 Year Through EOY Participation 100 PLSched Transfers End of Year Through EOY

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

(Billions of $, Present Value on 1-1-04)

2005 1,674.6 0.0 0.0 0.0 0.0 0.0 1,674.6

2006 1,759.0 0.0 112.8 0.0 12.5 -100.3 1,658.7

2007 1,845.5 0.0 120.8 0.0 36.4 -184.8 1,660.7

2008 1,930.8 0.0 122.5 0.0 59.9 -247.5 1,683.3

2009 2,008.4 0.0 124.0 0.0 83.2 -288.2 1,720.2

2010 2,080.8 0.0 125.1 0.0 106.2 -307.1 1,773.7

2011 2,148.0 0.0 125.8 0.0 128.7 -304.3 1,843.7

2012 2,205.6 0.0 126.1 0.3 150.5 -280.2 1,925.4

2013 2,252.4 0.2 126.0 0.7 171.7 -235.0 2,017.5

2014 2,289.0 0.5 125.8 1.3 172.6 -188.8 2,100.2

2015 2,314.3 1.0 125.2 2.1 173.5 -141.5 2,172.9

2016 2,327.9 1.9 248.9 2.7 175.9 -215.0 2,112.9

2017 2,329.7 3.2 246.8 3.5 178.8 -283.0 2,046.7

2018 2,319.7 5.0 244.4 4.3 181.8 -344.5 1,975.2

2019 2,297.6 7.4 241.5 5.2 184.4 -399.0 1,898.7

2020 2,263.7 10.2 238.5 6.1 187.0 -445.9 1,817.8

2021 2,218.5 13.4 235.4 7.1 189.5 -484.9 1,733.6

2022 2,162.6 17.0 232.2 8.3 192.1 -515.6 1,647.0

2023 2,096.4 21.1 228.9 9.4 194.6 -537.4 1,559.0

2024 2,020.7 25.5 225.6 10.7 197.1 -550.2 1,470.6

2025 1,936.1 30.4 222.2 12.0 199.5 -553.5 1,382.6

2026 1,843.3 35.6 218.6 13.5 202.0 -546.9 1,296.5

2027 1,743.3 41.2 215.1 14.9 204.5 -529.9 1,213.3

2028 1,637.0 47.0 211.6 16.4 206.9 -502.6 1,134.4

2029 1,525.4 53.1 208.2 17.9 209.3 -464.7 1,060.7

2030 1,409.4 59.4 204.8 19.4 211.6 -416.2 993.2

2031 1,289.5 66.0 201.5 20.9 214.0 -356.8 932.7

2032 1,166.5 72.8 198.4 22.4 216.3 -286.5 879.9

2033 1,041.2 79.5 195.2 23.9 218.5 -205.6 835.7

2034 914.6 86.2 192.2 25.4 220.7 -114.0 800.6

2035 787.2 93.0 189.2 26.9 222.8 -11.9 775.4

2036 659.9 99.7 186.3 28.6 224.9 100.4 760.2

2037 533.0 106.4 183.4 30.3 226.9 222.7 755.7

2038 407.2 113.0 180.6 32.0 222.3 348.3 755.4

2039 282.7 119.6 177.8 33.7 213.0 472.4 755.1

2040 159.8 126.1 175.0 35.3 203.6 594.9 754.7

2041 38.4 132.7 172.3 36.9 194.2 715.9 754.3

2042 -81.4 139.3 169.7 38.5 184.8 835.4 754.1

2043 -199.5 146.0 167.0 40.0 175.3 953.4 753.9

2044 -316.0 152.5 164.4 41.4 165.7 1,069.7 753.7

2045 -430.8 159.1 161.8 42.8 156.2 1,184.3 753.5

2046 -544.1 165.7 159.3 44.1 146.5 1,297.3 753.2

2047 -655.8 172.1 156.7 45.1 136.9 1,408.7 752.9

2048 -766.0 178.5 154.2 46.1 127.3 1,518.5 752.6

2049 -874.8 184.6 151.7 47.0 118.3 1,627.2 752.4

2050 -982.4 190.6 149.2 48.0 109.4 1,734.6 752.1

2051 -1,089.0 196.4 146.8 48.7 100.7 1,840.8 751.8

2052 -1,194.8 202.0 144.4 49.2 92.3 1,946.3 751.5

2053 -1,299.7 207.3 142.0 49.4 84.0 2,051.0 751.3

2054 -1,403.9 212.2 139.7 49.3 76.0 2,154.9 751.0

2055 -1,507.4 216.8 137.4 49.2 68.3 2,258.3 750.9

2056 -1,610.3 221.0 135.1 49.2 61.2 2,360.9 750.6

2057 -1,712.7 224.8 132.9 49.0 54.4 2,463.0 750.3

2058 -1,814.4 228.1 130.7 48.6 48.0 2,564.5 750.1

2059 -1,915.3 230.9 128.5 48.1 41.8 2,665.2 749.9

2060 -2,015.6 233.3 126.4 47.5 36.1 2,765.3 749.8

2061 -2,115.1 235.2 124.3 46.6 30.6 2,864.7 749.6

2062 -2,214.1 236.8 122.3 45.7 25.4 2,963.6 749.4

2063 -2,312.6 238.1 120.3 44.6 20.6 3,061.8 749.2

2064 -2,410.5 238.9 118.3 43.4 16.2 3,159.6 749.1

2065 -2,507.7 239.2 116.3 42.0 12.0 3,256.6 748.9

2066 -2,604.1 239.2 114.4 41.6 9.1 3,353.0 748.8

2067 -2,699.9 238.9 112.5 41.2 6.3 3,448.6 748.7

2068 -2,794.9 238.4 110.7 40.6 3.7 3,543.5 748.5

2069 -2,889.1 237.4 108.8 40.0 1.4 3,637.5 748.4

2070 -2,982.5 236.2 107.1 39.3 0.0 3,730.7 748.2

2071 -3,075.0 234.7 105.3 38.6 0.0 3,823.0 748.1

2072 -3,166.6 233.0 103.6 37.8 0.0 3,914.5 747.9

2073 -3,257.4 231.1 101.8 36.9 0.0 4,005.1 747.7

2074 -3,347.3 229.1 100.2 36.0 0.0 4,094.9 747.6

2075 -3,436.4 227.0 98.5 35.1 0.0 4,183.8 747.4

2076 -3,524.7 224.7 96.9 34.1 0.0 4,271.9 747.3

2077 -3,612.1 222.3 95.3 33.1 0.0 4,359.2 747.1

2078 -3,698.7 219.9 93.7 32.1 0.0 4,445.7 747.0

Total 2004-2078 9,329.5 11,456.4 2,062.5 8,495.4

Based on Intermediate Assumptions of the 2004 Trustees Report

 With Ult Real TFInt Rate of 3 Ult Real IA Yld Rate of 5.2

Office of the Actuary Annuity Net Real Yld Rate of 5.2

Social Security Administration

 April 19, 2005
Table 1 e Proposal --Specified and Total General Fund Transfers to the OASDI Trust Funds

Specified GF Trans: Specified Proposal Net Annual Transfers

Proj GDP Cut in Fed Govt Transfer from Reverse Cumulative from the GF to the TF

with 1% less spend assumed= GF to TF for Transfer Net Transfer Billions of Percent Percent

Projected growth for 2006- 20% Corp Tax TF to GF, for from the GF PV$ 1-1-04 of GDP of Payroll

GDP 2013 of diff {(1)-(2)} Recapture AnnBal 1/ =(3)+(4)-(5) cum = (3)+(4)-(5)

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

2005 11,137 11,137 0 0 0 0 0.0 0.0

2006 11,072 11,016 11 1 12 12 0.1 0.3

2007 11,038 10,873 33 3 49 36 0.3 0.8

2008 11,022 10,748 55 5 109 60 0.5 1.4

2009 10,991 10,611 76 7 192 83 0.8 1.9

2010 10,944 10,460 97 9 298 106 1.0 2.5

2011 10,880 10,295 117 12 427 129 1.2 3.0

2012 10,798 10,115 137 14 577 150 1.4 3.6

2013 10,701 9,924 155 16 749 172 1.6 4.2

2014 10,598 9,829 154 19 922 173 1.6 4.2

2015 10,487 9,725 152 21 1,095 173 1.7 4.3

2016 10,369 9,616 151 25 1,271 176 1.7 4.4

2017 10,247 9,503 149 30 1,450 179 1.7 4.5

2018 10,122 9,387 147 35 1,631 182 1.8 4.7

2019 9,989 9,264 145 39 1,816 184 1.8 4.8

2020 9,856 9,140 143 44 2,003 187 1.9 5.0

2021 9,720 9,014 141 48 2,192 190 1.9 5.1

2022 9,584 8,888 139 53 2,384 192 2.0 5.3

2023 9,446 8,760 137 57 2,579 195 2.1 5.4

2024 9,310 8,634 135 62 2,776 197 2.1 5.6

2025 9,174 8,507 133 66 2,976 200 2.2 5.7

2026 9,040 8,384 131 71 3,178 202 2.2 5.9

2027 8,911 8,264 129 75 3,382 204 2.3 6.1

2028 8,783 8,145 128 79 3,589 207 2.4 6.3

2029 8,656 8,028 126 84 3,798 209 2.4 6.4

2030 8,533 7,913 124 88 4,010 212 2.5 6.6

2031 8,412 7,802 122 92 4,224 214 2.5 6.8

2032 8,295 7,693 120 96 4,440 216 2.6 7.0

2033 8,179 7,585 119 100 4,659 219 2.7 7.2

2034 8,066 7,480 117 104 4,879 221 2.7 7.4

2035 7,954 7,376 116 107 5,102 223 2.8 7.5

2036 7,845 7,275 114 111 5,327 225 2.9 7.7

2037 7,738 7,176 112 115 5,554 227 2.9 7.9

2038 7,632 7,078 111 118 6.5 5,776 222 2.9 7.9

2039 7,527 6,981 109 121 17.6 5,989 213 2.8 7.7

2040 7,424 6,885 108 124 28.7 6,193 204 2.7 7.4

2041 7,322 6,791 106 128 39.7 6,387 194 2.7 7.2

2042 7,222 6,697 105 130 50.5 6,572 185 2.6 7.0

2043 7,122 6,605 103 133 61.3 6,747 175 2.5 6.7

2044 7,023 6,513 102 136 72.1 6,913 166 2.4 6.5

2045 6,925 6,422 101 138 82.7 7,069 156 2.3 6.2

2046 6,828 6,332 99 141 93.3 7,216 147 2.1 5.9

2047 6,732 6,243 98 143 103.7 7,352 137 2.0 5.6

2048 6,635 6,154 96 145 113.8 7,480 127 1.9 5.3

2049 6,539 6,064 95 147 123.3 7,598 118 1.8 5.0

2050 6,444 5,976 94 148 132.4 7,707 109 1.7 4.7

2051 6,351 5,889 92 150 141.2 7,808 101 1.6 4.4

2052 6,258 5,804 91 151 149.5 7,900 92 1.5 4.1

2053 6,167 5,720 90 152 157.6 7,984 84 1.4 3.8

2054 6,078 5,636 88 153 165.2 8,060 76 1.3 3.5

2055 5,989 5,554 87 154 172.3 8,129 68 1.1 3.2

2056 5,901 5,473 86 154 178.8 8,190 61 1.0 2.9

2057 5,814 5,392 84 155 184.7 8,244 54 0.9 2.6

2058 5,729 5,313 83 155 190.2 8,292 48 0.8 2.3

2059 5,645 5,235 82 155 195.3 8,334 42 0.7 2.1

2060 5,562 5,158 81 155 199.8 8,370 36 0.6 1.8

2061 5,480 5,082 80 155 204.0 8,401 31 0.6 1.6

2062 5,400 5,008 78 155 207.7 8,426 25 0.5 1.3

2063 5,320 4,934 77 154 211.0 8,447 21 0.4 1.1

2064 5,242 4,861 76 154 213.8 8,463 16 0.3 0.9

2065 5,165 4,790 75 153 216.3 8,475 12 0.2 0.7

2066 5,089 4,719 74 153 217.4 8,484 9 0.2 0.5

2067 5,014 4,650 73 152 218.3 8,490 6 0.1 0.4

2068 4,942 4,583 72 151 219.0 8,494 4 0.1 0.2

2069 4,870 4,516 71 150 219.3 8,495 1 0.0 0.1

2070 4,799 4,450 70 149 218.7 8,495 0 0.0 0.0

2071 4,729 4,386 69 148 216.6 8,495 0 0.0 0.0

2072 4,660 4,322 68 147 214.5 8,495 0 0.0 0.0

2073 4,592 4,258 67 146 212.4 8,495 0 0.0 0.0

2074 4,524 4,196 66 145 210.2 8,495 0 0.0 0.0

2075 4,458 4,134 65 143 208.0 8,495 0 0.0 0.0

2076 4,392 4,073 64 142 205.9 8,495 0 0.0 0.0

2077 4,327 4,013 63 141 203.7 8,495 0 0.0 0.0

2078 4,263 3,954 62 140 201.5 8,495 0 0.0 0.0

2079 4,200 3,895 61 138 199.3 8,495 0 0.0 0.0

Total: 2004-78 7,323 7,651 6478.5

Office of the Actuary

Based on Intermediate Assumptions of the 2004 Trustees Report Social Security Administration

1/ Limit reverse transfer to total of specified and recapture transfers April 19, 2005

(Billions of Present Value Dollars on 1/1/2004)
Table 1 f Components of Cash Flow from the Trust Funds to the General Fund of the Treasury

Cash Flow Due to Cash Flow for Total Cash Cash Flow Net Purchase

Total Cash Net Specified Net Purchase Flow to the Due to Net (Redemption)

Flow to the Transfers under (Redemption) General Fund Specified of Treasury

General Fund the Proposal of Treasury Transfers Securities

(Tab c:col 3) (Tab e: (5)-(3)-(4)) Securities (= Columns (1) (2) (3) in Constant Dollars)

Year (1) (2) (3) (4) (5) (6)

(billions of PV$ 1/1/2004) (billions of constant 2004 dollars)

2004 63 63 65 65

2005 82 82 87 87

2006 -28 -12 -15 -31 -14 -17

2007 -34 -36 2 -39 -41 3

2008 -37 -60 23 -43 -70 27

2009 -46 -83 37 -55 -100 45

2010 -52 -106 54 -64 -131 66

2011 -58 -129 70 -74 -163 89

2012 -69 -150 82 -89 -195 106

2013 -79 -172 92 -106 -229 123

2014 -90 -173 83 -123 -237 114

2015 -101 -173 73 -142 -245 103

2016 -236 -176 -60 -342 -256 -87

2017 -245 -179 -66 -366 -267 -99

2018 -253 -182 -71 -390 -280 -110

2019 -261 -184 -76 -414 -292 -121

2020 -268 -187 -81 -437 -305 -132

2021 -274 -190 -84 -461 -319 -142

2022 -279 -192 -86 -483 -333 -150

2023 -283 -195 -88 -504 -347 -157

2024 -285 -197 -88 -525 -362 -163

2025 -287 -200 -88 -544 -378 -167

2026 -288 -202 -86 -562 -394 -168

2027 -288 -204 -83 -578 -411 -167

2028 -286 -207 -79 -591 -428 -163

2029 -283 -209 -74 -603 -446 -157

2030 -279 -212 -67 -613 -465 -148

2031 -274 -214 -61 -621 -484 -137

2032 -269 -216 -53 -627 -504 -123

2033 -263 -219 -44 -630 -524 -106

2034 -256 -221 -35 -632 -545 -87

2035 -248 -223 -25 -631 -567 -64

2036 -240 -225 -15 -629 -590 -40

2037 -231 -227 -5 -625 -613 -12

2038 -223 -222 0 -619 -618 -1

2039 -213 -213 0 -611 -610 -1

2040 -204 -204 0 -602 -601 -1

2041 -195 -194 0 -591 -590 -1

2042 -185 -185 0 -579 -578 -1

2043 -176 -175 0 -566 -565 -1

2044 -166 -166 0 -551 -550 -1

2045 -156 -156 0 -535 -534 -1

2046 -147 -147 0 -517 -516 -1

2047 -137 -137 0 -498 -497 -1

2048 -128 -127 0 -477 -476 -1

2049 -118 -118 0 -456 -455 -1

2050 -110 -109 0 -435 -434 -1

2051 -101 -101 0 -413 -411 -1

2052 -93 -92 0 -389 -388 -1

2053 -84 -84 0 -365 -364 -1

2054 -76 -76 0 -340 -339 -1

2055 -69 -68 0 -315 -314 -1

2056 -61 -61 0 -291 -290 -1

2057 -55 -54 0 -267 -265 -1

2058 -48 -48 0 -242 -241 -1

2059 -42 -42 0 -217 -216 -1

2060 -36 -36 0 -193 -192 -1

2061 -31 -31 0 -169 -168 -1

2062 -26 -25 0 -145 -144 -1

2063 -21 -21 0 -121 -120 -1

2064 -16 -16 0 -98 -97 -1

2065 -12 -12 0 -75 -74 -1

2066 -9 -9 0 -58 -58 -1

2067 -6 -6 0 -42 -41 -1

2068 -4 -4 0 -26 -25 -1

2069 -2 -1 0 -11 -10 -1

2070 0 0 0 -1 0 -1

2071 0 0 0 -1 0 -1

2072 0 0 0 -1 0 -1

2073 0 0 0 -1 0 -1

2074 0 0 0 -1 0 -1

2075 0 0 0 -1 0 -1

2076 0 0 0 -1 0 -1

2077 0 0 0 -1 0 -1

2078 0 0 0 -1 0 -1

2079 0 0 0 -1 0 -1

Office of the Actuary

Based on Intermediate Assumptions of the 2004 Trustees Report Social Security Administration

 April 19, 2005
Table 2 Ryan/Sununu Proposal GF Trans for spend cut thru 2016 IA Cntrb 6.4 %, Ben Offset 100.0 % 

Low Yield Scenario With Ult Real TF Int Rate of 3.0 CorpTax toTF as%of Pre Change IA Participation 100.0 %

1/2 Contribution With Ult Real IA Yld Rate of 2.75 tax IA RealYld 23.9 in OASDI Effective Cut in IA Contrib

To IA through 2015 With Annuity Net Yld Rate 2.75 Net GF Trans Effective OASDI Contrib Rate---

Cost Income Annual TFR to TF 1/ Contrib Contrib Rate for Redirected

Year Rate Rate 1/ Balance 1-1-yr (%ofPyrl) Rate Rate 2/ AnnBal from PyrlTax

2004 11.07 12.71 1.64 306 12.40 0

2005 10.87 12.73 1.86 325 12.40 0

2006 10.77 10.43 -0.34 347 0.28 -2.58 9.82 2.58

2007 10.75 10.78 0.03 346 0.81 -0.20 9.62 2.78

2008 10.80 11.29 0.49 346 1.33 -0.05 9.57 2.83

2009 10.95 11.75 0.81 347 1.86 -0.05 9.52 2.88

2010 11.08 12.25 1.17 352 2.38 -0.05 9.47 2.93

2011 11.25 12.79 1.54 360 2.91 -0.04 9.43 2.97

2012 11.50 13.30 1.80 369 3.43 -0.04 9.39 3.01

2013 11.78 13.82 2.05 380 3.96 -0.03 9.35 3.05

2014 12.04 14.33 2.29 392 4.48 -0.03 9.32 3.08

2015 12.33 14.84 2.51 406 4.99 -0.02 9.30 3.10

2016 12.63 12.26 -0.37 421 5.53 -3.14 6.16 6.24

2017 12.93 12.31 -0.62 413 5.61 -0.03 6.13 6.27

2018 13.23 12.38 -0.85 405 5.68 -0.03 6.10 6.30

2019 13.53 12.45 -1.08 396 5.75 -0.02 6.08 6.32

2020 13.83 12.52 -1.31 385 5.82 -0.02 6.06 6.34

2021 14.11 12.59 -1.52 374 5.89 -0.02 6.05 6.35

2022 14.38 12.67 -1.71 363 5.96 -0.01 6.03 6.37

2023 14.63 12.74 -1.88 351 6.04 -0.01 6.02 6.38

2024 14.85 12.82 -2.04 338 6.11 -0.01 6.01 6.39

2025 15.06 12.89 -2.17 326 6.18 -0.01 6.00 6.40

2026 15.24 12.97 -2.26 313 6.25 0.00 6.00 6.40

2027 15.38 13.06 -2.33 301 6.33 0.00 6.00 6.40

2028 15.50 13.14 -2.36 289 6.40 0.00 6.00 6.40

2029 15.57 13.21 -2.36 277 6.47 0.00 6.00 6.40

2030 15.62 13.29 -2.33 266 6.54 0.00 6.00 6.40

2031 15.64 13.36 -2.28 255 6.61 0.00 6.00 6.40

2032 15.63 13.44 -2.19 245 6.68 0.00 6.00 6.40

2033 15.59 13.51 -2.08 235 6.75 0.00 6.00 6.40

2034 15.52 13.57 -1.94 227 6.82 0.00 6.00 6.40

2035 15.42 13.64 -1.78 219 6.89 0.00 6.00 6.40

2036 15.30 13.70 -1.60 213 6.96 0.00 6.00 6.40

2037 15.16 13.76 -1.40 208 7.02 0.00 6.00 6.40

2038 14.99 13.81 -1.18 204 7.08 0.00 6.00 6.40

2039 14.82 13.87 -0.95 202 7.15 0.00 6.00 6.40

2040 14.63 13.92 -0.71 201 7.21 0.00 6.00 6.40

2041 14.43 13.97 -0.46 202 7.27 0.00 6.00 6.40

2042 14.23 14.02 -0.20 205 7.33 0.00 6.00 6.40

2043 14.01 14.01 0.00 210 7.33 0.00 6.00 6.40

2044 13.79 13.79 0.00 217 7.12 0.00 6.00 6.40

2045 13.56 13.57 0.00 224 6.91 0.00 6.00 6.40

2046 13.31 13.32 0.00 231 6.67 0.00 6.00 6.40

2047 13.06 13.06 0.00 240 6.43 0.00 6.00 6.40

2048 12.80 12.80 0.00 248 6.19 0.00 6.00 6.40

2049 12.55 12.55 0.00 258 5.94 0.00 6.00 6.40

2050 12.31 12.31 0.00 267 5.71 0.00 6.00 6.40

2051 12.07 12.07 0.00 277 5.49 0.00 6.00 6.40

2052 11.83 11.83 0.00 287 5.26 0.00 6.00 6.40

2053 11.59 11.60 0.00 297 5.04 0.00 6.00 6.40

2054 11.36 11.36 0.00 308 4.82 0.00 6.00 6.40

2055 11.14 11.14 0.00 320 4.60 0.00 6.00 6.40

2056 10.91 10.90 0.00 332 4.38 0.00 6.00 6.40

2057 10.68 10.68 0.00 345 4.17 0.00 6.00 6.40

2058 10.46 10.46 0.00 358 3.96 0.00 6.00 6.40

2059 10.25 10.25 0.00 371 3.77 0.00 6.00 6.40

2060 10.05 10.05 0.00 385 3.57 0.00 6.00 6.40

2061 9.86 9.86 0.00 398 3.39 0.00 6.00 6.40

2062 9.68 9.68 0.00 412 3.23 0.00 6.00 6.40

2063 9.52 9.51 0.00 427 3.07 0.00 6.00 6.40

2064 9.36 9.36 0.00 441 2.92 0.00 6.00 6.40

2065 9.22 9.22 0.00 455 2.78 0.00 6.00 6.40

2066 9.10 9.10 0.00 469 2.67 0.00 6.00 6.40

2067 8.98 8.98 0.00 483 2.56 0.00 6.00 6.40

2068 8.87 8.88 0.00 497 2.46 0.00 6.00 6.40

2069 8.78 8.78 0.00 510 2.37 0.00 6.00 6.40

2070 8.69 8.70 0.00 524 2.29 0.00 6.00 6.40

2071 8.62 8.61 0.00 537 2.21 0.00 6.00 6.40

2072 8.55 8.55 0.00 550 2.16 0.00 6.00 6.40

2073 8.49 8.49 0.00 564 2.10 0.00 6.00 6.40

2074 8.43 8.43 0.00 577 2.04 0.00 6.00 6.40

2075 8.38 8.39 0.00 590 2.00 0.00 6.00 6.40

2076 8.34 8.34 0.00 603 1.96 0.00 6.00 6.40

2077 8.30 8.29 0.00 616 1.91 0.00 6.00 6.40

2078 8.26 8.26 0.00 629 1.88 0.00 6.00 6.40

2079 8.23 8.23 0.00 642 1.85 0.00 6.00 6.40

 Summarized

CostRt IncRt ActBal Change in

2004 OASDI OASDI OASDI ActBal

-2078 12.57 12.88 0.31 2.23

Based on Intermediate Assumptions of the 2004 Trustees Report

 With Ult Real Int Rate of 3.00 Office of the Actuary

1/ Includes Specified and CorpTax-based GF Transfers (see table .e) Social Security Administration

2/ Net payroll tax rate to the Trust Funds; reduced by amount redirected for IA contribution, and cut for annual balance April 19, 2005
Table 2 a Proposal GF Transfers, OASDI Trust Fund Assets, Individual Account Assets, and Theoretical OASDI Assets

Theoretical Social Security 2/

Proposal General Fund Transfers Accumulated Total OASDI Individual with Borrowing Authority;

Specified for Corp Reverse GF Transfers Net Trust Fund Account Net OASDI TF Assets End of Yr 

Calendar Slowed FedGov Tax Tran for at End of Annual Assets Assets 1/ Without GF With GF Transfer

Year Spending Recap Ann Balance Year Transfer at End of Yr at End of Yr GDP Transfer (amount for prop)

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

Billions of Constant 2004 Dollars PV1-1-04 Billions of Constant 2004 Dollars Billions of Constant 2004 Dollars

2004 0 0 0 0 0.0 1,684 0 11,544 1,543 1,543

2005 0 0 0 0 0.0 1,840 0 11,911 1,698 1,698

2006 12 1 0 14 12.1 1,883 128 12,246 1,862 1,875

2007 38 2 0 55 35.1 1,938 272 12,562 2,030 2,086

2008 64 3 0 126 57.6 2,014 426 12,870 2,203 2,329

2009 91 5 0 227 79.9 2,109 588 13,171 2,381 2,608

2010 119 6 0 362 101.8 2,228 761 13,466 2,560 2,923

2011 148 8 0 532 123.1 2,373 943 13,752 2,741 3,273

2012 177 9 0 739 143.8 2,538 1,133 14,024 2,922 3,661

2013 207 11 0 984 163.7 2,725 1,332 14,285 3,100 4,084

2014 238 13 0 1,270 183.0 2,933 1,540 14,547 3,271 4,541

2015 270 15 0 1,599 201.6 3,163 1,756 14,804 3,434 5,033

2016 302 19 0 1,976 220.7 3,232 2,166 15,061 3,586 5,562

2017 307 23 0 2,373 220.5 3,290 2,593 15,322 3,725 6,099

2018 312 27 0 2,794 220.4 3,335 3,037 15,586 3,849 6,643

2019 317 31 0 3,236 219.8 3,367 3,496 15,842 3,956 7,192

2020 322 35 0 3,702 219.1 3,384 3,971 16,100 4,045 7,746

2021 328 40 0 4,191 218.3 3,387 4,460 16,354 4,113 8,304

2022 333 44 0 4,704 217.5 3,377 4,964 16,610 4,159 8,863

2023 338 49 0 5,243 216.6 3,353 5,482 16,861 4,182 9,425

2024 343 54 0 5,809 215.7 3,317 6,014 17,117 4,183 9,991

2025 348 59 0 6,401 214.7 3,269 6,559 17,372 4,161 10,562

2026 353 64 0 7,022 213.6 3,211 7,117 17,634 4,116 11,138

2027 359 69 0 7,672 212.6 3,145 7,687 17,903 4,047 11,719

2028 364 74 0 8,353 211.6 3,073 8,269 18,174 3,954 12,307

2029 370 79 0 9,065 210.5 2,996 8,862 18,451 3,836 12,902

2030 375 84 0 9,810 209.4 2,916 9,466 18,733 3,695 13,505

2031 381 90 0 10,589 208.3 2,836 10,082 19,022 3,530 14,119

2032 387 96 0 11,403 207.2 2,758 10,708 19,319 3,342 14,746

2033 393 101 0 12,254 206.0 2,683 11,343 19,622 3,132 15,386

2034 399 107 0 13,142 204.8 2,614 11,988 19,929 2,901 16,044

2035 405 113 0 14,070 203.6 2,554 12,643 20,243 2,649 16,719

2036 412 119 0 15,038 202.4 2,504 13,305 20,564 2,376 17,414

2037 418 125 0 16,048 201.2 2,467 13,976 20,892 2,083 18,132

2038 425 131 0 17,102 199.9 2,445 14,653 21,226 1,771 18,873

2039 432 137 0 18,200 198.5 2,440 15,338 21,562 1,440 19,640

2040 439 143 0 19,344 197.2 2,453 16,028 21,904 1,090 20,435

2041 446 149 0 20,537 195.8 2,487 16,724 22,252 720 21,257

2042 453 155 0 21,779 194.3 2,544 17,423 22,605 331 22,110

2043 460 162 5 23,067 191.2 2,619 18,127 22,961 -80 22,987

2044 467 168 28 24,384 182.9 2,696 18,833 23,322 -513 23,871

2045 474 174 51 25,730 174.7 2,777 19,541 23,687 -969 24,761

2046 482 181 78 27,104 166.0 2,859 20,250 24,055 -1,450 25,654

2047 489 187 105 28,504 157.4 2,944 20,959 24,426 -1,957 26,547

2048 497 193 133 29,933 149.0 3,032 21,668 24,799 -2,493 27,439

2049 504 200 162 31,388 140.8 3,122 22,375 25,174 -3,058 28,330

2050 512 206 190 32,873 133.2 3,214 23,077 25,552 -3,654 29,219

2051 519 212 218 34,388 125.8 3,309 23,776 25,936 -4,283 30,105

2052 527 218 246 35,934 118.7 3,408 24,470 26,324 -4,947 30,987

2053 535 224 275 37,511 111.8 3,509 25,161 26,721 -5,648 31,863

2054 543 231 305 39,119 105.1 3,613 25,849 27,123 -6,387 32,732

2055 551 237 334 40,760 98.8 3,720 26,532 27,528 -7,166 33,593

2056 560 243 364 42,433 92.6 3,830 27,210 27,939 -7,987 34,446

2057 568 249 395 44,141 86.6 3,944 27,884 28,354 -8,851 35,290

2058 576 255 424 45,884 81.0 4,061 28,554 28,775 -9,759 36,124

2059 585 261 454 47,663 75.6 4,182 29,218 29,204 -10,713 36,950

2060 594 267 484 49,479 70.5 4,306 29,879 29,639 -11,713 37,766

2061 602 272 513 51,336 65.9 4,434 30,536 30,078 -12,761 38,574

2062 611 278 541 53,235 61.7 4,566 31,189 30,526 -13,859 39,375

2063 621 284 569 55,177 57.6 4,702 31,839 30,978 -15,009 40,168

2064 630 290 596 57,165 53.9 4,842 32,485 31,438 -16,212 40,953

2065 639 295 622 59,201 50.6 4,986 33,130 31,906 -17,472 41,730

2066 649 301 646 61,290 47.8 5,134 33,772 32,379 -18,790 42,501

2067 658 307 670 63,433 45.1 5,287 34,412 32,861 -20,169 43,264

2068 668 313 693 65,632 42.6 5,445 35,051 33,359 -21,611 44,021

2069 678 318 716 67,889 40.3 5,608 35,690 33,859 -23,120 44,769

2070 688 324 738 70,209 38.4 5,775 36,329 34,366 -24,698 45,511

2071 699 330 760 72,591 36.4 5,947 36,969 34,882 -26,347 46,245

2072 709 335 780 75,042 34.9 6,124 37,610 35,404 -28,070 46,972

2073 720 341 800 77,562 33.4 6,307 38,252 35,931 -29,870 47,691

2074 730 347 820 80,154 32.0 6,495 38,897 36,464 -31,751 48,403

2075 741 353 839 82,821 30.8 6,689 39,545 37,006 -33,714 49,107

2076 752 359 858 85,566 29.6 6,888 40,197 37,555 -35,763 49,804

2077 763 364 877 88,391 28.4 7,093 40,853 38,112 -37,901 50,490

2078 775 370 895 91,300 27.5 7,304 41,514 38,677 -40,131 51,169

2079 786 376 914 94,294 26.6 7,522 42,181 39,245 -42,456 51,838

Total 2004-78 9,780.5

Based on Intermediate Assumptions of the 2004 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. April 19, 2005
Table 2 b IA Contributions, OASI Benefit Changes, & Total Unified Budget Effect

Ave IA Cntrb 6.4 % Benefit Offset 100.0 %

 Amount Cost to guar Cut in Change Change Change

Contrib to IA: OASDI +IA OASI Benefit Contrib in Annual in Debt in Ann

% by FedGov benefits at Cut for IA Rate for UnifBudg Held by UnifBudg

 Year 100 PLSched Participation AnnBal CashFlow Public Balance

(EOY)

(Billions of $, Present Value on 1-1-04)

2005 0.0 0.0 0.0 0.0 0.0 0.0 0.0

2006 112.8 0.0 0.0 0.0 -112.8 118.9 -118.9

2007 120.8 0.0 0.0 0.0 -120.8 246.2 -133.5

2008 122.5 0.0 0.0 0.0 -122.5 375.7 -142.0

2009 124.0 0.0 0.0 0.0 -124.0 506.7 -150.5

2010 125.1 0.0 0.0 0.0 -125.1 638.9 -158.8

2011 125.8 0.0 0.0 0.0 -125.8 772.1 -166.9

2012 126.1 0.4 0.0 0.0 -126.5 905.9 -174.9

2013 126.0 0.9 0.2 0.0 -126.7 1,039.9 -182.5

2014 125.8 1.5 0.5 0.0 -126.7 1,174.3 -190.2

2015 125.2 2.4 0.9 0.0 -126.7 1,308.8 -197.9

2016 248.9 3.1 1.9 0.0 -250.1 1,573.9 -336.3

2017 246.8 3.9 3.2 0.0 -247.6 1,836.6 -348.9

2018 244.4 4.9 5.0 0.0 -244.3 2,096.0 -360.8

2019 241.5 6.0 7.4 0.0 -240.2 2,350.3 -370.8

2020 238.5 7.3 10.2 0.0 -235.6 2,599.8 -380.1

2021 235.4 8.6 13.4 0.0 -230.7 2,844.1 -388.7

2022 232.2 10.1 16.9 0.0 -225.3 3,082.7 -396.6

2023 228.9 11.6 21.0 0.0 -219.5 3,315.1 -403.7

2024 225.6 13.3 25.4 0.0 -213.4 3,541.1 -410.2

2025 222.2 15.0 30.2 0.0 -207.0 3,760.3 -415.9

2026 218.6 16.8 35.4 0.0 -200.0 3,972.1 -420.8

2027 215.1 18.8 41.0 0.0 -192.9 4,176.3 -424.9

2028 211.6 20.7 46.8 0.0 -185.5 4,372.7 -428.5

2029 208.2 22.8 52.9 0.0 -178.0 4,561.2 -431.5

2030 204.8 24.9 59.2 0.0 -170.5 4,741.7 -434.0

2031 201.5 27.0 65.7 0.0 -162.8 4,914.1 -435.9

2032 198.4 29.2 72.4 0.0 -155.1 5,078.3 -437.3

2033 195.2 31.4 79.2 0.0 -147.4 5,234.4 -438.3

2034 192.2 33.6 85.8 0.0 -140.0 5,382.6 -439.1

2035 189.2 35.9 92.5 0.0 -132.6 5,523.0 -439.5

2036 186.3 38.4 99.2 0.0 -125.5 5,655.8 -439.8

2037 183.4 41.0 105.9 0.0 -118.5 5,781.3 -439.8

2038 180.6 43.6 112.4 0.0 -111.7 5,899.7 -439.6

2039 177.8 46.2 118.9 0.0 -105.1 6,010.9 -439.1

2040 175.0 48.9 125.4 0.0 -98.5 6,115.3 -438.4

2041 172.3 51.6 131.9 0.0 -92.0 6,212.7 -437.2

2042 169.7 54.3 138.5 0.0 -85.4 6,303.1 -435.7

2043 167.0 57.0 145.1 0.0 -78.9 6,386.7 -433.8

2044 164.4 59.6 151.6 0.0 -72.5 6,463.4 -431.7

2045 161.8 62.3 158.1 0.0 -66.1 6,533.4 -429.2

2046 159.3 64.6 164.6 0.0 -59.3 6,596.2 -425.8

2047 156.7 66.7 171.0 0.0 -52.5 6,651.7 -422.1

2048 154.2 68.9 177.3 0.0 -45.8 6,700.2 -418.1

2049 151.7 71.0 183.3 0.0 -39.3 6,741.9 -414.0

2050 149.2 73.2 189.2 0.0 -33.2 6,777.0 -409.8

2051 146.8 75.3 195.0 0.0 -27.0 6,805.6 -405.2

2052 144.4 77.1 200.5 0.0 -21.0 6,827.8 -400.4

2053 142.0 78.7 205.7 0.0 -15.0 6,843.7 -395.3

2054 139.7 80.2 210.6 0.0 -9.3 6,853.5 -390.1

2055 137.4 81.5 215.0 0.0 -3.9 6,857.6 -385.0

2056 135.1 82.4 219.2 0.0 1.7 6,855.9 -379.3

2057 132.9 83.0 222.9 0.0 7.0 6,848.4 -373.6

2058 130.7 83.5 226.2 0.0 12.0 6,835.7 -367.9

2059 128.5 83.8 229.0 0.0 16.6 6,818.2 -362.3

2060 126.4 84.0 231.3 0.0 20.8 6,796.1 -356.8

2061 124.3 84.1 233.2 0.0 24.8 6,769.9 -351.4

2062 122.3 84.0 234.7 0.0 28.5 6,739.7 -346.0

2063 120.3 83.7 236.0 0.0 32.0 6,705.8 -340.7

2064 118.3 83.4 236.7 0.0 35.0 6,668.7 -335.5

2065 116.3 82.9 237.0 0.0 37.7 6,628.8 -330.6

2066 114.4 82.6 237.0 0.0 39.9 6,586.5 -326.1

2067 112.5 82.2 236.7 0.0 41.9 6,542.1 -321.6

2068 110.7 81.7 236.1 0.0 43.7 6,495.8 -317.2

2069 108.8 81.1 235.2 0.0 45.2 6,447.9 -313.1

2070 107.1 80.4 233.9 0.0 46.4 6,398.7 -309.2

2071 105.3 79.7 232.4 0.0 47.4 6,348.5 -305.3

2072 103.6 78.9 230.7 0.0 48.3 6,297.3 -301.6

2073 101.8 78.0 228.9 0.0 49.0 6,245.4 -298.0

2074 100.2 77.0 226.9 0.0 49.6 6,192.8 -294.5

2075 98.5 76.1 224.7 0.0 50.2 6,139.7 -291.0

2076 96.9 75.0 222.5 0.0 50.6 6,086.2 -287.6

2077 95.3 73.9 220.1 0.0 50.9 6,032.3 -284.3

2078 93.7 72.8 217.7 0.0 51.2 5,978.1 -281.0

2079 92.1 71.7 215.2 0.0 51.4 5,923.7 -277.8

Based on Intermediate Assumptions of the 2001 Trustees Report Ultimate Real Yield Rate of IA 2.75

 With Ult Real Int Rate of 3 TF, Annuity Yield 2.75

Office of the Actuary

Social Security Administration

 April 19, 2005
Table 2 b.c IA Contributions, OASI Benefit Changes, & Total Unified Budget Effect--Plus Cumulative Gross GF Transfers 1/

Ave IA Cntrb 6.4 %, Benefit Offset 100.0 %

 Amount Cost to guar Cut in Change Change in Change Cumulative Transfers

Contrib to IA: OASDI +IA OASI Benefit Contrib in Annual Debt Held by in Ann Based on Based on

% by Fed Gov benefits at Cut for IA Rate for UnifBudg the Public UnifBudg Fed Spending CorpTax

 Year 100 PLSched Participation AnnBal CashFlow (EOY) Balance Slowdown 1/ Recap 1/

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

 (Billions of Constant 2004$)

2005 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0

2006 124.7 0.0 0.0 0.0 -124.7 128.1 -128.1 13 1

2007 137.5 0.0 0.0 0.0 -137.5 273.0 -148.0 52 3

2008 143.1 0.0 0.0 0.0 -143.1 427.1 -161.5 119 7

2009 148.5 0.0 0.0 0.0 -148.5 591.1 -175.6 215 12

2010 153.9 0.0 0.0 0.0 -153.9 765.1 -190.2 343 19

2011 159.0 0.0 0.0 0.0 -159.0 949.6 -205.3 505 27

2012 163.8 0.5 0.0 0.0 -164.3 1,144.7 -221.0 701 38

2013 168.2 1.1 0.2 0.0 -169.1 1,350.6 -237.0 934 50

2014 172.6 2.1 0.7 0.0 -173.9 1,567.7 -253.9 1,205 65

2015 176.8 3.3 1.3 0.0 -178.8 1,796.6 -271.6 1,517 82

2016 361.5 4.5 2.8 0.0 -363.2 2,222.6 -475.0 1,872 104

2017 369.0 5.9 4.7 0.0 -370.2 2,669.2 -507.2 2,243 130

2018 376.3 7.6 7.7 0.0 -376.2 3,136.4 -539.9 2,631 162

2019 383.1 9.5 11.7 0.0 -380.9 3,622.5 -571.5 3,037 199

2020 389.7 11.9 16.6 0.0 -384.9 4,127.3 -603.4 3,460 242

2021 396.1 14.5 22.5 0.0 -388.1 4,650.5 -635.6 3,901 290

2022 402.4 17.5 29.4 0.0 -390.5 5,191.8 -668.0 4,360 344

2023 408.5 20.8 37.5 0.0 -391.8 5,750.8 -700.4 4,838 405

2024 414.7 24.4 46.7 0.0 -392.4 6,327.1 -733.0 5,336 472

2025 420.8 28.4 57.2 0.0 -392.0 6,920.3 -765.5 5,855 547

2026 426.4 32.8 69.0 0.0 -390.2 7,529.4 -797.6 6,394 628

2027 432.1 37.7 82.3 0.0 -387.5 8,154.0 -829.7 6,954 718

2028 437.8 42.9 96.9 0.0 -383.8 8,793.5 -861.7 7,538 815

2029 443.7 48.5 112.7 0.0 -379.5 9,447.9 -893.8 8,144 921

2030 449.6 54.6 129.9 0.0 -374.3 10,116.4 -925.9 8,775 1,036

2031 455.7 61.0 148.6 0.0 -368.1 10,798.8 -957.8 9,430 1,159

2032 462.0 67.9 168.7 0.0 -361.2 11,494.4 -989.7 10,111 1,292

2033 468.4 75.2 189.9 0.0 -353.7 12,203.1 -1,021.9 10,819 1,435

2034 474.9 83.0 212.0 0.0 -345.8 12,925.1 -1,054.3 11,554 1,588

2035 481.5 91.2 235.4 0.0 -337.4 13,660.0 -1,086.9 12,318 1,752

2036 488.2 100.7 260.0 0.0 -329.0 14,408.3 -1,120.4 13,111 1,927

2037 495.1 110.7 285.8 0.0 -320.0 15,169.8 -1,154.0 13,935 2,113

2038 502.2 121.3 312.7 0.0 -310.8 15,944.7 -1,188.1 14,791 2,311

2039 509.2 132.5 340.6 0.0 -301.1 16,732.9 -1,222.4 15,679 2,521

2040 516.4 144.3 369.9 0.0 -290.8 17,534.0 -1,256.9 16,601 2,744

2041 523.7 156.7 400.9 0.0 -279.6 18,347.7 -1,291.3 17,557 2,980

2042 531.0 169.8 433.5 0.0 -267.3 19,173.3 -1,325.3 18,550 3,229

2043 538.4 183.6 467.7 0.0 -254.4 20,010.2 -1,359.2 19,580 3,492

2044 545.9 198.0 503.3 0.0 -240.7 20,858.2 -1,393.0 20,648 3,770

2045 553.5 213.2 540.6 0.0 -226.1 21,716.6 -1,426.5 21,755 4,062

2046 561.1 227.5 579.7 0.0 -208.9 22,583.0 -1,457.9 22,904 4,370

2047 568.7 242.2 620.4 0.0 -190.4 23,456.4 -1,488.5 24,094 4,694

2048 576.3 257.4 662.5 0.0 -171.2 24,336.2 -1,518.7 25,328 5,033

2049 583.9 273.2 705.8 0.0 -151.3 25,222.0 -1,548.6 26,607 5,390

2050 591.6 290.2 750.4 0.0 -131.5 26,113.9 -1,578.9 27,932 5,763

2051 599.4 307.3 796.4 0.0 -110.4 27,011.0 -1,608.3 29,305 6,154

2052 607.3 324.5 843.5 0.0 -88.3 27,912.1 -1,636.9 30,726 6,564

2053 615.3 341.0 891.4 0.0 -64.9 28,816.3 -1,664.4 32,199 6,991

2054 623.4 357.7 939.7 0.0 -41.5 29,723.4 -1,692.0 33,724 7,438

2055 631.6 374.8 988.4 0.0 -17.9 30,633.6 -1,719.7 35,303 7,905

2056 639.8 389.9 1,037.7 0.0 8.0 31,544.4 -1,745.2 36,938 8,392

2057 648.1 404.8 1,087.1 0.0 34.2 32,455.5 -1,770.3 38,630 8,900

2058 656.5 419.4 1,136.1 0.0 60.2 33,367.2 -1,795.7 40,382 9,429

2059 665.0 433.7 1,184.5 0.0 85.8 34,279.9 -1,821.6 42,196 9,980

2060 673.7 447.7 1,232.4 0.0 111.0 35,194.2 -1,847.9 44,073 10,553

2061 682.4 461.4 1,279.8 0.0 136.0 36,110.0 -1,874.5 46,015 11,150

2062 691.3 474.7 1,327.1 0.0 161.1 37,027.5 -1,901.0 48,024 11,771

2063 700.2 487.6 1,374.1 0.0 186.2 37,946.7 -1,927.7 50,104 12,416

2064 709.3 500.2 1,419.6 0.0 210.2 38,868.8 -1,955.7 52,255 13,087

2065 718.5 512.3 1,463.9 0.0 233.1 39,795.0 -1,984.9 54,480 13,784

2066 727.8 525.8 1,507.7 0.0 254.2 40,727.4 -2,016.2 56,782 14,507

2067 737.2 538.9 1,551.0 0.0 274.9 41,666.3 -2,048.2 59,162 15,258

2068 747.0 551.6 1,593.9 0.0 295.3 42,612.5 -2,081.0 61,625 16,038

2069 756.8 564.0 1,635.3 0.0 314.5 43,567.2 -2,115.4 64,171 16,846

2070 766.6 576.1 1,675.2 0.0 332.5 44,532.1 -2,151.6 66,805 17,685

2071 776.7 587.9 1,714.5 0.0 350.0 45,507.9 -2,188.8 69,528 18,555

2072 786.8 599.2 1,753.1 0.0 367.0 46,495.5 -2,227.1 72,344 19,457

2073 797.0 610.3 1,791.0 0.0 383.7 47,495.5 -2,266.4 75,254 20,391

2074 807.3 621.0 1,828.5 0.0 400.2 48,508.6 -2,306.7 78,264 21,360

2075 817.8 631.4 1,865.5 0.0 416.4 49,535.4 -2,348.0 81,374 22,364

2076 828.3 641.5 1,902.2 0.0 432.4 50,576.5 -2,390.4 84,590 23,404

2077 839.0 651.2 1,938.6 0.0 448.3 51,632.5 -2,433.5 87,913 24,481

2078 849.8 660.7 1,974.8 0.0 464.2 52,703.8 -2,477.7 91,347 25,596

2079 860.8 669.9 2,010.8 0.0 480.1 53,790.9 -2,522.6 94,897 26,751

Based on Intermediate Assumptions of the 2004 Trustees Report Ultimate Real Yield Rate of IA 2.75

 With Ult Real Int Rate of 3.0 TF, Annuity Yield 2.75

1/ General Fund Transfers to the Trust Funds have no effect on Office of the Actuary

 the Unified Budget. See memorandum for discussion. Social Security Administration

 Transfers do not reflect reverse transfers--see table .d. April 19, 2005
Table 2 c OASDI Cash Flow to General Fund of the Treasury---Proposal vs. Theoretical OASDI

In Billions of Dollars

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/

% of Billions of Dollars --- % of Billions of Dollars ---

Pyrl Current $ PV Jan 1, 04 Const 2004$ Pyrl Current $ PV Jan 1, 04 Const 2004$

2004 1.4 65 63 65 1.4 65 63 65

2005 1.9 89 82 87 1.9 89 82 87

2006 -0.6 -32 -28 -31 1.9 97 85 94

2007 -0.8 -41 -34 -39 2.0 105 87 99

2008 -0.9 -47 -37 -43 2.0 109 86 100

2009 -1.1 -62 -46 -55 1.8 105 78 93

2010 -1.2 -74 -52 -64 1.7 103 73 89

2011 -1.4 -87 -58 -74 1.6 101 67 85

2012 -1.6 -108 -69 -89 1.4 91 58 75

2013 -1.9 -133 -80 -106 1.1 79 47 63

2014 -2.2 -159 -90 -123 0.9 65 37 50

2015 -2.5 -188 -101 -142 0.6 48 25 36

2016 -5.9 -466 -236 -343 0.3 27 14 20

2017 -6.2 -513 -245 -367 0.0 4 2 3

2018 -6.5 -561 -254 -391 -0.3 -22 -10 -15

2019 -6.8 -613 -262 -415 -0.6 -51 -22 -35

2020 -7.1 -667 -269 -439 -0.9 -84 -34 -55

2021 -7.4 -722 -275 -463 -1.2 -119 -45 -76

2022 -7.7 -779 -280 -486 -1.5 -155 -56 -97

2023 -7.9 -838 -285 -508 -1.8 -195 -66 -118

2024 -8.2 -897 -288 -529 -2.1 -236 -76 -139

2025 -8.4 -958 -290 -550 -2.4 -279 -85 -160

2026 -8.5 -1,018 -291 -568 -2.7 -324 -93 -181

2027 -8.7 -1,077 -291 -585 -3.0 -370 -100 -201

2028 -8.8 -1,136 -290 -600 -3.2 -416 -106 -220

2029 -8.8 -1,193 -288 -613 -3.4 -463 -112 -238

2030 -8.9 -1,249 -284 -624 -3.6 -510 -116 -255

2031 -8.9 -1,303 -280 -634 -3.8 -558 -120 -271

2032 -8.9 -1,356 -275 -642 -4.0 -606 -123 -287

2033 -8.8 -1,407 -270 -647 -4.1 -653 -125 -300

2034 -8.8 -1,455 -264 -651 -4.2 -699 -127 -313

2035 -8.7 -1,500 -257 -653 -4.3 -744 -127 -324

2036 -8.6 -1,543 -249 -654 -4.4 -788 -127 -334

2037 -8.4 -1,583 -242 -652 -4.4 -831 -127 -343

2038 -8.3 -1,620 -233 -649 -4.5 -873 -126 -350

2039 -8.1 -1,655 -225 -645 -4.5 -915 -124 -357

2040 -7.9 -1,687 -217 -640 -4.5 -956 -123 -363

2041 -7.7 -1,717 -208 -633 -4.5 -1,000 -121 -369

2042 -7.5 -1,744 -200 -626 -4.5 -1,045 -120 -375

2043 -7.3 -1,769 -192 -618 -4.5 -1,091 -118 -381

2044 -7.1 -1,791 -183 -608 -4.5 -1,139 -116 -387

2045 -6.9 -1,810 -175 -598 -4.5 -1,189 -115 -393

2046 -6.7 -1,822 -166 -585 -4.6 -1,241 -113 -399

2047 -6.4 -1,829 -158 -572 -4.6 -1,297 -112 -405

2048 -6.2 -1,834 -149 -558 -4.6 -1,355 -110 -412

2049 -6.0 -1,837 -141 -543 -4.6 -1,417 -109 -419

2050 -5.7 -1,840 -133 -529 -4.6 -1,483 -108 -427

2051 -5.5 -1,840 -126 -515 -4.6 -1,555 -107 -435

2052 -5.3 -1,838 -119 -500 -4.7 -1,634 -106 -445

2053 -5.0 -1,832 -112 -485 -4.7 -1,717 -105 -455

2054 -4.8 -1,825 -105 -470 -4.8 -1,805 -104 -465

2055 -4.6 -1,819 -99 -456 -4.8 -1,899 -104 -476

2056 -4.4 -1,803 -93 -440 -4.9 -1,999 -103 -487

2057 -4.2 -1,786 -87 -424 -4.9 -2,104 -102 -499

2058 -4.0 -1,767 -81 -408 -5.0 -2,214 -102 -511

2059 -3.8 -1,747 -76 -392 -5.0 -2,328 -101 -522

2060 -3.6 -1,728 -71 -377 -5.1 -2,447 -100 -534

2061 -3.4 -1,709 -66 -363 -5.1 -2,574 -100 -547

2062 -3.2 -1,692 -62 -349 -5.2 -2,709 -99 -560

2063 -3.1 -1,676 -58 -337 -5.2 -2,854 -98 -574

2064 -2.9 -1,662 -54 -325 -5.3 -3,003 -98 -587

2065 -2.8 -1,650 -51 -314 -5.3 -3,157 -97 -600

2066 -2.7 -1,648 -48 -305 -5.4 -3,319 -96 -614

2067 -2.6 -1,648 -45 -296 -5.4 -3,489 -96 -628

2068 -2.5 -1,647 -43 -288 -5.5 -3,665 -95 -641

2069 -2.4 -1,652 -40 -281 -5.5 -3,847 -94 -655

2070 -2.3 -1,664 -38 -276 -5.6 -4,037 -93 -669

2071 -2.2 -1,678 -37 -270 -5.6 -4,235 -92 -682

2072 -2.2 -1,697 -35 -266 -5.7 -4,442 -92 -696

2073 -2.1 -1,719 -33 -262 -5.7 -4,660 -91 -710

2074 -2.1 -1,746 -32 -259 -5.7 -4,888 -90 -725

2075 -2.0 -1,777 -31 -256 -5.8 -5,127 -89 -740

2076 -2.0 -1,811 -30 -254 -5.8 -5,377 -88 -755

2077 -1.9 -1,849 -29 -252 -5.9 -5,640 -87 -770

2078 -1.9 -1,890 -28 -251 -5.9 -5,915 -87 -785

2079 -1.9 -1,936 -27 -250 -6.0 -6,203 -86 -801

Total 2004-78 -10,524 -5,225

1/ Equals net investment in special Treasury Bonds by the 

 Trust Funds less the Amount of General Fund transfers Office of the Actuary

 included in the proposal or in the theoretical Social Security Administration

 plan (PAYGO Transfers). April 19, 2005
Table 2 d Change in Long-Range Trust Fund Assets / Unfunded Obligation

Present Law OASDI Ave IA Cntrb 6.4 % Benefit Offset 100.0 %

Trust Fund Assets Amount Cost to guar Net Proposal OASDI

or If Negative, OASI Benefit Contrib to IA: OASDI +IA General Total Change Trust Fund Assets /

Unfunded Obligation Cut for IA % by FedGov benefits at Fund Through Unfunded Obligation

 Year Through EOY Participation 100 PLSched Transfers End of Year Through EOY

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

(Billions of $, Present Value on 1-1-04)

2005 1,674.6 0.0 0.0 0.0 0.0 0.0 1,674.6

2006 1,759.0 0.0 112.8 0.0 12.1 -100.7 1,658.3

2007 1,845.5 0.0 120.8 0.0 35.1 -186.5 1,659.0

2008 1,930.8 0.0 122.5 0.0 57.6 -251.4 1,679.3

2009 2,008.4 0.0 124.0 0.0 79.9 -295.5 1,712.9

2010 2,080.8 0.0 125.1 0.0 101.8 -318.8 1,762.0

2011 2,148.0 0.0 125.8 0.0 123.1 -321.5 1,826.5

2012 2,205.6 0.0 126.1 0.4 143.8 -304.1 1,901.5

2013 2,252.4 0.2 126.0 0.9 163.7 -267.0 1,985.4

2014 2,289.0 0.5 125.8 1.5 183.0 -210.6 2,078.4

2015 2,314.3 0.9 125.2 2.4 201.6 -135.4 2,178.9

2016 2,327.9 1.9 248.9 3.1 220.7 -164.5 2,163.4

2017 2,329.7 3.2 246.8 3.9 220.5 -191.2 2,138.4

2018 2,319.7 5.0 244.4 4.9 220.4 -214.8 2,104.9

2019 2,297.6 7.4 241.5 6.0 219.8 -234.6 2,063.0

2020 2,263.7 10.2 238.5 7.3 219.1 -250.5 2,013.2

2021 2,218.5 13.4 235.4 8.6 218.3 -262.1 1,956.4

2022 2,162.6 16.9 232.2 10.1 217.5 -269.0 1,893.6

2023 2,096.4 21.0 228.9 11.6 216.6 -270.9 1,825.5

2024 2,020.7 25.4 225.6 13.3 215.7 -267.5 1,753.2

2025 1,936.1 30.2 222.2 15.0 214.7 -258.5 1,677.6

2026 1,843.3 35.4 218.6 16.8 213.6 -243.4 1,599.9

2027 1,743.3 41.0 215.1 18.8 212.6 -222.0 1,521.3

2028 1,637.0 46.8 211.6 20.7 211.6 -194.0 1,442.9

2029 1,525.4 52.9 208.2 22.8 210.5 -159.6 1,365.9

2030 1,409.4 59.2 204.8 24.9 209.4 -118.4 1,291.0

2031 1,289.5 65.7 201.5 27.0 208.3 -70.5 1,219.0

2032 1,166.5 72.4 198.4 29.2 207.2 -15.8 1,150.7

2033 1,041.2 79.2 195.2 31.4 206.0 45.7 1,086.9

2034 914.6 85.8 192.2 33.6 204.8 113.6 1,028.2

2035 787.2 92.5 189.2 35.9 203.6 188.0 975.3

2036 659.9 99.2 186.3 38.4 202.4 268.5 928.4

2037 533.0 105.9 183.4 41.0 201.2 355.0 888.0

2038 407.2 112.4 180.6 43.6 199.9 447.2 854.4

2039 282.7 118.9 177.8 46.2 198.5 545.0 827.7

2040 159.8 125.4 175.0 48.9 197.2 648.3 808.0

2041 38.4 131.9 172.3 51.6 195.8 757.0 795.4

2042 -81.4 138.5 169.7 54.3 194.3 871.1 789.7

2043 -199.5 145.1 167.0 57.0 191.2 988.9 789.4

2044 -316.0 151.6 164.4 59.6 182.9 1,105.1 789.1

2045 -430.8 158.1 161.8 62.3 174.7 1,219.8 788.9

2046 -544.1 164.6 159.3 64.6 166.0 1,332.8 788.8

2047 -655.8 171.0 156.7 66.7 157.4 1,444.3 788.5

2048 -766.0 177.3 154.2 68.9 149.0 1,554.3 788.4

2049 -874.8 183.3 151.7 71.0 140.8 1,662.9 788.1

2050 -982.4 189.2 149.2 73.2 133.2 1,770.2 787.8

2051 -1,089.0 195.0 146.8 75.3 125.8 1,876.5 787.5

2052 -1,194.8 200.5 144.4 77.1 118.7 1,982.0 787.3

2053 -1,299.7 205.7 142.0 78.7 111.8 2,086.8 787.1

2054 -1,403.9 210.6 139.7 80.2 105.1 2,190.7 786.8

2055 -1,507.4 215.0 137.4 81.5 98.8 2,293.9 786.5

2056 -1,610.3 219.2 135.1 82.4 92.6 2,396.6 786.2

2057 -1,712.7 222.9 132.9 83.0 86.6 2,498.6 786.0

2058 -1,814.4 226.2 130.7 83.5 81.0 2,600.1 785.8

2059 -1,915.3 229.0 128.5 83.8 75.6 2,700.9 785.6

2060 -2,015.6 231.3 126.4 84.0 70.5 2,800.9 785.4

2061 -2,115.1 233.2 124.3 84.1 65.9 2,900.3 785.1

2062 -2,214.1 234.7 122.3 84.0 61.7 2,999.1 785.0

2063 -2,312.6 236.0 120.3 83.7 57.6 3,097.4 784.8

2064 -2,410.5 236.7 118.3 83.4 53.9 3,195.0 784.5

2065 -2,507.7 237.0 116.3 82.9 50.6 3,292.0 784.3

2066 -2,604.1 237.0 114.4 82.6 47.8 3,388.3 784.2

2067 -2,699.9 236.7 112.5 82.2 45.1 3,483.9 784.0

2068 -2,794.9 236.1 110.7 81.7 42.6 3,578.8 783.9

2069 -2,889.1 235.2 108.8 81.1 40.3 3,672.9 783.8

2070 -2,982.5 233.9 107.1 80.4 38.4 3,766.2 783.7

2071 -3,075.0 232.4 105.3 79.7 36.4 3,858.4 783.5

2072 -3,166.6 230.7 103.6 78.9 34.9 3,950.0 783.4

2073 -3,257.4 228.9 101.8 78.0 33.4 4,040.6 783.2

2074 -3,347.3 226.9 100.2 77.0 32.0 4,130.4 783.1

2075 -3,436.4 224.7 98.5 76.1 30.8 4,219.4 782.9

2076 -3,524.7 222.5 96.9 75.0 29.6 4,307.5 782.8

2077 -3,612.1 220.1 95.3 73.9 28.4 4,394.7 782.6

2078 -3,698.7 217.7 93.7 72.8 27.5 4,481.1 782.5

Total 2004-2078 9,254.8 11,456.4 3,444.2 9,780.5

Based on Intermediate Assumptions of the 2004 Trustees Report

 With Ult Real TFInt Rate of 3 Ult Real IA Yld Rate of 2.75

Office of the Actuary Annuity Net Real Yld Rate of 2.75

Social Security Administration

 April 19, 2005
Table 2 e Proposal --Specified and Total General Fund Transfers to the OASDI Trust Funds

Specified GF Trans: Specified Proposal Net Annual Transfers

Proj GDP Cut in Fed Govt Transfer from Reverse Cumulative from the GF to the TF

with 1% less spend assumed= GF to TF for Transfer Net Transfer Billions of Percent Percent

Projected growth for 2006- 20% Corp Tax TF to GF, for from the GF PV$ 1-1-03 of GDP of Pyrl

GDP 2016 of diff {(1)-(2)} Recapture AnnBal 1/ =(3)+(4)-(5) cum = (3)+(4)-(5)

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

(billions of PV$ 1/1/2003)

2005 11,137 11,137 0 0 0 0 0.0 0.0

2006 11,072 11,016 11 1 12 12 0.1 0.3

2007 11,038 10,873 33 2 47 35 0.3 0.8

2008 11,022 10,748 55 3 105 58 0.5 1.3

2009 10,991 10,611 76 4 185 80 0.7 1.9

2010 10,944 10,460 97 5 286 102 0.9 2.4

2011 10,880 10,295 117 6 410 123 1.1 2.9

2012 10,798 10,115 137 7 553 144 1.3 3.4

2013 10,701 9,924 155 8 717 164 1.5 4.0

2014 10,598 9,731 174 9 900 183 1.7 4.5

2015 10,487 9,532 191 11 1,102 202 1.9 5.0

2016 10,369 9,330 208 13 1,322 221 2.1 5.5

2017 10,247 9,221 205 15 1,543 221 2.2 5.6

2018 10,122 9,108 203 18 1,763 220 2.2 5.7

2019 9,989 8,988 200 20 1,983 220 2.2 5.8

2020 9,856 8,869 197 22 2,202 219 2.2 5.8

2021 9,720 8,746 195 24 2,420 218 2.2 5.9

2022 9,584 8,624 192 26 2,638 218 2.3 6.0

2023 9,446 8,500 189 27 2,855 217 2.3 6.0

2024 9,310 8,377 186 29 3,070 216 2.3 6.1

2025 9,174 8,255 184 31 3,285 215 2.3 6.2

2026 9,040 8,135 181 33 3,499 214 2.4 6.3

2027 8,911 8,019 178 34 3,711 213 2.4 6.3

2028 8,783 7,903 176 36 3,923 212 2.4 6.4

2029 8,656 7,790 173 37 4,133 210 2.4 6.5

2030 8,533 7,678 171 38 4,343 209 2.5 6.5

2031 8,412 7,570 169 40 4,551 208 2.5 6.6

2032 8,295 7,464 166 41 4,758 207 2.5 6.7

2033 8,179 7,360 164 42 4,964 206 2.5 6.8

2034 8,066 7,258 162 43 5,169 205 2.5 6.8

2035 7,954 7,157 159 44 5,373 204 2.6 6.9

2036 7,845 7,059 157 45 5,575 202 2.6 7.0

2037 7,738 6,963 155 46 5,776 201 2.6 7.0

2038 7,632 6,868 153 47 5,976 200 2.6 7.1

2039 7,527 6,773 151 48 6,175 199 2.6 7.1

2040 7,424 6,680 149 48 6,372 197 2.7 7.2

2041 7,322 6,589 147 49 6,568 196 2.7 7.3

2042 7,222 6,498 145 50 6,762 194 2.7 7.3

2043 7,122 6,409 143 50 1.6 6,953 191 2.7 7.3

2044 7,023 6,320 141 51 8.4 7,136 183 2.6 7.1

2045 6,925 6,232 139 51 15.0 7,311 175 2.5 6.9

2046 6,828 6,144 137 51 22.0 7,477 166 2.4 6.7

2047 6,732 6,057 135 52 29.0 7,634 157 2.3 6.4

2048 6,635 5,971 133 52 35.6 7,783 149 2.2 6.2

2049 6,539 5,884 131 52 42.0 7,924 141 2.2 5.9

2050 6,444 5,799 129 52 47.8 8,057 133 2.1 5.7

2051 6,351 5,715 127 52 53.3 8,183 126 2.0 5.5

2052 6,258 5,631 125 52 58.5 8,302 119 1.9 5.3

2053 6,167 5,550 124 52 63.5 8,413 112 1.8 5.0

2054 6,078 5,469 122 52 68.3 8,519 105 1.7 4.8

2055 5,989 5,389 120 51 72.6 8,617 99 1.7 4.6

2056 5,901 5,310 118 51 76.9 8,710 93 1.6 4.4

2057 5,814 5,232 116 51 80.9 8,797 87 1.5 4.2

2058 5,729 5,155 115 51 84.5 8,878 81 1.4 4.0

2059 5,645 5,080 113 50 87.8 8,953 76 1.3 3.8

2060 5,562 5,005 111 50 90.9 9,024 71 1.3 3.6

2061 5,480 4,931 110 50 93.5 9,090 66 1.2 3.4

2062 5,400 4,859 108 49 95.7 9,151 62 1.1 3.2

2063 5,320 4,787 107 49 97.7 9,209 58 1.1 3.1

2064 5,242 4,717 105 48 99.4 9,263 54 1.0 2.9

2065 5,165 4,648 103 48 100.7 9,313 51 1.0 2.8

2066 5,089 4,579 102 47 101.5 9,361 48 0.9 2.7

2067 5,014 4,512 100 47 102.2 9,406 45 0.9 2.6

2068 4,942 4,447 99 46 102.7 9,449 43 0.9 2.5

2069 4,870 4,382 98 46 103.0 9,489 40 0.8 2.4

2070 4,799 4,318 96 45 103.0 9,528 38 0.8 2.3

2071 4,729 4,255 95 45 103.0 9,564 36 0.8 2.2

2072 4,660 4,193 93 44 102.6 9,599 35 0.7 2.2

2073 4,592 4,132 92 44 102.2 9,632 33 0.7 2.1

2074 4,524 4,071 91 43 101.7 9,664 32 0.7 2.0

2075 4,458 4,011 89 42 101.0 9,695 31 0.7 2.0

2076 4,392 3,952 88 42 100.3 9,725 30 0.7 2.0

2077 4,327 3,894 87 41 99.6 9,753 28 0.7 1.9

2078 4,263 3,836 85 41 98.7 9,780 28 0.6 1.9

2079 4,200 3,779 84 40 97.8 9,807 27 0.6 1.8

Total: 2004-78 9,786 2,742 2747.1

Office of the Actuary

Based on Intermediate Assumptions of the 2004 Trustees Report Social Security Administration

1/ Limit reverse transfer to total of specified and recapture transfers April 19, 2005
Table 2 f Components of Cash Flow from the Trust Funds to the General Fund of the Treasury

Cash Flow Due to Cash Flow for Total Cash Cash Flow Net Purchase

Total Cash Net Specified Net Purchase Flow to the Due to Net (Redemption)

Flow to the Transfers under (Redemption) General Fund Specified of Treasury

General Fund the Proposal of Treasury Transfers Securities

(Tab c:col 3) (Tab e: (5)-(3)-(4)) Securities (= Columns (1) (2) (3) in Constant Dollars)

Year (1) (2) (3) (4) (5) (6)

(billions of PV$ 1/1/2004) (billions of constant 2004 dollars)

2004 63 63 65 65

2005 82 82 87 87

2006 -28 -12 -16 -31 -13 -18

2007 -34 -35 1 -39 -40 1

2008 -37 -58 21 -43 -67 24

2009 -46 -80 34 -55 -96 41

2010 -52 -102 49 -64 -125 61

2011 -58 -123 65 -74 -156 82

2012 -69 -144 75 -89 -187 98

2013 -80 -164 84 -106 -219 112

2014 -90 -183 93 -123 -251 128

2015 -101 -202 101 -142 -285 142

2016 -236 -221 -15 -343 -321 -22

2017 -245 -221 -25 -367 -330 -37

2018 -254 -220 -33 -391 -339 -51

2019 -262 -220 -42 -415 -349 -66

2020 -269 -219 -50 -439 -358 -81

2021 -275 -218 -57 -463 -367 -96

2022 -280 -218 -63 -486 -377 -109

2023 -285 -217 -68 -508 -387 -121

2024 -288 -216 -72 -529 -397 -133

2025 -290 -215 -76 -550 -407 -143

2026 -291 -214 -78 -568 -417 -151

2027 -291 -213 -79 -585 -427 -158

2028 -290 -212 -78 -600 -438 -162

2029 -288 -210 -77 -613 -449 -164

2030 -284 -209 -75 -624 -460 -164

2031 -280 -208 -72 -634 -471 -163

2032 -275 -207 -68 -642 -483 -159

2033 -270 -206 -64 -647 -494 -153

2034 -264 -205 -59 -651 -506 -145

2035 -257 -204 -53 -653 -518 -135

2036 -249 -202 -47 -654 -531 -123

2037 -242 -201 -40 -652 -543 -109

2038 -233 -200 -34 -649 -556 -93

2039 -225 -199 -27 -645 -569 -76

2040 -217 -197 -20 -640 -582 -58

2041 -208 -196 -13 -633 -595 -38

2042 -200 -194 -6 -626 -608 -18

2043 -192 -191 0 -618 -616 -1

2044 -183 -183 0 -608 -607 -1

2045 -175 -175 0 -598 -597 -1

2046 -166 -166 0 -585 -585 -1

2047 -158 -157 0 -572 -571 -1

2048 -149 -149 0 -558 -557 -1

2049 -141 -141 0 -543 -542 -1

2050 -133 -133 0 -529 -528 -1

2051 -126 -126 0 -515 -514 -1

2052 -119 -119 0 -500 -499 -1

2053 -112 -112 0 -485 -485 -1

2054 -105 -105 0 -470 -469 -1

2055 -99 -99 0 -456 -454 -1

2056 -93 -93 0 -440 -438 -1

2057 -87 -87 0 -424 -422 -1

2058 -81 -81 0 -408 -407 -1

2059 -76 -76 0 -392 -391 -1

2060 -71 -71 0 -377 -376 -1

2061 -66 -66 0 -363 -362 -1

2062 -62 -62 0 -349 -349 -1

2063 -58 -58 0 -337 -336 -1

2064 -54 -54 0 -325 -323 -2

2065 -51 -51 0 -314 -313 -1

2066 -48 -48 0 -305 -304 -1

2067 -45 -45 0 -296 -295 -1

2068 -43 -43 0 -288 -288 -1

2069 -40 -40 0 -281 -280 -1

2070 -38 -38 0 -276 -275 -1

2071 -37 -36 0 -270 -269 -2

2072 -35 -35 0 -266 -265 -1

2073 -33 -33 0 -262 -261 -1

2074 -32 -32 0 -259 -258 -1

2075 -31 -31 0 -256 -255 -1

2076 -30 -30 0 -254 -253 -1

2077 -29 -28 0 -252 -251 -2

2078 -28 -28 0 -251 -250 -1

2079 -27 -27 0 -250 -248 -2

Office of the Actuary

Based on Intermediate Assumptions of the 2004 Trustees Report Social Security Administration

 April 19, 2005