Social Security

Memorandum 

Date: June 23, 2005 

To: Senator Jim DeMint 

From: Stephen C. Goss, Chief Actuary 

Alice H. Wade, Deputy Chief Actuary 

Subject: Estimated Financial Effects of a Proposal to Finance 

Individual Accounts with the OASDI Cash-Flow Surplus 

--INFORMATION 

This memorandum presents estimates for the plan discussed with you and with Matt 

Hoskins and Chris Socha of your staff. This plan is being introduced today as the “Stop 

the Raid on Social Security Act of 2005.” The plan would fund individual accounts with 

the OASDI annual cash-flow surplus and provide for a benefit offset for plan participants. 

In addition, the plan would provide for transfers from the General Fund of the Treasury to 

the OASDI Trust Funds sufficient to maintain solvency until 2041. 

All estimates are based on the intermediate assumptions of the 2005 Trustees Report and 

reflect our understanding of your intent for this proposal. This plan would decrease 

(improve) the long-range OASDI actuarial deficit by an estimated 0.15 percent of taxable 

payroll, from the actuarial deficit of 1.92 percent estimated under present law to a deficit 

of 1.77 percent of payroll under the proposal. 

Plan Specifications

This plan would establish individual accounts for workers who were under age 55 on 

January 1, 2005 and provide for an offset against their Social Security retirement and 

aged survivor benefits. All qualifying workers would be automatically enrolled for 

participation in the individual account provision (the default) but the option to disenroll 

would be provided. For each calendar year beginning with 2006, the Social Security 

Administration would remit to the Central Administrative Authority (CAA) a specified 

percentage of each participating worker’s OASDI taxable earnings from the trust funds. 

The total amount of contributions to individual accounts (IAs) in a calendar year would 

be equal to the excess of OASDI tax income for the year (including income from taxation 

of benefits) over the cost of providing scheduled benefits in the year (including 

administrative expenses.) The IA contribution rate for plan participants each year would 

be determined by dividing the total IA contribution by the total taxable earnings of IA 
2

participants for the year. Because individual records of earnings for each year are not 

available until late in the following year, IA contributions would be credited to the 

accounts a little over one year, on average, after earnings are paid to the workers. 

However, the IA contributions will be provided in bulk to the CAA during the year in 

which earnings are paid so that the assets can be invested in the designated bonds (bond 

fund). When IA contributions are credited to individuals, the contributions will be 

increased by the yield on the specified bonds from July 1 of the year of earnings to the 

date of crediting the IA. 

The CAA would maintain individual account (IA) records for each participant and would 

invest all assets in long-term Treasury bonds (or a Treasury bond fund including a 

representative mix of fixed marketable Treasury bonds with remaining duration to 

maturity of 4 years or more). Starting in 2008, the plan authorizes the CAA to expand 

investment options to include various index funds like those offered by the government 

employee Thrift Savings Plan (TSP). The Treasury bond fund would remain the default 

allocation, but individuals would be allowed to select their portfolio allocation once each 

year. The CAA would make CPI-indexed annuities available to account holders for 

purchase at the time of their retirement. It is assumed that these annuities would be 

provided by the CAA. In addition, the plan specifies that upon receipt of a retirement, 

aged spouse, or aged surviving spouse benefit, the individual would be required to 

purchase an annuity from the CAA with any IA assets sufficient to bring the total of the 

Social Security monthly benefit and the IA annuity up to the poverty level. 

The benefit offset applied to retired worker, aged spouse, and aged widow(er) benefits 

would be based on the amount of the annuity that could be purchased through the CAA at 

retirement with the theoretical “shadow account” accumulation of all assets credited to 

the IA for the worker. The shadow account accumulation would reflect the realized yield 

on the Treasury bond fund for each year of IA accumulation, less 0.3 percentage point 

representing the ultimate expected administrative expense for the account. Actual 

disbursements from the IA after retirement (whether in monthly annuity payments, 

scheduled withdrawals, or lump sum distributions) would be subject to Federal personal 

income taxation in the same manner as are regular monthly OASDI benefits, with 

revenue directed to the trust funds. 

For workers who die before retirement, the IA assets will be transferred to the IA of the 

surviving spouse. If there is no surviving spouse, then the IA assets are transferred to the 

estate of the worker, tax free. 

Because the annual cash-flow surpluses would be redirected to the individual accounts, 

the trust funds would not be as large as under current law, starting in 2006. However, the 

plan also provides that transfers would be made from the General Fund of the Treasury to 

the trust funds sufficient to maintain trust fund levels equal to annual program cost long 

enough so that full scheduled benefits would be payable until 2041. The year 2041 is 

targeted because this is the projected year of trust fund exhaustion under current law with 

the intermediate assumptions of the 2005 Trustees Report. 
3

Assumptions

Because the default for the proposal would be for all eligible workers to be automatically 

enrolled, we assume that participation will be essentially universal. In fact, for those who 

retain the default portfolio (entirely invested in the Treasury bond fund), participation 

would provide an effective bonus in the form of a “life insurance” policy in the event of 

death without a spouse before retirement. For those who prefer to invest in equities or 

corporate bonds, the potential for either higher or lower benefits in retirement would 

exist, although higher total benefits would be expected. Thus, we assume that 

participation in this plan would be essentially 100 percent. 

It should be noted, however, that for individuals who invest only in the default bond fund 

and do not annuitize their entire IA at retirement, lifetime benefit payments may turn out 

to be either higher or lower than under current law, depending on how long the worker 

and dependents live. If, for example, a worker takes the IA assets as a lump sum at 

retirement and lives longer than average, then the value of benefit offsets will exceed the 

value of the IA lump sum. On the other hand, if the same worker dies sooner than 

average, then the lump sum IA distribution will exceed the value of the benefit offsets. 

 

The Treasury bond fund used for the default investment of IA assets is assumed to yield 

the same as the investments for the trust funds, or ultimately 3 percent over inflation, on 

average. Investments that may be offered starting 2008 as an option would reflect broad 

market index funds. Because the assets would be invested in bulk and all individual 

records for the accounts maintained by the CAA, administrative expense is assumed to be 

relatively low at about 0.3 percent of IA assets ultimately. Higher administrative 

expenses in early decades are assumed to be financed from the General Fund of the 

Treasury. Annuities provided by the CAA are assumed also to reflect investment of 

assets in long-term marketable fixed Treasury bonds with an expected ultimate gross real 

yield of 3 percent on average. Administrative expenses for the annuities are assumed to 

be about equal to 0.3 percent of annuity assets ultimately. 

For the option that the CAA may expand investment options beyond the default Treasury 

bond fund, we also make assumptions for the potential portfolio allocations that workers 

might choose. Tables 2 reflect the possibility that investments in IAs would average 50 

percent in equity funds, 25 percent in corporate bond funds, and 25 percent in the default 

Treasury bond fund. In fact, given the default option, it is likely that lower percentages 

in equities and corporate bonds would actually be realized. This illustration is thus 

intended to show the magnitude of the potential effects of broadening investment options. 

Results

With Default Treasury Bond Fund IA Investment Only

Tables 1 through 1d provide detailed estimates for the expected effects of the plan on 

OASDI financial status and on the unified budget. Tables 1 reflect the assumption that 
4

either the CAA will not in fact expand the options for investment of IA assets beyond the 

default Treasury bond fund, or that workers will continue to invest only in that default 

fund. (As seen in Tables 2, discussed below, the option for broader investments has little 

effect on OASDI and unified budget finances.) All estimates reflect the intermediate 

assumptions of the 2005 Trustees Report. 

Table 1 indicates that the date of OASDI combined trust fund exhaustion would be 

maintained at 2041, as projected under the intermediate assumptions of the 2005 Trustees 

report. Trust fund solvency is maintained until at least 2041 through the provision for 

transfers from the General Fund of the Treasury. 

Table 1 also illustrates that while annual OASDI cash flow surpluses in years 2006 

through 2016 are eliminated (by the redirected revenue to IAs); annual cash flow 

balances are improved in later years due to the benefit offsets. For 2079, for example, the 

OASDI annual cash flow shortfall projected under current law of 5.70 percent of payroll 

is expected to be reduced to a deficit of 5.64 percent of payroll. For the long-range 75-

year period as a whole, the OASDI actuarial deficit is decreased from 1.92 percent pf 

payroll under present law to a deficit of 1.77 percent of payroll under the proposal. 

Table 1 shows that transfers are expected to be needed from the General Fund of the 

Treasury in years 2033 through 2036 under the plan, to maintain OASDI solvency until 

2041. Table 1a shows that the estimated present value of these transfers is $422.5 billion. 

Table 1b provides estimated effects on the federal government unified budget 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 worsened for 

years 2006 through 2016 due to the expenditures of revenue to provide contributions to 

the IAs. For 2017 through 2080, unified budget cash flow is improved as benefit offsets 

reduce expenditures. The total debt held by the public is increased indefinitely due to the 

incomplete compensation of the trust funds through benefit offsets, as described above. 

Annual unified budget balances remain worsened throughout the period due to additional 

interest on the increased debt held by the public. 

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 of course 

reduced through 2016 as the OASDI cash flow surpluses are expended to finance IA 

contributions. After 2016, cash flow to the General Fund improves slightly as the benefit 

offsets reduce net benefit obligations. For the period 2005 through 2079 as a whole, the 

net cash flow from the OASDI trust funds to the General Fund is reduced from a negative 

$5.7 trillion in present value under current law modified to provide General Fund 

transfers for solvency to a negative $5.8 trillion under the proposal. It should be noted 

that cash flow numbers are theoretical in that they reflect the full cost of scheduled 

benefits, even for years in which full benefits would not be payable. 
5

Table 1d illustrates the annual 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 size of the estimated OASDI 

unfunded obligation for the long-range period is decreased from $4.0 trillion in present 

value under current law to $3.7 trillion under the proposal. 

With Options for IA Investment Starting 2008

Tables 2 provide estimates for plan assuming that the CAA broadens the investment 

options for assets in IAs starting 2008. As seen in Tables 2, there is very little effect from 

this modification on OASDI program finances or on the unified budget estimates. Under 

this plan, the broadening of the investment option allows for investment in a greater 

range of securities that are expected to have higher rates of return on average in the 

future. Reflecting these expected higher returns, Tables 2 indicate that income taxes on 

IA distributions would be expected to be higher, thus providing slightly higher income to 

the OASDI program. This effect improves the estimated OASDI actuarial deficit by 

about an additional 0.01 percent of payroll, for a total improvement of 0.16 percent of 

payroll. However, the estimated long-range actuarial deficit rounds to be 1.77 percent of 

payroll, the same as in shown in Table 1. Table 2a provides the estimated higher level of 

IA and annuity assets expected under the potential investment assumptions described 

above. 

Investment in equities and corporate bonds implies a higher expected average yield, but 

also greater variability and uncertainty of returns. Tables 1 provide effectively a lowyield or risk-adjusted yield analysis of the plan assuming broader investment options are 

offered. Under this analysis, it is assumed that all investments in fact achieve the same 

yield as expected for long-term Treasury bonds. 

Individual Account Asset, Annuity, and Offset Examples

Table B1 provides projected levels of individual account (IA) asset levels accumulated up 

to retirement at age 65 for several theoretical worker examples. IA asset levels at age 65 

are presented in constant 2005 dollars (discounted for CPI increase back to 2005). 

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 from age 21 through 64.) These four hypothetical workers 

represent about the 28, 58, 85 and 100 percentile of the distribution of career earnings 

levels for recent retired workers. See Actuarial Note 2004.3 at 

http://www.ssa.gov/OACT/NOTES/ran3/an2004-3.pdf

for details on the nature of these worker examples. 

Values are shown both assuming investment in the default Treasury bond fund only, and 

assuming investment in the broadened selection of investment options that may be made 

available under the proposal. Under the broadened selection of options, and average 
6

mixed portfolio is assumed to be 50 percent in the equity index fund, 25 percent in the 

corporate bond index fund, and 25 percent in the Treasury bond index fund. 

In addition to IA accumulated assets, the size of the CPI-indexed single-life annuity that 

could be purchased from the CAA with this amount at age 65 is presented as a percent of 

the present-law scheduled retired worker benefit in each case. In the column under the 

heading “Values Accumulated at Treasury Bond Yield”, the life annuity amount 

represents several values. These are, (1) the expected annuity value where all IA assets 

had been retained in the default Treasury bond fund throughout the accumulation, (2) the 

level of the benefit offset based on the expected IA contributions, (3) the IA annuity that 

could be purchased from the CAA assuming that the mixed portfolio in fact yielded only 

as much as is expected for the Treasury bond fund, and (4) the IA annuity from the mixed 

portfolio based on a “risk-adjusted” return analysis. The value for the annuity under the 

mixed portfolio represents the expected value of an annuity purchased from the CAA 

assuming investment in the mixed portfolio throughout the career. 

 Stephen C. Goss 

 

Alice H. Wade 

Attachments 
Table 1 DeMint Plan: IA Contribution to Use OASDI Cash-Flow Surplus; General Revenue Transfers

IA invested only in Treasury Bond Fund Average IA Contribution is1.39% of taxable earnings 

Tax IA like Benefits Ultimate Real Trust Fund Interest Rate of 3.0 Assumed Participation in Voluntary IA: 100.0% - DEFAULT

IA to Estate Benefit Offset Yield Rate = TreasBondYield-0.3 =2.7 Benefit Offset: 100.0%

at Death if BenefitOffsetDiscountRate = TreasBondYield-0.3 =2.7 Individual Account "Effective" Net "Effective"

No Survivor Contribution Rate Change in OASDI OASDI General IA

Cost Income Annual TFR for Enrollees under Contribution Contribution Revenue Contribution

Year Rate1 Rate2 Balance 1-1-yr 55 on 1/1/2005 Rate Rate2 Transfers Rate

2005 11.13 12.72 1.59 320 12.40 0.00

2006 11.00 11.00 0.00 337 2.22 -1.731 10.67 1.73

2007 10.95 10.96 0.01 339 2.12 -0.057 10.61 1.79

2008 10.99 11.01 0.02 339 2.06 0.009 10.62 1.78

2009 11.13 11.15 0.02 336 1.85 0.154 10.78 1.63

2010 11.25 11.27 0.02 334 1.70 0.103 10.88 1.52

2011 11.42 11.44 0.01 331 1.55 0.114 10.99 1.41

2012 11.67 11.68 0.01 326 1.30 0.209 11.20 1.20

2013 11.92 11.93 0.01 322 1.04 0.227 11.43 0.97

2014 12.18 12.20 0.02 318 0.76 0.252 11.68 0.72

2015 12.44 12.46 0.02 315 0.50 0.242 11.92 0.48

2016 12.73 12.74 0.01 312 0.22 0.261 12.18 0.22

2017 13.02 12.98 -0.04 308 0.217 12.40 0.00

2018 13.31 13.00 -0.31 305 0.000 12.40 0.00

2019 13.60 13.01 -0.59 301 0.000 12.40 0.00

2020 13.90 13.03 -0.87 294 0.000 12.40 0.00

2021 14.20 13.05 -1.15 286 0.000 12.40 0.00

2022 14.50 13.07 -1.42 277 0.000 12.40 0.00

2023 14.78 13.09 -1.69 266 0.000 12.40 0.00

2024 15.06 13.11 -1.96 255 0.000 12.40 0.00

2025 15.34 13.12 -2.22 241 0.000 12.40 0.00

2026 15.61 13.14 -2.47 227 0.000 12.40 0.00

2027 15.86 13.16 -2.70 212 0.000 12.40 0.00

2028 16.08 13.17 -2.91 195 0.000 12.40 0.00

2029 16.28 13.19 -3.09 179 0.000 12.40 0.00

2030 16.46 13.20 -3.26 161 0.000 12.40 0.00

2031 16.62 13.21 -3.41 142 0.000 12.40 0.00

2032 16.76 13.22 -3.54 123 0.000 12.40 0.00

2033 16.87 16.23 -0.64 104 3.000 15.40 3.00 0.00

2034 16.95 16.74 -0.21 101 0.500 15.90 3.50 0.00

2035 17.01 16.84 -0.17 101 0.100 16.00 3.60 0.00

2036 17.06 16.25 -0.81 101 -0.600 15.40 3.00 0.00

2037 17.09 13.25 -3.84 98 -3.000 12.40 0.00

2038 17.11 13.26 -3.85 77 0.000 12.40 0.00

2039 17.10 13.26 -3.84 56 0.000 12.40 0.00

2040 17.10 13.26 -3.84 35 0.000 12.40 0.00

2041 17.10 13.26 -3.83 13 0.000 12.40 0.00

2042 17.09 13.27 -3.83 -- 0.000 12.40 0.00

2043 17.09 13.27 -3.82 -- 0.000 12.40 0.00

2044 17.08 13.27 -3.81 -- 0.000 12.40 0.00

2045 17.08 13.27 -3.81 -- 0.000 12.40 0.00

2046 17.09 13.27 -3.82 -- 0.000 12.40 0.00

2047 17.10 13.27 -3.83 -- 0.000 12.40 0.00

2048 17.11 13.28 -3.84 -- 0.000 12.40 0.00

2049 17.13 13.28 -3.85 -- 0.000 12.40 0.00

2050 17.15 13.28 -3.87 -- 0.000 12.40 0.00

2051 17.17 13.28 -3.89 -- 0.000 12.40 0.00

2052 17.21 13.29 -3.92 -- 0.000 12.40 0.00

2053 17.25 13.29 -3.96 -- 0.000 12.40 0.00

2054 17.31 13.29 -4.01 -- 0.000 12.40 0.00

2055 17.37 13.30 -4.07 -- 0.000 12.40 0.00

2056 17.44 13.30 -4.14 -- 0.000 12.40 0.00

2057 17.51 13.30 -4.21 -- 0.000 12.40 0.00

2058 17.58 13.31 -4.28 -- 0.000 12.40 0.00

2059 17.66 13.31 -4.35 -- 0.000 12.40 0.00

2060 17.73 13.31 -4.41 -- 0.000 12.40 0.00

2061 17.80 13.32 -4.48 -- 0.000 12.40 0.00

2062 17.88 13.32 -4.56 -- 0.000 12.40 0.00

2063 17.96 13.32 -4.63 -- 0.000 12.40 0.00

2064 18.04 13.33 -4.71 -- 0.000 12.40 0.00

2065 18.12 13.33 -4.79 -- 0.000 12.40 0.00

2066 18.20 13.34 -4.86 -- 0.000 12.40 0.00

2067 18.28 13.34 -4.94 -- 0.000 12.40 0.00

2068 18.35 13.34 -5.01 -- 0.000 12.40 0.00

2069 18.42 13.35 -5.07 -- 0.000 12.40 0.00

2070 18.49 13.35 -5.14 -- 0.000 12.40 0.00

2071 18.55 13.35 -5.20 -- 0.000 12.40 0.00

2072 18.61 13.36 -5.26 -- 0.000 12.40 0.00

2073 18.67 13.36 -5.32 -- 0.000 12.40 0.00

2074 18.73 13.36 -5.37 -- 0.000 12.40 0.00

2075 18.79 13.36 -5.43 -- 0.000 12.40 0.00

2076 18.85 13.37 -5.48 -- 0.000 12.40 0.00

2077 18.91 13.37 -5.54 -- 0.000 12.40 0.00

2078 18.96 13.37 -5.59 -- 0.000 12.40 0.00

2079 19.02 13.37 -5.64 -- 0.000 12.40 0.00

2080 19.07 13.38 -5.70 -- 0.000 12.40 0.00

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2005 - 2079 15.56 13.79 -1.77 0.15

Based on Intermediate Assumptions of the 2005 Trustees Report. All values are expressed as percents of taxable payroll, except TFR.

With Ultimate Real Trust Fund Interest Rate of 3.00 Office of the Actuary 1

Net of Benefit Offset/Clawback Social Security Administration 2

 Including General Revenue Transfer June 23, 2005
Table 1a Proposal General Fund Transfers, OASDI Trust Fund Assets, Individual Account Assets, and Theoretical OASDI Assets

IA Investment

Only in Proposal General Fund Transfers Total OASDI Individual 

Treasury Accumulated Trust Fund Account

Bond Fund Present Value Percent of Annual as of Assets Assets 1 Without General With Plan General 

as of 1-1-2005Taxable Payroll Transfers End of Year at End of Year at End of Year GDP Fund Transfers Fund Transfers

Calendar (1) (2) (3) (4) (5) (6) (7) (8) (9)

Year Billions Billions of Constant 2005 $ Billions of Constant 2005 Dollars

2005 0.0 0.0 0.0 0 1,850 0 12,359 1,850 1,850

2006 0.0 0.0 0.0 0 1,908 87 12,746 1,995 1,995

2007 0.0 0.0 0.0 0 1,958 180 13,080 2,139 2,139

2008 0.0 0.0 0.0 0 2,006 278 13,389 2,285 2,285

2009 0.0 0.0 0.0 0 2,056 371 13,690 2,429 2,429

2010 0.0 0.0 0.0 0 2,108 462 13,989 2,574 2,574

2011 0.0 0.0 0.0 0 2,162 551 14,286 2,719 2,719

2012 0.0 0.0 0.0 0 2,219 632 14,573 2,858 2,858

2013 0.0 0.0 0.0 0 2,278 702 14,850 2,989 2,989

2014 0.0 0.0 0.0 0 2,339 759 15,125 3,110 3,110

2015 0.0 0.0 0.0 0 2,403 804 15,398 3,222 3,222

2016 0.0 0.0 0.0 0 2,471 834 15,669 3,322 3,322

2017 0.0 0.0 0.0 0 2,539 851 15,942 3,409 3,409

2018 0.0 0.0 0.0 0 2,593 867 16,214 3,483 3,483

2019 0.0 0.0 0.0 0 2,633 884 16,489 3,543 3,543

2020 0.0 0.0 0.0 0 2,655 900 16,759 3,584 3,584

2021 0.0 0.0 0.0 0 2,658 915 17,032 3,606 3,606

2022 0.0 0.0 0.0 0 2,643 929 17,302 3,609 3,609

2023 0.0 0.0 0.0 0 2,607 942 17,574 3,591 3,591

2024 0.0 0.0 0.0 0 2,551 955 17,843 3,551 3,551

2025 0.0 0.0 0.0 0 2,474 966 18,111 3,490 3,490

2026 0.0 0.0 0.0 0 2,375 977 18,383 3,405 3,405

2027 0.0 0.0 0.0 0 2,254 986 18,665 3,298 3,298

2028 0.0 0.0 0.0 0 2,112 995 18,955 3,169 3,169

2029 0.0 0.0 0.0 0 1,949 1,002 19,245 3,019 3,019

2030 0.0 0.0 0.0 0 1,767 1,008 19,537 2,847 2,847

2031 0.0 0.0 0.0 0 1,564 1,012 19,836 2,654 2,654

2032 0.0 0.0 0.0 0 1,342 1,016 20,147 2,441 2,441

2033 99.1 3.0 223.9 224 1,332 1,018 20,468 2,208 2,432

2034 113.8 3.5 264.9 496 1,355 1,019 20,792 1,957 2,453

2035 115.2 3.6 276.2 787 1,381 1,018 21,116 1,689 2,476

2036 94.5 3.0 233.4 1,044 1,356 1,016 21,446 1,404 2,448

2037 0.0 0.0 0.0 1,075 1,084 1,012 21,785 1,102 2,177

2038 0.0 0.0 0.0 1,107 799 1,007 22,132 785 1,892

2039 0.0 0.0 0.0 1,140 501 1,000 22,486 452 1,593

2040 0.0 0.0 0.0 1,175 190 991 22,842 105 1,279

2041 0.0 0.0 0.0 1,210 -134 981 23,204 -259 951

2042 0.0 0.0 0.0 1,246 -473 970 23,573 -639 607

2043 0.0 0.0 0.0 1,284 -825 956 23,948 -1,036 247

2044 0.0 0.0 0.0 1,322 -1,193 942 24,325 -1,451 -129

2045 0.0 0.0 0.0 1,362 -1,576 925 24,702 -1,884 -522

2046 0.0 0.0 0.0 1,403 -1,975 906 25,081 -2,336 -934

2047 0.0 0.0 0.0 1,445 -2,392 886 25,466 -2,809 -1,364

2048 0.0 0.0 0.0 1,488 -2,828 865 25,857 -3,302 -1,814

2049 0.0 0.0 0.0 1,533 -3,282 841 26,248 -3,818 -2,285

2050 0.0 0.0 0.0 1,579 -3,758 817 26,640 -4,357 -2,778

2051 0.0 0.0 0.0 1,626 -4,254 789 27,040 -4,920 -3,294

2052 0.0 0.0 0.0 1,675 -4,773 760 27,447 -5,510 -3,835

2053 0.0 0.0 0.0 1,725 -5,316 730 27,860 -6,127 -4,402

2054 0.0 0.0 0.0 1,777 -5,887 699 28,281 -6,772 -4,995

2055 0.0 0.0 0.0 1,830 -6,487 669 28,705 -7,448 -5,617

2056 0.0 0.0 0.0 1,885 -7,117 640 29,132 -8,154 -6,269

2057 0.0 0.0 0.0 1,942 -7,779 611 29,567 -8,894 -6,952

2058 0.0 0.0 0.0 2,000 -8,474 582 30,008 -9,667 -7,667

2059 0.0 0.0 0.0 2,060 -9,204 555 30,455 -10,476 -8,416

2060 0.0 0.0 0.0 2,122 -9,969 528 30,907 -11,321 -9,199

2061 0.0 0.0 0.0 2,185 -10,771 502 31,364 -12,203 -10,018

2062 0.0 0.0 0.0 2,251 -11,612 478 31,831 -13,126 -10,875

2063 0.0 0.0 0.0 2,318 -12,494 454 32,308 -14,089 -11,771

2064 0.0 0.0 0.0 2,388 -13,418 431 32,790 -15,096 -12,708

2065 0.0 0.0 0.0 2,459 -14,386 410 33,279 -16,147 -13,688

2066 0.0 0.0 0.0 2,533 -15,399 390 33,765 -17,244 -14,711

2067 0.0 0.0 0.0 2,609 -16,459 372 34,259 -18,389 -15,780

2068 0.0 0.0 0.0 2,687 -17,567 354 34,772 -19,582 -16,895

2069 0.0 0.0 0.0 2,768 -18,725 339 35,294 -20,826 -18,058

2070 0.0 0.0 0.0 2,851 -19,934 324 35,822 -22,121 -19,270

2071 0.0 0.0 0.0 2,937 -21,195 312 36,355 -23,470 -20,533

2072 0.0 0.0 0.0 3,025 -22,510 300 36,895 -24,873 -21,848

2073 0.0 0.0 0.0 3,116 -23,881 290 37,445 -26,333 -23,217

2074 0.0 0.0 0.0 3,209 -25,310 282 38,003 -27,851 -24,642

2075 0.0 0.0 0.0 3,305 -26,798 275 38,566 -29,430 -26,125

2076 0.0 0.0 0.0 3,404 -28,348 270 39,137 -31,072 -27,667

2077 0.0 0.0 0.0 3,507 -29,961 266 39,714 -32,778 -29,271

2078 0.0 0.0 0.0 3,612 -31,640 263 40,300 -34,551 -30,939

2079 0.0 0.0 0.0 3,720 -33,386 262 40,894 -36,394 -32,673

2080 0.0 0.0 0.0 3,832 -35,203 261 41,496 -38,308 -34,476

Total 422.5

Based on Intermediate Assumptions of the 2005 Trustees Report

1

 Including annuity assets, assuming all annuitize fully. Office of the Actuary 2

 Theoretical Social Security is the current Social Security program with the assumption Social Security Administration

 that the law is modified to permit borrowing from the General Fund of the Treasury. June 23, 2005

Annual Transfers

Theoretical Social Security 2

with Borrowing Authority

Net OASDI Trust Fund Assets at EOY
Table 1b IA Contributions, IA Offset, Other Changes, & Budget Effect

IA Investment Average Individual Account Contribution Rate: 1.39% Benefit Offset: 100.0%

Only in Amount Other Changes Change in 

Treasury Contributed to Offset to In Unified Annual Debt Held Annual 

Bond Fund IA by Federal OASDI Ben Budget Unified Budget by Public Unified Budget

Government From IA Cash Flow Cash Flow (EOY) Balance

(1) (2) (3) (4)=(3)+(2)-(1) (5) (6)

Year (Billions of $, Present Value on 1-1-2005)

2006 79.8 0.0 0.0 -79.8 79.8 -79.8

2007 82.3 0.0 0.0 -82.3 162.1 -86.3

2008 81.7 0.0 0.0 -81.7 243.8 -89.9

2009 74.4 0.0 0.0 -74.4 318.2 -86.8

2010 69.3 0.0 0.0 -69.3 387.4 -85.6

2011 63.7 0.0 0.0 -63.7 451.1 -83.8

2012 53.8 0.0 0.0 -53.7 504.9 -77.3

2013 43.2 0.6 0.0 -42.5 547.4 -69.1

2014 31.7 1.3 0.0 -30.4 577.8 -59.3

2015 20.8 1.9 0.0 -18.9 596.7 -49.7

2016 9.3 2.6 0.0 -6.7 603.4 -38.9

2017 0.0 3.2 0.0 3.2 600.2 -29.6

2018 0.0 3.9 0.0 3.9 596.3 -29.2

2019 0.0 4.5 0.0 4.5 591.9 -28.7

2020 0.0 5.1 0.0 5.1 586.8 -27.8

2021 0.0 5.7 0.0 5.7 581.1 -26.9

2022 0.0 6.2 0.0 6.2 574.9 -26.1

2023 0.0 6.8 0.0 6.8 568.1 -25.2

2024 0.0 7.3 0.0 7.3 560.9 -24.3

2025 0.0 7.8 0.0 7.8 553.1 -23.4

2026 0.0 8.2 0.0 8.2 544.9 -22.5

2027 0.0 8.7 0.0 8.7 536.2 -21.6

2028 0.0 9.1 0.0 9.1 527.0 -20.7

2029 0.0 9.5 0.0 9.5 517.5 -19.7

2030 0.0 9.9 0.0 9.9 507.5 -18.8

2031 0.0 10.3 0.0 10.3 497.3 -17.9

2032 0.0 10.6 0.0 10.6 486.6 -17.0

2033 0.0 10.9 0.0 10.9 475.7 -16.1

2034 0.0 11.2 0.0 11.2 464.5 -15.2

2035 0.0 11.5 0.0 11.5 453.0 -14.3

2036 0.0 11.7 0.0 11.7 441.3 -13.5

2037 0.0 11.9 0.0 11.9 429.4 -12.6

2038 0.0 12.1 0.0 12.1 417.3 -11.8

2039 0.0 12.2 0.0 12.2 405.0 -10.9

2040 0.0 12.4 0.0 12.4 392.7 -10.1

2041 0.0 12.5 0.0 12.5 380.2 -9.3

2042 0.0 12.6 0.0 12.6 367.6 -8.5

2043 0.0 12.6 0.0 12.6 354.9 -7.8

2044 0.0 12.7 0.0 12.7 342.2 -7.0

2045 0.0 12.7 0.0 12.7 329.5 -6.3

2046 0.0 12.8 0.0 12.8 316.8 -5.6

2047 0.0 12.7 0.0 12.7 304.1 -4.9

2048 0.0 12.6 0.0 12.6 291.5 -4.3

2049 0.0 12.5 0.0 12.5 279.0 -3.7

2050 0.0 12.4 0.0 12.4 266.7 -3.1

2051 0.0 12.4 0.0 12.4 254.2 -2.4

2052 0.0 12.4 0.0 12.4 241.8 -1.7

2053 0.0 12.2 0.0 12.2 229.6 -1.2

2054 0.0 11.6 0.0 11.6 218.0 -1.1

2055 0.0 11.0 0.0 11.0 207.0 -1.1

2056 0.0 10.4 0.0 10.4 196.6 -1.1

2057 0.0 9.8 0.0 9.8 186.8 -1.1

2058 0.0 9.2 0.0 9.2 177.6 -1.2

2059 0.0 8.6 0.0 8.6 169.0 -1.2

2060 0.0 8.1 0.0 8.1 160.9 -1.3

2061 0.0 7.5 0.0 7.5 153.4 -1.4

2062 0.0 7.0 0.0 7.0 146.4 -1.5

2063 0.0 6.5 0.0 6.5 139.9 -1.7

2064 0.0 6.0 0.0 6.0 133.9 -1.8

2065 0.0 5.5 0.0 5.5 128.4 -1.9

2066 0.0 5.0 0.0 5.0 123.4 -2.1

2067 0.0 4.6 0.0 4.6 118.8 -2.3

2068 0.0 4.2 0.0 4.2 114.6 -2.4

2069 0.0 3.8 0.0 3.8 110.9 -2.6

2070 0.0 3.4 0.0 3.4 107.5 -2.8

2071 0.0 3.0 0.0 3.0 104.4 -3.0

2072 0.0 2.7 0.0 2.7 101.8 -3.1

2073 0.0 2.4 0.0 2.4 99.4 -3.3

2074 0.0 2.1 0.0 2.1 97.3 -3.5

2075 0.0 1.8 0.0 1.8 95.5 -3.6

2076 0.0 1.6 0.0 1.6 94.0 -3.8

2077 0.0 1.3 0.0 1.3 92.7 -3.9

2078 0.0 1.1 0.0 1.1 91.5 -4.0

2079 0.0 0.9 0.0 0.9 90.6 -4.1

2080 0.0 0.8 0.0 0.8 89.8 -4.2

Total 2005-2079 609.9 519.3 0.0

 Based on the Intermediate Assumptions of the 2005 Trustees Report

 With Ultimate Real Trust Fund Interest Rate of 3.0 Office of the Actuary

Benefit Offset Yield Rate = TreasBondYield-0.3 =2.7 Social Security Administration

BenefitOffsetDiscountRate = TreasBondYield-0.3 =2.7 June 23, 2005
Table 1b.c IA Contributions, IA Offset, Other Changes, & Budget Effect

IA Investment Average Individual Account Contribution Rate: 1.39% Benefit Offset: 100.0%

Only in Amount Other Changes Change in 

Treasury Contributed to Offset to In Unified Annual Debt Held Annual 

Bond Fund IA by Federal OASDI Ben Budget Unified Budget by Public Unified Budget

Government From IA Cash Flow Cash Flow (EOY) Balance

(1) (2) (3) (4)=(3)+(2)-(1) (5) (6)

Year (Billions of Constant 2005 $)

2006 84.5 0.0 0.0 -84.5 86.7 -86.7

2007 89.5 0.0 0.0 -89.5 180.8 -96.3

2008 91.0 0.0 0.0 -91.0 278.8 -102.8

2009 84.9 0.0 0.0 -84.9 372.9 -101.7

2010 81.1 0.0 0.0 -81.1 465.7 -102.9

2011 76.5 0.0 0.0 -76.5 556.2 -103.3

2012 66.3 0.0 0.0 -66.2 638.9 -97.8

2013 54.6 0.8 0.0 -53.8 711.2 -89.7

2014 41.1 1.6 0.0 -39.5 770.9 -79.1

2015 27.7 2.6 0.0 -25.2 818.1 -68.2

2016 12.8 3.5 0.0 -9.3 850.7 -54.9

2017 0.0 4.6 0.0 4.6 870.5 -43.0

2018 0.0 5.6 0.0 5.6 890.3 -43.5

2019 0.0 6.7 0.0 6.7 910.1 -44.1

2020 0.0 7.8 0.0 7.8 929.4 -44.0

2021 0.0 9.0 0.0 9.0 948.1 -44.0

2022 0.0 10.2 0.0 10.2 966.0 -43.8

2023 0.0 11.4 0.0 11.4 983.3 -43.6

2024 0.0 12.6 0.0 12.6 999.9 -43.3

2025 0.0 13.9 0.0 13.9 1,015.6 -43.0

2026 0.0 15.2 0.0 15.2 1,030.5 -42.5

2027 0.0 16.5 0.0 16.5 1,044.4 -42.0

2028 0.0 17.8 0.0 17.8 1,057.4 -41.5

2029 0.0 19.2 0.0 19.2 1,069.4 -40.8

2030 0.0 20.5 0.0 20.5 1,080.4 -40.1

2031 0.0 21.9 0.0 21.9 1,090.2 -39.3

2032 0.0 23.3 0.0 23.3 1,098.9 -38.4

2033 0.0 24.7 0.0 24.7 1,106.5 -37.5

2034 0.0 26.1 0.0 26.1 1,112.8 -36.5

2035 0.0 27.5 0.0 27.5 1,117.9 -35.4

2036 0.0 28.9 0.0 28.9 1,121.6 -34.2

2037 0.0 30.3 0.0 30.3 1,124.1 -33.0

2038 0.0 31.7 0.0 31.7 1,125.2 -31.7

2039 0.0 33.1 0.0 33.1 1,124.9 -30.4

2040 0.0 34.4 0.0 34.4 1,123.3 -29.0

2041 0.0 35.8 0.0 35.8 1,120.2 -27.5

2042 0.0 37.1 0.0 37.1 1,115.6 -25.9

2043 0.0 38.4 0.0 38.4 1,109.5 -24.3

2044 0.0 39.7 0.0 39.7 1,101.9 -22.6

2045 0.0 41.0 0.0 41.0 1,092.8 -20.8

2046 0.0 42.3 0.0 42.3 1,082.0 -19.0

2047 0.0 43.3 0.0 43.3 1,069.9 -17.4

2048 0.0 44.3 0.0 44.3 1,056.4 -15.7

2049 0.0 45.3 0.0 45.3 1,041.6 -13.9

2050 0.0 46.3 0.0 46.3 1,025.2 -12.0

2051 0.0 47.9 0.0 47.9 1,006.6 -9.4

2052 0.0 49.1 0.0 49.1 986.4 -7.1

2053 0.0 49.8 0.0 49.8 964.7 -5.2

2054 0.0 48.8 0.0 48.8 943.4 -5.0

2055 0.0 47.7 0.0 47.7 922.6 -4.9

2056 0.0 46.4 0.0 46.4 902.5 -5.0

2057 0.0 45.0 0.0 45.0 883.3 -5.3

2058 0.0 43.6 0.0 43.6 864.9 -5.7

2059 0.0 42.1 0.0 42.1 847.6 -6.2

2060 0.0 40.5 0.0 40.5 831.3 -6.8

2061 0.0 38.9 0.0 38.9 816.2 -7.5

2062 0.0 37.2 0.0 37.2 802.3 -8.4

2063 0.0 35.5 0.0 35.5 789.8 -9.4

2064 0.0 33.8 0.0 33.8 778.8 -10.4

2065 0.0 32.0 0.0 32.0 769.2 -11.6

2066 0.0 30.2 0.0 30.2 761.2 -12.9

2067 0.0 28.4 0.0 28.4 754.8 -14.4

2068 0.0 26.5 0.0 26.5 750.2 -15.9

2069 0.0 24.7 0.0 24.7 747.3 -17.5

2070 0.0 22.8 0.0 22.8 746.2 -19.3

2071 0.0 21.0 0.0 21.0 747.0 -21.1

2072 0.0 19.2 0.0 19.2 749.7 -23.0

2073 0.0 17.4 0.0 17.4 754.2 -25.0

2074 0.0 15.7 0.0 15.7 760.7 -27.0

2075 0.0 14.1 0.0 14.1 769.0 -29.1

2076 0.0 12.5 0.0 12.5 779.2 -31.1

2077 0.0 11.0 0.0 11.0 791.2 -33.3

2078 0.0 9.6 0.0 9.6 805.1 -35.4

2079 0.0 8.3 0.0 8.3 820.6 -37.5

2080 0.0 7.2 0.0 7.2 837.9 -39.6

 Based on the Intermediate Assumptions of the 2005 Trustees Report

 With Ultimate Real Trust Fund Interest Rate of =3 Office of the Actuary

Benefit Offset Yield Rate = TreasBondYield-0.3 =2.7 Social Security Administration

BenefitOffsetDiscountRate = TreasBondYield-0.3 =2.7 June 23, 2005
Table 1c OASDI Cash Flow to General Fund of the Treasury--- Proposal vs. Theoretical OASDI

IA Investment Proposal Theoretical Social Security with PAYGO Transfers

Only in Net Amount of Cash-Flow from the OASDI Net Amount of Cash-Flow from the OASDI

Treasury Trust Funds to the General Fund of the Trust Funds to the General Fund of the

Bond Fund Treasury During the Year 1 Treasury During the Year 1

Percent Billions of Dollars Percent Billions of Dollars

Year of Payroll Current $ 1/1/2005 PV Const 2005 $ of Payroll Current $ 1/1/2005 PV Const 2005 $

2005 1.5 70 68 70 1.5 70 68 70

2006 0.0 1 1 1 1.8 88 81 86

2007 0.0 0 0 0 1.8 94 82 89

2008 0.0 0 0 0 1.8 98 82 91

2009 0.0 0 0 0 1.6 94 74 85

2010 0.0 0 0 0 1.5 92 69 81

2011 0.0 0 0 0 1.4 90 64 77

2012 0.0 0 0 0 1.2 80 54 66

2013 0.0 0 0 0 1.0 67 43 54

2014 0.0 0 0 0 0.7 50 30 40

2015 0.0 0 0 0 0.4 33 19 25

2016 0.0 0 0 0 0.2 12 7 9

2017 -0.1 -4 -2 -3 -0.1 -11 -5 -8

2018 -0.3 -28 -14 -20 -0.4 -36 -17 -25

2019 -0.6 -54 -25 -37 -0.7 -64 -29 -44

2020 -0.9 -83 -36 -55 -1.0 -95 -41 -63

2021 -1.2 -114 -47 -74 -1.3 -128 -52 -83

2022 -1.4 -147 -57 -93 -1.6 -163 -63 -103

2023 -1.7 -181 -66 -111 -1.9 -200 -73 -123

2024 -2.0 -218 -75 -130 -2.2 -239 -82 -143

2025 -2.2 -257 -84 -149 -2.4 -281 -91 -163

2026 -2.5 -299 -92 -169 -2.7 -325 -100 -184

2027 -2.7 -340 -99 -187 -3.0 -370 -107 -203

2028 -2.9 -381 -105 -204 -3.2 -415 -114 -222

2029 -3.1 -422 -109 -219 -3.4 -459 -119 -239

2030 -3.3 -463 -113 -234 -3.6 -504 -123 -255

2031 -3.4 -505 -117 -248 -3.7 -550 -127 -270

2032 -3.6 -547 -119 -261 -3.9 -595 -130 -285

2033 -3.7 -586 -121 -273 -4.0 -639 -132 -297

2034 -3.7 -623 -121 -282 -4.1 -681 -132 -308

2035 -3.8 -659 -121 -290 -4.1 -722 -132 -318

2036 -3.8 -695 -120 -298 -4.2 -762 -132 -326

2037 -3.9 -729 -119 -304 -4.2 -802 -131 -334

2038 -3.9 -762 -118 -309 -4.3 -840 -130 -341

2039 -3.9 -794 -116 -313 -4.3 -877 -128 -346

2040 -3.8 -826 -114 -317 -4.3 -916 -126 -351

2041 -3.8 -860 -112 -321 -4.3 -955 -124 -356

2042 -3.8 -895 -110 -325 -4.3 -997 -123 -362

2043 -3.8 -932 -108 -329 -4.3 -1,040 -121 -367

2044 -3.8 -969 -106 -333 -4.3 -1,085 -119 -373

2045 -3.8 -1,010 -105 -337 -4.3 -1,133 -117 -378

2046 -3.8 -1,053 -103 -342 -4.3 -1,183 -116 -385

2047 -3.8 -1,100 -102 -348 -4.3 -1,237 -114 -391

2048 -3.8 -1,149 -100 -353 -4.3 -1,293 -113 -398

2049 -3.9 -1,202 -99 -359 -4.4 -1,353 -112 -405

2050 -3.9 -1,258 -98 -366 -4.4 -1,417 -110 -412

2051 -3.9 -1,317 -97 -373 -4.4 -1,486 -109 -421

2052 -3.9 -1,382 -96 -380 -4.4 -1,560 -108 -430

2053 -4.0 -1,453 -95 -389 -4.5 -1,639 -108 -439

2054 -4.0 -1,534 -95 -400 -4.5 -1,722 -107 -449

2055 -4.1 -1,622 -95 -411 -4.6 -1,810 -106 -459

2056 -4.2 -1,717 -95 -423 -4.6 -1,905 -105 -470

2057 -4.2 -1,817 -95 -436 -4.7 -2,005 -105 -481

2058 -4.3 -1,923 -95 -449 -4.7 -2,110 -104 -492

2059 -4.4 -2,035 -95 -462 -4.8 -2,220 -103 -504

2060 -4.4 -2,152 -95 -475 -4.8 -2,335 -103 -516

2061 -4.5 -2,276 -95 -489 -4.9 -2,457 -102 -528

2062 -4.6 -2,409 -94 -503 -4.9 -2,587 -101 -541

2063 -4.6 -2,551 -94 -518 -5.0 -2,726 -101 -554

2064 -4.7 -2,701 -94 -534 -5.0 -2,872 -100 -568

2065 -4.8 -2,856 -94 -549 -5.1 -3,023 -100 -581

2066 -4.9 -3,021 -94 -565 -5.1 -3,182 -99 -595

2067 -4.9 -3,194 -94 -581 -5.2 -3,350 -99 -610

2068 -5.0 -3,374 -94 -597 -5.2 -3,523 -98 -624

2069 -5.1 -3,560 -94 -613 -5.3 -3,704 -97 -638

2070 -5.1 -3,754 -93 -629 -5.3 -3,890 -97 -652

2071 -5.2 -3,955 -93 -644 -5.4 -4,084 -96 -665

2072 -5.3 -4,166 -92 -660 -5.4 -4,287 -95 -680

2073 -5.3 -4,385 -92 -676 -5.5 -4,498 -94 -694

2074 -5.4 -4,614 -91 -692 -5.5 -4,719 -93 -708

2075 -5.4 -4,854 -91 -708 -5.5 -4,951 -92 -722

2076 -5.5 -5,105 -90 -725 -5.6 -5,194 -91 -737

2077 -5.5 -5,369 -89 -741 -5.6 -5,448 -91 -752

2078 -5.6 -5,644 -89 -758 -5.7 -5,715 -90 -768

2079 -5.7 -5,932 -88 -775 -5.7 -5,996 -89 -783

2080 -5.7 -6,233 -87 -792 -5.8 -6,290 -88 -799

Total 2005-79 -5,790 -5,699

1 Equals net investment in special Treasury Bonds by the Trust Funds Office of the Actuary

less the Amount of General Fund transfers specified in the proposal or in the theoretical Social Security Administration

plan (PAYGO Transfers) June 23, 2005
Table 1d Change in Long-Range Trust Fund Assets / Unfunded Obligation

IA Investment Average Individual Account Contribution Rate: 1.39% Benefit Offset: 100.0%

Only in Present Law OASDI

Treasury Trust Fund Assets Basic Amount Offset to Proposal OASDI

Bond Fund or if Negative, Changes Contributed to OASDI Trust Fund Assets/

Unfunded Obligation in OASDI IA by Federal Benefit General Total Change Unfunded Obligation

Through EOY Cash Flow1 Government from IA Fund Transfers Through EOY2 Through EOY

(1) (2) (3) (4) (5) (6) (7) = (1) + (6)

Year (Billions of $, Present Value on 1-1-2005)

2006 1,835.2 0.0 79.8 0.0 0.0 -79.8 1,755.4

2007 1,917.1 0.0 82.3 0.0 0.0 -162.1 1,755.0

2008 1,998.4 0.0 81.7 0.0 0.0 -243.8 1,754.6

2009 2,072.5 0.0 74.4 0.0 0.0 -318.2 1,754.3

2010 2,141.5 0.0 69.3 0.0 0.0 -387.4 1,754.0

2011 2,204.9 0.0 63.7 0.0 0.0 -451.1 1,753.8

2012 2,258.4 0.0 53.8 0.0 0.0 -504.9 1,753.6

2013 2,300.8 0.0 43.2 0.6 0.0 -547.4 1,753.3

2014 2,331.0 0.0 31.7 1.3 0.0 -577.8 1,753.2

2015 2,349.7 0.0 20.8 1.9 0.0 -596.7 1,753.0

2016 2,356.4 0.0 9.3 2.6 0.0 -603.4 1,752.9

2017 2,350.7 0.0 0.0 3.2 0.0 -600.2 1,750.5

2018 2,333.1 0.0 0.0 3.9 0.0 -596.3 1,736.8

2019 2,303.8 0.0 0.0 4.5 0.0 -591.9 1,712.0

2020 2,262.7 0.0 0.0 5.1 0.0 -586.8 1,676.0

2021 2,210.4 0.0 0.0 5.7 0.0 -581.1 1,629.3

2022 2,147.5 0.0 0.0 6.2 0.0 -574.9 1,572.6

2023 2,074.6 0.0 0.0 6.8 0.0 -568.1 1,506.4

2024 1,992.1 0.0 0.0 7.3 0.0 -560.9 1,431.2

2025 1,900.6 0.0 0.0 7.8 0.0 -553.1 1,347.5

2026 1,800.6 0.0 0.0 8.2 0.0 -544.9 1,255.7

2027 1,693.2 0.0 0.0 8.7 0.0 -536.2 1,157.0

2028 1,579.5 0.0 0.0 9.1 0.0 -527.0 1,052.5

2029 1,460.7 0.0 0.0 9.5 0.0 -517.5 943.3

2030 1,337.6 0.0 0.0 9.9 0.0 -507.5 830.0

2031 1,210.7 0.0 0.0 10.3 0.0 -497.3 713.4

2032 1,080.9 0.0 0.0 10.6 0.0 -486.6 594.3

2033 949.4 0.0 0.0 10.9 99.1 -376.6 572.7

2034 817.0 0.0 0.0 11.2 113.8 -251.6 565.4

2035 684.5 0.0 0.0 11.5 115.2 -125.0 559.6

2036 552.4 0.0 0.0 11.7 94.5 -18.8 533.6

2037 421.0 0.0 0.0 11.9 0.0 -6.9 414.2

2038 291.1 0.0 0.0 12.1 0.0 5.2 296.3

2039 162.9 0.0 0.0 12.2 0.0 17.5 180.4

2040 36.6 0.0 0.0 12.4 0.0 29.9 66.4

2041 -87.9 0.0 0.0 12.5 0.0 42.4 -45.6

2042 -210.7 0.0 0.0 12.6 0.0 54.9 -155.7

2043 -331.6 0.0 0.0 12.6 0.0 67.6 -264.0

2044 -450.7 0.0 0.0 12.7 0.0 80.3 -370.4

2045 -568.1 0.0 0.0 12.7 0.0 93.0 -475.1

2046 -684.0 0.0 0.0 12.8 0.0 105.8 -578.2

2047 -798.4 0.0 0.0 12.7 0.0 118.4 -679.9

2048 -911.3 0.0 0.0 12.6 0.0 131.0 -780.3

2049 -1,022.9 0.0 0.0 12.5 0.0 143.5 -879.4

2050 -1,133.2 0.0 0.0 12.4 0.0 155.9 -977.4

2051 -1,242.5 0.0 0.0 12.4 0.0 168.3 -1,074.2

2052 -1,350.9 0.0 0.0 12.4 0.0 180.7 -1,170.2

2053 -1,458.4 0.0 0.0 12.2 0.0 192.9 -1,265.5

2054 -1,565.1 0.0 0.0 11.6 0.0 204.5 -1,360.6

2055 -1,671.0 0.0 0.0 11.0 0.0 215.5 -1,455.5

2056 -1,776.3 0.0 0.0 10.4 0.0 225.9 -1,550.4

2057 -1,881.0 0.0 0.0 9.8 0.0 235.7 -1,645.2

2058 -1,985.0 0.0 0.0 9.2 0.0 244.9 -1,740.1

2059 -2,088.4 0.0 0.0 8.6 0.0 253.6 -1,834.8

2060 -2,191.0 0.0 0.0 8.1 0.0 261.6 -1,929.4

2061 -2,293.1 0.0 0.0 7.5 0.0 269.2 -2,023.9

2062 -2,394.6 0.0 0.0 7.0 0.0 276.1 -2,118.4

2063 -2,495.5 0.0 0.0 6.5 0.0 282.6 -2,212.9

2064 -2,596.0 0.0 0.0 6.0 0.0 288.6 -2,307.4

2065 -2,695.9 0.0 0.0 5.5 0.0 294.1 -2,401.8

2066 -2,795.2 0.0 0.0 5.0 0.0 299.1 -2,496.0

2067 -2,893.9 0.0 0.0 4.6 0.0 303.7 -2,590.1

2068 -2,991.9 0.0 0.0 4.2 0.0 307.9 -2,684.0

2069 -3,089.3 0.0 0.0 3.8 0.0 311.7 -2,777.6

2070 -3,185.8 0.0 0.0 3.4 0.0 315.1 -2,870.8

2071 -3,281.6 0.0 0.0 3.0 0.0 318.1 -2,963.5

2072 -3,376.5 0.0 0.0 2.7 0.0 320.8 -3,055.7

2073 -3,470.6 0.0 0.0 2.4 0.0 323.1 -3,147.4

2074 -3,563.7 0.0 0.0 2.1 0.0 325.2 -3,238.6

2075 -3,656.1 0.0 0.0 1.8 0.0 327.0 -3,329.1

2076 -3,747.6 0.0 0.0 1.6 0.0 328.5 -3,419.0

2077 -3,838.2 0.0 0.0 1.3 0.0 329.9 -3,508.3

2078 -3,928.0 0.0 0.0 1.1 0.0 331.0 -3,597.0

2079 -4,017.0 0.0 0.0 0.9 0.0 331.9 -3,685.0

Total 2005-2079 0.0 609.9 519.3 422.5

 Based on the Intermediate Assumptions of the 2005 Trustees Report

 With Ultimate Real Trust Fund Interest Rate of 3.0

Benefit Offset Yield Rate = TreasBondYield-0.3 =2.7 Office of the Actuary

BenefitOffsetDiscountRate = TreasBondYield-0.3 =2.7 Social Security Administration 1

Includes revenue from taxing IA distributions June 23, 2005 2

Total change through the year is the accumulation of changes in columns 2 through 5
Table 2 DeMint Plan: IA Contribution to Use OASDI Cash-Flow Surplus; General Revenue Transfers

Broadened IA investment options start in 2008 Average IA Contribution is1.39% of taxable earnings 

Tax IA like Benefits Ultimate Real Trust Fund Interest Rate of 3.0 Assumed Participation in Voluntary IA: 100.0% - DEFAULT

IA to Estate Benefit Offset Yield Rate = TreasBondYield-0.3 =2.7 Benefit Offset: 100.0%

at Death if BenefitOffsetDiscountRate = TreasBondYield-0.3 =2.7 Individual Account "Effective" Net "Effective"

No Survivor Contribution Rate Change in OASDI OASDI General IA

Cost Income Annual TFR for Enrollees under Contribution Contribution Revenue Contribution

Year Rate1 Rate2 Balance 1-1-yr 55 on 1/1/2005 Rate Rate2 Transfer Rate

2005 11.13 12.72 1.59 320 12.40 0.00

2006 11.00 11.00 0.00 337 2.22 -1.731 10.67 1.73

2007 10.95 10.96 0.01 339 2.12 -0.057 10.61 1.79

2008 10.99 11.01 0.02 339 2.06 0.009 10.62 1.78

2009 11.13 11.15 0.02 336 1.85 0.154 10.78 1.63

2010 11.25 11.27 0.02 334 1.70 0.103 10.88 1.52

2011 11.42 11.44 0.01 331 1.55 0.114 10.99 1.41

2012 11.67 11.68 0.01 326 1.30 0.209 11.20 1.20

2013 11.92 11.93 0.01 322 1.04 0.227 11.43 0.97

2014 12.18 12.20 0.02 318 0.76 0.252 11.68 0.72

2015 12.44 12.46 0.02 315 0.50 0.242 11.92 0.48

2016 12.73 12.74 0.01 312 0.22 0.261 12.18 0.22

2017 13.02 12.98 -0.04 308 0.217 12.40 0.00

2018 13.31 13.00 -0.31 305 0.000 12.40 0.00

2019 13.60 13.01 -0.59 301 0.000 12.40 0.00

2020 13.90 13.03 -0.87 294 0.000 12.40 0.00

2021 14.20 13.05 -1.15 286 0.000 12.40 0.00

2022 14.50 13.07 -1.42 277 0.000 12.40 0.00

2023 14.78 13.09 -1.69 266 0.000 12.40 0.00

2024 15.06 13.11 -1.95 255 0.000 12.40 0.00

2025 15.34 13.12 -2.22 241 0.000 12.40 0.00

2026 15.61 13.14 -2.47 227 0.000 12.40 0.00

2027 15.86 13.16 -2.70 212 0.000 12.40 0.00

2028 16.08 13.17 -2.91 195 0.000 12.40 0.00

2029 16.28 13.19 -3.09 179 0.000 12.40 0.00

2030 16.46 13.20 -3.25 161 0.000 12.40 0.00

2031 16.62 13.22 -3.41 143 0.000 12.40 0.00

2032 16.76 13.23 -3.54 123 0.000 12.40 0.00

2033 16.87 16.24 -0.64 104 3.000 15.40 3.00 0.00

2034 16.95 16.74 -0.21 101 0.500 15.90 3.50 0.00

2035 17.01 16.85 -0.16 101 0.100 16.00 3.60 0.00

2036 17.06 16.26 -0.81 101 -0.600 15.40 3.00 0.00

2037 17.09 13.26 -3.83 98 -3.000 12.40 0.00

2038 17.11 13.27 -3.84 77 0.000 12.40 0.00

2039 17.10 13.27 -3.83 56 0.000 12.40 0.00

2040 17.10 13.27 -3.83 35 0.000 12.40 0.00

2041 17.10 13.27 -3.82 13 0.000 12.40 0.00

2042 17.09 13.28 -3.82 -- 0.000 12.40 0.00

2043 17.09 13.28 -3.81 -- 0.000 12.40 0.00

2044 17.08 13.28 -3.80 -- 0.000 12.40 0.00

2045 17.08 13.28 -3.80 -- 0.000 12.40 0.00

2046 17.09 13.29 -3.80 -- 0.000 12.40 0.00

2047 17.10 13.29 -3.81 -- 0.000 12.40 0.00

2048 17.11 13.29 -3.82 -- 0.000 12.40 0.00

2049 17.13 13.30 -3.83 -- 0.000 12.40 0.00

2050 17.15 13.30 -3.85 -- 0.000 12.40 0.00

2051 17.17 13.30 -3.87 -- 0.000 12.40 0.00

2052 17.21 13.31 -3.90 -- 0.000 12.40 0.00

2053 17.25 13.31 -3.94 -- 0.000 12.40 0.00

2054 17.31 13.31 -3.99 -- 0.000 12.40 0.00

2055 17.37 13.32 -4.05 -- 0.000 12.40 0.00

2056 17.44 13.32 -4.12 -- 0.000 12.40 0.00

2057 17.51 13.33 -4.19 -- 0.000 12.40 0.00

2058 17.58 13.33 -4.26 -- 0.000 12.40 0.00

2059 17.66 13.33 -4.32 -- 0.000 12.40 0.00

2060 17.73 13.34 -4.39 -- 0.000 12.40 0.00

2061 17.80 13.34 -4.46 -- 0.000 12.40 0.00

2062 17.88 13.34 -4.54 -- 0.000 12.40 0.00

2063 17.96 13.35 -4.61 -- 0.000 12.40 0.00

2064 18.04 13.35 -4.69 -- 0.000 12.40 0.00

2065 18.12 13.35 -4.77 -- 0.000 12.40 0.00

2066 18.20 13.35 -4.84 -- 0.000 12.40 0.00

2067 18.28 13.36 -4.92 -- 0.000 12.40 0.00

2068 18.35 13.36 -4.99 -- 0.000 12.40 0.00

2069 18.42 13.36 -5.06 -- 0.000 12.40 0.00

2070 18.49 13.37 -5.12 -- 0.000 12.40 0.00

2071 18.55 13.37 -5.18 -- 0.000 12.40 0.00

2072 18.61 13.37 -5.25 -- 0.000 12.40 0.00

2073 18.67 13.37 -5.30 -- 0.000 12.40 0.00

2074 18.73 13.37 -5.36 -- 0.000 12.40 0.00

2075 18.79 13.37 -5.42 -- 0.000 12.40 0.00

2076 18.85 13.38 -5.47 -- 0.000 12.40 0.00

2077 18.91 13.38 -5.53 -- 0.000 12.40 0.00

2078 18.96 13.38 -5.58 -- 0.000 12.40 0.00

2079 19.02 13.38 -5.64 -- 0.000 12.40 0.00

2080 19.07 13.38 -5.69 -- 0.000 12.40 0.00

Summarized OASDI

Actuarial Change in 

Cost Rate Income Rate Balance Actuarial Balance

2005 - 2079 15.56 13.79 -1.77 0.16

Based on Intermediate Assumptions of the 2005 Trustees Report. All values are expressed as percents of taxable payroll, except TFR.

With Ultimate Real Trust Fund Interest Rate of 3.00 Office of the Actuary 1

Net of Benefit Offset/Clawback Social Security Administration 2

 Including General Revenue Transfer June 23, 2005
Table 2a Proposal General Fund Transfers, OASDI Trust Fund Assets, Individual Account Assets, and Theoretical OASDI Assets

Broadened IA

Investment Proposal General Fund Transfers Total OASDI Individual 

Options Start Accumulated Trust Fund Account

in 2008 Present Value Percent of Annual as of Assets Assets 1 Without General With Plan General 

as of 1-1-2005Taxable Payroll Transfers End of Year at End of Year at End of Year GDP Fund Transfers Fund Transfers

Calendar (1) (2) (3) (4) (5) (6) (7) (8) (9)

Year Billions Billions of Constant 2005 $ Billions of Constant 2005 Dollars

2005 0.0 0.0 0.0 0 1,850 0 12,359 1,850 1,850

2006 0.0 0.0 0.0 0 1,908 87 12,746 1,995 1,995

2007 0.0 0.0 0.0 0 1,958 183 13,080 2,139 2,139

2008 0.0 0.0 0.0 0 2,006 285 13,389 2,285 2,285

2009 0.0 0.0 0.0 0 2,056 384 13,690 2,429 2,429

2010 0.0 0.0 0.0 0 2,108 483 13,989 2,574 2,574

2011 0.0 0.0 0.0 0 2,162 581 14,286 2,719 2,719

2012 0.0 0.0 0.0 0 2,219 673 14,573 2,858 2,858

2013 0.0 0.0 0.0 0 2,278 756 14,850 2,989 2,989

2014 0.0 0.0 0.0 0 2,339 828 15,125 3,110 3,110

2015 0.0 0.0 0.0 0 2,403 889 15,398 3,222 3,222

2016 0.0 0.0 0.0 0 2,471 936 15,669 3,322 3,322

2017 0.0 0.0 0.0 0 2,539 971 15,942 3,409 3,409

2018 0.0 0.0 0.0 0 2,593 1,008 16,214 3,483 3,483

2019 0.0 0.0 0.0 0 2,633 1,045 16,489 3,543 3,543

2020 0.0 0.0 0.0 0 2,655 1,082 16,759 3,584 3,584

2021 0.0 0.0 0.0 0 2,658 1,119 17,032 3,606 3,606

2022 0.0 0.0 0.0 0 2,643 1,156 17,302 3,609 3,609

2023 0.0 0.0 0.0 0 2,607 1,193 17,574 3,591 3,591

2024 0.0 0.0 0.0 0 2,552 1,230 17,843 3,551 3,551

2025 0.0 0.0 0.0 0 2,474 1,266 18,111 3,490 3,490

2026 0.0 0.0 0.0 0 2,375 1,302 18,383 3,405 3,405

2027 0.0 0.0 0.0 0 2,254 1,337 18,665 3,298 3,298

2028 0.0 0.0 0.0 0 2,112 1,372 18,955 3,169 3,169

2029 0.0 0.0 0.0 0 1,950 1,405 19,245 3,019 3,019

2030 0.0 0.0 0.0 0 1,768 1,438 19,537 2,847 2,847

2031 0.0 0.0 0.0 0 1,566 1,470 19,836 2,654 2,654

2032 0.0 0.0 0.0 0 1,344 1,500 20,147 2,441 2,441

2033 99.1 3.0 223.9 224 1,334 1,529 20,468 2,208 2,432

2034 113.8 3.5 264.9 496 1,357 1,556 20,792 1,957 2,453

2035 115.2 3.6 276.2 787 1,384 1,582 21,116 1,689 2,476

2036 94.5 3.0 233.4 1,044 1,360 1,605 21,446 1,404 2,448

2037 0.0 0.0 0.0 1,075 1,089 1,627 21,785 1,102 2,177

2038 0.0 0.0 0.0 1,107 804 1,647 22,132 785 1,892

2039 0.0 0.0 0.0 1,140 507 1,664 22,486 452 1,593

2040 0.0 0.0 0.0 1,175 198 1,678 22,842 105 1,279

2041 0.0 0.0 0.0 1,210 -126 1,690 23,204 -259 951

2042 0.0 0.0 0.0 1,246 -463 1,699 23,573 -639 607

2043 0.0 0.0 0.0 1,284 -814 1,704 23,948 -1,036 247

2044 0.0 0.0 0.0 1,322 -1,180 1,706 24,325 -1,451 -129

2045 0.0 0.0 0.0 1,362 -1,561 1,705 24,702 -1,884 -522

2046 0.0 0.0 0.0 1,403 -1,959 1,699 25,081 -2,336 -934

2047 0.0 0.0 0.0 1,445 -2,374 1,690 25,466 -2,809 -1,364

2048 0.0 0.0 0.0 1,488 -2,807 1,678 25,857 -3,302 -1,814

2049 0.0 0.0 0.0 1,533 -3,259 1,661 26,248 -3,818 -2,285

2050 0.0 0.0 0.0 1,579 -3,732 1,640 26,640 -4,357 -2,778

2051 0.0 0.0 0.0 1,626 -4,225 1,612 27,040 -4,920 -3,294

2052 0.0 0.0 0.0 1,675 -4,741 1,580 27,447 -5,510 -3,835

2053 0.0 0.0 0.0 1,725 -5,282 1,542 27,860 -6,127 -4,402

2054 0.0 0.0 0.0 1,777 -5,849 1,503 28,281 -6,772 -4,995

2055 0.0 0.0 0.0 1,830 -6,445 1,463 28,705 -7,448 -5,617

2056 0.0 0.0 0.0 1,885 -7,072 1,422 29,132 -8,154 -6,269

2057 0.0 0.0 0.0 1,942 -7,730 1,381 29,567 -8,894 -6,952

2058 0.0 0.0 0.0 2,000 -8,421 1,340 30,008 -9,667 -7,667

2059 0.0 0.0 0.0 2,060 -9,147 1,299 30,455 -10,476 -8,416

2060 0.0 0.0 0.0 2,122 -9,907 1,258 30,907 -11,321 -9,199

2061 0.0 0.0 0.0 2,185 -10,705 1,217 31,364 -12,203 -10,018

2062 0.0 0.0 0.0 2,251 -11,542 1,177 31,831 -13,126 -10,875

2063 0.0 0.0 0.0 2,318 -12,419 1,139 32,308 -14,089 -11,771

2064 0.0 0.0 0.0 2,388 -13,339 1,101 32,790 -15,096 -12,708

2065 0.0 0.0 0.0 2,459 -14,302 1,065 33,279 -16,147 -13,688

2066 0.0 0.0 0.0 2,533 -15,310 1,031 33,765 -17,244 -14,711

2067 0.0 0.0 0.0 2,609 -16,366 1,000 34,259 -18,389 -15,780

2068 0.0 0.0 0.0 2,687 -17,469 972 34,772 -19,582 -16,895

2069 0.0 0.0 0.0 2,768 -18,622 946 35,294 -20,826 -18,058

2070 0.0 0.0 0.0 2,851 -19,826 923 35,822 -22,121 -19,270

2071 0.0 0.0 0.0 2,937 -21,082 903 36,355 -23,470 -20,533

2072 0.0 0.0 0.0 3,025 -22,392 887 36,895 -24,873 -21,848

2073 0.0 0.0 0.0 3,116 -23,758 875 37,445 -26,333 -23,217

2074 0.0 0.0 0.0 3,209 -25,181 866 38,003 -27,851 -24,642

2075 0.0 0.0 0.0 3,305 -26,664 861 38,566 -29,430 -26,125

2076 0.0 0.0 0.0 3,404 -28,209 860 39,137 -31,072 -27,667

2077 0.0 0.0 0.0 3,507 -29,817 863 39,714 -32,778 -29,271

2078 0.0 0.0 0.0 3,612 -31,490 871 40,300 -34,551 -30,939

2079 0.0 0.0 0.0 3,720 -33,231 883 40,894 -36,394 -32,673

2080 0.0 0.0 0.0 3,832 -35,043 898 41,496 -38,308 -34,476

Total 422.5

Based on Intermediate Assumptions of the 2005 Trustees Report

1

 Including annuity assets, assuming all annuitize fully. Office of the Actuary 2

 Theoretical Social Security is the current Social Security program with the assumption Social Security Administration

 that the law is modified to permit borrowing from the General Fund of the Treasury. June 23, 2005

Net OASDI Trust Fund Assets at EOY

Theoretical Social Security 2

with Borrowing Authority

Annual Transfers
Table 2b IA Contributions, IA Offset, Other Changes, & Budget Effect

Broadened IA Average Individual Account Contribution Rate: 1.39% Benefit Offset: 100.0%

Investment Amount Other Changes Change in 

Options Start Contributed to Offset to In Unified Annual Debt Held Annual 

in 2008 IA by Federal OASDI Ben Budget Unified Budget by Public Unified Budget

Government From IA Cash Flow Cash Flow (EOY) Balance

(1) (2) (3) (4)=(3)+(2)-(1) (5) (6)

Year

2006 79.8 0.0 0.0 -79.8 79.8 -79.8

2007 82.3 0.0 0.0 -82.3 162.1 -86.3

2008 81.7 0.0 0.0 -81.7 243.8 -89.9

2009 74.4 0.0 0.0 -74.4 318.2 -86.8

2010 69.3 0.0 0.0 -69.3 387.4 -85.6

2011 63.7 0.0 0.0 -63.7 451.1 -83.8

2012 53.8 0.0 0.0 -53.7 504.9 -77.3

2013 43.2 0.6 0.0 -42.6 547.4 -69.1

2014 31.7 1.3 0.0 -30.4 577.8 -59.3

2015 20.8 1.9 0.0 -18.9 596.7 -49.7

2016 9.3 2.6 0.0 -6.8 603.5 -38.9

2017 0.0 3.2 0.0 3.2 600.2 -29.6

2018 0.0 3.9 0.0 3.9 596.4 -29.2

2019 0.0 4.5 0.0 4.5 591.9 -28.7

2020 0.0 5.1 0.0 5.1 586.8 -27.8

2021 0.0 5.7 0.0 5.7 581.1 -26.9

2022 0.0 6.2 0.0 6.2 574.9 -26.1

2023 0.0 6.8 0.0 6.8 568.1 -25.2

2024 0.0 7.3 0.0 7.3 560.8 -24.3

2025 0.0 7.8 0.0 7.8 553.0 -23.3

2026 0.0 8.2 0.1 8.3 544.7 -22.4

2027 0.0 8.7 0.1 8.8 535.9 -21.5

2028 0.0 9.1 0.1 9.2 526.7 -20.6

2029 0.0 9.5 0.1 9.6 517.1 -19.6

2030 0.0 9.9 0.1 10.0 507.0 -18.7

2031 0.0 10.3 0.1 10.4 496.6 -17.8

2032 0.0 10.6 0.1 10.8 485.8 -16.8

2033 0.0 10.9 0.2 11.1 474.7 -15.9

2034 0.0 11.2 0.2 11.4 463.3 -15.0

2035 0.0 11.5 0.2 11.7 451.7 -14.1

2036 0.0 11.7 0.2 11.9 439.7 -13.2

2037 0.0 11.9 0.2 12.2 427.6 -12.3

2038 0.0 12.1 0.3 12.4 415.2 -11.4

2039 0.0 12.2 0.3 12.5 402.7 -10.5

2040 0.0 12.4 0.3 12.7 390.0 -9.7

2041 0.0 12.5 0.3 12.8 377.2 -8.9

2042 0.0 12.6 0.3 12.9 364.3 -8.0

2043 0.0 12.6 0.4 13.0 351.3 -7.2

2044 0.0 12.7 0.4 13.1 338.2 -6.4

2045 0.0 12.7 0.4 13.1 325.1 -5.7

2046 0.0 12.8 0.4 13.2 311.9 -4.9

2047 0.0 12.7 0.4 13.1 298.8 -4.2

2048 0.0 12.6 0.5 13.0 285.8 -3.6

2049 0.0 12.5 0.5 12.9 272.8 -2.9

2050 0.0 12.4 0.5 12.9 260.0 -2.3

2051 0.0 12.4 0.5 13.0 247.0 -1.5

2052 0.0 12.4 0.5 12.9 234.1 -0.8

2053 0.0 12.2 0.6 12.7 221.3 -0.3

2054 0.0 11.6 0.5 12.2 209.2 -0.1

2055 0.0 11.0 0.5 11.6 197.6 -0.1

2056 0.0 10.4 0.5 10.9 186.7 -0.1

2057 0.0 9.8 0.5 10.3 176.4 -0.1

2058 0.0 9.2 0.5 9.7 166.7 -0.1

2059 0.0 8.6 0.5 9.1 157.5 -0.1

2060 0.0 8.1 0.5 8.5 149.0 -0.2

2061 0.0 7.5 0.5 8.0 141.0 -0.3

2062 0.0 7.0 0.4 7.4 133.6 -0.4

2063 0.0 6.5 0.4 6.9 126.7 -0.5

2064 0.0 6.0 0.4 6.4 120.3 -0.7

2065 0.0 5.5 0.4 5.9 114.4 -0.8

2066 0.0 5.0 0.4 5.4 109.0 -1.0

2067 0.0 4.6 0.3 4.9 104.1 -1.1

2068 0.0 4.2 0.3 4.5 99.6 -1.3

2069 0.0 3.8 0.3 4.1 95.6 -1.5

2070 0.0 3.4 0.3 3.7 91.9 -1.7

2071 0.0 3.0 0.3 3.3 88.6 -1.8

2072 0.0 2.7 0.2 2.9 85.7 -2.0

2073 0.0 2.4 0.2 2.6 83.2 -2.2

2074 0.0 2.1 0.2 2.3 80.9 -2.4

2075 0.0 1.8 0.2 2.0 78.9 -2.5

2076 0.0 1.6 0.1 1.7 77.2 -2.7

2077 0.0 1.3 0.1 1.5 75.8 -2.8

2078 0.0 1.1 0.1 1.2 74.5 -3.0

2079 0.0 0.9 0.1 1.0 73.5 -3.1

2080 0.0 0.8 0.1 0.9 72.6 -3.2

Total 2005-2079 609.9 519.3 17.1

 Based on the Intermediate Assumptions of the 2005 Trustees Report

 With Ultimate Real Trust Fund Interest Rate of 3.0 Office of the Actuary

Benefit Offset Yield Rate = TreasBondYield-0.3 =2.7 Social Security Administration

BenefitOffsetDiscountRate = TreasBondYield-0.3 =2.7 June 23, 2005
Table 2b.c IA Contributions, IA Offset, Other Changes, & Budget Effect

Broadened IA Average Individual Account Contribution Rate: 1.39% Benefit Offset: 100.0%

Investment Amount Other Changes Change in 

Options Start Contributed to Offset to In Unified Annual Debt Held Annual 

in 2008 IA by Federal OASDI Ben Budget Unified Budget by Public Unified Budget

Government From IA Cash Flow Cash Flow (EOY) Balance

(1) (2) (3) (4)=(3)+(2)-(1) (5) (6)

Year (Billions of Constant 2005 $)

2006 84.5 0.0 0.0 -84.5 86.7 -86.7

2007 89.5 0.0 0.0 -89.5 180.8 -96.3

2008 91.0 0.0 0.0 -91.0 278.8 -102.8

2009 84.9 0.0 0.0 -84.9 372.9 -101.7

2010 81.1 0.0 0.0 -81.1 465.7 -102.9

2011 76.5 0.0 0.0 -76.5 556.2 -103.3

2012 66.3 0.0 0.0 -66.2 638.9 -97.8

2013 54.6 0.8 0.0 -53.8 711.2 -89.7

2014 41.1 1.6 0.0 -39.5 770.9 -79.1

2015 27.7 2.6 0.0 -25.2 818.1 -68.2

2016 12.8 3.5 0.0 -9.3 850.7 -54.9

2017 0.0 4.6 0.0 4.6 870.5 -43.0

2018 0.0 5.6 0.0 5.6 890.4 -43.5

2019 0.0 6.7 0.0 6.7 910.2 -44.1

2020 0.0 7.8 0.0 7.8 929.4 -44.0

2021 0.0 9.0 0.0 9.0 948.1 -43.9

2022 0.0 10.2 0.0 10.2 966.0 -43.8

2023 0.0 11.4 0.0 11.4 983.3 -43.6

2024 0.0 12.6 0.1 12.7 999.8 -43.3

2025 0.0 13.9 0.1 13.9 1,015.4 -42.9

2026 0.0 15.2 0.1 15.3 1,030.2 -42.4

2027 0.0 16.5 0.1 16.6 1,044.0 -41.9

2028 0.0 17.8 0.2 18.0 1,056.8 -41.3

2029 0.0 19.2 0.2 19.4 1,068.6 -40.6

2030 0.0 20.5 0.2 20.8 1,079.3 -39.8

2031 0.0 21.9 0.3 22.2 1,088.8 -38.9

2032 0.0 23.3 0.3 23.6 1,097.2 -38.0

2033 0.0 24.7 0.4 25.1 1,104.3 -37.0

2034 0.0 26.1 0.4 26.5 1,110.1 -35.9

2035 0.0 27.5 0.5 28.0 1,114.6 -34.7

2036 0.0 28.9 0.5 29.5 1,117.7 -33.5

2037 0.0 30.3 0.6 30.9 1,119.4 -32.2

2038 0.0 31.7 0.7 32.4 1,119.7 -30.8

2039 0.0 33.1 0.7 33.8 1,118.5 -29.3

2040 0.0 34.4 0.8 35.2 1,115.8 -27.8

2041 0.0 35.8 0.9 36.7 1,111.5 -26.1

2042 0.0 37.1 1.0 38.1 1,105.7 -24.4

2043 0.0 38.4 1.1 39.5 1,098.2 -22.6

2044 0.0 39.7 1.2 40.9 1,089.0 -20.8

2045 0.0 41.0 1.3 42.3 1,078.1 -18.8

2046 0.0 42.3 1.4 43.7 1,065.5 -16.7

2047 0.0 43.3 1.5 44.8 1,051.3 -14.9

2048 0.0 44.3 1.6 45.9 1,035.7 -13.0

2049 0.0 45.3 1.7 47.0 1,018.4 -10.9

2050 0.0 46.3 1.8 48.1 999.4 -8.8

2051 0.0 47.9 2.0 49.9 978.1 -5.9

2052 0.0 49.1 2.1 51.2 954.7 -3.3

2053 0.0 49.8 2.2 52.0 929.8 -1.1

2054 0.0 48.8 2.3 51.1 905.1 -0.6

2055 0.0 47.7 2.3 50.0 880.8 -0.3

2056 0.0 46.4 2.4 48.8 857.0 -0.2

2057 0.0 45.0 2.4 47.4 834.0 -0.3

2058 0.0 43.6 2.4 46.0 811.7 -0.4

2059 0.0 42.1 2.4 44.5 790.3 -0.7

2060 0.0 40.5 2.4 42.9 769.9 -1.1

2061 0.0 38.9 2.4 41.3 750.5 -1.6

2062 0.0 37.2 2.3 39.6 732.3 -2.2

2063 0.0 35.5 2.3 37.8 715.3 -3.0

2064 0.0 33.8 2.3 36.1 699.7 -3.8

2065 0.0 32.0 2.2 34.2 685.4 -4.8

2066 0.0 30.2 2.2 32.4 672.7 -5.9

2067 0.0 28.4 2.1 30.5 661.6 -7.2

2068 0.0 26.5 2.0 28.5 652.0 -8.5

2069 0.0 24.7 1.9 26.6 644.2 -9.9

2070 0.0 22.8 1.8 24.7 638.2 -11.5

2071 0.0 21.0 1.7 22.7 633.9 -13.1

2072 0.0 19.2 1.6 20.8 631.5 -14.8

2073 0.0 17.4 1.5 19.0 630.9 -16.6

2074 0.0 15.7 1.4 17.1 632.2 -18.5

2075 0.0 14.1 1.3 15.4 635.3 -20.4

2076 0.0 12.5 1.2 13.7 640.3 -22.3

2077 0.0 11.0 1.1 12.1 647.1 -24.2

2078 0.0 9.6 1.0 10.6 655.6 -26.1

2079 0.0 8.3 0.9 9.2 665.8 -28.1

2080 0.0 7.2 0.8 7.9 677.6 -29.9

 Based on the Intermediate Assumptions of the 2005 Trustees Report

 With Ultimate Real Trust Fund Interest Rate of 3.0 Office of the Actuary

Benefit Offset Yield Rate = TreasBondYield-0.3 =2.7 Social Security Administration

BenefitOffsetDiscountRate = TreasBondYield-0.3 =2.7 June 23, 2005
Table 2c OASDI Cash Flow to General Fund of the Treasury--- Proposal vs. Theoretical OASDI

Broadened IA Proposal Theoretical Social Security with PAYGO Transfers

Investment Net Amount of Cash-Flow from the OASDI Net Amount of Cash-Flow from the OASDI

Options Start Trust Funds to the General Fund of the Trust Funds to the General Fund of the

in 2008 Treasury During the Year 1 Treasury During the Year 1

Percent Billions of Dollars Percent Billions of Dollars

Year of Payroll Current $ 1/1/2005 PV Const 2005 $ of Payroll Current $ 1/1/2005 PV Const 2005 $

2005 1.5 70 68 70 1.5 70 68 70

2006 0.0 1 1 1 1.8 88 81 86

2007 0.0 0 0 0 1.8 94 82 89

2008 0.0 0 0 0 1.8 98 82 91

2009 0.0 0 0 0 1.6 94 74 85

2010 0.0 0 0 0 1.5 92 69 81

2011 0.0 0 0 0 1.4 90 64 77

2012 0.0 0 0 0 1.2 80 54 66

2013 0.0 0 0 0 1.0 67 43 54

2014 0.0 0 0 0 0.7 50 30 40

2015 0.0 0 0 0 0.4 33 19 25

2016 0.0 0 0 0 0.2 12 7 9

2017 -0.1 -4 -2 -3 -0.1 -11 -5 -8

2018 -0.3 -28 -14 -20 -0.4 -36 -17 -25

2019 -0.6 -54 -25 -37 -0.7 -64 -29 -44

2020 -0.9 -83 -36 -55 -1.0 -95 -41 -63

2021 -1.2 -114 -47 -74 -1.3 -128 -52 -83

2022 -1.4 -147 -57 -93 -1.6 -163 -63 -103

2023 -1.7 -181 -66 -111 -1.9 -200 -73 -123

2024 -2.0 -218 -75 -130 -2.2 -239 -82 -143

2025 -2.2 -257 -84 -149 -2.4 -281 -91 -163

2026 -2.5 -298 -92 -169 -2.7 -325 -100 -184

2027 -2.7 -340 -99 -187 -3.0 -370 -107 -203

2028 -2.9 -381 -104 -204 -3.2 -415 -114 -222

2029 -3.1 -422 -109 -219 -3.4 -459 -119 -239

2030 -3.3 -463 -113 -234 -3.6 -504 -123 -255

2031 -3.4 -505 -116 -248 -3.7 -550 -127 -270

2032 -3.5 -546 -119 -261 -3.9 -595 -130 -285

2033 -3.6 -585 -120 -272 -4.0 -639 -132 -297

2034 -3.7 -622 -121 -282 -4.1 -681 -132 -308

2035 -3.8 -658 -121 -290 -4.1 -722 -132 -318

2036 -3.8 -693 -120 -297 -4.2 -762 -132 -326

2037 -3.8 -728 -119 -303 -4.2 -802 -131 -334

2038 -3.9 -760 -118 -308 -4.3 -840 -130 -341

2039 -3.8 -792 -116 -312 -4.3 -877 -128 -346

2040 -3.8 -824 -114 -316 -4.3 -916 -126 -351

2041 -3.8 -857 -112 -320 -4.3 -955 -124 -356

2042 -3.8 -892 -110 -324 -4.3 -997 -123 -362

2043 -3.8 -928 -108 -328 -4.3 -1,040 -121 -367

2044 -3.8 -966 -106 -332 -4.3 -1,085 -119 -373

2045 -3.8 -1,006 -104 -336 -4.3 -1,133 -117 -378

2046 -3.8 -1,049 -103 -341 -4.3 -1,183 -116 -385

2047 -3.8 -1,095 -101 -346 -4.3 -1,237 -114 -391

2048 -3.8 -1,144 -100 -352 -4.3 -1,293 -113 -398

2049 -3.8 -1,196 -99 -358 -4.4 -1,353 -112 -405

2050 -3.9 -1,251 -97 -364 -4.4 -1,417 -110 -412

2051 -3.9 -1,310 -96 -371 -4.4 -1,486 -109 -421

2052 -3.9 -1,374 -95 -378 -4.4 -1,560 -108 -430

2053 -3.9 -1,444 -95 -387 -4.5 -1,639 -108 -439

2054 -4.0 -1,525 -95 -397 -4.5 -1,722 -107 -449

2055 -4.1 -1,613 -94 -409 -4.6 -1,810 -106 -459

2056 -4.1 -1,707 -94 -421 -4.6 -1,905 -105 -470

2057 -4.2 -1,807 -94 -434 -4.7 -2,005 -105 -481

2058 -4.3 -1,913 -94 -446 -4.7 -2,110 -104 -492

2059 -4.3 -2,024 -94 -459 -4.8 -2,220 -103 -504

2060 -4.4 -2,141 -94 -473 -4.8 -2,335 -103 -516

2061 -4.5 -2,265 -94 -486 -4.9 -2,457 -102 -528

2062 -4.5 -2,398 -94 -501 -4.9 -2,587 -101 -541

2063 -4.6 -2,540 -94 -516 -5.0 -2,726 -101 -554

2064 -4.7 -2,689 -94 -532 -5.0 -2,872 -100 -568

2065 -4.8 -2,845 -94 -547 -5.1 -3,023 -100 -581

2066 -4.9 -3,009 -94 -563 -5.1 -3,182 -99 -595

2067 -4.9 -3,182 -94 -579 -5.2 -3,350 -99 -610

2068 -5.0 -3,362 -94 -595 -5.2 -3,523 -98 -624

2069 -5.1 -3,549 -93 -611 -5.3 -3,704 -97 -638

2070 -5.1 -3,743 -93 -627 -5.3 -3,890 -97 -652

2071 -5.2 -3,944 -92 -643 -5.4 -4,084 -96 -665

2072 -5.3 -4,156 -92 -659 -5.4 -4,287 -95 -680

2073 -5.3 -4,375 -91 -675 -5.5 -4,498 -94 -694

2074 -5.4 -4,605 -91 -691 -5.5 -4,719 -93 -708

2075 -5.4 -4,845 -90 -707 -5.5 -4,951 -92 -722

2076 -5.5 -5,097 -90 -723 -5.6 -5,194 -91 -737

2077 -5.5 -5,361 -89 -740 -5.6 -5,448 -91 -752

2078 -5.6 -5,637 -89 -757 -5.7 -5,715 -90 -768

2079 -5.6 -5,925 -88 -774 -5.7 -5,996 -89 -783

2080 -5.7 -6,227 -87 -791 -5.8 -6,290 -88 -799

Total 2005-79 -5,773 -5,699

1 Equals net investment in special Treasury Bonds by the Trust Funds Office of the Actuary

less the Amount of General Fund transfers specified in the proposal or in the theoretical Social Security Administration

plan (PAYGO Transfers) June 23, 2005
Table 2d Change in Long-Range Trust Fund Assets / Unfunded Obligation

Broadened IA Average Individual Account Contribution Rate: 1.39% Benefit Offset: 100.0%

Investment Present Law OASDI

Options Start Trust Fund Assets Basic Amount Offset to Proposal OASDI

in 2008 or if Negative, Changes Contributed to OASDI Trust Fund Assets/

Unfunded Obligation in OASDI IA by Federal Benefit General Total Change Unfunded Obligation

Through EOY Cash Flow1 Government from IA Fund Transfers Through EOY2 Through EOY

(1) (2) (3) (4) (5) (6) (7) = (1) + (6)

Year (Billions of $, Present Value on 1-1-2005)

2006 1,835.2 0.0 79.8 0.0 0.0 -79.8 1,755.4

2007 1,917.1 0.0 82.3 0.0 0.0 -162.1 1,755.0

2008 1,998.4 0.0 81.7 0.0 0.0 -243.8 1,754.6

2009 2,072.5 0.0 74.4 0.0 0.0 -318.2 1,754.3

2010 2,141.5 0.0 69.3 0.0 0.0 -387.4 1,754.0

2011 2,204.9 0.0 63.7 0.0 0.0 -451.1 1,753.8

2012 2,258.4 0.0 53.8 0.0 0.0 -504.9 1,753.6

2013 2,300.8 0.0 43.2 0.6 0.0 -547.4 1,753.3

2014 2,331.0 0.0 31.7 1.3 0.0 -577.8 1,753.2

2015 2,349.7 0.0 20.8 1.9 0.0 -596.7 1,753.0

2016 2,356.4 0.0 9.3 2.6 0.0 -603.5 1,752.9

2017 2,350.7 0.0 0.0 3.2 0.0 -600.2 1,750.5

2018 2,333.1 0.0 0.0 3.9 0.0 -596.4 1,736.8

2019 2,303.8 0.0 0.0 4.5 0.0 -591.9 1,711.9

2020 2,262.7 0.0 0.0 5.1 0.0 -586.8 1,675.9

2021 2,210.4 0.0 0.0 5.7 0.0 -581.1 1,629.3

2022 2,147.5 0.0 0.0 6.2 0.0 -574.9 1,572.6

2023 2,074.6 0.0 0.0 6.8 0.0 -568.1 1,506.4

2024 1,992.1 0.0 0.0 7.3 0.0 -560.8 1,431.3

2025 1,900.6 0.0 0.0 7.8 0.0 -553.0 1,347.6

2026 1,800.6 0.1 0.0 8.2 0.0 -544.7 1,255.9

2027 1,693.2 0.1 0.0 8.7 0.0 -535.9 1,157.2

2028 1,579.5 0.1 0.0 9.1 0.0 -526.7 1,052.8

2029 1,460.7 0.1 0.0 9.5 0.0 -517.1 943.7

2030 1,337.6 0.1 0.0 9.9 0.0 -507.0 830.6

2031 1,210.7 0.1 0.0 10.3 0.0 -496.6 714.1

2032 1,080.9 0.1 0.0 10.6 0.0 -485.8 595.1

2033 949.4 0.2 0.0 10.9 99.1 -375.7 573.7

2034 817.0 0.2 0.0 11.2 113.8 -250.5 566.5

2035 684.5 0.2 0.0 11.5 115.2 -123.6 560.9

2036 552.4 0.2 0.0 11.7 94.5 -17.2 535.1

2037 421.0 0.2 0.0 11.9 0.0 -5.1 415.9

2038 291.1 0.3 0.0 12.1 0.0 7.3 298.3

2039 162.9 0.3 0.0 12.2 0.0 19.8 182.7

2040 36.6 0.3 0.0 12.4 0.0 32.5 69.0

2041 -87.9 0.3 0.0 12.5 0.0 45.3 -42.6

2042 -210.7 0.3 0.0 12.6 0.0 58.2 -152.4

2043 -331.6 0.4 0.0 12.6 0.0 71.2 -260.4

2044 -450.7 0.4 0.0 12.7 0.0 84.3 -366.4

2045 -568.1 0.4 0.0 12.7 0.0 97.4 -470.7

2046 -684.0 0.4 0.0 12.8 0.0 110.6 -573.4

2047 -798.4 0.4 0.0 12.7 0.0 123.7 -674.7

2048 -911.3 0.5 0.0 12.6 0.0 136.7 -774.6

2049 -1,022.9 0.5 0.0 12.5 0.0 149.7 -873.2

2050 -1,133.2 0.5 0.0 12.4 0.0 162.6 -970.7

2051 -1,242.5 0.5 0.0 12.4 0.0 175.5 -1,067.0

2052 -1,350.9 0.5 0.0 12.4 0.0 188.4 -1,162.4

2053 -1,458.4 0.6 0.0 12.2 0.0 201.2 -1,257.2

2054 -1,565.1 0.5 0.0 11.6 0.0 213.3 -1,351.7

2055 -1,671.0 0.5 0.0 11.0 0.0 224.9 -1,446.1

2056 -1,776.3 0.5 0.0 10.4 0.0 235.8 -1,540.5

2057 -1,881.0 0.5 0.0 9.8 0.0 246.1 -1,634.8

2058 -1,985.0 0.5 0.0 9.2 0.0 255.9 -1,729.1

2059 -2,088.4 0.5 0.0 8.6 0.0 265.0 -1,823.4

2060 -2,191.0 0.5 0.0 8.1 0.0 273.5 -1,917.5

2061 -2,293.1 0.5 0.0 7.5 0.0 281.5 -2,011.6

2062 -2,394.6 0.4 0.0 7.0 0.0 288.9 -2,105.6

2063 -2,495.5 0.4 0.0 6.5 0.0 295.8 -2,199.7

2064 -2,596.0 0.4 0.0 6.0 0.0 302.2 -2,293.8

2065 -2,695.9 0.4 0.0 5.5 0.0 308.1 -2,387.8

2066 -2,795.2 0.4 0.0 5.0 0.0 313.5 -2,481.7

2067 -2,893.9 0.3 0.0 4.6 0.0 318.4 -2,575.5

2068 -2,991.9 0.3 0.0 4.2 0.0 322.9 -2,669.0

2069 -3,089.3 0.3 0.0 3.8 0.0 327.0 -2,762.3

2070 -3,185.8 0.3 0.0 3.4 0.0 330.6 -2,855.2

2071 -3,281.6 0.3 0.0 3.0 0.0 333.9 -2,947.7

2072 -3,376.5 0.2 0.0 2.7 0.0 336.8 -3,039.7

2073 -3,470.6 0.2 0.0 2.4 0.0 339.4 -3,131.2

2074 -3,563.7 0.2 0.0 2.1 0.0 341.6 -3,222.1

2075 -3,656.1 0.2 0.0 1.8 0.0 343.6 -3,312.5

2076 -3,747.6 0.1 0.0 1.6 0.0 345.3 -3,402.3

2077 -3,838.2 0.1 0.0 1.3 0.0 346.7 -3,491.5

2078 -3,928.0 0.1 0.0 1.1 0.0 348.0 -3,580.0

2079 -4,017.0 0.1 0.0 0.9 0.0 349.0 -3,667.9

Total 2005-2079 17.1 609.9 519.3 422.5

 Based on the Intermediate Assumptions of the 2005 Trustees Report

 With Ultimate Real Trust Fund Interest Rate of 3.0

Benefit Offset Yield Rate = TreasBondYield-0.3 =2.7 Office of the Actuary

BenefitOffsetDiscountRate = TreasBondYield-0.3 =2.7 Social Security Administration 1

Includes revenue from taxing IA distributions June 23, 2005 2

Total change through the year is the accumulation of changes in columns 2 through 5
Table B1. Projected IA Assets and Potential Life Annuity as Percent of Scheduled Retired Worker Benefit

DeMint Proposal to Finance IAs from OASDI Cash-Flow Surplus 2006-16

Values Accumulated at Treasury Bond Yield 1/ Expected Values from Mixed Portfolios 2/

CPI-Indexed CPI-Indexed

Accumulated IA Life Annuity as Accumulated IA Life Annuity as

Year at Retire at 65 Percent of at Retire at 65 Percent of 

Attain Constant 2005$ Scheduled Benefit Constant 2005$ Scheduled Benefit

Age 65

Scaled Low Earner Scaled Low Earner

2016 2,712 2.0 3,049 2.2

2026 4,402 3.0 5,893 4.1

2036 5,377 3.3 8,608 5.2

2046 5,508 2.9 10,522 5.6

2056 937 0.4 2,003 0.9

Scaled Medium Earner Scaled Medium Earner

2016 6,027 2.7 6,776 3.0

2026 9,783 4.1 13,096 5.5

2036 11,948 4.4 19,129 7.0

2046 12,239 4.0 23,383 7.6

2056 2,083 0.6 4,450 1.3

Scaled High Earner Scaled High Earner

2016 9,643 3.2 10,842 3.6

2026 15,653 4.9 20,954 6.6

2036 19,117 5.3 30,606 8.5

2046 19,583 4.8 37,413 9.1

2056 3,332 0.7 7,120 1.5

Steady Maximum Earner Steady Maximum Earner

2016 16,322 4.5 18,252 5.0

2026 21,525 5.6 28,800 7.4

2036 28,096 6.4 45,048 10.2

2046 36,674 7.3 70,462 14.1

2056 7,533 1.3 15,977 2.8

1/ Treasury bond index fund is assumed to be invested in long-term fixed-rate Treasury Bonds with duration to maturity 

 of 4 years or more. Ultimate admin cost is assumed at 0.3 percent of assets annually.

2/ Mixed portfolio is assumed to be 50 percent equity index funds, 25 percent corporate bond index funds, and 25

 percent Treasury long-term bond index funds. Ultimate admin cost is assumed at 0.3 percent of assets annually.

Based on the intermediate assumptions of the 2005 Trustees Report

Ultimate expected real yield is assumed to be 6.5 percent on equities, 3.5 percent on corporate bonds, and 

 3 percent on Treasury bonds. 

Office of the Actuary

Social Security Administration

 June 22, 2005