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1994-96 Advisory Council Report

 
 Table 86   Comparison of "Moneys Worth" for the OASDI Program for Present Law and
  StdVal       Advisory Council Options With Reduced CPI*
  NoTaxAdj
            Present Value of Expected Benefits                    Cohort 22 in 1986
            --------------------------------------------------------------------------------------------------
                          Composite Workers                           Married, Two Earner Couples
               (TF      -----------------------------------------    -----------------------------------------
               Real      Low      Ave     High      Max              Low/     Ave/     Ave/     High/    High/
 Package       Int)     Erns     Erns     Erns     Erns    Total      Low      Low      Ave      Ave      High
 
 Present Law   (2.3)    50178    85607   109549   122585    83423    58262    84873    96447   119103   127510
 PL PAYGO      (2.3)    50178    85607   109549   122585    83423    58262    84873    96447   119103   127510
 5% PSA-401K   (2.3)    59652    95232   119912   127479    92826    71556    93334   111692   132131   150810
 5% PSA-USBond (2.3)    56087    87461   108340   114039    85012    67198    86323   102007   119552   135314
 1.6% IA-401KAn(2.3)    52707    87816   108387   116067    84359    63123    85619   103011   120322   129987
 1.6% IA-USBond(2.3)    51257    84652   103673   110613    81179    61350    82760    99071   115198   123682
 MB            (4.2)    50154    85563   109511   122500    83383    58234    84830    96399   119061   127472
 MTR           (2.3)    47557    76589    91665    96816    73082    56829    75487    89023   102148   107606
 LTR           (2.3)    45154    63637    72865    73215    61085    53835    64835    72310    80993    87800
 
            Present Value of Expected Pyrl Tax (EE + ER)               Cohort 22 in 1986
            --------------------------------------------------------------------------------------------------
                          Composite Workers                           Married, Two Earner Couples
                        -----------------------------------------    ------------------------------------------
                         Low      Ave     High      Max              Low/     Ave/     Ave/     High/    High/
                        Erns     Erns     Erns     Erns    Total      Low      Low      Ave      Ave      High
 
 Present Law   (2.3)    45902    99277   148257   174982   100246    55494    88800   123322   159656   197316
 PL PAYGO      (2.3)    46451   100453   150004   176998   101429    56158    89844   124794   161542   199670
 5% PSA-401K   (2.3)    49104   106188   158568   187055   107217    59366    94970   131924   170766   211078
 5% PSA-USBond (2.3)    49104   106188   158568   187055   107217    59366    94970   131924   170766   211078
 1.6% IA-401KAn(2.3)    49272   106552   159111   187689   107583    59570    95296   132376   171350   211804
 1.6% IA-USBond(2.3)    49272   106552   159111   187689   107583    59570    95296   132376   171350   211804
 MB            (4.2)    45902    99277   148257   174982   100246    55494    88800   123322   159656   197316
 MTR           (2.3)    45902    99277   148257   174982   100246    55494    88800   123322   159656   197316
 LTR           (2.3)    38577    83458   124652   147342    84291    46634    74678   103632   134224   165810
 
            Present Value of Expected "Net Subsidy"                    Cohort 22 in 1986
            --------------------------------------------------------------------------------------------------
                          Composite Workers                           Married, Two Earner Couples
                        -----------------------------------------    ------------------------------------------
                         Low      Ave     High      Max              Low/     Ave/     Ave/     High/    High/
                        Erns     Erns     Erns     Erns    Total      Low      Low      Ave      Ave      High
 
 Present Law   (2.3)     4276   -13670   -38708   -52397   -16823     2768    -3927   -26875   -40553   -69806
 PL PAYGO      (2.3)     3727   -14846   -40456   -54413   -18006     2104    -4971   -28347   -42439   -72160
 5% PSA-401K   (2.3)    10549   -10956   -38656   -59576   -14391    12190    -1636   -20232   -38635   -60268
 5% PSA-USBond (2.3)     6983   -18727   -50228   -73015   -22204     7832    -8647   -29917   -51214   -75764
 1.6% IA-401KAn(2.3)     3435   -18736   -50724   -71622   -23225     3553    -9677   -29365   -51028   -81817
 1.6% IA-USBond(2.3)     1985   -21900   -55437   -77076   -26405     1780   -12536   -33305   -56152   -88122
 MB            (4.2)     4251   -13714   -38745   -52482   -16863     2740    -3970   -26923   -40595   -69844
 MTR           (2.3)     1655   -22688   -56592   -78166   -27164     1335   -13313   -34299   -57508   -89710
 LTR           (2.3)     6577   -19821   -51787   -74127   -23205     7201    -9843   -31322   -53231   -78010
 
            Moneys Worth Ratio (BenefitsX100/Taxes)                    Cohort 22 in 1986
            --------------------------------------------------------------------------------------------------
                          Composite Workers                           Married, Two Earner Couples
                        -----------------------------------------    ------------------------------------------
                         Low      Ave     High      Max              Low/     Ave/     Ave/     High/    High/
                        Erns     Erns     Erns     Erns    Total      Low      Low      Ave      Ave      High
 
 Present Law   (2.3)      109       86       74       70       83      105       96       78       75       65
 PL PAYGO      (2.3)      108       85       73       69       82      104       94       77       74       64
 5% PSA-401K   (2.3)      121       90       76       68       87      121       98       85       77       71
 5% PSA-USBond (2.3)      114       82       68       61       79      113       91       77       70       64
 1.6% IA-401KAn(2.3)      107       82       68       62       78      106       90       78       70       61
 1.6% IA-USBond(2.3)      104       79       65       59       75      103       87       75       67       58
 MB            (4.2)      109       86       74       70       83      105       96       78       75       65
 MTR           (2.3)      104       77       62       55       73      102       85       72       64       55
 LTR           (2.3)      117       76       58       50       72      115       87       70       60       53
    
Note: All values based in intermediate assumptions of the 1995 Trustees Report*. All dollar values are present value at age 22, then wage indexed to 1995. * Assuming 0.21% lower COLA starting Dec 97; no change in nominal wage or interest. Office of the Actuary / Social Security Administration July 28, 1996
 
 
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