| Provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Estimated Change inLong-Range OASDI Actuarial Balance 1/(as a percent of payroll) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Raise the normal retirement age by two months per year for those age 62 through 2011, then increase by one month every two years thereafter                                                                                                                                                                                                                                                                                                                                                                                                 | 0.64                                                                              |
| Provide a third bend point in 2004 with a factor declining 2 percentage points per year until reaching 5 percent in 2009; index the second and third bend points by the CPI, and gradually phase down the 32, 15 and 5 percent factors.  Limit reduction for older OASI workers and near term survivor benefits.  Provide for no change from present law for lower-earner disability cases and a minimum benefit for higher-earner disability cases                                                                                         | 3.12                                                                              |
| Reimburse the DI Trust Fund annually for additional payments resulting from guaranteeing present-law benefits for lower earner disabled workers and a specified minimum benefit for higher-earner disabled workers                                                                                                                                                                                                                                                                                                                          | 0.10                                                                              |
| Transfer the following amounts from the Treasury to the OASDI Trust Funds in fiscal years 2007-2013:  $21 billion in 2007, $47 billion in 2008, $78 billion in 2009, $106 billion in 2010, $147 billion in 2011, $184 billion in 2012, and $283 billion in 2013                                                                                                                                                                                                                                                                             | 0.26                                                                              |
| Beginning in 2005, cover state and local government employees newly hired in 2004 or later                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 0.20                                                                              |
| Increase benefit payable to all widowed individuals by 10 percent beginning in 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                         | -0.31                                                                             |
| Set the delayed retirement credit to 8 percent for all months after 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2/                                                                                |
| Provide up to 5 child care dropout years for workers with no earnings who are living with a child under age 13--effective for computation base years after 2004                                                                                                                                                                                                                                                                                                                                                                             | -0.08                                                                             |
| Beginning in 2003, eliminate the family maximum for disabled children aged 18 or older                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -0.01                                                                             |
| Subtotal, benefit provisions (including interaction)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 3.80                                                                              |
| Establish personal retirement savings accounts and specific General Fund transfers:Redirect 2.5 percentage points of taxable payroll in 2005-25, 2.75 percentage points in 2026-2038. After 2038, redirect OASDI income in excess of the amount needed to cover annual program costs and maintain a minimal contingency reserve in the trust funds (15% trust fund ratio)

Reduce OASI benefit levels by the value of PRSA contributions accumulated at an assumed annual rate of the yield on trust fund assets plus 0.7 percentage points | -1.42                                                                             |
| Total for proposal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2.38                                                                              |
| Note:  All estimates are based on the intermediate assumptions of the 2003 OASDI Trustees Report. 1/ Totals for individual provisions exclude interaction.2/ Decrease in actuarial balance that is negligible, i.e., less then 0.005 percent of taxable payroll.                                                                                                                                                                                                                                                                            |                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Social Security AdministrationOffice of the Chief ActuarySeptember 10, 2003       |

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