| Skip to contentSocial Security Online | Actuarial Publications |
|---------------------------------------|------------------------|

| www.socialsecurity.gov | Home  FAQs  Contact Us  Search | **Search**  |
|------------------------|-----------------------------------------------------------------|------------------|

| Solvency Provisions | Provisions Affecting Level of Monthly Benefits |
|---------------------|------------------------------------------------|

| Number | Table and graph selection                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| B1     | Increase the number of years used to calculate benefits for retirees         and survivors (but not for disabled workers) from 35 to 38, phased in         2009-2013.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| B2     | Increase the number of years used to calculate benefits for retirees        and survivors (but not for disabled workers) from 35 to 40, phased in        2009-2017.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| B3     | For each year from 2009-2039, multiply the 32 and 15 percent        formula factors by 0.987, reducing the factors to 21 percent        and 10 percent respectively,        for new eligibles in 2039 and later.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| B4     | Reduce benefits by 3 percent for those newly eligible        for benefits in 2009 and later.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| B5     | Reduce benefits by 5 percent for those newly eligible        for benefits in 2009 and later.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| B6     | Beginning with those newly eligible for OASDI benefits in 2015 and        later, reduce PIA formula factors so that benefits grow by inflation        rather than by increases in real wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| B7     | Progressive price indexing of PIA formula factors beginning with        individuals newly eligible for OASDI benefits in 2015.  Create new bend        point at the 30th percentile of earners.  Maintain current-law benefits        for earners at the 30th percentile and below and reduce upper 2 formula        factors (32% and 15%) such that maximum worker benefit grows by        inflation rather than the growth in average wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| B8     | Progressive price indexing of PIA formula factors beginning with        individuals newly eligible for OASDI benefits in 2015.  Create new bend        point at the 40th percentile of earners.  Maintain current-law benefits        for earners at the 40th percentile and below and reduce upper 2 formula        factors (32% and 15%) such that maximum worker benefit grows by        inflation rather than the growth in average wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| B9     | Progressive price indexing of PIA formula factors beginning with        individuals newly eligible for OASDI benefits in 2015.  Create new bend        point at the 50th percentile of earners.  Maintain current-law benefits        for earners at the 50th percentile and below and reduce upper 2 formula        factors (32% and 15%) such that maximum worker benefit grows by        inflation rather than the growth in average wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| B10    | Progressive price indexing of PIA formula factors beginning with        individuals newly eligible for OASDI benefits in 2015.  Create new bend        point at the 60th percentile of earners.  Maintain current-law benefits        for earners at the 60th percentile and below and reduce upper 2 formula        factors (32% and 15%) such that maximum worker benefit grows by        inflation rather than the growth in average wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| B11    | Beginning with those newly eligible in 2016, multiply the 90 and 32        PIA factors each year by 0.9925 and 0.982, respectively.        Stop reductions in        2053.  Beginning with those newly eligible in 2011, multiply the 15        factor by 0.982.  Stop reduction of the 15 factor in 2048.  DI will        have present law scheduled benefit and proportional reduction at        conversion to retired worker benefits at normal retirement age, based        on years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| B12    | Progressive price indexing of PIA formula factors beginning with       individuals newly eligible for OASI benefits in 2015.  Create new       bend point at the 30th percentile of earners.  Maintain current-law       benefits for earners at the 30th percentile and below and reduce       upper 2 formula factors (32% and 15%) such that maximum worker       benefit grows by inflation rather than the growth in average wages.       Disability benefits are not affected by the proposal.  Disabled       worker beneficiaries, upon attaining normal retirement age, would       be subject to a proportional reduction in benefits based on the       worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum                                                                                                                                                                                                                                                                                                                                      |
| B12.1  | Progressive price indexing of PIA formula factors beginning with       individuals newly eligible for OASI benefits in 2012.  Create new       bend point at the 30th percentile of earners.  Maintain current-law       benefits for earners at the 30th percentile and below and reduce       upper 2 formula factors (32% and 15%) such that maximum worker       benefit grows by inflation rather than the growth in average wages.       Disability benefits are not affected by the proposal.  Disabled       worker beneficiaries, upon attaining normal retirement age, would       be subject to a proportional reduction in benefits based on the       worker's years of disability.  In addition, the reduction to the       upper 2 formula factors is suspended for any year in which       sustainable solvency over the next 75 years is expected. With this       provision taken alone, suspension is not expected within the next       75 years.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum                                                             |
| B13    | For OASI beneficiaries becoming eligible for benefits in 2021 and       later, multiply the PIA factors by the ratio of life expectancy at       67 for 2016 to the life expectancy at age 67 for the 4th year prior       to the year of benefit eligibility.  Unisex life expectancies, based       on period life tables, would be used as projected by SSA's Office       of the Chief Actuary.  Disability benefits are not affected by the       proposal.  Disabled worker beneficiaries, upon attaining normal       retirement age, would be subject to a proportional reduction in       benefits based on the worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum                                                                                                                                                                                                                                                                                                                                                                                 |
| B13.1  | For OASI beneficiaries becoming eligible for benefits in 2018 and       later, multiply the PIA factors by the ratio of life expectancy at       67 for 2013 to the life expectancy at age 67 for the 4th year prior       to the year of benefit eligibility.  Unisex life expectancies, based       on period life tables, would be used as projected by SSA's Office       of the Chief Actuary.  Disability benefits are not affected by the       proposal.  Disabled worker beneficiaries, upon attaining normal       retirement age, would be subject to a proportional reduction in       benefits based on the worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum                                                                                                                                                                                                                                                                                                                                                                                 |
| B14    | Progressive price indexing of PIA formula factors beginning with       individuals newly eligible for OASI benefits in 2016. Create new       bend point at the 30th percentile of earners. Maintain current-law       benefits for earners at the 30th percentile and below and reduce       upper 2 formula factors (32% and 15%) such that maximum worker       benefit grows by inflation rather than the growth in average       wages. Disability benefits are not affected by the proposal.       Disabled worker beneficiaries, upon attaining normal retirement       age, would be subject to a proportional reduction in benefits       based on the worker's years of disability.               Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum                                                                                                                                                                                                                                                                                                                                        |
| B15    | Increase the PIA to a level such that a worker with 30 years       of earnings at the minimum wage level would receive an adjusted       PIA equal to 120 percent of the Federal poverty level for an       aged individual.  This provision would take full effect for       all newly eligible OASDI workers in 2025, and would be phased       in for new eligible in 2016 through 2024.  The percentage       increase in PIA would be lowered proportionately for those       with fewer than 30 years of earnings, down to no enhancement       for workers with 20 or fewer years of earnings.  (Year-of-work       requirements are "scaled" for disabled workers based on their       years of potential work from age 22 to benefit eligibility).       The benefit enhancement percentage would be reduced       proportionately for workers with higher average indexed monthly       earnings (AIME), down to no enhancement for those with AIME       at least twice that of a 35-year steady minimum wage earner.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum |
| B16    | For all individuals becoming eligible for OASDI benefits in 2009 and        later, use a modified primary insurance amount (PIA) formula.        The modified formula would increase the first bend point to $800 in        2009.  Also, a new bend point would be placed between the reset        first bend point and the current-law second bend point.  The        new bend point would be equal to the reset first bend point        plus 75 percent of the difference between the bend points.        The PIA formula factor between the new bend point and the upper        bend point would be lowered from 32% to 20%.  The PIA formula        factor above the upper bend point would be lowered from 15% to        10%.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)                                                                                                                                                                                                                                                                                                                     |
| B17    | Eliminate dropout years for OASI and DI computation of primary        insurance amount (PIA) for individuals newly eligible for benefits        from 2010 to 2018.  Specifically, for OASDI benefit computation,        reduce the maximum number of drop-out years from 5 for benefit        eligibility in 2009, with a decrease of 1 computation year in 2010,        2012, 2014, 2016, and 2018.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| B18    | Multiply all PIA formula factors successively by 0.991 for new        benefit eligibility in each year 2012 through 2040.   Disabled        workers and young survivors (surviving spouses with a child-in-care        and survivor children) would not be affected by this provision.        Upon conversion from disabled worker to retired worker benefits,        benefit levels would be proportionally reduced based on the        fraction of years the individual was not disabled between ages        22 and 62.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Related memorandum                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|        | Above provisions        Summary measures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

|        |
|--------|
|   | Privacy Policy      | Website Policies        & Other Important Information      | Site Map     Last reviewed or modified May 12, 2009 |