SOCIAL SECURITY ADMINISTRATION BALTIMORE, MD 21235-0001

SOCIAL SECURITY

Office of the Chief Actuary

April 14, 2011

The Honorable Kay Bailey Hutchinson 

United States Senate

Washington, D.C. 20510

Dear Senator Hutchinson:

I am writing in response to your letter of March 31, 2011 requesting estimates of the financial 

effects on Social Security of three potential proposal options that would improve the actuarial 

status of the program. The estimates and analysis provided in this letter reflect clarification of 

the intent of the options based on discussion with Ashley Fingarson and John Stoody of your 

staff. All estimates are based on the intermediate assumptions of the 2010 Trustees Report. The 

estimates reflect the combined efforts of many in our office, but particularly Alice Wade and 

Christopher Chaplain.

The options would change present law provisions related to the normal retirement age (NRA), 

the earliest eligibility age (EEA), and the cost of living adjustment (COLA). The COLA 

increases benefits after initial eligibility based on increases in the Consumer Price Index for 

Urban Wage Earners and Clerical Workers (CPI-W). 

The basic elements of the three options are:

Option 1: Increase the NRA to 69 and the EEA to 64 by 2025, and

Reduce the annual COLA by 1.0 percentage point starting December 2011

Option 2: Increase the NRA to 69 and the EEA to 64 by 2025, and

Reduce the annual COLA by 0.5 percentage point starting December 2011

Option 3: Increase the NRA to 69 and the EEA to 64 by 2025, and

Use a chain-weighted version of the CPI-W for the annual COLA starting 

December 2011

The three enclosed tables provide annual and 75-year summarized estimates of the financial 

effects of enacting each of these options. 

Table 1 shows that Option 1 would eliminate the long-range OASDI actuarial deficit leaving a 

positive actuarial balance of 0.37 percent of payroll. The combined OASDI Trust Funds would 

be solvent throughout the 75-year projection period, with assets in the trust funds never below 

300 percent of annual program cost. Table 2 shows that Option 2 would reduce the long-range 

OASDI actuarial deficit from 1.92 percent of payroll under current law to an actuarial deficit of 

0.34 percent of payroll. The combined OASDI Trust Funds would be solvent for an additional 
Page 2 – The Honorable Kay Bailey Hutchinson

32 years, extending the expected year of exhaustion from 2037 to 2069. Table 3 shows that 

Option 3 would reduce the long-range OASDI actuarial deficit from 1.92 percent of payroll 

under current law to an actuarial deficit of 0.64 percent of payroll. The combined OASDI Trust 

Funds would be solvent for an additional 17 years, extending the expected year of exhaustion 

from 2037 to 2054. The balance of this letter provides a more complete description of the 

elements of the three proposal options.

Description of Proposal Options 

Retirement Age Provision

All three proposal options include a provision to increase the normal retirement age (NRA) to 69 

and the earliest eligibility age (EEA) to 64 by 2025. 

Under current law, the EEA for retired worker benefits and aged spouse benefits remains at 62. 

Also under current law, the NRA increases from the present level of 66 at the rate of 2 months 

per year beginning for those reaching age 62 in 2017, and stops increasing at an NRA of 67 for 

those reaching age 62 in 2022 and later. 

Under these proposal options, the NRA would increase as under current law through 2019,

reaching 66 years and 6 months for workers and spouses attaining age 62 in 2019. The EEA 

would remain at 62 through 2019. For workers and spouses reaching age 62 in 2020 and 2021, 

the EEA would be raised to 63 and the NRA would be raised to 68. The EEA and NRA would 

then be increased by 3 months per year starting with those reaching age 62 in 2022 and stopping 

with those reaching age 65 in 2025. The EEA would then remain at 64 and the NRA at 69 for 

workers and spouses attaining 62 in 2025 and later. 

For a worker who dies, becomes disabled, or becomes eligible for retired worker benefits after 

age 62, we assume the number of benefit computation years used in determining the primary 

insurance amount (PIA) would be:

• Increased by 1 year if EEA is at least age 63 and less than age 64 and age at benefit 

eligibility is 63 or higher; and

• Increased by 2 years if EEA is 64 and age at benefit eligibility is 64 or higher. 

The PIA formula used in each case would be the formula applicable for the year in which initial 

eligibility occurs, but not beyond the year that EEA is attained. In addition, we assume that the

quarters-of-coverage requirements for insured status would remain the same as in present law.

Increasing the NRA and EEA alone, as specified for these options, would reduce the long-range 

OASDI actuarial deficit by an estimated 0.82 percent of taxable payroll. 

Change the Cost of Living Adjustment (COLA)

Under current law, monthly benefits payable for OASDI beneficiaries are automatically adjusted 

by increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW) in each December for which they are eligible for a benefit. The percentage increase is (in 

general) computed as the increase in the CPI-W from the third calendar quarter of the prior year 
Page 3 – The Honorable Kay Bailey Hutchinson

to the third calendar quarter of the current year. Under the intermediate assumptions of the 2010 

Trustees Report, the annual COLA is assumed to average about 2.8 percent in the future.

Under Option 1, the annual COLA would be reduced by 1.0 percentage point each year, 

beginning with the December 2011 COLA. Enactment of this provision alone is estimated to 

reduce the long-range OASDI actuarial deficit by 1.58 percent of taxable payroll. 

Under Option 2, the annual COLA would be reduced by 0.5 percentage point each year, 

beginning with the December 2011 COLA. Enactment of this provision alone is estimated to 

reduce the long-range OASDI actuarial deficit by 0.82 percent of taxable payroll. 

Under Option 3, the annual COLA would be computed, beginning with the December 2011 

COLA, using a “chained” version of the CPI-W, called the C-CPI-W. The C-CPI-W is different 

from the CPI-W in that it adjusts the measured increase in prices to reflect any redistribution in

the overall market basket of goods and services that are purchased, across broad “strata” of 

goods and services that are different and are not direct substitutes for items in other strata. 

Historical experience indicates that consumers tend to decrease the share of their purchases for 

goods and services that have the highest increases in prices. We estimate that use of the C-CPIW would decrease the average annual future COLA by about 0.3 percentage point. Enactment of 

this provision alone is estimated to reduce the long-range OASDI actuarial deficit by 0.50

percent of taxable payroll. 

It is important to note that use of the C-CPI-W, as indicated in Option 3, would be complicated 

by the fact that it is only computed on a preliminary basis when first published. The preliminary 

C-CPI-W is revised twice, once one year later and again two years later. Thus, while the current 

CPI-W for the third calendar year quarter of each year is final in October of that year, the C-CPIW is not final until 2 years later. In practice, use of the C-CPI-W would require either:

• Use of final C-CPI-W increases with an additional 2-year lag compared to use of the 

CPI-W for the current COLA, 

• Use of the preliminary C-CPI-W for the year of the COLA with revisions of the C-CPIW for that period included in the COLAs for the two succeeding years, or

• Use of the preliminary C-CPI-W for the year of the COLA with no application of 

revisions to the C-CPI-W for that period to subsequent COLAs. 

We hope these estimates will be helpful. Please let me know if we may provide further 

assistance.

Sincerely,

Stephen C. Goss

Chief Actuary

Enclosures
Year Cost Rate

Income

Rate

Annual

Balance Cost Rate

Income

Rate

Annual

Balance

2010 13.09 12.33 -0.76 355 0.00 0.00 0.00

2011 13.04 12.91 -0.12 353 0.00 0.00 0.00

2012 12.72 12.87 0.15 354 -0.12 0.00 0.12

2013 12.58 12.89 0.31 353 -0.24 -0.01 0.23

2014 12.51 12.90 0.39 353 -0.35 -0.02 0.33

2015 12.52 12.92 0.40 353 -0.46 -0.02 0.44

2016 12.54 12.94 0.39 353 -0.56 -0.03 0.53

2017 12.64 12.96 0.31 353 -0.66 -0.03 0.63

2018 12.79 12.98 0.19 353 -0.76 -0.04 0.72

2019 12.98 12.99 0.01 352 -0.86 -0.04 0.82

2020 13.16 13.00 -0.16 350 -0.99 -0.05 0.94

2021 13.33 13.02 -0.31 349 -1.12 -0.05 1.08

2022 13.48 13.04 -0.44 347 -1.27 -0.05 1.22

2023 13.61 13.05 -0.55 344 -1.42 -0.05 1.37

2024 13.71 13.06 -0.65 342 -1.58 -0.05 1.52

2025 13.81 13.08 -0.73 340 -1.73 -0.06 1.67

2026 13.81 13.09 -0.73 339 -1.94 -0.06 1.88

2027 13.83 13.09 -0.73 338 -2.13 -0.07 2.06

2028 13.85 13.10 -0.74 337 -2.29 -0.07 2.22

2029 13.87 13.11 -0.76 335 -2.42 -0.07 2.34

2030 13.88 13.11 -0.77 334 -2.53 -0.08 2.45

2031 13.91 13.12 -0.79 332 -2.60 -0.08 2.52

2032 13.92 13.12 -0.80 330 -2.67 -0.09 2.58

2033 13.93 13.12 -0.81 328 -2.73 -0.09 2.64

2034 13.92 13.12 -0.80 327 -2.78 -0.10 2.69

2035 13.90 13.12 -0.78 325 -2.83 -0.10 2.73

2036 13.88 13.12 -0.75 324 -2.86 -0.10 2.76

2037 13.84 13.12 -0.72 324 -2.90 -0.11 2.79

2038 13.79 13.12 -0.67 324 -2.93 -0.11 2.82

2039 13.72 13.12 -0.61 324 -2.96 -0.11 2.85

2040 13.66 13.12 -0.54 325 -2.99 -0.11 2.87

2041 13.58 13.11 -0.47 327 -3.02 -0.11 2.90

2042 13.51 13.11 -0.40 329 -3.04 -0.12 2.92

2043 13.45 13.11 -0.34 332 -3.06 -0.12 2.94

2044 13.40 13.11 -0.29 335 -3.08 -0.12 2.96

2045 13.35 13.11 -0.25 338 -3.09 -0.12 2.97

2046 13.32 13.11 -0.22 341 -3.09 -0.12 2.97

2047 13.30 13.10 -0.19 345 -3.10 -0.12 2.98

2048 13.27 13.10 -0.17 349 -3.10 -0.12 2.98

2049 13.24 13.10 -0.14 353 -3.11 -0.12 2.99

2050 13.22 13.10 -0.11 357 -3.12 -0.12 3.00

2051 13.19 13.10 -0.09 361 -3.13 -0.12 3.01

2052 13.19 13.10 -0.08 365 -3.14 -0.12 3.02

2053 13.19 13.11 -0.08 370 -3.14 -0.12 3.02

2054 13.20 13.11 -0.09 374 -3.15 -0.12 3.03

2055 13.22 13.11 -0.11 377 -3.15 -0.12 3.03

2056 13.25 13.11 -0.14 381 -3.14 -0.12 3.02

2057 13.28 13.11 -0.16 384 -3.14 -0.12 3.02

2058 13.30 13.12 -0.18 387 -3.14 -0.12 3.02

2059 13.32 13.12 -0.20 390 -3.14 -0.12 3.02

2060 13.34 13.12 -0.22 393 -3.14 -0.12 3.02

2061 13.36 13.12 -0.24 396 -3.15 -0.12 3.02

2062 13.38 13.12 -0.26 399 -3.15 -0.13 3.03

2063 13.40 13.12 -0.28 402 -3.16 -0.13 3.03

2064 13.42 13.12 -0.29 404 -3.17 -0.13 3.04

2065 13.44 13.13 -0.31 407 -3.18 -0.13 3.05

2066 13.46 13.13 -0.34 409 -3.19 -0.13 3.06

2067 13.49 13.13 -0.36 412 -3.20 -0.13 3.07

2068 13.52 13.13 -0.38 414 -3.21 -0.13 3.08

2069 13.55 13.13 -0.41 415 -3.22 -0.13 3.09

2070 13.57 13.14 -0.44 417 -3.23 -0.13 3.10

2071 13.60 13.14 -0.46 418 -3.25 -0.13 3.12

2072 13.63 13.14 -0.49 420 -3.26 -0.13 3.13

2073 13.66 13.14 -0.52 421 -3.28 -0.13 3.14

2074 13.69 13.15 -0.55 422 -3.29 -0.13 3.16

2075 13.73 13.15 -0.58 422 -3.30 -0.13 3.17

2076 13.76 13.15 -0.61 423 -3.31 -0.14 3.18

2077 13.79 13.15 -0.64 423 -3.32 -0.14 3.19

2078 13.83 13.15 -0.67 423 -3.33 -0.14 3.20

2079 13.86 13.16 -0.71 423 -3.34 -0.14 3.21

2080 13.90 13.16 -0.74 422 -3.35 -0.14 3.22

2081 13.93 13.16 -0.77 422 -3.36 -0.14 3.23

2082 13.96 13.16 -0.80 421 -3.37 -0.14 3.23

2083 14.00 13.17 -0.83 420 -3.38 -0.14 3.24

2084 14.03 13.17 -0.86 419 -3.39 -0.14 3.25

2085 14.06 13.17 -0.89 417 -3.40 -0.14 3.26

Cost Rate Income Rate

Actuarial 

Balance

Change in 

Cost rate

Change in 

Income Rate

Change in 

Actuarial

Balance

13.55% 13.92% 0.37% N/A -2.38% -0.09% 2.29%

1 Under present law the year of exhaustion is 2037

Hutchinson Option 1: Increase the NRA to 69 and the EEA to 64 by 2025 and reduce the annual COLA by 1.0 percentage point starting December 2011 

Table 1 - OASDI Cost Rate, Income Rate, Annual Balance, and Trust Fund Ratio

Proposal Change in Present Law

Expressed as a percentage of present-law

taxable payroll Trust Fund

Ratio

1-1-year

Expressed as a percentage of present-law

taxable payroll

April 14, 2011

Summarized Rates: OASDI

Year of 

Exhaustion1

Summarized Rates: OASDI

2010 - 2084

Based on Intermediate Assumptions of the 2010 Trustees Report Office of the Chief Actuary

Social Security Administration
Year Cost Rate

Income

Rate

Annual

Balance Cost Rate

Income

Rate

Annual

Balance

2010 13.09 12.33 -0.76 355 0.00 0.00 0.00

2011 13.04 12.91 -0.12 353 0.00 0.00 0.00

2012 12.78 12.87 0.09 352 -0.06 0.00 0.06

2013 12.70 12.90 0.19 349 -0.12 -0.01 0.11

2014 12.69 12.91 0.22 347 -0.18 -0.01 0.17

2015 12.75 12.93 0.18 344 -0.23 -0.01 0.22

2016 12.82 12.95 0.13 341 -0.28 -0.01 0.27

2017 12.97 12.97 0.00 338 -0.33 -0.02 0.32

2018 13.16 13.00 -0.16 335 -0.39 -0.02 0.37

2019 13.40 13.01 -0.39 330 -0.44 -0.02 0.41

2020 13.63 13.02 -0.60 325 -0.52 -0.02 0.50

2021 13.84 13.05 -0.80 319 -0.61 -0.02 0.59

2022 14.03 13.06 -0.97 313 -0.72 -0.02 0.70

2023 14.20 13.08 -1.12 306 -0.83 -0.02 0.81

2024 14.34 13.10 -1.24 299 -0.95 -0.02 0.93

2025 14.47 13.11 -1.36 292 -1.07 -0.02 1.05

2026 14.50 13.12 -1.38 286 -1.26 -0.03 1.23

2027 14.54 13.13 -1.41 280 -1.41 -0.03 1.38

2028 14.58 13.14 -1.45 273 -1.55 -0.03 1.51

2029 14.63 13.15 -1.48 266 -1.65 -0.04 1.62

2030 14.67 13.15 -1.51 259 -1.74 -0.04 1.70

2031 14.71 13.16 -1.55 251 -1.79 -0.04 1.75

2032 14.75 13.16 -1.59 243 -1.84 -0.05 1.80

2033 14.77 13.17 -1.61 235 -1.88 -0.05 1.84

2034 14.78 13.17 -1.62 228 -1.92 -0.05 1.87

2035 14.77 13.17 -1.60 220 -1.95 -0.05 1.90

2036 14.76 13.17 -1.59 212 -1.98 -0.06 1.92

2037 14.74 13.17 -1.57 204 -2.00 -0.06 1.94

2038 14.69 13.17 -1.52 197 -2.02 -0.06 1.96

2039 14.63 13.17 -1.47 190 -2.05 -0.06 1.98

2040 14.57 13.16 -1.41 183 -2.07 -0.07 2.00

2041 14.50 13.16 -1.34 176 -2.10 -0.07 2.03

2042 14.43 13.16 -1.27 170 -2.12 -0.07 2.05

2043 14.37 13.16 -1.21 164 -2.14 -0.07 2.07

2044 14.32 13.16 -1.16 159 -2.16 -0.07 2.09

2045 14.27 13.15 -1.12 153 -2.17 -0.07 2.10

2046 14.24 13.15 -1.09 148 -2.18 -0.07 2.10

2047 14.22 13.15 -1.06 143 -2.18 -0.07 2.11

2048 14.19 13.15 -1.03 137 -2.19 -0.07 2.12

2049 14.16 13.15 -1.01 132 -2.20 -0.07 2.12

2050 14.13 13.15 -0.98 127 -2.20 -0.07 2.13

2051 14.11 13.15 -0.95 123 -2.22 -0.07 2.15

2052 14.10 13.15 -0.94 118 -2.23 -0.07 2.16

2053 14.10 13.15 -0.94 113 -2.23 -0.07 2.16

2054 14.11 13.16 -0.95 108 -2.24 -0.07 2.16

2055 14.13 13.16 -0.97 102 -2.24 -0.07 2.16

2056 14.16 13.16 -1.00 97 -2.23 -0.07 2.16

2057 14.19 13.16 -1.03 91 -2.23 -0.07 2.15

2058 14.22 13.16 -1.05 85 -2.22 -0.07 2.15

2059 14.24 13.17 -1.07 79 -2.22 -0.07 2.15

2060 14.26 13.17 -1.09 72 -2.22 -0.07 2.15

2061 14.28 13.17 -1.11 66 -2.22 -0.07 2.15

2062 14.31 13.17 -1.14 59 -2.23 -0.08 2.15

2063 14.33 13.17 -1.16 52 -2.23 -0.08 2.15

2064 14.35 13.18 -1.18 45 -2.23 -0.08 2.16

2065 14.38 13.18 -1.20 37 -2.24 -0.08 2.16

2066 14.40 13.18 -1.23 30 -2.25 -0.08 2.17

2067 14.43 13.18 -1.25 22 -2.25 -0.08 2.17

2068 14.46 13.18 -1.28 13 -2.26 -0.08 2.18

2069 14.50 13.19 -1.31 5 -2.27 -0.08 2.19

2070 14.53 13.19 -1.34 ---- -2.28 -0.08 2.20

2071 14.56 13.19 -1.37 ---- -2.29 -0.08 2.21

2072 14.59 13.19 -1.40 ---- -2.30 -0.08 2.22

2073 14.63 13.20 -1.43 ---- -2.31 -0.08 2.23

2074 14.66 13.20 -1.47 ---- -2.32 -0.08 2.24

2075 14.70 13.20 -1.50 ---- -2.33 -0.08 2.24

2076 14.74 13.20 -1.54 ---- -2.33 -0.08 2.25

2077 14.78 13.21 -1.57 ---- -2.34 -0.08 2.26

2078 14.82 13.21 -1.61 ---- -2.35 -0.08 2.26

2079 14.85 13.21 -1.64 ---- -2.35 -0.08 2.27

2080 14.89 13.21 -1.68 ---- -2.36 -0.08 2.27

2081 14.93 13.22 -1.71 ---- -2.37 -0.08 2.28

2082 14.97 13.22 -1.75 ---- -2.37 -0.08 2.29

2083 15.00 13.22 -1.78 ---- -2.38 -0.08 2.29

2084 15.04 13.22 -1.82 ---- -2.38 -0.09 2.30

2085 15.08 13.23 -1.85 ---- -2.39 -0.09 2.31

Cost Rate Income Rate

Actuarial 

Balance

Change in 

Cost rate

Change in 

Income Rate

Change in 

Actuarial

Balance

14.29% 13.96% -0.34% 2069 -1.63% -0.05% 1.58%

1 Under present law the year of exhaustion is 2037

Table 2 - OASDI Cost Rate, Income Rate, Annual Balance, and Trust Fund Ratio

Hutchinson Option 2: Increase the NRA to 69 and the EEA to 64 by 2025 and reduce the annual COLA by 0.5 percentage point starting December 2011 

Proposal Change in Present Law

Expressed as a percentage of present-law

taxable payroll Trust Fund

Ratio

1-1-year

Expressed as a percentage of present-law

taxable payroll

April 14, 2011

Summarized Rates: OASDI

Year of 

Exhaustion1

Summarized Rates: OASDI

2010 - 2084

Based on Intermediate Assumptions of the 2010 Trustees Report Office of the Chief Actuary

Social Security Administration
Year Cost Rate

Income

Rate

Annual

Balance Cost Rate

Income

Rate

Annual

Balance

2010 13.09 12.33 -0.76 355 0.00 0.00 0.00

2011 13.04 12.91 -0.12 353 0.00 0.00 0.00

2012 12.81 12.87 0.06 351 -0.04 0.00 0.04

2013 12.75 12.90 0.15 348 -0.07 0.00 0.07

2014 12.76 12.91 0.16 344 -0.11 0.00 0.10

2015 12.84 12.93 0.09 341 -0.14 -0.01 0.13

2016 12.93 12.95 0.02 337 -0.17 -0.01 0.16

2017 13.10 12.98 -0.12 332 -0.20 -0.01 0.19

2018 13.31 13.00 -0.31 327 -0.23 -0.01 0.22

2019 13.57 13.01 -0.56 321 -0.26 -0.01 0.25

2020 13.82 13.03 -0.79 315 -0.33 -0.01 0.31

2021 14.05 13.06 -1.00 307 -0.40 -0.01 0.39

2022 14.26 13.08 -1.18 300 -0.49 -0.01 0.48

2023 14.44 13.09 -1.35 292 -0.59 -0.01 0.58

2024 14.60 13.11 -1.49 283 -0.69 -0.01 0.68

2025 14.74 13.12 -1.62 274 -0.80 -0.01 0.79

2026 14.79 13.13 -1.65 266 -0.97 -0.01 0.96

2027 14.84 13.14 -1.69 258 -1.12 -0.01 1.10

2028 14.89 13.15 -1.74 249 -1.24 -0.02 1.22

2029 14.95 13.16 -1.79 240 -1.34 -0.02 1.32

2030 14.99 13.17 -1.82 230 -1.41 -0.02 1.39

2031 15.05 13.18 -1.88 221 -1.45 -0.03 1.43

2032 15.10 13.18 -1.92 210 -1.49 -0.03 1.47

2033 15.13 13.18 -1.95 200 -1.53 -0.03 1.50

2034 15.15 13.19 -1.96 190 -1.56 -0.03 1.52

2035 15.14 13.19 -1.95 179 -1.58 -0.04 1.55

2036 15.14 13.19 -1.95 169 -1.60 -0.04 1.56

2037 15.12 13.19 -1.93 158 -1.62 -0.04 1.58

2038 15.07 13.19 -1.89 148 -1.64 -0.04 1.60

2039 15.02 13.19 -1.83 138 -1.66 -0.04 1.62

2040 14.96 13.18 -1.78 128 -1.68 -0.04 1.64

2041 14.89 13.18 -1.71 119 -1.71 -0.05 1.66

2042 14.82 13.18 -1.64 110 -1.73 -0.05 1.68

2043 14.76 13.18 -1.58 101 -1.75 -0.05 1.70

2044 14.71 13.18 -1.53 92 -1.77 -0.05 1.72

2045 14.66 13.18 -1.49 83 -1.78 -0.05 1.73

2046 14.63 13.17 -1.46 74 -1.78 -0.05 1.73

2047 14.61 13.17 -1.43 66 -1.79 -0.05 1.74

2048 14.58 13.17 -1.40 57 -1.80 -0.05 1.75

2049 14.55 13.17 -1.37 48 -1.81 -0.05 1.75

2050 14.52 13.17 -1.35 40 -1.81 -0.05 1.76

2051 14.49 13.17 -1.32 31 -1.83 -0.05 1.78

2052 14.48 13.17 -1.31 23 -1.84 -0.05 1.79

2053 14.48 13.18 -1.31 14 -1.85 -0.05 1.79

2054 14.50 13.18 -1.32 6 -1.85 -0.05 1.80

2055 14.52 13.18 -1.34 ---- -1.85 -0.05 1.80

2056 14.55 13.18 -1.37 ---- -1.84 -0.05 1.79

2057 14.58 13.18 -1.40 ---- -1.84 -0.05 1.79

2058 14.61 13.19 -1.42 ---- -1.83 -0.05 1.78

2059 14.63 13.19 -1.44 ---- -1.83 -0.05 1.78

2060 14.65 13.19 -1.46 ---- -1.83 -0.05 1.78

2061 14.68 13.19 -1.49 ---- -1.83 -0.05 1.78

2062 14.70 13.19 -1.51 ---- -1.83 -0.05 1.78

2063 14.73 13.19 -1.53 ---- -1.83 -0.05 1.78

2064 14.75 13.20 -1.55 ---- -1.84 -0.05 1.78

2065 14.77 13.20 -1.58 ---- -1.84 -0.06 1.79

2066 14.81 13.20 -1.60 ---- -1.85 -0.06 1.79

2067 14.84 13.20 -1.63 ---- -1.85 -0.06 1.79

2068 14.87 13.20 -1.66 ---- -1.86 -0.06 1.80

2069 14.90 13.21 -1.70 ---- -1.86 -0.06 1.80

2070 14.94 13.21 -1.73 ---- -1.87 -0.06 1.81

2071 14.97 13.21 -1.76 ---- -1.88 -0.06 1.82

2072 15.00 13.21 -1.79 ---- -1.89 -0.06 1.83

2073 15.04 13.22 -1.82 ---- -1.90 -0.06 1.84

2074 15.08 13.22 -1.86 ---- -1.90 -0.06 1.84

2075 15.12 13.22 -1.89 ---- -1.91 -0.06 1.85

2076 15.16 13.23 -1.93 ---- -1.91 -0.06 1.85

2077 15.20 13.23 -1.97 ---- -1.92 -0.06 1.86

2078 15.24 13.23 -2.01 ---- -1.92 -0.06 1.86

2079 15.28 13.23 -2.04 ---- -1.93 -0.06 1.87

2080 15.32 13.24 -2.08 ---- -1.93 -0.06 1.87

2081 15.36 13.24 -2.12 ---- -1.94 -0.06 1.88

2082 15.39 13.24 -2.15 ---- -1.94 -0.06 1.88

2083 15.43 13.24 -2.19 ---- -1.95 -0.06 1.89

2084 15.47 13.25 -2.23 ---- -1.95 -0.06 1.89

2085 15.51 13.25 -2.26 ---- -1.96 -0.06 1.90

Cost Rate Income Rate

Actuarial 

Balance

Change in 

Cost rate

Change in 

Income Rate

Change in 

Actuarial

Balance

14.61% 13.97% -0.64% 2054 -1.32% -0.04% 1.28%

1 Under present law the year of exhaustion is 2037

Table 3 - OASDI Cost Rate, Income Rate, Annual Balance, and Trust Fund Ratio

Proposal

Expressed as a percentage of present-law

taxable payroll Trust Fund

Ratio

1-1-year

Expressed as a percentage of present-law

taxable payroll

Change in Present Law

Hutchinson Option 3: Increase the NRA to 69 and the EEA to 64 by 2025, and use the chained CPI-W for annual COLA starting December 2011 

Year of 

Exhaustion1

Summarized Rates: OASDI

Based on Intermediate Assumptions of the 2010 Trustees Report

April 14, 2011

Summarized Rates: OASDI

2010 - 2084

Office of the Chief Actuary

Social Security Administration