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| Solvency Provisions | Provisions Affecting Level of Monthly Benefits |
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| Number      | Table and graph selection                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| B1.1        | Beginning with those newly eligible for OASDI benefits in 2016 and        later, reduce PIA formula factors so that benefits grow by inflation        rather than by increases in real wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| B1.2        | Progressive price indexing of PIA formula factors beginning with        individuals newly eligible for OASDI benefits in 2016.  Create new bend        point at the 30th percentile of earners.  Maintain current-law benefits        for earners at the 30th percentile and below and reduce upper 2 formula        factors (32% and 15%) such that maximum worker benefit grows by        inflation rather than the growth in average wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| B1.3        | Progressive price indexing of PIA formula factors beginning with        individuals newly eligible for OASDI benefits in 2016.  Create new bend        point at the 40th percentile of earners.  Maintain current-law benefits        for earners at the 40th percentile and below and reduce upper 2 formula        factors (32% and 15%) such that maximum worker benefit grows by        inflation rather than the growth in average wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| B1.4        | Progressive price indexing of PIA formula factors beginning with        individuals newly eligible for OASDI benefits in 2016.  Create new bend        point at the 50th percentile of earners.  Maintain current-law benefits        for earners at the 50th percentile and below and reduce upper 2 formula        factors (32% and 15%) such that maximum worker benefit grows by        inflation rather than the growth in average wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| B1.5        | Progressive price indexing of PIA formula factors beginning with        individuals newly eligible for OASDI benefits in 2016.  Create new bend        point at the 60th percentile of earners.  Maintain current-law benefits        for earners at the 60th percentile and below and reduce upper 2 formula        factors (32% and 15%) such that maximum worker benefit grows by        inflation rather than the growth in average wages.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| B1.6 (2013) | Progressive price indexing of PIA formula factors beginning with       individuals newly eligible for OASI benefits in 2013.  Create new       bend point at the 30th percentile of earners.  Maintain current-law       benefits for earners at the 30th percentile and below and reduce       upper 2 formula factors (32% and 15%) such that maximum worker       benefit grows by inflation rather than the growth in average wages.       Disability benefits are not affected by the proposal.  Disabled       worker beneficiaries, upon attaining normal retirement age, would       be subject to a proportional reduction in benefits based on the       worker's years of disability.  *In addition, the reduction to the       upper 2 formula factors is suspended for any year in which       sustainable solvency over the next 75 years is expected. With this       provision taken alone, suspension is not expected within the next       75 years.*       Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing the provision       (effective dates may be different)                                                                    |
| B1.6 (2016) | Progressive price indexing of PIA formula factors beginning with       individuals newly eligible for OASI benefits in 2016.  Create new       bend point at the 30th percentile of earners.  Maintain current-law       benefits for earners at the 30th percentile and below and reduce       upper 2 formula factors (32% and 15%) such that maximum worker       benefit grows by inflation rather than the growth in average wages.       Disability benefits are not affected by the proposal.  Disabled       worker beneficiaries, upon attaining normal retirement age, would       be subject to a proportional reduction in benefits based on the       worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision       (effective dates may be different)                                                                                                                                                                                                                                                                                                                                      |
| B1.6 (2017) | Progressive price indexing of PIA formula factors beginning with       individuals newly eligible for OASI benefits in 2017. Create new       bend point at the 30th percentile of earners. Maintain current-law       benefits for earners at the 30th percentile and below and reduce       upper 2 formula factors (32% and 15%) such that maximum worker       benefit grows by inflation rather than the growth in average       wages. Disability benefits are not affected by the proposal.       Disabled worker beneficiaries, upon attaining normal retirement       age, would be subject to a proportional reduction in benefits       based on the worker's years of disability.               Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision       (effective dates may be different)                                                                                                                                                                                                                                                                                                                                        |
| B1.6 (2018) | Progressive price indexing of PIA formula factors beginning with 		individuals newly eligible for OASI benefits in 2018. Create new 		bend point at the 30th percentile of earners. Maintain current-law 		benefits for earners at the 30th percentile and below and reduce 		upper 2 formula factors (32% and 15%) such that maximum worker 		benefit grows by inflation rather than the growth in average wages. 		Disability benefits are not affected by the proposal. Disabled worker 		beneficiaries, upon attaining normal retirement age, would be subject 		to a proportional reduction in benefits based on the worker's years of 		disability.        		       Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision       (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                          |
| B2.1 (2019) | For OASI beneficiaries becoming eligible for benefits in 2019 and       later, multiply the PIA factors by the ratio of life expectancy at       67 for 2014 to the life expectancy at age 67 for the 4th year prior       to the year of benefit eligibility.  Unisex life expectancies, based       on period life tables, would be used as projected by SSA's Office       of the Chief Actuary.  Disability benefits are not affected by the       proposal.  Disabled worker beneficiaries, upon attaining normal       retirement age, would be subject to a proportional reduction in       benefits based on the worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision       (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                 |
| B2.1 (2022) | For OASI beneficiaries becoming eligible for benefits in 2022 and       later, multiply the PIA factors by the ratio of life expectancy at       67 for 2017 to the life expectancy at age 67 for the 4th year prior       to the year of benefit eligibility.  Unisex life expectancies, based       on period life tables, would be used as projected by SSA's Office       of the Chief Actuary.  Disability benefits are not affected by the       proposal.  Disabled worker beneficiaries, upon attaining normal       retirement age, would be subject to a proportional reduction in       benefits based on the worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision       (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                 |
| B3.1        | For each year from 2010-2040, multiply the 32 and 15 percent        formula factors by 0.987, reducing the factors to 21 percent        and 10 percent respectively,        for new eligibles in 2040 and later.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| B3.2        | Beginning with those newly eligible in 2017, multiply the 90 and 32        PIA factors each year by 0.9925 and 0.982, respectively.        Stop reductions in        2054.  Beginning with those newly eligible in 2012, multiply the 15        factor by 0.982.  Stop reduction of the 15 factor in 2049.  DI will        have present law scheduled benefit and proportional reduction at        conversion to retired worker benefits at normal retirement age, based        on years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision       (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| B3.3        | For all individuals becoming eligible for OASDI benefits in 2010 and        later, use a modified primary insurance amount (PIA) formula.        The modified formula would increase the first bend point to $800 in        2009.  Also, a new bend point would be placed between the reset        first bend point and the current-law second bend point.  The        new bend point would be equal to the reset first bend point        plus 75 percent of the difference between the bend points.        The PIA formula factor between the new bend point and the upper        bend point would be lowered from 32% to 20%.  The PIA formula        factor above the upper bend point would be lowered from 15% to        10%.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                   |
| B3.4        | Multiply all PIA formula factors successively by 0.991 for new        benefit eligibility in each year 2013 through 2041.   Disabled        workers and young survivors (surviving spouses with a child-in-care        and survivor children) would not be affected by this provision.        Upon conversion from disabled worker to retired worker benefits,        benefit levels would be proportionally reduced based on the        fraction of years the individual was not disabled between ages        22 and 62.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this       provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| B3.5        | Progressive indexing of PIA formula factors beginning with individuals 		newly eligible for OASI benefits in 2012, continuing through 2049, and 		resuming in 2070.  Create new bend point at the 30th percentile of earners. 		Maintain current-law benefits for earners at the 30th percentile and below 		and reduce upper 2 formula factors (32% and 15%) such that maximum worker 		benefit is reduced by 1.1 percent per year as compared to current law, for 		the years that progressive indexing applies.  Disability benefits are not 		affected by the proposal. Disabled worker beneficiaries, upon attaining 		normal retirement age, would be subject to a proportional reduction in 		benefits based on the worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this       provision                                                                                                                                                                                                                                                                                                                 |
| B3.6        | Progressive indexing of PIA formula factors beginning with individuals 		newly eligible for OASI benefits in 2012 through 2061.  Create new bend 		point at the 30th percentile of earners. Maintain current-law benefits for 		earners at the 30th percentile and below and reduce upper 2 formula factors 		(32% and 15%) such that maximum worker benefit is reduced by 1.1 percent per 		year as compared to current law, for the years that progressive indexing 		applies.  Disability benefits are not affected by the proposal. Disabled 		worker beneficiaries, upon attaining normal retirement age, would be subject 		to a proportional reduction in benefits based on the worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this       provision                                                                                                                                                                                                                                                                                                                                                      |
| B3.7        | Progressive indexing of PIA formula factors beginning with individuals 		newly eligible for OASI benefits in 2012, continuing through 2021, and 		then resuming in 2060.  Create new bend point at the 30th percentile of 		earners. Maintain current-law benefits for earners at the 30th percentile 		and below and reduce upper 2 formula factors (32% and 15%) such that maximum 		worker benefit is reduced by 1.1 percent per year as compared to current law, 		for the years that progressive indexing applies.  Disability benefits are 		not affected by the proposal. Disabled worker beneficiaries, upon attaining 		normal retirement age, would be subject to a proportional reduction in benefits 		based on the worker's years of disability.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this       provision                                                                                                                                                                                                                                                                                                            |
| B4.1        | Increase the number of years used to calculate benefits for retirees         and survivors (but not for disabled workers) from 35 to 38, phased in         2010-2014.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| B4.2        | Increase the number of years used to calculate benefits for retirees        and survivors (but not for disabled workers) from 35 to 40, phased in        2010-2018.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| B4.3        | Eliminate dropout years for OASI and DI computation of primary        insurance amount (PIA) for individuals newly eligible for benefits        from 2011 to 2019.  Specifically, for OASDI benefit computation,        reduce the maximum number of drop-out years from 5 for benefit        eligibility in 2010, with a decrease of 1 computation year in 2011,        2013, 2015, 2017, and 2019.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this       provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| B5.1 (2017) | Increase the PIA to a level such that a worker with 30 years       of earnings at the minimum wage level would receive an adjusted       PIA equal to 120 percent of the Federal poverty level for an       aged individual.  This provision would take full effect for       all newly eligible OASDI workers in 2026, and would be phased       in for new eligible in 2017 through 2025.  The percentage       increase in PIA would be lowered proportionately for those       with fewer than 30 years of earnings, down to no enhancement       for workers with 20 or fewer years of earnings.  (Year-of-work       requirements are "scaled" for disabled workers based on their       years of potential work from age 22 to benefit eligibility).       The benefit enhancement percentage would be reduced       proportionately for workers with higher average indexed monthly       earnings (AIME), down to no enhancement for those with AIME       at least twice that of a 35-year steady minimum wage earner.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision       (effective dates may be different) |
| B5.1 (2018) | Increase the PIA to a level such that a worker with 30 years of earnings 	   at the minimum wage level would receive an adjusted PIA equal to 120 	   percent of the Federal poverty level for an aged individual. This 	   provision would take full effect for all newly eligible OASDI workers in 	   2027, and would be phased in for new eligible in 2018 through 2026. The 	   percentage increase in PIA would be lowered proportionately for those 	   with fewer than 30 years of earnings, down to no enhancement for 	   workers with 20 or fewer years of earnings. (Year-of-work requirements 	   are "scaled" for disabled workers based on their years of potential work 	   from age 22 to benefit eligibility). The benefit enhancement percentage 	   would be reduced proportionately for workers with higher average indexed 	   monthly earnings (AIME), down to no enhancement for those with AIME at 	   least twice that of a 35-year steady minimum wage earner.               Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision       (effective dates may be different)                                         |
| B5.2        | Beginning in 2010, increase the special minimum benefit by making        the following changes:         (a) A year of coverage is defined as a year in which 4 quarters of            coverage are earned.         (b) At implementation, set the PIA for 30 years of coverage equal to            125 percent of the monthly poverty level (about $1,128 in 2009).            The PIA per year of coverage (after the first 10 years) would be            $1,128/20 = $56.40.         (c) Index the initial PIA per year of coverage by wage growth for            successive cohorts, so that the special minimum keeps up with            the wage-indexed benefit formula.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision                                                                                                                                                                                                                                                                                                                                                                                                 |
| B5.3        | Beginning in 2010, increase the special minimum benefit by making        the following changes:         (a) A year of coverage is defined to be either a childcare year or            a year in which 4 quarters of coverage are earned. Childcare            years are granted to parents who have a child under 5, with a            limit of 8 such years.        (b) At implementation, set the PIA for 30 years of coverage equal to            125 percent of the monthly poverty level (about $1,128 in 2009).            The PIA per year of coverage (after the first 10 years) would be            $1,128/20 = $56.40.         (c) Index the initial PIA per year of coverage by wage growth for            successive cohorts, so that the special minimum keeps up with            the wage-indexed benefit formula.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)Memorandum containing this provision                                                                                                                                                                                                                                             |
| B6.1        | Reduce benefits by 3 percent for those newly eligible        for benefits in 2010 and later.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| B6.2        | Reduce benefits by 5 percent for those newly eligible        for benefits in 2010 and later.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision (effective dates may be different)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| B6.3        | Give parents earnings credits for up to five years if they have         a child under 6. The earnings credited for a childcare year would be         such that the resulting earnings assigned to the parents would equal         one half of the Social Security average-wage index -- about $21,021 in         2009. The credits would be available for all past years to newly         eligible retired-worker and disabled-worker beneficiaries in 2010         and later. The 5 most advantageous years would be used if more than         5 childcare credit years are possible; that is, the 5 years that make         the biggest difference in indexed earnings.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision                                                                                                                                                                                                                                                                                                                                                                                                 |
| B6.4        | Provide a 5 percent increase to the benefit level of any beneficiary         who is 85 or older at the beginning of 2010 or who reaches their         85th birthday after the beginning of 2010.               Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| B6.5        | Provide the same dollar amount increase to the benefit level of         any beneficiary who is 85 or older at the beginning of 2010 or         who reaches their 85th birthday after the beginning of 2010.         The dollar amount of increase equals 5 percent of the average         retired worker benefit in the prior year.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| B6.6        | Increase benefits by 20 percent for all beneficiaries as of the         beginning of 2010 and for those newly eligible for benefits after the         beginning of 2010.              Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| B6.7        | Increase benefits by 5 percent for all beneficiaries as of the         beginning of 2010 and for those newly eligible for benefits after         the beginning of 2010.               Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| B6.8        | Increase benefits by 2 percent for all beneficiaries as of the         beginning of 2010 and for those newly eligible for benefits after the         beginning of 2010.               Summary measures and graphs         (PDF version)       Detailed single year tables         (PDF version)       Memorandum containing the provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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