Proposed Provision: Eliminate the contribution and benefit base entirely beginning for 2017 and later; phase in the inclusion of earnings above the current contribution and benefit base for years 2011 through 2016. Assess the full Social Security payroll tax rate of 12.4 percent on the additional earnings. The primary insurance amount (PIA) would be determined in two components. The first component would be based on the average indexed monthly earnings (AIME), restricted to earnings at the level of the current-law contribution and benefit base ($106,800 for 2010) for each year. The second component of the PIA would be computed using the AIME+, which would be equal to the sum of the indexed earnings in excess of the current-law contribution and benefit base for the 35 years included in the AIME, divided by 420. The second component of PIA would be equal to 3 percent of AIME+ up to $11,933 ((equals $250,000-$106,800)/12) and 0.25 percent for AIME+ above this level for beneficiaries newly eligible in 2011. For beneficiaries newly eligible for benefits after 2011, the bend point of $11,933 would be indexed by the national average wage index (AWI) in the same manner as for the bend points in the first component of the PIA.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Present Law Provision
2010355355
2011353353
2012350352
2013346352
2014341354
2015335358
2016330364
2017324372
2018317380
2019309388
2020299393
2021289398
2022277401
2023264402
2024251403
2025237403
2026221402
2027205400
2028189398
2029171395
2030154393
2031136390
2032117387
203398384
203479381
203559378
203639375
203719372
2038-1370
2039-21368
2040-42367
2041-63366
2042-84365
2043-105364
2044-126364
2045-147364
2046-168363
2047-189363
2048-211363
2049-233364
2050-255364
2051-277364
2052-299364
2053-321364
2054-344364
2055-366364
2056-389363
2057-412362
2058-436362
2059-460361
2060-485360
2061-509359
2062-534357
2063-560356
2064-586354
2065-612352
2066-638350
2067-665348
2068-692345
2069-720343
2070-748340
2071-776336
2072-805333
2073-834329
2074-864325
2075-894320
2076-925316
2077-957311
2078-989306
2079-1021301
2080-1054295
2081-1087289
2082-1121283
2083-1156277
2084-1191270
2085-1227263
back