SOCIAL SECURITY

MEMORANDUM

Date: December 13, 2001 Refer To: TCA

To: Representative Clay Shaw, Chairman

Subcommittee on Social Security

From: Stephen C. Goss, Chief Actuary

Alice H. Wade, Deputy Chief Actuary

Subject: OASDI Financial Effects of the "Social Security Guarantee Plus Plan"--INFORMATION

This memorandum provides long-range estimates of the financial effects on the Social Security 

(OASDI) program for enactment of the “Social Security Guarantee Plus Plan” as it has been 

described to us by Kim Hildred and Sophia Wright of your staff. This plan would provide for 

an annual contribution from the General Fund of the Treasury to Social Security Guarantee 

(SSG) Accounts equal to between 2 and 3 percent of each worker’s OASDI taxable earnings 

beginning with earnings in 2002. Participation in the accounts would be voluntary. However, 

participation is assumed to be universal for estimates presented here because all participants 

would be guaranteed to receive total monthly payments that are at least as large as the Social 

Security benefit amount payable for a non-participant, plus a lump sum payment at initial 

benefit entitlement equal to 5 percent of the account balance at that time. 

Proceeds from these accounts (less the 5-percent lump sum payment) would, commencing at 

the worker’s retirement (or disability), be transferred to the OASDI trust funds on a gradual 

basis. Benefits paid by the OASDI program would be the higher of benefits scheduled under 

current law and the scheduled SSG withdrawal rate based on a CPI-indexed, unisex lifeannuity calculation. The life-annuity calculation would be on a joint-and-survivor basis for 

married workers.

For workers who die before OASDI benefit entitlement, the SSG Account balance would go to 

the worker’s estate, tax free. For workers who die after OASDI benefit entitlement and are 

survived by their current spouse, the SSG withdrawal rate is adjusted to reflect the survivor 

portion of the annuity calculation. For workers who die after OASDI benefit entitlement and 

were not married at death, the remaining SSG Account balance is transferred to the OASI trust 

fund.

If the projected financing of the OASDI program at some future date indicates a sustained 

surplus and a growing ratio of OASDI trust fund assets to net program cost, then the Managing 

Trustee would be required to make recommendations to the Congress indicating the extent to 

which the Trust Funds are expected to be able to finance part or all of the contributions to the 

SSG Accounts, in lieu of financing from the General Fund of the Treasury. The Congress 
2

would decide whether or not to act on such recommendations. The proposal would also include 

a number of specific changes in OASDI benefits, including the gradual elimination of the 

Social Security retirement earnings test for beneficiaries age 62 and older between 2002 and 

2007.

Enactment of this proposal, as specified, would be expected to eliminate the estimated longrange OASDI actuarial deficit (1.86 percent of taxable payroll under present law) based on 

“intermediate” assumptions described below. Under these assumptions, revenue transferred 

from the SSG Accounts to the trust funds would be expected to be sufficient to allow a 

reduction in the combined OASDI payroll tax rate of 0.4 percentage point in 2035 (from 12.4 

to 12.0 percent) and further reductions thereafter, reaching a level equal to the cost of SSG 

Account contributions by 2060. However, the financial status of the OASDI program would be 

very sensitive to the actual yields realized on SSG Accounts, particularly yields on equities (see 

sensitivity analysis below). 

All estimates assume elimination of the OASDI retirement earnings test for ages 62 and older, 

gradually between 2002 and 2007. (This change has a very small effect on the long-range 

financial status of the OASDI program.) All estimates in this memorandum are based on the 

intermediate assumptions of the 2001 Trustees Report, except as indicated below.

The Proposal: SSG Accounts

Contributions and Investment Up To Benefit Entitlement

The proposal would provide Social Security covered workers with refundable tax credits 

equivalent to 3 percent of their OASDI taxable earnings up to 21 percent of the OASDI taxable 

maximum amount, and 2 percent of taxable earnings above that level, starting with earnings for 

calendar year 2002. Credits would be increased with interest from July 1 of the year of taxable 

earnings, at the market yield provided for securities newly issued to the OASI and DI Trust 

Funds, until paid. Credits would be paid from the General Fund of the Treasury as soon as 

practicable in the following calendar year (expected to be by October 15 for wages and salaries 

and by December 1 for self-employment earnings) for the sole purpose of deposit in a SSG 

Account. 

Accounts would be established as soon as is practicable. For the purpose of these estimates it is 

assumed that accounts would be established by the end of 2003. Delay to 2004 would not 

materially affect the results. Account balances would be collectively invested in qualified 

mutual funds, managed by certified account managers under contract with and regulation by the 

Social Security Guarantee (SSG) Board. The Board would consist of the six individuals with 

staggered 9-year appointments.

Individuals would be required to hold all SSG Account assets in a single fund and could change 

funds at most once per year. Annual SSGP credits would be pooled and transmitted to the 

mutual fund managers under regulations prescribed by the Treasury in consultation with the 

SSG Board. Account holders would receive annual notice of assets, investment performance, 

and administrative costs in their Social Security statements.
3

The proposal requires that all account balances be invested in qualified mutual funds 

maintained with a portfolio allocation of 60 percent stock index funds and 40 percent highgrade corporate bond index funds. The charge for annual administrative expenses would be 

limited to 25 basis points after the first 5 years of operation. Allowance for administrative 

expense approved by the Board in excess of 25 basis points would be made for the first 5 years 

(2003-7) and would be payable from the General Fund of the Treasury. Withdrawals prior to 

reaching retirement (or disability) would not be permitted.

Upon divorce before benefit entitlement from a marriage that lasted 1 year or longer, the 

amounts attributable to contributions during the marriage (including earnings on those 

contributions) in each spouse’s SSG Account would be reallocated evenly between the SSG 

Accounts of the spouses.

SSG Account Distributions

Under the plan, workers would receive 5 percent of the account balance as a lump sum 

payment upon benefit entitlement. The remainder of the SSG Account balance for workers 

who become entitled to OASDI retirement or disability benefits would gradually be transferred 

to the OASDI trust funds. Upon entitlement for Social Security retirement or disability benefits, 

the Social Security Administration would compute the monthly payment that could be provided 

from a life annuity purchased with the holdings in the SSG Account remaining after the lump 

sum payment. The annuity calculation would reflect the anticipated yield on the SSG account 

(60 percent stock and 40 percent corporate bonds, less 25 basis points for administration) and 

indexing of annuity payments for price inflation (as for the Social Security COLA). The 

annuity calculation would also roughly reflect the expected payment of aged spouse and aged 

survivor benefits if the worker has a current spouse, by using a joint annuity with two-thirds of 

the base payment continuing for either spouse as a survivor. 

If the computed monthly annuity amount exceeds the level of current law scheduled OASDI 

benefits, then the Social Security Administration would guarantee payment from the trust funds 

of the computed annuity amount for life. If the computed annuity amount is less than the level 

of the OASDI benefit, then the OASDI benefit would be payable for life. Each month after 

benefit entitlement the computed annuity amount based on entitlement of the worker and any 

aged spouse(s) would be transferred from the SSG Account to the OASDI trust funds.

Because the computed annuity amount is based on a life annuity calculation, the SSG Account 

would be expected to be depleted at the point where the beneficiary(ies) reach their life 

expectancy, as estimated at the time of benefit entitlement. Thus, for about half of the SSG 

Accounts, benefits will be payable after exhaustion of the SSG Account entirely at the expense 

of the OASDI trust funds. For the other half, death before life expectancy will leave remaining 

SSG balances that are transferred to the Trust Funds (to assist in the payment of benefits to 

those who live beyond life expectancy). 

For married workers who die after becoming entitled to OASDI retirement or disability 

benefits, SSG Account withdrawals will continue to be paid to the OASI Trust Fund in the 
4

amount of the survivor portion of the annuity calculation. When an unmarried person dies after 

benefit entitlement, the remaining balance in the SSG Account is transferred to the OASI Trust 

Fund. 

For workers who die before becoming entitled to OASDI retirement or disability benefits, the 

SSG Account balance is transferred to the estate of the deceased worker.

Taxation of SSG Accounts and Distributions

All yields on account balances would accumulate tax free. Annuitized distributions would be 

transferred to the Trust Funds to finance the payment of OASDI benefits that would be taxable 

as under current law. Lump sum distributions at benefit entitlement will be taxed as OASDI 

benefits. However, the percentage of the lump sum to be included as taxable will be equal to 

the percentage of OASDI monthly benefits for the year that are included in taxable income 

without including the lump sum payment in the calculation. Distributions of account balances 

to the estates of workers who die before benefit entitlement would not be taxable as benefits, 

nor would they be subject to estate tax. 

The Proposal: Additional Changes to OASDI Benefits

1) Widow(er) option for 75 Percent of Couple Benefit

Aged surviving spouses would have the ability to receive 75 percent of the benefit that the 

couple would have been receiving if both were still alive, if advantageous. The benefit under 

this option is limited to the benefit that would be payable to the survivor as a retired worker, 

reflecting the average PIA for all retired worker beneficiaries in the year prior to entitlement to 

the option, and subject to actuarial reduction as a retired worker (based on the survivor’s age at 

earliest entitlement to a worker or aged spouse or surviving spouse benefit, but not before 62). 

This option is effective for all benefit entitlement for months beginning with December of the 

calendar year of enactment which are generally payable in the following month. 

Implementation of this provision alone would increase the size of the OASDI actuarial deficit 

by an amount estimated at 0.09 percent of taxable payroll.

2) Extend Benefits to Disabled Surviving Spouses Who are Under Age 50

For benefit entitlement for months beginning with December of the calendar year of enactment, 

allow disabled widows of any age to be eligible for disabled surviving spouse benefits. 

Remarriage before age 50 would terminate eligibility for the disabled surviving spouse benefit. 

Implementation of this provision alone would increase the size of the OASDI actuarial deficit 

by a negligible amount (i.e., less than 0.005 percent of taxable payroll).

3) Eliminate the 7-Year Limitation for Disabled Surviving Spouses

For benefit entitlement for months beginning with December of the calendar year of enactment, 

eliminate the requirement for disabled widow(er) benefits that disability must occur no later 

than 7 years after the worker’s death, or after surviving spouse with child-in-care benefits were 
5

payable. Implementation of this provision alone would increase the size of the OASDI actuarial 

deficit by a negligible amount (i.e., less than 0.005 percent of taxable payroll).

4) Waive the Two-Year Duration of Divorce Requirement

For benefit entitlement for months beginning with December of the calendar year of enactment, 

waive the two-year duration of divorce requirement for divorced spouse benefit recipients, in 

cases where the worker remarries someone other than the claimant before the two-year period 

has elapsed. Implementation of this provision alone would increase the size of the OASDI 

actuarial deficit by a negligible amount (i.e., less than 0.005 percent of taxable payroll).

5) Provide Child-Care Credits

For benefit entitlement for months beginning with December of the calendar year of enactment, 

provide child-care credits for up to 5 years during which the worker was living with and 

providing care to his/her own child (or spouse's child) under the age of 7. The child-care credit 

would raise reported earnings for a qualifying year up to 25 percent of the AIME that would 

have been determined if the worker had become entitled for disabled worker benefits in January 

of the qualifying year. Child-care credits would not be used to establish insured status not 

already earned by the worker through actual earnings in covered employment. Implementation 

of this provision alone would increase the size of the OASDI actuarial deficit by an amount 

estimated at 0.06 percent of taxable payroll.

6) Reduce Government Pension Offset 

The present-law GPO provision reduces OASDI auxiliary benefits for spouses and surviving 

spouses by two-thirds of any non-covered government pension that they receive. For benefit 

entitlement for months beginning with December of the calendar year of enactment, this 

provision would change this reduction to one-third of any non-covered government pension. 

Implementation of this provision alone would increase the size of the OASDI actuarial deficit 

by an amount estimated at 0.02 percent of taxable payroll.

7)Earnings Test Elimination at Age 62+

The Social Security retirement earnings test annual exempt amounts would be raised according 

to a specified schedule through 2006, and the test would be eliminated starting 2007 for all 

beneficiaries age 62 or older. For beneficiaries under age 62, the current test would remain 

unchanged. The exempt amounts would be specified for the test applicable at ages 62 up to the 

year of attainment of NRA as $15,000, $20,000, $25,000, $30,000, and $35,000, for years 2002 

through 2006, respectively. This provision alone would have a negligible effect, increasing the 

estimated size of the present law OASDI actuarial deficit by less than 0.005 percent of taxable 

payroll.
6

Assumptions

All workers with OASDI taxable earnings for 2002 and later are assumed to participate in the 

SSGP plan. By participating every worker would be guaranteed to receive more than if they 

did not participate on the basis of one or more of the following: a lump sum payment of 

5 percent of the account balance is payable upon benefit entitlement, the entire account balance 

goes to the estate at death before benefit entitlement, and in some cases the annuity calculation 

will produce monthly payments that are greater than the OASDI benefit that would otherwise 

be payable.

SSG Account Accumulation

SSG Account portfolios are required to be invested, both prior to retirement (or disability) 

benefit entitlement and after benefit entitlement in qualified SSG funds that must be maintained 

at 60 percent equity index funds and 40 percent in high-grade corporate bond index funds, with 

an annual administrative expense charge of 25 basis points. 

The long-term ultimate average real yield on stock investments made in the future is assumed 

to be 6.5 percent, somewhat less than the 7-percent real yield that was assumed for the 1994-96 

Advisory Council. This reduction in expected average yield is consistent with both (1) a 

growing consensus among economists that the market may value equities at somewhat higher 

average price-to-earnings ratios in the future based on broader access and a reduction in the 

perceived level of risk, and (2) the Trustees’ increase in the assumed real yield on treasury 

bonds from the level assumed in 1995.

The ultimate real yield on long-term high-grade corporate bonds is assumed to average 3.5 

percent, or 0.5 percentage point higher than the 3.0 percent real yield for U.S. Government 

long-term securities, as assumed for the 2001 Trustees Report. This spread between corporate 

and U.S. Government bond yields is consistent with the spread experienced over the past 40 or 

70 years, on average. It should be noted, however, the spread has been much smaller over the 

past 20 years. The expected ultimate real portfolio yield for the base projection (alternative 1) 

would thus be 5.05 percent, net of administrative expense, 

(0.6*6.5% + 0.4*3.5% - 0.25% = 5.05). 

Due to the large degree of uncertainty associated with future returns on stock, sensitivity 

analysis provided below illustrates the effect of varying the yield on the SSG Account by plus 

and minus one percentage point. An illustration assuming that SSG Accounts achieve a yield 

no better than expected for government bonds is also included.

A range of administrative expense factors was assumed for individual accounts proposed by the 

1994-96 Advisory Council on Social Security. For the Individual Account (IA) plan, 

individual contributions were assumed to be collected and recorded by central institution, 

invested in large blocks with financial institutions, and invested in a limited number of indexed 
7

funds. Based on experience of TIAA and the Federal Employee Thrift Savings Plan (TSP) it 

was assumed that the IA plan could be administered with an expense of 10.5 basis points per 

year. For the Personal Security Accounts (PSAs), individual accounts were assumed to be 

invested on an individual basis, resulting in an annual administrative expense of 100 basis 

points. Because the description of SSG individual accounts is far closer to the individual 

accounts for the IA plan than to the individual accounts for the PSA plan, the specified 

administrative-expense limitation of 25 basis points for SSG Accounts appears to be 

reasonable. 

Distribution of SSG Accounts

Upon the death of an individual who has not yet become entitled for OASDI benefits, the SSG 

Account goes to the estate of the deceased tax free. If an individual reaches normal retirement 

age and is not eligible for any OASI benefit, the SSG Account balance is payable to the 

individual. Upon benefit entitlement, the worker receives a lump sum payment of 5 percent of 

the SSG Account balance at entitlement. The balance of this section describes how the 

remainder of the account is distributed after benefit entitlement.

Life annuity calculations for the purpose of determining the size of monthly transfers from SSG 

balances to the OASDI trust funds assume a real yield equal to the net expected real yield on 

SSG Accounts, as specified. Mortality estimates for these calculations are based on the 

intermediate projections of the 2001 Trustees Report. 

Annuity calculations at the time of future benefit entitlements are assumed to be made on a 

unisex basis for workers with no spouse at the time of benefit entitlement. For those with a 

spouse at entitlement, annuity calculations would be on a joint and survivor basis intended to 

roughly match the expected payment of OASDI benefits. For the purpose of these calculations, 

a joint and 2/3 survivor annuity is assumed. Thus, the amounts transferred to OASDI from the 

SSG Account of a married beneficiary would be reduced by 1/3 upon the death of either the 

worker or the spouse.

With the yields assumed for these estimates, expected transfers from SSG Accounts after 

benefit entitlement would generally be less than expected OASDI monthly benefits. However, 

single workers with very high earnings, close to or above the OASDI maximum taxable amount 

throughout their careers would have transfers from their SSG Accounts greater than current law 

benefits if the investment return during their working years exceeded the assumed long-range 

average return used for these estimates. High-earning married workers would be far less likely 

to have transfers that exceed current-law benefits because the joint-and-survivor annuity 

calculation would provide lower transfers than for single workers, and current law OASDI 

benefits for married workers would tend to be higher. Estimates for this proposal take into 

account the likely variability in account returns.

Estimated Effect On OASDI Financing

The combined effect of the seven additional changes to OASDI benefits listed above would 

reduce (worsen) of the OASDI actuarial balance by about 0.18 percent of taxable payroll, from 
8

a balance of –1.86 percent of payroll under current law to an actuarial balance of -2.04 percent 

of payroll. 

However, the expected effects of the reduction in benefit payments that must be met from 

current payroll tax contributions as a result of the payments from the SSG Accounts to the 

Trust Funds, the overall financial status of the OASDI program would be improved greatly 

under this plan. 

The balance of this section presents estimates for this plan under assumptions for expected 

future yield on SSG Accounts as well as sensitivity analysis for a range of possible variation in 

yields. The table below provides the estimated OASDI actuarial balance, the change in the 

actuarial balance for the SSGP Plan as described above. 

Estimated Effects on OASDI Financial Status of 

the Social Security Guarantee Plus (SSGP) Plan

Estimated Year

 Estimated Change in Exhaust

 OASDI OASDI OASDI

 Actuarial Actuarial Trust 

Balance Balance Funds

 (percent of taxable payroll)

Present Law (No SSGP) -1.86 -- 2038

(1)SSGP Plan with Full Payroll Tax for OASDI 

60% Stock, 40% Corp Bond 

Assess only 0.25% Admin Cost +0.63 2.49 NA

(2)SSGP Plan With Potential Financing of 

SSG Contributions from Payroll Tax 1/ 

60% Stock, 40% Corp Bond 

Assess only .25% Admin Cost +0.04 1.91 NA

1/ SSG contributions would be financed totally from the payroll tax starting 2060.

Based on intermediate assumptions of the 2001 Trustees Report and other assumptions 

described in the text.

Under the SSGP Plan with full payroll taxes retained for the OASDI program (Table 1), the

OASDI actuarial balance would be improved by 2.49 percent of effective taxable payroll, from 

a balance of –1.86 percent under current law to a balance of 0.63 percent of payroll under the 

plan. The OASDI trust fund as a percent of annual OASDI outgo (the trust fund ratio) would 

be expected to remain positive throughout the long-range 75-year projection period, thus 

allowing timely payment of benefits in full through 2075, and beyond. The trust fund ratio 

would be expected to decline to about 147 percent at the beginning of 2043, and to increase 

thereafter, reaching over 950 percent by the end of 2075. 
9

The table above also includes an illustration of the potential financial effect of the SSGP Plan 

on Social Security if the SSG contributions are partially financed from the payroll tax during 

the period 2035-2059 and fully financed from the payroll tax beginning 2060. The payroll tax 

that is redirected from directly financing OASDI to financing SSG contributions is expected to 

be 0.4 percentage point in 2035-2039 and to increase thereafter reaching about 2.47 percentage 

points (reflecting the entire 2-3 percent contribution rate) by 2060. Under this illustration, the 

OASDI actuarial balance would be improved by 1.91 percent of taxable payroll, from a balance 

of –1.86 percent under current law to a positive balance of 0.04 percent of payroll. The OASDI 

trust fund ratio would be expected to rise to about 1.6 times annual outgo by the end of the 

long-range period.

Sensitivity to SSG Account Investment Yields

The effect of the SSGP Plan on the financial status of the OASDI program would depend 

greatly on the actual yield that is achieved for investments in the SSG Accounts. Returns on all 

investments are uncertain, and returns on stocks are particularly variable and uncertain over 

time. For this reason it is important to consider the sensitivity of the financial status of the 

OASDI program to possible variation in expected investment yield. Note that the 2001 Trustees 

Report provides this sensitivity analysis for the OASDI program under current law on pages 

132 through 141.

The table below provides the estimated OASDI actuarial balance, the change in the actuarial 

balance, and the estimated year of combined OASDI trust fund exhaustion for the SSGP Plan 

with three different SSG Account yield assumptions in order to illustrate the sensitivity of the 

proposal to possible variation in the ultimate average returns on stock and corporate bonds. 

Under sensitivity illustration 3, the average yield on SSG Accounts is assumed to be 1 

percentage point higher than expected for the accounts invested in 60 percent stock and 40 

percent corporate bonds. Under this illustration, the OASDI trust fund ratio would be expected 

to reach a low of about 220 percent at the beginning of 2038, and to increase substantially 

thereafter. OASDI would be substantially overfinanced and the SSG Account contributions 

could be paid entirely from the payroll tax rate as early as 2050.

Under sensitivity illustration 4, the average yield on SSG Accounts is assumed to be 

1 percentage point lower than expected for the accounts invested in 60 percent stock and 40 

percent corporate bonds. Under this illustration, the OASDI trust fund ratio would be expected 

to reach a low of only 18 percent around 2060, and would be expected to rise slowly thereafter, 

reaching about 37 percent by the end of the 75 year period. The OASDI actuarial balance 

would be improved by about 1.81 percent of taxable payroll under this assumption, leaving an 

actuarial deficit of only 0.06 percent of payroll.
10

Sensitivity Analysis: Effect of Variation in Expected SSG Account 

Investment Yield Rates on OASDI Financial Status

Estimated Year

 Estimated Change in Exhaust

 OASDI OASDI OASDI

 Actuarial Actuarial Trust 

Balance Balance Funds

 (percent of taxable payroll)

Present Law (No SSGP) -1.86 -- 2038

(3) SSGP Plan with 1% Higher 

Than Expected Yield 1/ 

6.05% average net yield +1.47 3.34 NA

(4) SSGP Plan with 1% Lower

Than Expected Yield 

4.05% average net yield -0.06 1.81 NA

(5) SSGP Plan with Yield Equal 

to Expected Yield on Government Bonds 

2.75% average net yield -0.68 1.18 2043

1/ No payroll tax rate reduction.

Based on intermediate assumptions of the 2001 Trustees Report and other assumptions 

described in the text.

Under sensitivity illustration 5, the average yield on SSG Accounts is assumed to be only 2.75 

percent above price inflation (the rate for government bonds less 25 basis points for 

administrative expense). Under this illustration, the OASDI trust fund ratio would be expected 

to become exhausted in 2043, or 5 years later than projected to occur under current law. The 

OASDI actuarial balance would be improved by about 1.18 percent of taxable payroll under 

this assumption, leaving an actuarial deficit of 0.68 percent of payroll.

Annual Estimates of SSG Fund Operations and Estimated Effects on the Unified Budget 

Balance

Tables 1b and 2b, attached, provide estimates of aggregate SSG Account balances, total 

contributions to and transfers from SSG accounts, and rough estimates of the effects of the 

additional changes to OASDI program benefits.

A very rough estimate of the effects of the SSG Plan on the annual Federal unified budget 

balance for calendar years 2003 and later is also provided. 

These estimates are based completely on the intermediate assumptions of the 2001 Trustees 

Report, including the trust-fund interest assumption, and thus are not consistent with 
11

projections made by CBO and OMB (which use different assumptions). However, differences 

in payroll and benefit estimates are not large during the first 10 projection years so these values 

can be viewed as very rough approximations of the magnitude of effects on the unified budget 

balances through this period. 

Under the SSGP plan with the expected yield on the specified account portfolio, amounts 

transferred from the SSG Accounts to the OASDI trust funds would at first be small, but would 

exceed contributions to the SSG Accounts from the General Fund of the Treasury by about 

2036. Including the relatively small effects of the elimination of the additional benefit changes, 

the estimated change in the unified budget “cash flow” (excluding interest effects) would also 

be negative until 2037. 

Including the cumulative effects of interest, the year in which the effect of the SSGP plan on 

the unified budget annual balance would be expected to become permanently positive is 2060 if 

the full payroll tax is retained for OASDI (table 1b). If the SSG contributions are financed with 

payroll tax revenue, partially beginning in 2035, and fully in 2060 and later (table 2b), the 

effect on the unified budget is essentially the same as shown in table 1b, where the full payroll 

tax is retained for OASDI. This results because retaining the full payroll tax (12.4 percent) for 

OASDI has the essentially same effect on the unified budget as does redirecting a portion of the 

payroll tax to the General Fund of the Treasury for the purpose of financing SSG contributions.

Stephen C. Goss 

Alice H. Wade

Attachments
Table 1 a SSGP Plan of 2001--IA Contrib from General Fund Indefinitely IA Cntrb 2.468 %, SSG Transfer Rate 95%

IA to Estate With Ult Real TF Int Rate of 3.0

at Death Before With Ult Real IA Yld Rate of 5.05 Change SSG

Entitlement With Annuity Net Yld Rate 5.05 in OASDI Payroll Tax Contrib Total SSG

Cost Income Annual TFR Contrib for Trust from Contrib Rate

Year Rate* Rate Balance 1-1-yr Rate Funds TrustFnd (Earns yr-1)

2001 10.49 12.72 2.23 239 12.40 0

2002 10.42 12.72 2.30 264 12.40 0

2003 10.63 12.73 2.10 284 12.40 2.47

2004 10.72 12.75 2.03 304 12.40 2.47

2005 10.83 12.76 1.93 323 12.40 2.47

2006 10.93 12.77 1.84 341 12.40 2.47

2007 11.07 12.78 1.71 357 12.40 2.47

2008 11.19 12.79 1.60 373 12.40 2.47

2009 11.36 12.80 1.44 385 12.40 2.47

2010 11.56 12.82 1.26 396 12.40 2.47

2011 11.75 12.82 1.07 404 12.40 2.47

2012 11.99 12.83 0.84 410 12.40 2.47

2013 12.26 12.84 0.58 413 12.40 2.47

2014 12.55 12.85 0.31 414 12.40 2.47

2015 12.85 12.86 0.02 413 12.40 2.47

2016 13.15 12.87 -0.27 410 12.40 2.47

2017 13.46 12.89 -0.57 405 12.40 2.47

2018 13.77 12.90 -0.87 398 12.40 2.47

2019 14.08 12.91 -1.17 390 12.40 2.47

2020 14.37 12.92 -1.45 380 12.40 2.47

2021 14.64 12.94 -1.69 370 12.40 2.47

2022 14.88 12.96 -1.92 359 12.40 2.47

2023 15.10 12.98 -2.12 347 12.40 2.47

2024 15.29 13.00 -2.30 335 12.40 2.47

2025 15.47 13.01 -2.45 322 12.40 2.47

2026 15.61 13.03 -2.58 309 12.40 2.47

2027 15.73 13.05 -2.68 296 12.40 2.47

2028 15.82 13.06 -2.76 282 12.40 2.47

2029 15.87 13.08 -2.79 269 12.40 2.47

2030 15.89 13.09 -2.79 255 12.40 2.47

2031 15.88 13.11 -2.77 242 12.40 2.47

2032 15.85 13.12 -2.73 230 12.40 2.47

2033 15.78 13.13 -2.65 217 12.40 2.47

2034 15.67 13.14 -2.53 205 12.40 2.47

2035 15.53 13.15 -2.38 194 12.40 2.47

2036 15.36 13.15 -2.21 184 12.40 2.47

2037 15.18 13.16 -2.02 175 12.40 2.47

2038 14.97 13.17 -1.81 167 12.40 2.47

2039 14.75 13.17 -1.58 160 12.40 2.47

2040 14.51 13.17 -1.33 155 12.40 2.47

2041 14.27 13.18 -1.09 150 12.40 2.47

2042 14.03 13.18 -0.84 148 12.40 2.47

2043 13.79 13.19 -0.60 147 12.40 2.47

2044 13.55 13.19 -0.36 147 12.40 2.47

2045 13.33 13.20 -0.13 150 12.40 2.47

2046 13.11 13.20 0.09 154 12.40 2.47

2047 12.91 13.21 0.31 159 12.40 2.47

2048 12.71 13.22 0.51 167 12.40 2.47

2049 12.52 13.22 0.71 176 12.40 2.47

2050 12.34 13.23 0.90 188 12.40 2.47

2051 12.17 13.24 1.07 201 12.40 2.47

2052 12.02 13.25 1.22 216 12.40 2.47

2053 11.89 13.26 1.37 232 12.40 2.47

2054 11.76 13.27 1.51 250 12.40 2.47

2055 11.64 13.27 1.64 270 12.40 2.47

2056 11.53 13.28 1.76 291 12.40 2.47

2057 11.43 13.29 1.87 314 12.40 2.47

2058 11.33 13.30 1.97 339 12.40 2.47

2059 11.24 13.31 2.08 365 12.40 2.47

2060 11.15 13.32 2.17 393 12.40 2.47

2061 11.07 13.33 2.26 422 12.40 2.47

2062 11.00 13.34 2.34 453 12.40 2.47

2063 10.93 13.35 2.42 485 12.40 2.47

2064 10.86 13.35 2.49 518 12.40 2.47

2065 10.81 13.36 2.55 553 12.40 2.47

2066 10.77 13.37 2.60 588 12.40 2.47

2067 10.73 13.38 2.65 625 12.40 2.47

2068 10.70 13.38 2.69 662 12.40 2.47

2069 10.68 13.39 2.71 700 12.40 2.47

2070 10.66 13.40 2.74 739 12.40 2.47

2071 10.65 13.40 2.75 778 12.40 2.47

2072 10.65 13.41 2.76 818 12.40 2.47

2073 10.66 13.41 2.75 857 12.40 2.47

2074 10.68 13.42 2.75 897 12.40 2.47

2075 10.70 13.43 2.73 937 12.40 2.47

2076 10.72 13.43 2.71 977 12.40 2.47

 Summarized

CostRt IncRt ActBal Change in

2001 OASDI OASDI OASDI ActBal

-2075 12.97 13.60 0.63 2.49

Based on Intermediate Assumptions of the 2001 Trustees Report Office of the Actuary

 With Ult Real Int Rate of 3.00 Social Security Administration

* Net of Benefit Cost Reduction from SSG Transfers December 10, 2001
Table 2 a SSGP Plan of 2001--IA Contrib from TF When Can IA Cntrb 2.468 %, SSG Transfer Rate 95%

IA to Estate With Ult Real TF Int Rate of 3.0

at Death Before With Ult Real IA Yld Rate of 5.05 Change SSG

Entitlement With Annuity Net Yld Rate 5.05 in OASDI Payroll Tax Contrib Total SSG

Cost Income Annual TFR Contrib for Trust from Contrib Rate

Year Rate* Rate Balance 1-1-yr Rate Funds TrustFnd (Earns yr-1)

2001 10.49 12.72 2.23 239 12.40 0

2002 10.42 12.72 2.30 264 12.40 0

2003 10.63 12.73 2.10 284 12.40 2.47

2004 10.72 12.75 2.03 304 12.40 2.47

2005 10.83 12.76 1.93 323 12.40 2.47

2006 10.93 12.77 1.84 341 12.40 2.47

2007 11.07 12.78 1.71 357 12.40 2.47

2008 11.19 12.79 1.60 373 12.40 2.47

2009 11.36 12.80 1.44 385 12.40 2.47

2010 11.56 12.82 1.26 396 12.40 2.47

2011 11.75 12.82 1.07 404 12.40 2.47

2012 11.99 12.83 0.84 410 12.40 2.47

2013 12.26 12.84 0.58 413 12.40 2.47

2014 12.55 12.85 0.31 414 12.40 2.47

2015 12.85 12.86 0.02 413 12.40 2.47

2016 13.15 12.87 -0.27 410 12.40 2.47

2017 13.46 12.89 -0.57 405 12.40 2.47

2018 13.77 12.90 -0.87 398 12.40 2.47

2019 14.08 12.91 -1.17 390 12.40 2.47

2020 14.37 12.92 -1.45 380 12.40 2.47

2021 14.64 12.94 -1.69 370 12.40 2.47

2022 14.88 12.96 -1.92 359 12.40 2.47

2023 15.10 12.98 -2.12 347 12.40 2.47

2024 15.29 13.00 -2.30 335 12.40 2.47

2025 15.47 13.01 -2.45 322 12.40 2.47

2026 15.61 13.03 -2.58 309 12.40 2.47

2027 15.73 13.05 -2.68 296 12.40 2.47

2028 15.82 13.06 -2.76 282 12.40 2.47

2029 15.87 13.08 -2.79 269 12.40 2.47

2030 15.89 13.09 -2.79 255 12.40 2.47

2031 15.88 13.11 -2.77 242 12.40 2.47

2032 15.85 13.12 -2.73 230 12.40 2.47

2033 15.78 13.13 -2.65 217 12.40 2.47

2034 15.67 13.14 -2.53 205 12.40 2.47

2035 15.53 12.75 -2.78 194 -0.40 12.00 0.40 2.47

2036 15.36 12.75 -2.61 182 0.00 12.00 0.40 2.47

2037 15.18 12.76 -2.42 170 0.00 12.00 0.40 2.47

2038 14.97 12.77 -2.21 159 0.00 12.00 0.40 2.47

2039 14.75 12.77 -1.98 149 0.00 12.00 0.40 2.47

2040 14.51 12.67 -1.83 140 -0.10 11.90 0.50 2.47

2041 14.27 12.68 -1.59 132 0.00 11.90 0.50 2.47

2042 14.03 12.68 -1.34 126 0.00 11.90 0.50 2.47

2043 13.79 12.69 -1.10 120 0.00 11.90 0.50 2.47

2044 13.55 12.69 -0.86 116 0.00 11.90 0.50 2.47

2045 13.33 12.20 -1.13 114 -0.50 11.40 1.00 2.47

2046 13.11 12.20 -0.91 109 0.00 11.40 1.00 2.47

2047 12.91 12.21 -0.69 106 0.00 11.40 1.00 2.47

2048 12.71 12.22 -0.49 104 0.00 11.40 1.00 2.47

2049 12.52 12.22 -0.29 103 0.00 11.40 1.00 2.47

2050 12.34 11.73 -0.60 104 -0.50 10.90 1.50 2.47

2051 12.17 11.74 -0.43 102 0.00 10.90 1.50 2.47

2052 12.02 11.75 -0.28 102 0.00 10.90 1.50 2.47

2053 11.89 11.76 -0.13 102 0.00 10.90 1.50 2.47

2054 11.76 11.77 0.01 104 0.00 10.90 1.50 2.47

2055 11.64 11.07 -0.56 107 -0.70 10.20 2.20 2.47

2056 11.53 11.08 -0.44 105 0.00 10.20 2.20 2.47

2057 11.43 11.09 -0.33 104 0.00 10.20 2.20 2.47

2058 11.33 11.10 -0.23 103 0.00 10.20 2.20 2.47

2059 11.24 11.11 -0.12 104 0.00 10.20 2.20 2.47

2060 11.15 10.85 -0.30 105 -0.27 9.93 2.47 2.47

2061 11.07 10.86 -0.21 105 0.00 9.93 2.47 2.47

2062 11.00 10.87 -0.13 106 0.00 9.93 2.47 2.47

2063 10.93 10.88 -0.05 107 0.00 9.93 2.47 2.47

2064 10.86 10.89 0.02 109 0.00 9.93 2.47 2.47

2065 10.81 10.89 0.08 112 0.00 9.93 2.47 2.47

2066 10.77 10.90 0.14 115 0.00 9.93 2.47 2.47

2067 10.73 10.91 0.18 119 0.00 9.93 2.47 2.47

2068 10.70 10.92 0.22 123 0.00 9.93 2.47 2.47

2069 10.68 10.92 0.25 127 0.00 9.93 2.47 2.47

2070 10.66 10.93 0.27 131 0.00 9.93 2.47 2.47

2071 10.65 10.93 0.28 136 0.00 9.93 2.47 2.47

2072 10.65 10.94 0.29 141 0.00 9.93 2.47 2.47

2073 10.66 10.95 0.29 146 0.00 9.93 2.47 2.47

2074 10.68 10.95 0.28 151 0.00 9.93 2.47 2.47

2075 10.70 10.96 0.26 156 0.00 9.93 2.47 2.47

2076 10.72 10.96 0.24 161 0.00 9.93 2.47 2.47

 Summarized

CostRt IncRt ActBal Change in

2001 OASDI OASDI OASDI ActBal

-2075 12.97 13.02 0.04 1.91

Based on Intermediate Assumptions of the 2001 Trustees Report Office of the Actuary

 With Ult Real Int Rate of 3.00 Social Security Administration

* Net of Benefit Cost Reduction from SSG Transfers December 10, 2001
Table 3 a SSGP Plan of 2001--Sensitivity Analysis: 1% Higher IA Yield IA Cntrb 2.468 %, SSG Transfer Rate 95%

IA to Estate With Ult Real TF Int Rate of 3.0

at Death Before With Ult Real IA Yld Rate of 6.05 Change SSG

Entitlement With Annuity Net Yld Rate 6.05 in OASDI Payroll Tax Contrib Total SSG

Cost Income Annual TFR Contrib for Trust from Contrib Rate

Year Rate* Rate Balance 1-1-yr Rate Funds TrustFnd (Earns yr-1)

2001 10.49 12.72 2.23 239 12.40 0

2002 10.42 12.72 2.30 264 12.40 0

2003 10.63 12.73 2.10 284 12.40 2.47

2004 10.72 12.75 2.03 304 12.40 2.47

2005 10.83 12.76 1.93 323 12.40 2.47

2006 10.93 12.77 1.84 341 12.40 2.47

2007 11.06 12.78 1.71 357 12.40 2.47

2008 11.19 12.79 1.60 373 12.40 2.47

2009 11.36 12.80 1.44 385 12.40 2.47

2010 11.55 12.82 1.26 396 12.40 2.47

2011 11.74 12.82 1.08 404 12.40 2.47

2012 11.98 12.83 0.85 410 12.40 2.47

2013 12.25 12.84 0.59 414 12.40 2.47

2014 12.53 12.85 0.32 415 12.40 2.47

2015 12.82 12.86 0.04 414 12.40 2.47

2016 13.12 12.87 -0.25 411 12.40 2.47

2017 13.43 12.89 -0.54 407 12.40 2.47

2018 13.73 12.90 -0.83 400 12.40 2.47

2019 14.02 12.91 -1.11 392 12.40 2.47

2020 14.31 12.92 -1.39 383 12.40 2.47

2021 14.56 12.94 -1.62 374 12.40 2.47

2022 14.78 12.96 -1.82 364 12.40 2.47

2023 14.99 12.98 -2.01 353 12.40 2.47

2024 15.16 13.00 -2.16 342 12.40 2.47

2025 15.31 13.02 -2.30 330 12.40 2.47

2026 15.43 13.03 -2.40 319 12.40 2.47

2027 15.52 13.05 -2.47 307 12.40 2.47

2028 15.58 13.07 -2.51 295 12.40 2.47

2029 15.59 13.08 -2.51 284 12.40 2.47

2030 15.57 13.09 -2.48 273 12.40 2.47

2031 15.52 13.11 -2.41 263 12.40 2.47

2032 15.44 13.12 -2.32 253 12.40 2.47

2033 15.33 13.13 -2.20 244 12.40 2.47

2034 15.17 13.14 -2.03 236 12.40 2.47

2035 14.98 13.15 -1.83 229 12.40 2.47

2036 14.76 13.16 -1.60 224 12.40 2.47

2037 14.51 13.16 -1.35 221 12.40 2.47

2038 14.24 13.17 -1.07 219 12.40 2.47

2039 13.94 13.18 -0.77 220 12.40 2.47

2040 13.63 13.18 -0.45 223 12.40 2.47

2041 13.31 13.19 -0.12 228 12.40 2.47

2042 12.99 13.20 0.21 237 12.40 2.47

2043 12.67 13.20 0.54 249 12.40 2.47

2044 12.35 13.21 0.86 264 12.40 2.47

2045 12.05 13.22 1.17 282 12.40 2.47

2046 11.75 13.24 1.48 304 12.40 2.47

2047 11.47 13.25 1.78 329 12.40 2.47

2048 11.20 13.26 2.07 359 12.40 2.47

2049 10.93 13.28 2.35 393 12.40 2.47

2050 10.67 13.30 2.62 431 12.40 2.47

2051 10.44 13.31 2.88 473 12.40 2.47

2052 10.22 13.33 3.12 520 12.40 2.47

2053 10.00 13.36 3.35 571 12.40 2.47

2054 9.80 13.38 3.58 627 12.40 2.47

2055 9.61 13.41 3.80 688 12.40 2.47

2056 9.43 13.43 4.01 753 12.40 2.47

2057 9.26 13.46 4.20 823 12.40 2.47

2058 9.10 13.49 4.40 898 12.40 2.47

2059 8.95 13.53 4.58 979 12.40 2.47

2060 8.80 13.56 4.76 1063 12.40 2.47

2061 8.67 13.60 4.93 1153 12.40 2.47

2062 8.55 13.64 5.09 1247 12.40 2.47

2063 8.42 13.68 5.26 1349 12.40 2.47

2064 8.29 13.72 5.42 1456 12.40 2.47

2065 8.19 13.76 5.58 1568 12.40 2.47

2066 8.09 13.80 5.71 1683 12.40 2.47

2067 8.00 13.84 5.84 1802 12.40 2.47

2068 7.93 13.88 5.95 1924 12.40 2.47

2069 7.87 13.93 6.06 2048 12.40 2.47

2070 7.82 13.97 6.14 2174 12.40 2.47

2071 7.79 14.01 6.22 2301 12.40 2.47

2072 7.77 14.04 6.28 2429 12.40 2.47

2073 7.75 14.08 6.32 2556 12.40 2.47

2074 7.75 14.11 6.36 2683 12.40 2.47

2075 7.76 14.14 6.38 2809 12.40 2.47

2076 7.78 14.16 6.38 2935 12.40 2.47

 Summarized

CostRt IncRt ActBal Change in

2001 OASDI OASDI OASDI ActBal

-2075 12.20 13.67 1.47 3.34

Based on Intermediate Assumptions of the 2001 Trustees Report Office of the Actuary

 With Ult Real Int Rate of 3.00 Social Security Administration

* Net of Benefit Cost Reduction from SSG Transfers December 10, 2001
Table 4 a SSGP Plan of 2001--Sensitivity Analysis: 1% Lower IA Yield IA Cntrb 2.468 %, SSG Transfer Rate 95%

IA to Estate With Ult Real TF Int Rate of 3.0

at Death Before With Ult Real IA Yld Rate of 4.05 Change SSG

Entitlement With Annuity Net Yld Rate 4.05 in OASDI Payroll Tax Contrib Total SSG

Cost Income Annual TFR Contrib for Trust from Contrib Rate

Year Rate* Rate Balance 1-1-yr Rate Funds TrustFnd (Earns yr-1)

2001 10.49 12.72 2.23 239 12.40 0

2002 10.42 12.72 2.30 264 12.40 0

2003 10.63 12.73 2.10 284 12.40 2.47

2004 10.72 12.75 2.03 304 12.40 2.47

2005 10.83 12.76 1.93 323 12.40 2.47

2006 10.93 12.77 1.84 341 12.40 2.47

2007 11.07 12.78 1.71 357 12.40 2.47

2008 11.19 12.79 1.59 373 12.40 2.47

2009 11.37 12.80 1.43 385 12.40 2.47

2010 11.56 12.82 1.26 396 12.40 2.47

2011 11.76 12.82 1.07 404 12.40 2.47

2012 12.00 12.83 0.83 409 12.40 2.47

2013 12.27 12.84 0.57 412 12.40 2.47

2014 12.56 12.85 0.29 413 12.40 2.47

2015 12.87 12.86 0.00 412 12.40 2.47

2016 13.17 12.87 -0.30 408 12.40 2.47

2017 13.49 12.89 -0.61 403 12.40 2.47

2018 13.81 12.90 -0.91 396 12.40 2.47

2019 14.12 12.91 -1.21 387 12.40 2.47

2020 14.43 12.92 -1.51 377 12.40 2.47

2021 14.71 12.94 -1.76 366 12.40 2.47

2022 14.96 12.96 -2.00 354 12.40 2.47

2023 15.20 12.98 -2.22 342 12.40 2.47

2024 15.41 13.00 -2.41 329 12.40 2.47

2025 15.60 13.01 -2.59 315 12.40 2.47

2026 15.77 13.03 -2.73 301 12.40 2.47

2027 15.91 13.05 -2.86 286 12.40 2.47

2028 16.02 13.06 -2.96 271 12.40 2.47

2029 16.10 13.08 -3.02 256 12.40 2.47

2030 16.15 13.09 -3.06 241 12.40 2.47

2031 16.17 13.11 -3.07 226 12.40 2.47

2032 16.18 13.12 -3.06 211 12.40 2.47

2033 16.15 13.13 -3.02 196 12.40 2.47

2034 16.08 13.14 -2.94 181 12.40 2.47

2035 15.98 13.14 -2.84 167 12.40 2.47

2036 15.86 13.15 -2.71 153 12.40 2.47

2037 15.73 13.16 -2.57 140 12.40 2.47

2038 15.57 13.16 -2.41 127 12.40 2.47

2039 15.41 13.17 -2.24 115 12.40 2.47

2040 15.23 13.17 -2.06 104 12.40 2.47

2041 15.05 13.17 -1.88 93 12.40 2.47

2042 14.88 13.18 -1.70 83 12.40 2.47

2043 14.71 13.18 -1.53 74 12.40 2.47

2044 14.55 13.19 -1.36 66 12.40 2.47

2045 14.40 13.19 -1.21 58 12.40 2.47

2046 14.25 13.20 -1.06 51 12.40 2.47

2047 14.12 13.20 -0.92 45 12.40 2.47

2048 13.99 13.21 -0.79 40 12.40 2.47

2049 13.88 13.21 -0.66 35 12.40 2.47

2050 13.77 13.22 -0.55 31 12.40 2.47

2051 13.68 13.22 -0.45 28 12.40 2.47

2052 13.60 13.23 -0.37 25 12.40 2.47

2053 13.53 13.24 -0.30 23 12.40 2.47

2054 13.48 13.25 -0.23 21 12.40 2.47

2055 13.43 13.25 -0.17 20 12.40 2.47

2056 13.38 13.26 -0.12 19 12.40 2.47

2057 13.34 13.27 -0.08 18 12.40 2.47

2058 13.31 13.27 -0.04 18 12.40 2.47

2059 13.28 13.28 0.00 18 12.40 2.47

2060 13.25 13.29 0.04 18 12.40 2.47

2061 13.23 13.29 0.07 18 12.40 2.47

2062 13.21 13.30 0.10 19 12.40 2.47

2063 13.19 13.31 0.12 20 12.40 2.47

2064 13.18 13.31 0.14 21 12.40 2.47

2065 13.17 13.32 0.15 23 12.40 2.47

2066 13.17 13.32 0.16 24 12.40 2.47

2067 13.17 13.33 0.16 26 12.40 2.47

2068 13.18 13.34 0.16 27 12.40 2.47

2069 13.19 13.34 0.15 29 12.40 2.47

2070 13.21 13.35 0.14 30 12.40 2.47

2071 13.23 13.35 0.12 32 12.40 2.47

2072 13.25 13.36 0.11 33 12.40 2.47

2073 13.28 13.36 0.08 34 12.40 2.47

2074 13.31 13.36 0.05 35 12.40 2.47

2075 13.35 13.37 0.02 36 12.40 2.47

2076 13.39 13.37 -0.01 37 12.40 2.47

 Summarized

CostRt IncRt ActBal Change in

2001 OASDI OASDI OASDI ActBal

-2075 13.65 13.59 -0.06 1.81

Based on Intermediate Assumptions of the 2001 Trustees Report Office of the Actuary

 With Ult Real Int Rate of 3.00 Social Security Administration

* Net of Benefit Cost Reduction from SSG Transfers December 10, 2001
Table 5 a SSGP Plan of 2001--Sensitivity Analysis: IA Yield Equal to Treasury Bonds IA Cntrb 2.468 %, SSG Transfer Rate 95%

IA to Estate With Ult Real TF Int Rate of 3.0

at Death Before With Ult Real IA Yld Rate of 2.75 Change SSG

Entitlement With Annuity Net Yld Rate 2.75 in OASDI Payroll Tax Contrib Total SSG

Cost Income Annual TFR Contrib for Trust from Contrib Rate

Year Rate* Rate Balance 1-1-yr Rate Funds TrustFnd (Earns yr-1)

2001 10.49 12.72 2.23 239 12.40 0

2002 10.42 12.72 2.30 264 12.40 0

2003 10.63 12.73 2.10 284 12.40 2.47

2004 10.72 12.75 2.03 304 12.40 2.47

2005 10.83 12.76 1.93 323 12.40 2.47

2006 10.93 12.77 1.84 341 12.40 2.47

2007 11.07 12.78 1.71 357 12.40 2.47

2008 11.19 12.79 1.59 373 12.40 2.47

2009 11.37 12.80 1.43 385 12.40 2.47

2010 11.57 12.82 1.25 396 12.40 2.47

2011 11.76 12.82 1.06 403 12.40 2.47

2012 12.01 12.83 0.82 409 12.40 2.47

2013 12.29 12.84 0.56 412 12.40 2.47

2014 12.58 12.85 0.27 412 12.40 2.47

2015 12.89 12.86 -0.03 411 12.40 2.47

2016 13.20 12.87 -0.33 407 12.40 2.47

2017 13.53 12.89 -0.64 401 12.40 2.47

2018 13.85 12.90 -0.96 394 12.40 2.47

2019 14.18 12.91 -1.27 384 12.40 2.47

2020 14.50 12.92 -1.58 373 12.40 2.47

2021 14.78 12.94 -1.84 362 12.40 2.47

2022 15.05 12.96 -2.09 349 12.40 2.47

2023 15.30 12.98 -2.33 336 12.40 2.47

2024 15.53 13.00 -2.54 322 12.40 2.47

2025 15.75 13.01 -2.73 307 12.40 2.47

2026 15.93 13.03 -2.90 292 12.40 2.47

2027 16.10 13.05 -3.05 276 12.40 2.47

2028 16.24 13.06 -3.17 259 12.40 2.47

2029 16.34 13.08 -3.27 243 12.40 2.47

2030 16.42 13.09 -3.33 226 12.40 2.47

2031 16.48 13.11 -3.37 209 12.40 2.47

2032 16.52 13.12 -3.40 192 12.40 2.47

2033 16.53 13.13 -3.40 174 12.40 2.47

2034 16.49 13.14 -3.36 157 12.40 2.47

2035 16.44 13.14 -3.29 140 12.40 2.47

2036 16.36 13.15 -3.21 123 12.40 2.47

2037 16.27 13.16 -3.12 106 12.40 2.47

2038 16.17 13.16 -3.01 89 12.40 2.47

2039 16.05 13.16 -2.89 73 12.40 2.47

2040 15.93 13.17 -2.76 56 12.40 2.47

2041 15.81 13.17 -2.64 40 12.40 2.47

2042 15.70 13.18 -2.52 25 12.40 2.47

2043 15.59 13.18 -2.41 9 12.40 2.47

2044 15.50 13.18 -2.31 -- 12.40 2.47

2045 15.41 13.19 -2.22 -- 12.40 2.47

2046 15.33 13.19 -2.13 -- 12.40 2.47

2047 15.26 13.20 -2.06 -- 12.40 2.47

2048 15.20 13.20 -1.99 -- 12.40 2.47

2049 15.14 13.21 -1.93 -- 12.40 2.47

2050 15.09 13.21 -1.88 -- 12.40 2.47

2051 15.06 13.22 -1.85 -- 12.40 2.47

2052 15.05 13.22 -1.83 -- 12.40 2.47

2053 15.04 13.23 -1.81 -- 12.40 2.47

2054 15.04 13.24 -1.81 -- 12.40 2.47

2055 15.05 13.24 -1.81 -- 12.40 2.47

2056 15.06 13.25 -1.81 -- 12.40 2.47

2057 15.08 13.26 -1.82 -- 12.40 2.47

2058 15.09 13.26 -1.83 -- 12.40 2.47

2059 15.11 13.27 -1.84 -- 12.40 2.47

2060 15.13 13.28 -1.85 -- 12.40 2.47

2061 15.15 13.28 -1.87 -- 12.40 2.47

2062 15.18 13.29 -1.89 -- 12.40 2.47

2063 15.20 13.30 -1.90 -- 12.40 2.47

2064 15.23 13.30 -1.92 -- 12.40 2.47

2065 15.25 13.31 -1.95 -- 12.40 2.47

2066 15.28 13.31 -1.97 -- 12.40 2.47

2067 15.32 13.32 -2.00 -- 12.40 2.47

2068 15.35 13.32 -2.03 -- 12.40 2.47

2069 15.39 13.33 -2.06 -- 12.40 2.47

2070 15.43 13.33 -2.10 -- 12.40 2.47

2071 15.47 13.34 -2.13 -- 12.40 2.47

2072 15.51 13.34 -2.17 -- 12.40 2.47

2073 15.55 13.35 -2.21 -- 12.40 2.47

2074 15.60 13.35 -2.25 -- 12.40 2.47

2075 15.65 13.35 -2.29 -- 12.40 2.47

2076 15.70 13.36 -2.34 -- 12.40 2.47

 Summarized

CostRt IncRt ActBal Change in

2001 OASDI OASDI OASDI ActBal

-2075 14.27 13.59 -0.68 1.18

Based on Intermediate Assumptions of the 2001 Trustees Report Office of the Actuary

 With Ult Real Int Rate of 3.00 Social Security Administration

* Net of Benefit Cost Reduction from SSG Transfers December 10, 2001
Table 1 b IA Contributions, OASDI Benefit Cost Reduction from SSG Transfers, & Budget Effect

Ave IA Cntrb 2.468 %, SSG Transfer Rate 95%

SSG Account Amount Benefit Cost Other Change Change Change

Balance Contrib to IA: Reduction Changes in Annual in Debt in Ann

at End of % by GenFnd from SSG in OASDI UnifBudg Held by UnifBudg

 Year Year 100% Transfers CashFlow CashFlow Public Balance

 (EOY)

 (Billions of Constant 2001$)

2002 0.0 0.0 0.0 0.0 0.0 0.0 0.0

2003 112.3 109.5 0.0 -8.4 -117.8 119.7 -121.5

2004 232.1 111.4 0.1 -10.3 -121.6 246.8 -132.8

2005 359.4 113.3 0.4 -11.9 -124.9 380.8 -144.0

2006 494.4 115.2 0.8 -13.0 -127.4 521.1 -155.0

2007 637.4 117.1 1.3 -14.1 -129.9 668.0 -166.2

2008 788.5 119.0 2.1 -13.7 -130.6 819.8 -176.0

2009 948.1 120.8 3.0 -13.7 -131.6 977.1 -186.5

2010 1,116.3 122.8 4.1 -13.9 -132.6 1,140.0 -197.3

2011 1,293.6 124.7 5.4 -14.1 -133.4 1,308.6 -208.4

2012 1,480.6 127.0 7.0 -14.2 -134.2 1,483.3 -220.0

2013 1,677.3 129.0 8.8 -14.4 -134.6 1,663.7 -231.6

2014 1,883.8 131.0 10.9 -14.6 -134.7 1,850.0 -243.3

2015 2,100.5 132.9 13.3 -14.8 -134.4 2,041.9 -255.1

2016 2,326.9 134.8 16.0 -15.0 -133.7 2,238.9 -266.5

2017 2,563.3 136.7 19.1 -15.0 -132.6 2,440.6 -277.7

2018 2,809.7 138.5 22.5 -15.0 -130.9 2,646.7 -288.7

2019 3,066.1 140.3 26.3 -15.0 -129.0 2,857.0 -299.7

2020 3,332.5 142.1 30.5 -15.0 -126.6 3,071.2 -310.5

2021 3,609.1 143.9 35.1 -14.9 -123.6 3,288.8 -320.9

2022 3,895.7 145.7 40.2 -14.6 -120.1 3,509.3 -330.9

2023 4,192.3 147.5 45.8 -14.3 -116.0 3,732.4 -340.6

2024 4,498.7 149.3 51.9 -14.0 -111.3 3,957.3 -349.8

2025 4,815.1 151.1 58.6 -13.6 -106.1 4,183.8 -358.6

2026 5,141.0 153.0 65.8 -13.1 -100.3 4,411.1 -366.9

2027 5,476.5 154.9 73.6 -12.6 -93.9 4,638.7 -374.5

2028 5,821.3 156.8 82.0 -12.2 -86.9 4,866.0 -381.7

2029 6,175.2 158.8 91.1 -11.7 -79.3 5,092.5 -388.2

2030 6,537.8 160.8 100.9 -11.2 -71.0 5,317.4 -393.9

2031 6,909.0 162.9 111.4 -10.6 -62.1 5,539.9 -398.8

2032 7,288.2 165.0 122.6 -10.2 -52.5 5,759.4 -403.0

2033 7,675.0 167.2 134.6 -9.6 -42.2 5,975.1 -406.2

2034 8,069.1 169.4 147.3 -9.1 -31.2 6,186.0 -408.3

2035 8,469.8 171.7 160.9 -8.6 -19.5 6,391.3 -409.5

2036 8,876.5 174.0 175.3 -8.3 -7.0 6,590.2 -409.6

2037 9,288.4 176.4 190.6 -8.0 6.2 6,781.5 -408.5

2038 9,704.9 178.7 206.8 -7.8 20.3 6,964.4 -406.0

2039 10,124.9 181.1 224.0 -7.5 35.3 7,137.5 -402.0

2040 10,547.7 183.6 242.2 -7.2 51.4 7,299.4 -396.4

2041 10,972.0 186.0 261.4 -7.0 68.4 7,449.0 -389.0

2042 11,396.7 188.4 281.7 -6.8 86.5 7,584.7 -379.8

2043 11,820.4 190.9 303.0 -6.9 105.2 7,705.4 -369.0

2044 12,242.8 193.3 324.6 -7.0 124.3 7,810.5 -356.9

2045 12,663.1 195.8 346.6 -7.1 143.6 7,899.0 -343.6

2046 13,081.1 198.3 368.8 -7.2 163.3 7,970.2 -328.9

2047 13,496.1 200.8 391.3 -7.4 183.2 8,023.4 -312.9

2048 13,907.6 203.3 414.1 -7.5 203.3 8,057.8 -295.4

2049 14,315.4 205.7 437.1 -7.6 223.7 8,072.5 -276.6

2050 14,718.8 208.2 460.2 -7.6 244.3 8,066.8 -256.3

2051 15,117.6 210.8 483.4 -7.7 265.0 8,039.8 -234.6

2052 15,511.3 213.3 506.7 -7.7 285.7 7,991.1 -211.5

2053 15,899.6 215.8 530.1 -7.8 306.5 7,919.7 -187.0

2054 16,282.3 218.4 553.4 -7.8 327.2 7,825.2 -161.1

2055 16,659.0 221.0 576.7 -7.9 347.8 7,707.0 -133.9

2056 17,029.6 223.7 599.9 -7.9 368.4 7,564.3 -105.2

2057 17,393.9 226.3 623.0 -7.9 388.8 7,396.7 -75.2

2058 17,751.8 229.0 645.8 -7.9 408.9 7,203.6 -43.9

2059 18,103.3 231.7 668.4 -7.8 428.9 6,984.4 -11.1

2060 18,448.3 234.5 690.6 -7.6 448.6 6,738.6 23.0

2061 18,787.0 237.3 712.6 -7.3 468.0 6,465.8 58.5

2062 19,119.4 240.1 734.1 -7.1 487.0 6,165.6 95.2

2063 19,445.8 242.9 755.6 -6.8 505.9 5,837.1 133.6

2064 19,766.3 245.8 776.7 -6.6 524.3 5,480.1 173.3

2065 20,081.3 248.8 797.3 -6.4 542.1 5,094.3 214.1

2066 20,391.1 251.7 817.3 -6.3 559.3 4,679.5 256.2

2067 20,696.1 254.7 836.9 -6.2 576.0 4,235.3 299.5

2068 20,996.7 257.7 855.9 -6.2 592.0 3,761.6 344.0

2069 21,293.4 260.8 874.3 -6.1 607.4 3,258.0 389.7

2070 21,586.5 263.9 892.2 -6.1 622.2 2,724.2 436.7

2071 21,876.7 267.0 909.6 -6.1 636.5 2,160.0 485.0

2072 22,164.3 270.1 926.4 -6.1 650.2 1,564.9 534.7

2073 22,449.8 273.3 942.7 -6.2 663.3 938.6 585.7

2074 22,733.7 276.4 958.6 -6.2 676.0 280.7 638.2

2075 23,016.4 279.7 974.1 -6.3 688.2 -409.3 692.2

2076 23,298.3 282.9 989.2 -6.5 699.8 -1,131.8 747.6

Based on Intermediate Assumptions of the 2001 Trustees Report

 With Ult Real Int Rate of 3.0 TF, Ultimate Real Yield Rate of IA 5.05

Office of the Actuary Annuity Yield 5.05

Social Security Administration

 December 10, 2001
Table 2 b IA Contributions, OASDI Benefit Cost Reduction from SSG Transfers, & Budget Effect

Ave IA Cntrb 2.468 %, SSG Transfer Rate 95%

SSG Account Amount Benefit Cost Other Change Change Change

Balance Contrib to IA: Reduction Changes in Annual in Debt in Ann

at End of % by GenFnd from SSG in OASDI UnifBudg Held by UnifBudg

 Year Year Varies Transfers CashFlow CashFlow Public Balance

 (EOY)

 (Billions of Constant 2001$)

2002 0.0 0.0 0.0 0.0 0.0 0.0 0.0

2003 112.3 109.5 0.0 -8.4 -117.8 119.7 -121.5

2004 232.1 111.4 0.1 -10.3 -121.6 246.8 -132.8

2005 359.4 113.3 0.4 -11.9 -124.9 380.8 -144.0

2006 494.4 115.2 0.8 -13.0 -127.4 521.1 -155.0

2007 637.4 117.1 1.3 -14.1 -129.9 668.0 -166.2

2008 788.5 119.0 2.1 -13.7 -130.6 819.8 -176.0

2009 948.1 120.8 3.0 -13.7 -131.6 977.1 -186.5

2010 1,116.3 122.8 4.1 -13.9 -132.6 1,140.0 -197.3

2011 1,293.6 124.7 5.4 -14.1 -133.4 1,308.6 -208.4

2012 1,480.6 127.0 7.0 -14.2 -134.2 1,483.3 -220.0

2013 1,677.3 129.0 8.8 -14.4 -134.6 1,663.7 -231.6

2014 1,883.8 131.0 10.9 -14.6 -134.7 1,850.0 -243.3

2015 2,100.5 132.9 13.3 -14.8 -134.4 2,041.9 -255.1

2016 2,326.9 134.8 16.0 -15.0 -133.7 2,238.9 -266.5

2017 2,563.3 136.7 19.1 -15.0 -132.6 2,440.6 -277.7

2018 2,809.7 138.5 22.5 -15.0 -130.9 2,646.7 -288.7

2019 3,066.1 140.3 26.3 -15.0 -129.0 2,857.0 -299.7

2020 3,332.5 142.1 30.5 -15.0 -126.6 3,071.2 -310.5

2021 3,609.1 143.9 35.1 -14.9 -123.6 3,288.8 -320.9

2022 3,895.7 145.7 40.2 -14.6 -120.1 3,509.3 -330.9

2023 4,192.3 147.5 45.8 -14.3 -116.0 3,732.4 -340.6

2024 4,498.7 149.3 51.9 -14.0 -111.3 3,957.3 -349.8

2025 4,815.1 151.1 58.6 -13.6 -106.1 4,183.8 -358.6

2026 5,141.0 153.0 65.8 -13.1 -100.3 4,411.1 -366.9

2027 5,476.5 154.9 73.6 -12.6 -93.9 4,638.7 -374.5

2028 5,821.3 156.8 82.0 -12.2 -86.9 4,866.0 -381.7

2029 6,175.2 158.8 91.1 -11.7 -79.3 5,092.5 -388.2

2030 6,537.8 160.8 100.9 -11.2 -71.0 5,317.4 -393.9

2031 6,909.0 162.9 111.4 -10.6 -62.1 5,539.9 -398.8

2032 7,288.2 165.0 122.6 -10.2 -52.5 5,759.4 -403.0

2033 7,675.0 167.2 134.6 -9.6 -42.2 5,975.1 -406.2

2034 8,069.1 169.4 147.3 -9.1 -31.2 6,186.0 -408.3

2035 8,469.8 171.7 160.9 -36.0 -19.0 6,390.9 -409.1

2036 8,876.5 174.0 175.3 -36.0 -6.6 6,589.3 -409.1

2037 9,288.4 176.4 190.6 -36.1 6.7 6,780.2 -408.0

2038 9,704.9 178.7 206.8 -36.3 20.7 6,962.5 -405.5

2039 10,124.9 181.1 224.0 -36.4 35.8 7,135.1 -401.4

2040 10,547.7 183.6 242.2 -43.8 52.0 7,296.4 -395.6

2041 10,972.0 186.0 261.4 -44.1 69.0 7,445.2 -388.2

2042 11,396.7 188.4 281.7 -44.4 87.1 7,580.2 -378.9

2043 11,820.4 190.9 303.0 -44.9 105.9 7,700.1 -368.1

2044 12,242.8 193.3 324.6 -45.5 124.9 7,804.4 -356.0

2045 12,663.1 195.8 346.6 -85.1 144.9 7,891.4 -341.9

2046 13,081.1 198.3 368.8 -86.2 164.6 7,961.1 -327.0

2047 13,496.1 200.8 391.3 -87.4 184.5 8,012.6 -310.9

2048 13,907.6 203.3 414.1 -88.5 204.7 8,045.3 -293.3

2049 14,315.4 205.7 437.1 -89.6 225.1 8,058.2 -274.3

2050 14,718.8 208.2 460.2 -132.0 246.4 8,049.8 -253.1

2051 15,117.6 210.8 483.4 -133.6 267.2 8,020.2 -231.2

2052 15,511.3 213.3 506.7 -135.2 287.9 7,968.6 -208.0

2053 15,899.6 215.8 530.1 -136.7 308.7 7,894.3 -183.2

2054 16,282.3 218.4 553.4 -138.3 329.5 7,796.7 -157.2

2055 16,659.0 221.0 576.7 -201.5 351.2 7,674.2 -128.6

2056 17,029.6 223.7 599.9 -203.8 371.8 7,527.1 -99.6

2057 17,393.9 226.3 623.0 -206.1 392.2 7,354.8 -69.3

2058 17,751.8 229.0 645.8 -208.5 412.4 7,156.9 -37.6

2059 18,103.3 231.7 668.4 -210.8 432.4 6,932.7 -4.6

2060 18,448.3 234.5 690.6 -238.0 452.6 6,681.4 30.4

2061 18,787.0 237.3 712.6 -240.5 472.1 6,402.7 66.3

2062 19,119.4 240.1 734.1 -243.0 491.1 6,096.4 103.4

2063 19,445.8 242.9 755.6 -245.6 510.0 5,761.7 142.3

2064 19,766.3 245.8 776.7 -248.2 528.5 5,398.1 182.4

2065 20,081.3 248.8 797.3 -250.9 546.4 5,005.6 223.7

2066 20,391.1 251.7 817.3 -253.7 563.6 4,583.7 266.3

2067 20,696.1 254.7 836.9 -256.5 580.3 4,132.2 310.0

2068 20,996.7 257.7 855.9 -259.5 596.4 3,650.9 355.0

2069 21,293.4 260.8 874.3 -262.4 611.9 3,139.4 401.3

2070 21,586.5 263.9 892.2 -265.4 626.8 2,597.5 448.9

2071 21,876.7 267.0 909.6 -268.4 641.1 2,024.7 497.8

2072 22,164.3 270.1 926.4 -271.5 654.9 1,420.8 548.0

2073 22,449.8 273.3 942.7 -274.7 668.1 785.5 599.6

2074 22,733.7 276.4 958.6 -277.8 680.8 118.1 652.8

2075 23,016.4 279.7 974.1 -281.0 693.0 -581.7 707.4

2076 23,298.3 282.9 989.2 -284.5 704.7 -1,314.4 763.5

Based on Intermediate Assumptions of the 2001 Trustees Report

 With Ult Real Int Rate of 3.0 TF, Ultimate Real Yield Rate of IA 5.05

Office of the Actuary Annuity Yield 5.05

Social Security Administration

 December 10, 2001