SOCIAL SECURITY

MEMORANDUM 

Date: February 12, 2009 Refer To: TCA 

To: Senator Robert Bennett 

Joint Economic Committee of Congress 

From: Stephen C. Goss, Chief Actuary 

Alice H. Wade, Deputy Chief Actuary 

Christopher J. Chaplain, Supervisory Actuary 

Subject: Estimated Financial Effects of the “Social Security Solvency Act of 2009”, S.426-- 

INFORMATION 

This memorandum presents estimates of the financial effects on the Old-Age and 

Survivor’s Insurance and Disability Insurance (OASDI) program for the Bill that you are 

introducing today. Estimates reflect the intent of the Bill as discussed with Jeff 

Schlagenhauf of the staff for the Joint Economic Committee. The Bill is essentially 

unchanged from the Bill introduced in 2006, and would provide for progressive indexing 

of scheduled Old-Age and Survivor’s Insurance (OASI) benefits, provide for a lifeexpectancy adjustment (longevity indexing) for OASI benefits, accelerate by 5 years the 

increase in the normal retirement age to 67, and provide for transfers from the General 

Fund of the Treasury when needed to maintain a contingency trust fund reserve. The Bill 

would be expected to restore solvency for the OASDI program through the next 75 years 

and beyond as shown in Figure 1. 

Figure 1. Present Law and Proposal OASDI Trust Fund Assets as Percent of 

Annual Cost

0

50

100

150

200

250

300

350

400

450

2010 2020 2030 2040 2050 2060 2070 2080

PL TF Ratio

Prop TF Ratio
2

The OASDI program would meet the criteria for sustainable solvency under the Bill 

specifications because the assets in the OASDI Trust Funds would be projected to be (1) 

positive throughout the next 75 years and (2) rising as a percentage of annual program cost 

at the end of the period. Thus, the program would be expected to be solvent for the 

foreseeable future. 

The annual cost of the OASDI program would be reduced from over 17 percent of payroll 

by 2080 to less than 13 percent. Net cash flow (tax income minus program cost) would 

be expected to be essentially in balance by 2060 and would be expected to remain 

balanced thereafter for the foreseeable future. 

Figure 2. Present Law and Proposal Cost and Tax Income as Percent of Taxable 

Payroll

8

9

10

11

12

13

14

15

16

17

18

2010 2020 2030 2040 2050 2060 2070 2080

Percent of Payroll

PL Cost

PL Tax Income

Prop Cost

Prop Tax Income

This plan would eliminate the long-range OASDI actuarial deficit, which is estimated at 

1.70 percent of taxable payroll under current law, leaving the OASDI program in actuarial 

balance for the long-range (75-year) projection period. Table A provides estimates of the 

effects of each section of the Bill on (1) the actuarial balance of the OASDI program and 

(2) the annual balance1

 for the 75th year in the projection period. Table B provides 

estimated effects on illustrative retiree benefit levels. All estimates are based on the 

intermediate assumptions of the 2008 Trustees Report and reflect our understanding of 

your intent for this proposal. 

 

1

 Difference between tax income and program cost 
3

Specifications

Section 2: Progressive Indexing of OASI Benefits

The Progressive Indexing PIA Formula 

Under section 2 of the Bill, basic benefits for OASI beneficiaries above the 30th percentile 

of career-average earners would be modified in the law to provide for slower growth in 

benefits across succeeding cohorts of retirees starting in 2012. The largest reductions 

would be for workers with steady maximum taxable earnings. For these maximum earners 

reductions would be equivalent to the effect of full CPI-indexing of starting benefits, as 

included in Model 2 from the President’s Commission to Strengthen Social Security of 

2001. Reductions in starting benefit levels would be smaller for earners with lower careeraverage earnings. This progressive indexing provision is modeled after the provision 

developed for Robert Pozen in 2003, but differs in that it would not reduce benefits for 

disabled worker beneficiaries or for young survivor beneficiaries. 

To accomplish progressive indexing, the Primary Insurance Amount (PIA) formula would 

be modified in four steps as detailed below. 

1. Step 1: Establish a new bend point at the 30th percentile: A new PIA bend point 

would be established for those newly eligible in 2012. The new bend point would 

be set at the level of: 

• The current-law first bend point plus 

• 28.6 percent of the difference between the current-law first and second bend 

points. 

This level has been determined by the Office of the Chief Actuary to be at about 

the 30th percentile of average indexed monthly earnings (AIME) for workers 

becoming entitled for retired worker benefits in the years 2001 through 2003. In 

addition, the specified new bend point is expected to be at about the 30th percentile 

of career-average earnings for retired workers newly entitled in 2012 based on 

projections under the intermediate assumptions of the 2008 Trustees Report. This 

level is equivalent to about $23,500 annual earnings in 2009. The new bend point 

would be wage indexed in the future, as is done for the other bend points in current 

law. 

2. Step 2: Compute PIA for “maximum” earner two ways: The PIA would be 

computed two ways for each of the cohorts of theoretical “maximum” earners 

retiring at 62 in 2012 and later. The “maximum” earner who retirees at age 62 in 

2012 is defined as a worker with a career-average earnings level (AIME) equal to 

the OASDI taxable maximum amount for 2010. This level of AIME would be 

wage indexed for subsequent cohorts of theoretical “maximum” earners. The first 

PIA calculation would be as in current law, and would be referred to as the wageindexed PIA. The second calculation would be computed with each of the three 

marginal PIA factors (90, 32, and 15) being reduced successively by the annual 

real increase in the national average wage index (AWI). This would be referred to 
4

as the CPI-indexed PIA. The annual real increase in the AWI would be calculated 

as: 

• The ratio of the CPI-W (the index level) for the second year prior to benefit 

eligibility to the CPI-W for 2009, divided by 

• The ratio of the AWI for the second year prior to the year of benefit eligibility 

to the AWI for 2009. 

3. Step 3: Calculate the PIA for 30th percentile worker: Calculate the PIA for 

cohorts of workers becoming newly eligible for retirement benefits in 2012 and 

later and having an AIME equal to the level of the applicable new bend point. 

4. Step 4: Determine the upper two PIA formula factors: For the actual progressive 

indexed PIA formula, the marginal PIA factors that apply above the new bend 

point would be reduced at the rate needed so that the PIA computed for the 

theoretical “maximum” earner would be equal to the CPI-indexed PIA for those 

newly eligible in 2012 and later. The PIA factors (90 and 32) that apply below the 

new bend point would be unaffected. For each worker attaining age 62 in 2012 

and later, the formula factors above the new bend point (32 and 15) would be 

multiplied by an amount equal to: 

• The difference between the CPI-indexed PIA for the theoretical maximum 

earner retiring at 62 in the year and the PIA for the worker with an AIME equal 

to the new bend point, divided by 

• The difference between the wage-indexed PIA for the theoretical maximum 

earner and the PIA for the worker with an AIME equal to the new bend point. 

Benefits Not Subject to Full Progressive Indexing 

As stated above, the progressive indexed PIA applies for OASI benefits that are subject to 

reduction for early-age entitlement: retired worker, aged spouse and aged widow(er) 

benefits. Benefits payable to young survivors (children and spouses under normal 

retirement age with a child in care) would be based on the current wage-indexed PIA. 

In addition, based on Section 4 of the Bill, all benefits payable from the Disability 

Insurance (DI) Trust Fund would also be based on the current law wage-indexed PIA 

formula. However, upon attainment of the normal retirement age (NRA), disabled worker 

beneficiaries are converted to retired worker status and are thereafter paid benefits from 

the OASI Trust Fund. Under this proposal, disabled worker beneficiaries would become 

subject to a proportional application of the progressive indexed PIA at the time of 

conversion to retired worker status (or at entitlement to any retired worker benefit if 

recovered from disability before NRA or for survivor benefits if deceased before NRA). In 

such cases, the proportion of years between attainment of age 22 (or 2006 if later) and the 

attainment of 62 (or age at death if earlier) for which the worker was entitled to disabled 

worker benefits would be determined (PropDIS). The PIA payable to a worker upon 

conversion to retired worker status (or at entitlement to any retired worker benefit if 

recovered from disability before NRA or for survivor benefits if deceased before NRA) 

would be computed as: 
5

• The product of PropDIS and the PIA that had been payable from the DI 

program (with continued COLAs) plus 

• The product of (1 - PropDIS ) and the PIA that would be payable to a retiree of 

the same age with full progressive indexing and an AIME equal to that for the 

worker with the benefit computation years reduced by the years of disabled 

worker entitlement between ages 22 and 62. 

This resulting proportional “weighted average” benefit would, however, be limited in 

cases where the beneficiary is entitled to disabled worker benefits up to conversion to 

retired worker status at NRA. In this case, the PIA would be set no higher than the PIA 

provided before conversion, and then increased by appropriate COLAs. 

Stopping and Restarting Progressive Indexing 

The Bill contains a stabilizing provision. That is, if projections under the intermediate 

assumptions for the OASDI program in any future Trustees Report issued in 2050 or 

thereafter indicate that sustainable solvency is projected and that no transfers from the 

General Fund of the Treasury are expected to be needed within the next 75 years, then the 

incremental effects of progressive indexing may be suspended for the succeeding year. 

The determination of whether to suspend progressive indexing for the following year will 

be in the affirmative if the OASDI program would still be projected to meet sustainable 

solvency under the intermediate assumptions of the Trustees Report. 

This stabilizing provision may cause the incremental effects of progressive indexing to be 

added only intermittently after some time in the future. If progressive indexing is 

suspended for a year, then the PIA factors will be unchanged from the levels for the prior 

year. If the progressive indexing is restarted in any future year, the effect of CPI-indexing 

the PIA for the theoretical maximum earner in the formulas above will be computed 

omitting years for which the indexing was suspended. 

Under the Bill specifications, it is expected that sustainable solvency will be achieved 

(solvency through 75 years and a stable or rising ratio of trust fund assets to annual 

program cost at the end of the period). In addition, as discussed in the “Results” section, it 

is projected that progressive PIA indexing would be suspended for 2058 through at least 

2083 under this proposal. 

Section 3. Indexing OASI Benefits for Increases in Life Expectancy

Under section 3 of the Bill, for OASI beneficiaries becoming eligible for aged OASI 

benefits (as described for progressive indexing above) in 2018 and later, the PIA marginal 

factors (90, 32, and the modified 32 and 15 from progressive indexing) would all be 

multiplied by the ratio of: 

• Life expectancy at 67 (ultimate NRA) for 2013 

 to 

• Life expectancy at 67 (ultimate NRA) for the 4th year prior to the year of benefit 

eligibility. 
6

Unisex life expectancies would be computed using the best available data by the Office of 

the Chief Actuary of the Social Security Administration. Life expectancies would be 

based on period life tables for these years so that final, complete actual data would be 

available for the calculations. Life expectancies projected under the intermediate 

assumptions of the 2008 Trustees Report result in an expected average annual reduction in 

the PIA benefit level under this provision of about 0.3 percent. 

While benefits payable from the DI Trust Fund would not be affected by the longevity 

indexing per Section 4 of the Bill, such benefits would be affected on a proportional basis 

(as described above for progressive indexing) starting at conversion to retired worker 

status at NRA (or at entitlement to any retired worker benefit, or at death for aged survivor 

benefits, if earlier). Benefits payable to young survivors (children and spouses under NRA 

with a child in care) would be based on the current wage-indexed PIA. 

Section 4. Disabled-Worker Hold Harmless Provision

Under section 4 of the Bill, disabled worker beneficiaries and auxiliary benefits paid on 

their account, would not be subject to the benefit reductions in sections 2 and 3, while their 

benefits are paid from the DI Trust Fund. However, after converting to benefits payable 

from the OASI Trust Fund, these reductions would be applied on a proportional basis 

reflecting the portion of the potential working years the disabled worker was not receiving 

DI benefits. The application of this provision is described above under the summaries of 

sections 2 and 3 of the Bill. 

Section 5. Start Increase for NRA to 67 in 2012

Under current law, the normal retirement age (NRA) is scheduled to increase by 2 months 

per year for those attaining retirement eligibility age (62) in years 2017 through 2022, 

reaching the ultimate NRA of 67 for those reaching age 62 in 2022 and later. This 

provision would move the transition 5 years earlier, increasing the NRA by 2 months per 

year for those attaining retirement eligibility age (62) in years 2012 through 2017, 

reaching the ultimate NRA of 67 for those reaching age 62 in 2017 and later. 

Section 6. Provide Transfers from the General Fund of the Treasury as Needed

Under section 6 of the Bill, if in any future year the assets of the combined OASDI Trust 

Funds during the following year are projected to fall below a level equal to 100 percent of 

the cost of the program in the ensuing year, then transfers from the General Fund of the 

Treasury will be made in sufficient amount and timing to prevent the trust funds from 

falling below 100 percent of the annual program cost 

As discussed in the “Results” section, it is projected that General Fund transfers would be 

needed from 2048 through 2057, in order to maintain a 100 percent trust fund ratio for 

those years. 
7

Assumptions

All estimates for this proposal provided in this memorandum and in the attached tables 

reflect the intermediate assumptions and projections from the 2008 Trustees Report. 

Results

OASDI Trust Fund and Unified Budget Effects

Table A provides the estimated effect of each section of the Bill on the OASDI actuarial 

balance as well as on the annual balance for the 75th projection year. Tables 1 through 1d 

provide detailed estimates for the expected effects of the complete plan on OASDI 

financial status and on the unified budget. Table 2 provides OASDI financial status 

assuming enactment of all but section 6, thus omitting general fund transfers. Finally, 

table 3 provides the OASDI financial status assuming enactment only of section 2, 

progressive indexing of the PIA formula for OASI benefits, along with the disabledworker hold harmless provision of section 4, but including the suspension expected under 

the full provisions of the Bill. 

Table 1 indicates that the complete plan would be expected to result in solvency for the 

OASDI program through the next 75 years. The actuarial deficit is projected to be entirely 

eliminated. Moreover, the level of trust fund assets shown as a ratio to annual program 

cost (trust fund ratio or TFR) is projected to be rising at the end of the 75-year period. 

Thus, the plan would meet the criteria for sustainable solvency under the intermediate 

assumptions of the 2008 Trustees Report. 

Table 1 also indicates that general fund transfers are expected to be needed for 10 years 

(for years 2048 and through 2057), in order to maintain a 100 TFR. After 2057, however, 

additional transfers are not expected to be necessary. The TFR is projected to be stable or 

rising after 2057. In addition, table 1 indicates that annual program cash-flow balances 

(annual balance) are projected to be positive after 2062. Because the General Fund 

transfers are not expected to be needed and the TFR is projected to be rising after 2057, 

the incremental effects of progressive indexing (see Section 2.) are expected to be 

suspended for 2058 through at least 2083. 

On the other hand, if the program at any point would not be adequately financed with the 

application of Sections 1 through 5 of this Bill, then Section 6 would provide a failsafe in 

the form of general fund transfers as needed to maintain a 100 percent TFR. 

Table 1a provides an analysis of the General Fund transfers to the trust funds under the 

plan, as well as projected levels of OASDI Trust Fund assets. Columns 1 through 3 

provide the estimated amounts of General Fund transfers to the trust funds for years 2048 

through 2057, expressed in present value dollars as of January 1, 2008, as a percentage of 

annual OASDI taxable payroll, and in constant 2008 dollars. The total amount of transfers 

in present value through 2082 (the end of the 75-year valuation period) is shown as $115 
8

billion at the bottom of column 1. Column 4 provides the cumulative total amount of 

these transfers through the end of each year (with interest), in constant 2008 dollars. 

The projected OASDI Trust Fund assets under the proposal are shown in column 5 of 

Table 1a. For the purpose of comparison, the projected OASDI Trust Fund assets are also 

shown for a theoretical Social Security program with borrowing authority in two separate 

ways. The theoretical trust fund assets are shown without any General Fund transfers in 

column 7. In addition, the theoretical trust fund assets are shown with the inclusion of 

General Fund transfers for solvency under the proposal in column 8. The projected level 

of GDP in constant 2008 dollars is shown in column 6 as an additional point of reference. 

Tables 1b and 1b.c provide estimated effects on the federal government unified budget 

deficit due to enacting the proposal. These estimates indicate the change from the unified 

budget projections that would be made under current law (under the standard budget 

conventions). It should be noted that these estimates are based on the Trustees 

assumptions and thus are not directly comparable with those made by OMB and CBO 

under their own assumptions. Annual unified budget cash flow would be improved for 

years 2012 and later due to the substantial and increasing reductions in benefit obligations 

under the OASDI program.. The total debt held by the public is reduced to an increasing 

degree through 2083. Annual unified budget balances are also improved for all years after 

2011. 

Table 1c provides estimates of the annual cash flow from the trust funds to the General 

Fund of the Treasury. Under the proposal, the cash flow to the general fund is unchanged 

through 2011. After 2011, cash flow to the general fund improves to an increasing degree, 

relative to current law, as the benefit reductions grow. For the period 2008 through 2082 

as a whole, the net cash flow from the OASDI Trust Funds to the general fund is increased 

from a negative $6.6 trillion in present value under current law modified to provide 

General Fund transfers for solvency to negative $1.8 trillion under the proposal. 

Table 1d illustrates the effects of the components of the proposal on the annual OASDI 

Trust Fund levels, and on the projected unfunded obligations through each year after trust 

fund assets are projected to be exhausted. The estimated OASDI unfunded obligation for 

the long-range period of $4.3 trillion in present value under current law is eliminated by a 

net reduction in benefits of $4.7 trillion and general revenue transfers of $0.115 trillion, in 

present value. The resulting positive trust fund balance at the end of 2082 is estimated at 

$0.5 trillion under the proposal. 

Table 2 provides the projected OASDI Trust Fund status for the plan, but excluding the 

transfers from the General Fund of the Treasury. Without the transfers, the OASDI Trust 

Fund is projected to remain solvent throughout the period, reaching a temporary minimum 

level of 71 percent of program cost in 2059, and the actuarial deficit would be improved 

by 1.78 percent of taxable payroll, leaving a positive actuarial balance of 0.08 percent of 

payroll. Without the General Fund transfers, the progressive indexing provision would be 

continued through 2070 and then suspended in 2071 through at least 2083. (This can be 
9

compared to suspension in years 2058 through at least 2083 where General Fund transfers 

are included.) 

Table 3 provides projected OASDI Trust Fund status reflecting only section 2, progressive 

indexing of the PIA formula, including the suspension of further reduction starting 2058. 

For this provision alone, the OASDI Trust Fund exhaustion date would be extended from 

2041 until 2050, and the actuarial deficit would be improved by 1.26 percent of taxable 

payroll, leaving an actuarial deficit of 0.44 percent of payroll. 

Estimated Effects on Benefit Levels

Table B provides projected levels of retired worker benefits for retirement at age 65 for 

several theoretical worker examples. Benefit levels at age 65 are presented in constant 

2008 dollars (discounted for CPI increase back to 2008). Theoretical workers are 

presented with scaled low, medium, and high career earnings levels, as well as for a career 

steady maximum earner (earnings at or above the OASDI taxable maximum each year). 

These four hypothetical workers represent about the 26, 56, 81 and 100 percentiles of the 

distribution of career earnings levels for recent retired workers. See Actuarial Note 2008.3 

at http://www.ssa.gov/OACT/NOTES/ran3/index.html for details on the nature of these 

worker examples. 

Benefit levels are shown only for retired worker beneficiaries. Percentage reductions in 

benefits would be similar for other affected benefits. Comparison is provided to both 

present-law scheduled and present-law payable benefits. Comparison to present-law 

payable benefits is particularly appropriate for this proposal, as the means to achieving 

solvency for the OASDI program is almost entirely reductions in scheduled benefits. 

 

 

 Stephen C. Goss 

 

 

 Alice H. Wade 

 

 Christopher J. Chaplain 

Attachments 
Table A--Estimated Long-Range OASDI Financial Effects of the “Social Security Solvency Act of 2009” 

Introduced by Senator Robert Bennett 

Section Provision

Estimated Change in 

Long-Range OASDI 

Actuarial Balance 

(as a percent of payroll)

Estimated Change 

in Annual Balance 

in 75th year 

(as a percent of payroll)

2 Progressive PIA Indexing— Beginning with individuals newly eligible 

for OASI benefits in 2012, create a new bend point at the 30th percentile 

of lifetime 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 across generations by inflation 

rather than the growth in average wages. Further reductions for 

progressive PIA indexing would be suspended for any year after 2050 

where General Fund transfers are not expected to be needed in the future, 

and the ratio of trust fund assets would otherwise be expected to be rising. 

Under the other provisions of this Bill suspension is expected beginning 

for those newly eligible in 2058 at least 2083. 

Due to section 4 of the Bill, disability benefits are not affected by the 

provision. 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 Benefits payable to young 

survivors (children and spouses under normal retirement age with a childin-care) are not affected by the provision. .................................................... 1.26 3.10 

3 Indexing OASI Benefits for Increases in Life Expectancy— 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. Due to section 4 

of the Bill, 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. Benefits payable to young survivors (children and spouses 

under normal retirement age with a child in care) are held harmless for the 

provision. ....................................................................................................... 0.52 1.80 

5 Accelerate Increase in Normal Retirement Age— Start increasing the 

NRA to age 67 for those age 62 in 2012, rather than those age 62 in 

2017.. ............................................................................................................. 0.05 0.00 

6 General Fund Transfers—If in any future year the assets of the OASDI 

Trust Funds are projected to fall below a level equal to 100 percent of the 

program’s cost in the ensuing year, provide for transfers from the General 

Fund of the Treasury such that assets will equal 100 percent of program 

cost for that year ............................................................................................ 0.04 0.00 

Total for all provisions, including interaction ..................... 1.78 4.51 

Notes: Section 4 effects on disability benefits are described under sections 2 and 3. 

All estimates are based on the intermediate assumptions of the 2008 OASDI Trustees Report. 

Financial effects for each individual proposal are shown on a stand-alone basis, relative to present law, unless otherwise stated. 

SSA/Office of the Chief Actuary 

February 12, 2009 
Table B. Projected Retired Worker Benefits at Age 65 under Bennett S. 426

Social Security Solvency Act of 2009--Suspend Progressive PIA Indexing in 2058

 Worker Retiring at age 65 in Indicated Years with Indicated Career-Average Earnings Levels

Year Present Law Benefit Progressive NRA 67 Life Proposal Scheduled Benefit

Attain Payable PIA Start Expectancy Benefit

Age 65 Scheduled at 65 Indexing 1/ 2012 Indexing 2/ Total Amount Scheduled Payable

 (constant 2008$) (constant 2008$)

Scaled Low Earner ($18,879 for 2008 3/)

2009 800 800 0.0 0.0 0.0 0.0 800 100 100

2019 904 904 0.0 6.0 0.0 6.0 850 94 94

2029 929 929 0.0 0.0 2.9 2.9 902 97 97

2039 1,032 1,032 0.0 0.0 5.9 5.9 971 94 94

2049 1,151 906 0.0 0.0 8.7 8.7 1,051 91 116

2059 1,282 1,001 0.0 0.0 11.1 11.1 1,139 89 114

2075 1,521 1,153 0.0 0.0 14.6 14.6 1,299 85 113

Scaled Medium Earner ($41,953 for 2008 3/)

2009 1,318 1,318 0.0 0.0 0.0 0.0 1,318 100 100

2019 1,489 1,489 3.1 6.0 0.0 8.9 1,357 91 91

2029 1,531 1,531 8.2 0.0 2.9 10.9 1,364 89 89

2039 1,701 1,701 13.1 0.0 5.9 18.2 1,391 82 82

2049 1,896 1,492 17.5 0.0 8.7 24.7 1,428 75 96

2059 2,112 1,650 21.5 0.0 11.1 30.2 1,473 70 89

2075 2,506 1,900 21.9 0.0 14.6 33.3 1,672 67 88

Scaled High Earner ($67,125 for 2008 3/)

2009 1,747 1,747 0.0 0.0 0.0 0.0 1,747 100 100

2019 1,974 1,974 4.7 6.0 0.0 10.3 1,770 90 90

2029 2,029 2,029 12.4 0.0 2.9 14.9 1,726 85 85

2039 2,254 2,254 19.6 0.0 5.9 24.3 1,706 76 76

2049 2,514 1,978 26.3 0.0 8.7 32.7 1,692 67 86

2059 2,799 2,187 32.3 0.0 11.1 39.8 1,685 60 77

2075 3,321 2,518 32.8 0.0 14.6 42.6 1,906 57 76

Steady Maximum Earner ($102,000 for 2008 3/)

2009 2,057 2,057 0.0 0.0 0.0 0.0 2,057 100 100

2019 2,401 2,401 5.5 6.0 0.0 11.1 2,134 89 89

2029 2,479 2,479 14.6 0.0 2.9 17.1 2,055 83 83

2039 2,753 2,753 23.1 0.0 5.9 27.7 1,991 72 72

2049 3,066 2,413 31.1 0.0 8.7 37.0 1,931 63 80

2059 3,415 2,668 38.1 0.0 11.1 45.0 1,879 55 70

2075 4,051 3,072 38.7 0.0 14.6 47.7 2,120 52 69

 1/ Progressive PIA indexing starting for those newly eligible in 2012, hold harmless lowest 30 percent of career-average earners.

 Under the stabilizing provision, it is expected that further reductions for this indexing would be suspended starting 2058.

 2/ For those eligible in 2018 and later, multiply PIA factors by age 67 life expectancy for 2013 to that for 4 years before eligibility.

 3/ Average of highest 35 years of earnings wage indexed to 2008.

All estimates based on the intermediate assumptions of the 2008 Trustees Report.

Office of the Actuary

Social Security Administration

February 12, 2009

Proposal Benefit Percent Reduction 

Percent of Present Law
Table 1 - Bennett "Social Security Solvency Act of 2009"

Progressive price indexing starting 2012 and suspended 2058-2083; disabled beneficiaries and young survivors held harmless

Index OASI benefits for increases in life expectancy starting 2018; disabled beneficiaries and young survivors held harmless

Start increase in normal retirement age to 67 in 2012

 General Fund Transfers to Maintain 100% Trust Fund Ratio

OASDI OASDI General

Cost Income Annual TFR Contribution Contribution Revenue

Year Rate Rate Balance 1-1-yr Rate Change Rate1 Transfers2

2008 11.20 12.77 1.57 359 12.40

2009 11.26 12.81 1.54 369 0.0000 12.40

2010 11.37 12.82 1.46 378 0.0000 12.40

2011 11.53 12.84 1.31 386 0.0000 12.40

2012 11.74 12.87 1.12 392 0.0000 12.40

2013 11.99 12.90 0.91 395 0.0000 12.40

2014 12.26 12.91 0.66 397 0.0000 12.40

2015 12.54 12.94 0.39 396 0.0000 12.40

2016 12.85 12.96 0.11 393 0.0000 12.40

2017 13.12 12.98 -0.14 390 0.0000 12.40

2018 13.37 13.00 -0.38 385 0.0000 12.40

2019 13.62 13.01 -0.61 380 0.0000 12.40

2020 13.86 13.03 -0.83 374 0.0000 12.40

2021 14.06 13.04 -1.01 367 0.0000 12.40

2022 14.25 13.06 -1.19 360 0.0000 12.40

2023 14.45 13.07 -1.38 352 0.0000 12.40

2024 14.63 13.08 -1.55 343 0.0000 12.40

2025 14.81 13.10 -1.72 333 0.0000 12.40

2026 14.99 13.11 -1.88 323 0.0000 12.40

2027 15.15 13.12 -2.03 312 0.0000 12.40

2028 15.29 13.13 -2.16 300 0.0000 12.40

2029 15.41 13.14 -2.27 288 0.0000 12.40

2030 15.50 13.15 -2.35 276 0.0000 12.40

2031 15.55 13.15 -2.40 264 0.0000 12.40

2032 15.58 13.16 -2.43 252 0.0000 12.40

2033 15.59 13.16 -2.43 239 0.0000 12.40

2034 15.56 13.16 -2.40 228 0.0000 12.40

2035 15.52 13.16 -2.36 216 0.0000 12.40

2036 15.46 13.16 -2.30 204 0.0000 12.40

2037 15.38 13.15 -2.23 193 0.0000 12.40

2038 15.29 13.15 -2.14 183 0.0000 12.40

2039 15.19 13.15 -2.04 172 0.0000 12.40

2040 15.07 13.14 -1.93 162 0.0000 12.40

2041 14.95 13.14 -1.81 153 0.0000 12.40

2042 14.82 13.13 -1.69 144 0.0000 12.40

2043 14.70 13.13 -1.57 136 0.0000 12.40

2044 14.58 13.12 -1.46 128 0.0000 12.40

2045 14.46 13.11 -1.34 121 0.0000 12.40

2046 14.34 13.11 -1.23 114 0.0000 12.40

2047 14.23 13.10 -1.13 108 0.0000 12.40

2048 14.12 13.60 -0.52 102 0.5000 12.90 0.50

2049 14.02 13.69 -0.32 100 0.1000 13.00 0.60

2050 13.92 13.69 -0.23 100 0.0000 13.00 0.60

2051 13.83 13.48 -0.34 100 -0.2000 12.80 0.40

2052 13.74 13.48 -0.26 100 0.0000 12.80 0.40

2053 13.66 13.38 -0.28 100 -0.1000 12.70 0.30

2054 13.58 13.37 -0.21 100 0.0000 12.70 0.30

2055 13.51 13.27 -0.24 100 -0.1000 12.60 0.20

2056 13.44 13.17 -0.27 100 -0.1000 12.50 0.10

2057 13.37 13.16 -0.21 100 0.0000 12.50 0.10

2058 13.31 13.06 -0.25 100 -0.1000 12.40

2059 13.24 13.06 -0.18 100 0.0000 12.40

2060 13.18 13.05 -0.13 100 0.0000 12.40

2061 13.12 13.05 -0.07 101 0.0000 12.40

2062 13.07 13.05 -0.02 102 0.0000 12.40

2063 13.01 13.05 0.03 103 0.0000 12.40

2064 12.97 13.04 0.08 105 0.0000 12.40

2065 12.92 13.04 0.12 108 0.0000 12.40

2066 12.89 13.04 0.15 110 0.0000 12.40

2067 12.86 13.04 0.18 113 0.0000 12.40

2068 12.83 13.04 0.21 116 0.0000 12.40

2069 12.80 13.04 0.24 119 0.0000 12.40

2070 12.78 13.04 0.25 123 0.0000 12.40

2071 12.76 13.03 0.27 127 0.0000 12.40

2072 12.75 13.03 0.29 131 0.0000 12.40

2073 12.74 13.03 0.30 135 0.0000 12.40

2074 12.73 13.03 0.31 139 0.0000 12.40

2075 12.72 13.03 0.31 143 0.0000 12.40

2076 12.71 13.03 0.32 147 0.0000 12.40

2077 12.71 13.03 0.32 152 0.0000 12.40

2078 12.71 13.03 0.32 156 0.0000 12.40

2079 12.71 13.03 0.32 161 0.0000 12.40

2080 12.72 13.03 0.32 165 0.0000 12.40

2081 12.72 13.03 0.31 170 0.0000 12.40

2082 12.73 13.03 0.31 175 0.0000 12.40

2083 12.73 13.03 0.30 179 0.0000 12.40

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2008 - 2082 13.80 13.88 0.08 1.78

1

 Includes General Fund Transfers

2

 Amounts needed to maintain 100 percent Trust Fund Ratio.

Based on Intermediate Assumptions of the 2008 Trustees Report. Office of the Chief Actuary

All values are expressed as percents of taxable payroll, except Trust Fund Ratio (TFR). Social Security Administration

Ultimate Real Trust Fund Yield of 2.9%. February 10, 2009
Table 1a - Proposal General Fund Transfers, OASDI Trust Fund Assets, and Theoretical OASDI Assets

Bennett Proposal

Total OASDI

Trust Fund

Annual Percentage Annual Accumulated as Assets Without General With Plan General

Amounts of Payroll Amounts of End of Year at End of Year GDP Fund Transfers Fund Transfers

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

Year

2008 0.0 0.00 0.0 0 2,435 14,445 2,435 2,435

2009 0.0 0.00 0.0 0 2,583 14,793 2,583 2,583

2010 0.0 0.00 0.0 0 2,727 15,135 2,727 2,727

2011 0.0 0.00 0.0 0 2,869 15,451 2,869 2,869

2012 0.0 0.00 0.0 0 3,006 15,768 3,005 3,005

2013 0.0 0.00 0.0 0 3,135 16,093 3,132 3,132

2014 0.0 0.00 0.0 0 3,254 16,416 3,247 3,247

2015 0.0 0.00 0.0 0 3,361 16,724 3,349 3,349

2016 0.0 0.00 0.0 0 3,454 17,042 3,437 3,437

2017 0.0 0.00 0.0 0 3,535 17,363 3,510 3,510

2018 0.0 0.00 0.0 0 3,604 17,682 3,568 3,568

2019 0.0 0.00 0.0 0 3,660 18,001 3,609 3,609

2020 0.0 0.00 0.0 0 3,703 18,322 3,632 3,632

2021 0.0 0.00 0.0 0 3,735 18,644 3,637 3,637

2022 0.0 0.00 0.0 0 3,755 18,968 3,625 3,625

2023 0.0 0.00 0.0 0 3,762 19,295 3,592 3,592

2024 0.0 0.00 0.0 0 3,754 19,629 3,540 3,540

2025 0.0 0.00 0.0 0 3,731 19,964 3,466 3,466

2026 0.0 0.00 0.0 0 3,693 20,306 3,372 3,372

2027 0.0 0.00 0.0 0 3,640 20,651 3,257 3,257

2028 0.0 0.00 0.0 0 3,574 21,003 3,121 3,121

2029 0.0 0.00 0.0 0 3,494 21,364 2,964 2,964

2030 0.0 0.00 0.0 0 3,402 21,732 2,786 2,786

2031 0.0 0.00 0.0 0 3,301 22,111 2,589 2,589

2032 0.0 0.00 0.0 0 3,191 22,498 2,373 2,373

2033 0.0 0.00 0.0 0 3,075 22,897 2,139 2,139

2034 0.0 0.00 0.0 0 2,954 23,305 1,889 1,889

2035 0.0 0.00 0.0 0 2,831 23,720 1,624 1,624

2036 0.0 0.00 0.0 0 2,706 24,140 1,345 1,345

2037 0.0 0.00 0.0 0 2,580 24,568 1,051 1,051

2038 0.0 0.00 0.0 0 2,456 25,007 744 744

2039 0.0 0.00 0.0 0 2,335 25,456 425 425

2040 0.0 0.00 0.0 0 2,218 25,914 94 94

2041 0.0 0.00 0.0 0 2,105 26,379 -248 -248

2042 0.0 0.00 0.0 0 1,998 26,852 -601 -601

2043 0.0 0.00 0.0 0 1,898 27,333 -966 -966

2044 0.0 0.00 0.0 0 1,803 27,824 -1,344 -1,344

2045 0.0 0.00 0.0 0 1,716 28,319 -1,735 -1,735

2046 0.0 0.00 0.0 0 1,635 28,818 -2,139 -2,139

2047 0.0 0.00 0.0 0 1,561 29,324 -2,559 -2,559

2048 17.1 0.50 52.6 53 1,548 29,838 -2,994 -2,941

2049 20.3 0.60 64.2 118 1,556 30,357 -3,445 -3,327

2050 20.0 0.60 65.2 187 1,574 30,882 -3,914 -3,727

2051 13.2 0.40 44.1 236 1,580 31,413 -4,402 -4,166

2052 13.0 0.40 44.8 288 1,594 31,955 -4,911 -4,623

2053 9.6 0.30 34.1 331 1,606 32,508 -5,441 -5,110

2054 9.5 0.30 34.6 375 1,626 33,069 -5,994 -5,619

2055 6.3 0.20 23.5 409 1,643 33,638 -6,571 -6,162

2056 3.1 0.10 11.9 433 1,655 34,213 -7,173 -6,741

2057 3.0 0.10 12.1 458 1,676 34,800 -7,803 -7,345

2058 0.0 0.00 0.0 471 1,692 35,397 -8,460 -7,989

2059 0.0 0.00 0.0 484 1,716 36,008 -9,146 -8,661

2060 0.0 0.00 0.0 499 1,747 36,626 -9,861 -9,362

2061 0.0 0.00 0.0 513 1,787 37,253 -10,607 -10,094

2062 0.0 0.00 0.0 528 1,835 37,893 -11,385 -10,857

2063 0.0 0.00 0.0 543 1,891 38,544 -12,196 -11,653

2064 0.0 0.00 0.0 559 1,955 39,207 -13,041 -12,483

2065 0.0 0.00 0.0 575 2,027 39,881 -13,923 -13,348

2066 0.0 0.00 0.0 592 2,105 40,563 -14,842 -14,250

2067 0.0 0.00 0.0 609 2,191 41,258 -15,799 -15,190

2068 0.0 0.00 0.0 627 2,284 41,966 -16,798 -16,171

2069 0.0 0.00 0.0 645 2,384 42,682 -17,837 -17,193

2070 0.0 0.00 0.0 664 2,490 43,406 -18,921 -18,258

2071 0.0 0.00 0.0 683 2,602 44,140 -20,051 -19,368

2072 0.0 0.00 0.0 703 2,720 44,892 -21,227 -20,525

2073 0.0 0.00 0.0 723 2,844 45,656 -22,453 -21,730

2074 0.0 0.00 0.0 744 2,975 46,430 -23,730 -22,986

2075 0.0 0.00 0.0 765 3,111 47,217 -25,059 -24,294

2076 0.0 0.00 0.0 788 3,252 48,013 -26,444 -25,656

2077 0.0 0.00 0.0 811 3,399 48,823 -27,885 -27,074

2078 0.0 0.00 0.0 834 3,551 49,641 -29,385 -28,551

2079 0.0 0.00 0.0 858 3,707 50,473 -30,947 -30,089

2080 0.0 0.00 0.0 883 3,869 51,316 -32,572 -31,689

2081 0.0 0.00 0.0 909 4,035 52,175 -34,263 -33,355

2082 0.0 0.00 0.0 935 4,206 53,047 -36,023 -35,088

2083 0.0 0.00 0.0 962 4,381 53,931 -37,852 -36,890

Total 2008-82 115.2

1

 Theoretical Social Security is the current Social Security program with the assumption Office of the Chief Actuary

 that the law is modified to permit borrowing from the General Fund of the Treasury. Social Security Administration

Based on Intermediate Assumptions of the 2008 Trustees Report February 10, 2009

Theoretical Social Security1

with Borrowing Authority

Net OASDI Trust Fund Assets at End of Year 

Present Value as of 1-1-08

Proposal General Fund Transfers

Billions of Constant 2008 Dollars Billions of Constant 2008 Dollars
Table 1b - OASDI Changes (Excluding GF Transfers) & Unified Budget Effect (Present Value Dollars)

Bennett Proposal

Changes in OASDI Change Change in Change

Cash Flow in Annual Debt Held in Annual

Excluding General Unified Budget by Public at Unified Budget

Fund Transfers Cash Flow End of Year Balance

(1) (2) (3) (4)

Year

2009 0.0 0.0 0.0 0.0

2010 0.0 0.0 0.0 0.0

2011 0.0 0.0 0.0 0.0

2012 0.8 0.8 -0.8 0.8

2013 1.9 1.9 -2.7 1.9

2014 3.0 3.0 -5.7 3.2

2015 3.7 3.7 -9.4 4.0

2016 3.8 3.8 -13.2 4.3

2017 5.8 5.8 -19.0 6.5

2018 7.8 7.8 -26.8 8.8

2019 10.3 10.3 -37.1 11.7

2020 13.1 13.1 -50.2 15.1

2021 16.8 16.8 -67.0 19.5

2022 19.9 19.9 -86.9 23.6

2023 22.7 22.7 -109.6 27.4

2024 25.1 25.1 -134.7 31.1

2025 27.3 27.3 -162.1 34.7

2026 28.7 28.7 -190.8 37.6

2027 30.5 30.5 -221.3 40.9

2028 32.8 32.8 -254.1 44.9

2029 35.0 35.0 -289.0 48.8

2030 37.3 37.3 -326.3 53.1

2031 40.1 40.1 -366.5 57.9

2032 42.9 42.9 -409.4 62.9

2033 45.6 45.6 -455.0 68.0

2034 48.3 48.3 -503.3 73.1

2035 50.9 50.9 -554.1 78.4

2036 53.4 53.4 -607.5 83.7

2037 55.9 55.9 -663.4 89.1

2038 58.3 58.3 -721.8 94.6

2039 60.6 60.6 -782.4 100.1

2040 62.8 62.8 -845.2 105.6

2041 65.0 65.0 -910.2 111.2

2042 67.1 67.1 -977.3 116.8

2043 69.1 69.1 -1046.4 122.5

2044 71.1 71.1 -1117.5 128.3

2045 73.1 73.1 -1190.6 134.2

2046 75.0 75.0 -1265.6 140.1

2047 76.9 76.9 -1342.5 146.1

2048 78.7 78.7 -1421.3 152.1

2049 80.5 80.5 -1501.8 158.2

2050 82.3 82.3 -1584.1 164.3

2051 84.0 84.0 -1668.0 170.5

2052 85.6 85.6 -1753.7 176.8

2053 87.3 87.3 -1840.9 183.1

2054 88.9 88.9 -1929.8 189.5

2055 90.4 90.4 -2020.2 195.9

2056 91.9 91.9 -2112.2 202.3

2057 93.4 93.4 -2205.6 208.8

2058 94.8 94.8 -2300.3 215.3

2059 96.0 96.0 -2396.3 221.7

2060 97.1 97.1 -2493.4 228.1

2061 98.1 98.1 -2591.6 234.4

2062 99.0 99.0 -2690.6 240.6

2063 99.8 99.8 -2790.3 246.8

2064 100.4 100.4 -2890.7 252.9

2065 100.9 100.9 -2991.6 258.9

2066 101.3 101.3 -3092.9 264.8

2067 101.6 101.6 -3194.5 270.6

2068 101.8 101.8 -3296.2 276.3

2069 101.9 101.9 -3398.1 282.0

2070 101.9 101.9 -3499.9 287.6

2071 101.9 101.9 -3601.8 293.1

2072 101.8 101.8 -3703.6 298.6

2073 101.6 101.6 -3805.2 304.0

2074 101.4 101.4 -3906.5 309.3

2075 101.1 101.1 -4007.7 314.6

2076 100.8 100.8 -4108.5 319.8

2077 100.5 100.5 -4208.9 325.0

2078 100.1 100.1 -4309.0 330.1

2079 99.6 99.6 -4408.7 335.1

2080 99.2 99.2 -4507.8 340.1

2081 98.7 98.7 -4606.5 345.0

2082 98.2 98.2 -4704.7 349.9

2083 97.6 97.6 -4802.3 354.7

Total 2008-82 4704.7 4704.7

Office of the Chief Actuary

Based on Intermediate Assumptions of the 2008 Trustees Report. Social Security Administration

Ultimate Real Trust Fund Yield of 2.9%. February 10, 2009

Billions of Present Value Dollars as of 1-1-2008
Table 1b.c - OASDI Changes (Excluding GF Transfers) & Unified Budget Effect (Constant Dollars)

Bennett Proposal

Changes in OASDI Change Change in Change

Cash Flow in Annual Debt Held in Annual

Excluding General Unified Budget by Public at Unified Budget

Fund Transfers Cash Flow End of Year Balance

(1) (2) (3) (4)

Year

2009 0.0 0.0 0.0 0.0

2010 0.0 0.0 0.0 0.0

2011 0.0 0.0 0.0 0.0

2012 1.0 1.0 -1.0 1.0

2013 2.1 2.1 -3.2 2.2

2014 3.6 3.6 -7.0 3.8

2015 4.4 4.4 -11.7 4.9

2016 4.7 4.7 -16.8 5.5

2017 7.4 7.4 -24.8 8.5

2018 10.2 10.2 -36.0 11.8

2019 13.8 13.8 -51.2 16.2

2020 18.1 18.1 -71.2 21.4

2021 23.8 23.8 -97.7 28.5

2022 29.1 29.1 -130.5 35.4

2023 34.1 34.1 -169.3 42.4

2024 38.9 38.9 -214.2 49.5

2025 43.5 43.5 -265.1 56.8

2026 47.0 47.0 -321.2 63.3

2027 51.3 51.3 -383.3 70.9

2028 56.9 56.9 -452.9 80.0

2029 62.3 62.3 -530.1 89.6

2030 68.5 68.5 -616.0 100.3

2031 75.7 75.7 -711.8 112.5

2032 83.4 83.4 -818.1 125.8

2033 91.2 91.2 -935.7 139.8

2034 99.3 99.3 -1,065.0 154.8

2035 107.7 107.7 -1,206.6 170.6

2036 116.4 116.4 -1,361.3 187.5

2037 125.4 125.4 -1,529.7 205.5

2038 134.6 134.6 -1,712.4 224.4

2039 143.9 143.9 -1,910.1 244.3

2040 153.5 153.5 -2,123.4 265.3

2041 163.3 163.3 -2,352.9 287.3

2042 173.4 173.4 -2,599.5 310.7

2043 183.9 183.9 -2,864.1 335.4

2044 194.8 194.8 -3,147.5 361.4

2045 206.0 206.0 -3,450.6 388.8

2046 217.5 217.5 -3,774.4 417.8

2047 229.5 229.5 -4,119.8 448.3

2048 241.7 241.7 -4,487.9 480.3

2049 254.4 254.4 -4,879.7 514.0

2050 267.4 267.4 -5,296.3 549.5

2051 280.9 280.9 -5,738.7 586.7

2052 294.8 294.8 -6,208.3 625.9

2053 309.1 309.1 -6,706.3 667.1

2054 323.9 323.9 -7,234.0 710.3

2055 339.1 339.1 -7,792.5 755.6

2056 354.8 354.8 -8,383.4 803.1

2057 370.8 370.8 -9,008.0 852.9

2058 387.2 387.2 -9,667.4 904.8

2059 403.6 403.6 -10,362.9 958.8

2060 420.2 420.2 -11,095.6 1,015.0

2061 436.9 436.9 -11,866.6 1,073.3

2062 453.6 453.6 -12,677.3 1,133.9

2063 470.3 470.3 -13,528.6 1,196.6

2064 486.9 486.9 -14,421.7 1,261.6

2065 503.6 503.6 -15,357.9 1,329.0

2066 520.2 520.2 -16,338.3 1,398.7

2067 536.9 536.9 -17,364.3 1,471.0

2068 553.4 553.4 -18,437.0 1,545.7

2069 570.0 570.0 -19,557.9 1,623.1

2070 586.7 586.7 -20,728.5 1,703.3

2071 603.5 603.5 -21,950.3 1,786.4

2072 620.5 620.5 -23,225.0 1,872.6

2073 637.5 637.5 -24,554.2 1,961.7

2074 654.6 654.6 -25,939.5 2,054.1

2075 671.8 671.8 -27,382.6 2,149.7

2076 689.1 689.1 -28,885.5 2,248.7

2077 706.7 706.7 -30,450.0 2,351.3

2078 724.3 724.3 -32,078.1 2,457.4

2079 742.1 742.1 -33,771.6 2,567.3

2080 760.1 760.1 -35,532.8 2,681.0

2081 778.2 778.2 -37,363.6 2,798.7

2082 796.6 796.6 -39,266.5 2,920.5

2083 815.1 815.1 -41,243.5 3,046.6

Office of the Chief Actuary

Based on Intermediate Assumptions of the 2008 Trustees Report. Social Security Administration

Ultimate Real Trust Fund Yield of 2.9%. February 10, 2009

Billions of Constant 2008 Dollars
Table 1c - OASDI Cash Flow to General Fund of the Treasury - Proposal vs. Theoretical OASDI

Bennett Proposal

Percentage Percentage

Year of Payroll Current $ 1-1-2008 PV Constant 2008 $ of Payroll Current $ 1-1-2008 PV Constant 2008 $

2008 1.4 80 78 80 1.4 80 78 80

2009 1.5 88 82 86 1.5 88 82 86

2010 1.4 89 78 84 1.4 89 78 84

2011 1.3 84 70 77 1.3 84 70 77

2012 1.1 75 60 68 1.1 74 59 67

2013 0.9 63 48 55 0.9 61 46 53

2014 0.6 47 34 40 0.6 43 31 37

2015 0.4 29 20 24 0.3 24 16 19

2016 0.1 8 5 6 0.0 2 1 2

2017 -0.2 -13 -8 -10 -0.3 -22 -14 -17

2018 -0.4 -34 -20 -26 -0.5 -48 -28 -36

2019 -0.6 -57 -31 -42 -0.8 -75 -41 -56

2020 -0.8 -80 -42 -58 -1.1 -105 -55 -76

2021 -1.0 -102 -50 -72 -1.4 -136 -67 -95

2022 -1.2 -125 -58 -85 -1.6 -168 -78 -114

2023 -1.4 -150 -66 -100 -1.9 -202 -89 -134

2024 -1.6 -176 -74 -114 -2.1 -237 -99 -153

2025 -1.7 -204 -80 -128 -2.3 -273 -108 -171

2026 -1.9 -233 -87 -142 -2.5 -310 -116 -189

2027 -2.0 -262 -92 -156 -2.7 -348 -123 -207

2028 -2.2 -290 -97 -167 -2.9 -388 -129 -224

2029 -2.3 -318 -100 -179 -3.1 -429 -135 -241

2030 -2.4 -344 -102 -188 -3.2 -469 -140 -256

2031 -2.4 -366 -103 -194 -3.3 -508 -143 -270

2032 -2.4 -386 -103 -200 -3.5 -547 -146 -283

2033 -2.4 -403 -101 -203 -3.5 -585 -147 -294

2034 -2.4 -417 -99 -204 -3.6 -620 -147 -303

2035 -2.4 -427 -96 -203 -3.6 -653 -147 -311

2036 -2.3 -435 -92 -201 -3.6 -686 -146 -318

2037 -2.2 -440 -88 -198 -3.7 -719 -144 -324

2038 -2.2 -442 -84 -193 -3.6 -749 -142 -328

2039 -2.0 -439 -79 -187 -3.6 -777 -139 -331

2040 -1.9 -434 -74 -180 -3.6 -804 -136 -333

2041 -1.8 -426 -68 -172 -3.6 -831 -133 -335

2042 -1.7 -416 -63 -163 -3.5 -858 -130 -337

2043 -1.6 -405 -58 -154 -3.5 -887 -127 -338

2044 -1.5 -391 -53 -145 -3.4 -916 -124 -340

2045 -1.4 -377 -48 -136 -3.4 -947 -121 -342

2046 -1.2 -361 -44 -127 -3.4 -981 -119 -345

2047 -1.1 -345 -40 -118 -3.4 -1,017 -116 -347

2048 -1.0 -328 -35 -109 -3.3 -1,055 -114 -351

2049 -0.9 -309 -32 -100 -3.3 -1,096 -112 -354

2050 -0.8 -291 -28 -91 -3.3 -1,141 -110 -359

2051 -0.8 -273 -25 -83 -3.3 -1,190 -109 -364

2052 -0.7 -254 -22 -75 -3.3 -1,244 -108 -370

2053 -0.6 -234 -19 -68 -3.3 -1,302 -106 -377

2054 -0.5 -214 -17 -60 -3.3 -1,364 -105 -384

2055 -0.5 -193 -14 -53 -3.3 -1,431 -105 -392

2056 -0.4 -172 -12 -46 -3.4 -1,504 -104 -401

2057 -0.3 -150 -10 -39 -3.4 -1,580 -103 -410

2058 -0.3 -126 -8 -32 -3.4 -1,661 -103 -419

2059 -0.2 -100 -6 -25 -3.4 -1,745 -102 -428

2060 -0.1 -73 -4 -17 -3.5 -1,834 -101 -438

2061 -0.1 -46 -2 -11 -3.5 -1,927 -100 -447

2062 0.0 -17 -1 -4 -3.5 -2,026 -100 -457

2063 0.0 12 1 3 -3.5 -2,129 -99 -468

2064 0.1 41 2 9 -3.6 -2,237 -99 -478

2065 0.1 70 3 14 -3.6 -2,353 -98 -489

2066 0.1 96 4 19 -3.6 -2,477 -98 -501

2067 0.2 122 5 24 -3.6 -2,607 -97 -513

2068 0.2 149 5 28 -3.7 -2,744 -97 -525

2069 0.2 175 6 32 -3.7 -2,888 -96 -537

2070 0.2 198 6 36 -3.7 -3,042 -96 -551

2071 0.3 220 7 39 -3.8 -3,206 -95 -565

2072 0.3 243 7 42 -3.8 -3,378 -95 -579

2073 0.3 265 7 44 -3.8 -3,560 -95 -593

2074 0.3 286 7 46 -3.9 -3,752 -94 -608

2075 0.3 306 7 48 -3.9 -3,954 -94 -623

2076 0.3 325 7 50 -4.0 -4,168 -94 -639

2077 0.3 342 7 51 -4.0 -4,394 -93 -656

2078 0.3 357 7 52 -4.0 -4,633 -93 -673

2079 0.3 370 7 52 -4.1 -4,886 -93 -690

2080 0.3 382 7 52 -4.1 -5,152 -92 -708

2081 0.3 392 7 52 -4.2 -5,432 -92 -726

2082 0.3 401 6 52 -4.2 -5,727 -92 -744

2083 0.3 410 6 52 -4.3 -6,038 -91 -763

Total 2008-82 -1,846 -6,551

1

 Equals net investment in special Treasury Bonds by the Trust Fund Office of the Chief Actuary

Social Security Administration

Based on Intermediate Assumptions of the 2008 Trustees Report. February 10, 2009

Billions of Dollars Billions of Dollars

Treasury During the Year1

Net Amount of Cash-Flow from the OASDI 

Trust Funds to the General Fund of the

Treasury During the Year1

 Proposal Social Security under Present Law

Net Amount of Cash-Flow from the OASDI 

Trust Funds to the General Fund of the
Table 1d - Change in Long-Range Trust Fund Assets / Unfunded Obligation

Bennett Proposal

Present Law OASDI Basic Proposal OASDI

Trust Fund Assets / Changes General Fund Total Change Trust Fund Assets /

Unfunded Obligation in OASDI Contributions Through Unfunded Obligation

Through End of Year Cash Flow to Accounts End of Year

1 Through End of Year

(1) (2) (3) (4) (5)

Year

2009 2,397.3 0.0 0.0 0.0 2,397.3

2010 2,475.3 0.0 0.0 0.0 2,475.3

2011 2,545.3 0.0 0.0 0.0 2,545.3

2012 2,604.4 0.8 0.0 0.8 2,605.3

2013 2,650.1 1.9 0.0 2.7 2,652.8

2014 2,680.9 3.0 0.0 5.7 2,686.7

2015 2,696.8 3.7 0.0 9.4 2,706.3

2016 2,697.9 3.8 0.0 13.2 2,711.1

2017 2,684.0 5.8 0.0 19.0 2,703.0

2018 2,656.2 7.8 0.0 26.8 2,683.0

2019 2,614.6 10.3 0.0 37.1 2,651.7

2020 2,559.7 13.1 0.0 50.2 2,609.8

2021 2,492.4 16.8 0.0 67.0 2,559.4

2022 2,413.9 19.9 0.0 86.9 2,500.8

2023 2,324.9 22.7 0.0 109.6 2,434.5

2024 2,226.2 25.1 0.0 134.7 2,360.9

2025 2,118.5 27.3 0.0 162.1 2,280.6

2026 2,003.0 28.7 0.0 190.8 2,193.8

2027 1,880.2 30.5 0.0 221.3 2,101.4

2028 1,750.7 32.8 0.0 254.1 2,004.8

2029 1,615.6 35.0 0.0 289.0 1,904.6

2030 1,476.0 37.3 0.0 326.3 1,802.3

2031 1,332.9 40.1 0.0 366.5 1,699.3

2032 1,187.2 42.9 0.0 409.4 1,596.6

2033 1,040.1 45.6 0.0 455.0 1,495.1

2034 892.8 48.3 0.0 503.3 1,396.0

2035 745.9 50.9 0.0 554.1 1,300.0

2036 600.0 53.4 0.0 607.5 1,207.6

2037 455.7 55.9 0.0 663.4 1,119.1

2038 313.5 58.3 0.0 721.8 1,035.3

2039 174.0 60.6 0.0 782.4 956.4

2040 37.5 62.8 0.0 845.2 882.8

2041 -95.8 65.0 0.0 910.2 814.4

2042 -226.0 67.1 0.0 977.3 751.3

2043 -353.1 69.1 0.0 1046.4 693.3

2044 -477.2 71.1 0.0 1117.5 640.3

2045 -598.6 73.1 0.0 1190.6 592.0

2046 -717.4 75.0 0.0 1265.6 548.2

2047 -833.9 76.9 0.0 1342.5 508.7

2048 -948.1 78.7 17.1 1438.4 490.3

2049 -1,060.3 80.5 20.3 1539.3 479.0

2050 -1,170.7 82.3 20.0 1641.6 470.9

2051 -1,279.6 84.0 13.2 1738.7 459.1

2052 -1,387.1 85.6 13.0 1837.4 450.2

2053 -1,493.5 87.3 9.6 1934.3 440.7

2054 -1,598.9 88.9 9.5 2032.7 433.7

2055 -1,703.5 90.4 6.3 2129.3 425.9

2056 -1,807.3 91.9 3.1 2224.4 417.0

2057 -1,910.5 93.4 3.0 2320.8 410.3

2058 -2,013.0 94.8 0.0 2415.5 402.5

2059 -2,114.8 96.0 0.0 2511.5 396.7

2060 -2,216.0 97.1 0.0 2608.7 392.7

2061 -2,316.5 98.1 0.0 2706.8 390.3

2062 -2,416.3 99.0 0.0 2805.8 389.5

2063 -2,515.5 99.8 0.0 2905.5 390.1

2064 -2,614.0 100.4 0.0 3005.9 391.9

2065 -2,712.0 100.9 0.0 3106.8 394.8

2066 -2,809.5 101.3 0.0 3208.1 398.6

2067 -2,906.6 101.6 0.0 3309.7 403.1

2068 -3,003.1 101.8 0.0 3411.4 408.3

2069 -3,099.1 101.9 0.0 3513.3 414.1

2070 -3,194.8 101.9 0.0 3615.2 420.4

2071 -3,290.1 101.9 0.0 3717.0 426.9

2072 -3,385.0 101.8 0.0 3818.8 433.8

2073 -3,479.6 101.6 0.0 3920.4 440.8

2074 -3,573.8 101.4 0.0 4021.8 448.0

2075 -3,667.6 101.1 0.0 4122.9 455.3

2076 -3,761.2 100.8 0.0 4223.7 462.5

2077 -3,854.4 100.5 0.0 4324.2 469.8

2078 -3,947.3 100.1 0.0 4424.2 476.9

2079 -4,039.9 99.6 0.0 4523.9 484.0

2080 -4,132.3 99.2 0.0 4623.1 490.8

2081 -4,224.3 98.7 0.0 4721.7 497.5

2082 -4,316.0 98.2 0.0 4819.9 503.9

Total 2009-2082 4,704.7 115.2

1

 Total change through the year is the accumulation of changes in columns 2 and 3. Office of the Chief Actuary

Based on Intermediate Assumptions of the 2008 Trustees Report. Social Security Administration

Ultimate Real Trust Fund Yield of 2.9%. February 10, 2009

Billions of Present Value Dollars as of 1-1-2008
Table 2 - Bennett Solvency Bill: Without General Fund Transfers to Maintain 100% Trust Fund Ratio

Progressive price indexing starting 2012 and suspended 2071-2083; disabled beneficiaries and young survivors held harmless

Index OASI benefits for increases in life expectancy starting 2018; disabled beneficiaries and young survivors held harmless

Start increase in normal retirement age to 67 in 2012

OASDI OASDI General

Cost Income Annual TFR Contribution Contribution Revenue

Year Rate Rate Balance 1-1-yr Rate Change Rate Transfers

2008 11.20 12.77 1.57 359 12.40

2009 11.26 12.81 1.54 369 0.0000 12.40

2010 11.37 12.82 1.46 378 0.0000 12.40

2011 11.53 12.84 1.31 386 0.0000 12.40

2012 11.74 12.87 1.12 392 0.0000 12.40

2013 11.99 12.90 0.91 395 0.0000 12.40

2014 12.26 12.91 0.66 397 0.0000 12.40

2015 12.54 12.94 0.39 396 0.0000 12.40

2016 12.85 12.96 0.11 393 0.0000 12.40

2017 13.12 12.98 -0.14 390 0.0000 12.40

2018 13.37 13.00 -0.38 385 0.0000 12.40

2019 13.62 13.01 -0.61 380 0.0000 12.40

2020 13.86 13.03 -0.83 374 0.0000 12.40

2021 14.06 13.04 -1.01 367 0.0000 12.40

2022 14.25 13.06 -1.19 360 0.0000 12.40

2023 14.45 13.07 -1.38 352 0.0000 12.40

2024 14.63 13.08 -1.55 343 0.0000 12.40

2025 14.81 13.10 -1.72 333 0.0000 12.40

2026 14.99 13.11 -1.88 323 0.0000 12.40

2027 15.15 13.12 -2.03 312 0.0000 12.40

2028 15.29 13.13 -2.16 300 0.0000 12.40

2029 15.41 13.14 -2.27 288 0.0000 12.40

2030 15.50 13.15 -2.35 276 0.0000 12.40

2031 15.55 13.15 -2.40 264 0.0000 12.40

2032 15.58 13.16 -2.43 252 0.0000 12.40

2033 15.59 13.16 -2.43 239 0.0000 12.40

2034 15.56 13.16 -2.40 228 0.0000 12.40

2035 15.52 13.16 -2.36 216 0.0000 12.40

2036 15.46 13.16 -2.30 204 0.0000 12.40

2037 15.38 13.15 -2.23 193 0.0000 12.40

2038 15.29 13.15 -2.14 183 0.0000 12.40

2039 15.19 13.15 -2.04 172 0.0000 12.40

2040 15.07 13.14 -1.93 162 0.0000 12.40

2041 14.95 13.14 -1.81 153 0.0000 12.40

2042 14.82 13.13 -1.69 144 0.0000 12.40

2043 14.70 13.13 -1.57 136 0.0000 12.40

2044 14.58 13.12 -1.46 128 0.0000 12.40

2045 14.46 13.11 -1.34 121 0.0000 12.40

2046 14.34 13.11 -1.23 114 0.0000 12.40

2047 14.23 13.10 -1.13 108 0.0000 12.40

2048 14.12 13.10 -1.02 102 0.0000 12.40

2049 14.02 13.09 -0.92 97 0.0000 12.40

2050 13.92 13.09 -0.83 92 0.0000 12.40

2051 13.83 13.08 -0.74 88 0.0000 12.40

2052 13.74 13.08 -0.66 84 0.0000 12.40

2053 13.66 13.08 -0.58 81 0.0000 12.40

2054 13.58 13.07 -0.51 78 0.0000 12.40

2055 13.51 13.07 -0.44 76 0.0000 12.40

2056 13.44 13.07 -0.37 74 0.0000 12.40

2057 13.37 13.06 -0.31 73 0.0000 12.40

2058 13.31 13.06 -0.25 72 0.0000 12.40

2059 13.24 13.06 -0.18 71 0.0000 12.40

2060 13.18 13.05 -0.12 71 0.0000 12.40

2061 13.11 13.05 -0.06 71 0.0000 12.40

2062 13.05 13.05 0.00 72 0.0000 12.40

2063 12.99 13.05 0.05 73 0.0000 12.40

2064 12.93 13.04 0.11 75 0.0000 12.40

2065 12.88 13.04 0.16 77 0.0000 12.40

2066 12.82 13.04 0.21 79 0.0000 12.40

2067 12.77 13.03 0.26 82 0.0000 12.40

2068 12.72 13.03 0.31 86 0.0000 12.40

2069 12.67 13.03 0.36 90 0.0000 12.40

2070 12.63 13.03 0.40 94 0.0000 12.40

2071 12.58 13.02 0.44 98 0.0000 12.40

2072 12.54 13.02 0.48 104 0.0000 12.40

2073 12.50 13.02 0.52 109 0.0000 12.40

2074 12.46 13.02 0.56 115 0.0000 12.40

2075 12.43 13.02 0.59 121 0.0000 12.40

2076 12.40 13.02 0.62 128 0.0000 12.40

2077 12.37 13.01 0.64 134 0.0000 12.40

2078 12.35 13.01 0.67 142 0.0000 12.40

2079 12.33 13.01 0.69 149 0.0000 12.40

2080 12.31 13.01 0.70 157 0.0000 12.40

2081 12.30 13.01 0.71 165 0.0000 12.40

2082 12.28 13.01 0.73 173 0.0000 12.40

2083 12.27 13.01 0.74 181 0.0000 12.40

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2008 - 2082 13.76 13.84 0.08 1.78

Based on Intermediate Assumptions of the 2008 Trustees Report. Office of the Chief Actuary

All values are expressed as percents of taxable payroll, except Trust Fund Ratio (TFR). Social Security Administration

Ultimate Real Trust Fund Yield of 2.9%. February 10, 2009
Table 3 - Bennett Solvency Bill, Section 2 (with Section 4)

Progressive price indexing starting 2012 and suspended 2058-2083; disabled beneficiaries and young survivors held harmless

OASDI OASDI General

Cost Income Annual TFR Contribution Contribution Revenue

Year Rate Rate Balance 1-1-yr Rate Change Rate Transfers

2008 11.20 12.77 1.57 359 12.40

2009 11.26 12.81 1.54 369 0.0000 12.40

2010 11.37 12.82 1.46 378 0.0000 12.40

2011 11.53 12.84 1.31 386 0.0000 12.40

2012 11.76 12.87 1.11 391 0.0000 12.40

2013 12.03 12.90 0.88 394 0.0000 12.40

2014 12.31 12.92 0.61 395 0.0000 12.40

2015 12.59 12.94 0.34 394 0.0000 12.40

2016 12.89 12.96 0.07 391 0.0000 12.40

2017 13.18 12.98 -0.20 387 0.0000 12.40

2018 13.45 13.00 -0.45 382 0.0000 12.40

2019 13.72 13.02 -0.70 375 0.0000 12.40

2020 13.98 13.04 -0.94 368 0.0000 12.40

2021 14.22 13.05 -1.17 359 0.0000 12.40

2022 14.44 13.07 -1.38 351 0.0000 12.40

2023 14.66 13.08 -1.58 341 0.0000 12.40

2024 14.85 13.10 -1.76 331 0.0000 12.40

2025 15.04 13.11 -1.93 320 0.0000 12.40

2026 15.20 13.12 -2.08 308 0.0000 12.40

2027 15.36 13.13 -2.23 296 0.0000 12.40

2028 15.50 13.14 -2.36 283 0.0000 12.40

2029 15.62 13.15 -2.47 270 0.0000 12.40

2030 15.72 13.16 -2.56 257 0.0000 12.40

2031 15.79 13.16 -2.62 243 0.0000 12.40

2032 15.84 13.17 -2.67 229 0.0000 12.40

2033 15.86 13.17 -2.69 215 0.0000 12.40

2034 15.85 13.17 -2.68 201 0.0000 12.40

2035 15.83 13.17 -2.65 188 0.0000 12.40

2036 15.79 13.17 -2.62 174 0.0000 12.40

2037 15.74 13.17 -2.56 160 0.0000 12.40

2038 15.67 13.17 -2.50 147 0.0000 12.40

2039 15.58 13.17 -2.41 134 0.0000 12.40

2040 15.49 13.16 -2.32 121 0.0000 12.40

2041 15.39 13.16 -2.23 108 0.0000 12.40

2042 15.29 13.16 -2.13 96 0.0000 12.40

2043 15.18 13.15 -2.03 84 0.0000 12.40

2044 15.08 13.15 -1.94 72 0.0000 12.40

2045 14.99 13.14 -1.85 61 0.0000 12.40

2046 14.90 13.14 -1.76 50 0.0000 12.40

2047 14.81 13.13 -1.68 39 0.0000 12.40

2048 14.73 13.13 -1.60 28 0.0000 12.40

2049 14.65 13.13 -1.52 18 0.0000 12.40

2050 14.58 13.12 -1.45 8 0.0000 12.40

2051 14.51 13.12 -1.39 -- 0.0000 12.40

2052 14.45 13.12 -1.34 -- 0.0000 12.40

2053 14.40 13.12 -1.28 -- 0.0000 12.40

2054 14.35 13.11 -1.23 -- 0.0000 12.40

2055 14.30 13.11 -1.19 -- 0.0000 12.40

2056 14.26 13.11 -1.15 -- 0.0000 12.40

2057 14.22 13.11 -1.11 -- 0.0000 12.40

2058 14.18 13.11 -1.07 -- 0.0000 12.40

2059 14.14 13.11 -1.04 -- 0.0000 12.40

2060 14.11 13.10 -1.00 -- 0.0000 12.40

2061 14.07 13.10 -0.97 -- 0.0000 12.40

2062 14.04 13.10 -0.94 -- 0.0000 12.40

2063 14.02 13.10 -0.92 -- 0.0000 12.40

2064 13.99 13.10 -0.89 -- 0.0000 12.40

2065 13.98 13.10 -0.88 -- 0.0000 12.40

2066 13.97 13.10 -0.87 -- 0.0000 12.40

2067 13.96 13.10 -0.86 -- 0.0000 12.40

2068 13.95 13.10 -0.85 -- 0.0000 12.40

2069 13.95 13.10 -0.85 -- 0.0000 12.40

2070 13.96 13.10 -0.86 -- 0.0000 12.40

2071 13.97 13.10 -0.87 -- 0.0000 12.40

2072 13.97 13.10 -0.87 -- 0.0000 12.40

2073 13.99 13.10 -0.89 -- 0.0000 12.40

2074 14.00 13.10 -0.90 -- 0.0000 12.40

2075 14.02 13.10 -0.92 -- 0.0000 12.40

2076 14.04 13.11 -0.94 -- 0.0000 12.40

2077 14.07 13.11 -0.96 -- 0.0000 12.40

2078 14.09 13.11 -0.98 -- 0.0000 12.40

2079 14.12 13.11 -1.01 -- 0.0000 12.40

2080 14.15 13.11 -1.04 -- 0.0000 12.40

2081 14.18 13.11 -1.07 -- 0.0000 12.40

2082 14.22 13.12 -1.10 -- 0.0000 12.40

2083 14.25 13.12 -1.13 -- 0.0000 12.40

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2008 - 2082 14.30 13.87 -0.44 1.26

Based on Intermediate Assumptions of the 2008 Trustees Report. Office of the Chief Actuary

All values are expressed as percents of taxable payroll, except Trust Fund Ratio (TFR). Social Security Administration

Ultimate Real Trust Fund Yield of 2.9%. February 10, 2009