Table 1--Financial Effects of the Representative Nick Smith Proposal--Basic Plan
PRSA proceeds go to estate if worker dies before entitlement Ultimate Real Trust Fund Interest Rate 3.00 Ultimate Real PRSA Rate for Offset 3.70 Assumed PRSA Participation Rate 0%
Year
OASDI
TFR 1-1-yr
Marginal Change in OASDI Contribution Rate
Net OASDI Contribution Rate 1/
PRSA Contribution from Trust Funds
Average IA Contribution Rate
Cost Rate
Income Rate
Annual Balance
Total
Redirection
to PRSAs
Reimbursement for Minimum DI Benefits
Specified General Fund Transfers
2003
10.90
12.71
1.80
288
0.000
12.40
2004
10.83
12.69
1.86
309
12.40
0.00
2005
10.99
12.72
1.72
320
0.005
0.005
12.40
0.00
2006
10.85
12.83
1.98
340
0.112
0.010
0.102
12.52
0.00
2007
10.80
13.25
2.45
361
0.409
0.003
0.405
12.93
0.00
2008
10.80
13.71
2.91
386
0.450
-0.002
0.453
13.38
0.00
2009
10.83
14.18
3.35
414
0.456
-0.002
0.458
13.83
0.00
2010
10.87
14.62
3.75
446
0.428
-0.001
0.429
14.26
0.00
2011
10.93
15.17
4.25
482
0.520
0.000
0.520
14.78
0.00
2012
11.01
15.84
4.84
522
0.653
0.000
0.653
15.43
0.00
2013
11.11
15.77
4.66
566
-0.088
0.000
-0.088
15.35
0.00
2014
11.22
12.85
1.62
608
-2.933
-0.001
-2.932
12.41
0.00
2015
11.35
12.86
1.51
623
0.000
0.000
12.41
0.00
2016
11.50
12.87
1.37
636
0.000
0.000
12.41
0.00
2017
11.66
12.88
1.22
648
0.001
0.001
12.41
0.00
2018
11.84
12.90
1.06
657
0.001
0.001
12.41
0.00
2019
12.01
12.91
0.90
666
0.001
0.001
12.42
0.00
2020
12.19
12.93
0.73
673
0.001
0.001
12.42
0.00
2021
12.39
12.94
0.55
677
0.002
0.002
12.42
0.00
2022
12.57
12.96
0.39
682
0.002
0.002
12.42
0.00
2023
12.72
12.97
0.25
687
0.002
0.002
12.42
0.00
2024
12.86
12.98
0.12
692
0.002
0.002
12.42
0.00
2025
12.99
13.00
0.00
696
0.003
0.003
12.43
0.00
2026
13.10
13.01
-0.09
701
0.003
0.003
12.43
0.00
2027
13.20
13.02
-0.18
705
0.003
0.003
12.43
0.00
2028
13.28
13.03
-0.25
710
0.003
0.003
12.44
0.00
2029
13.34
13.04
-0.30
715
0.003
0.003
12.44
0.00
2030
13.39
13.05
-0.34
721
0.003
0.003
12.44
0.00
2031
13.41
13.06
-0.35
728
0.003
0.003
12.45
0.00
2032
13.40
13.07
-0.34
736
0.003
0.003
12.45
0.00
2033
13.37
13.07
-0.30
746
0.003
0.003
12.45
0.00
2034
13.33
13.08
-0.26
758
0.004
0.004
12.46
0.00
2035
13.29
13.08
-0.21
770
0.004
0.004
12.46
0.00
2036
13.23
13.08
-0.15
783
0.004
0.004
12.46
0.00
2037
13.16
13.09
-0.07
798
0.004
0.004
12.47
0.00
2038
13.08
13.09
0.01
815
0.004
0.004
12.47
0.00
2039
12.99
13.09
0.10
833
0.005
0.005
12.48
0.00
2040
12.91
13.09
0.19
852
0.005
0.005
12.48
0.00
2041
12.82
13.10
0.28
873
0.005
0.005
12.49
0.00
2042
12.73
13.10
0.37
896
0.005
0.005
12.49
0.00
2043
12.63
13.10
0.47
920
0.006
0.006
12.50
0.00
2044
12.54
13.10
0.56
945
0.006
0.006
12.50
0.00
2045
12.47
13.11
0.64
971
0.007
0.007
12.51
0.00
2046
12.39
13.11
0.73
998
0.007
0.007
12.52
0.00
2047
12.31
13.12
0.81
1,027
0.008
0.008
12.53
0.00
2048
12.23
13.12
0.89
1,057
0.008
0.008
12.53
0.00
2049
12.16
13.13
0.97
1,088
0.009
0.009
12.54
0.00
2050
12.09
13.14
1.04
1,120
0.010
0.010
12.55
0.00
2051
12.03
13.14
1.11
1,153
0.010
0.010
12.56
0.00
2052
11.98
13.15
1.18
1,186
0.011
0.011
12.57
0.00
2053
11.92
13.16
1.24
1,221
0.011
0.011
12.58
0.00
2054
11.87
13.17
1.30
1,257
0.011
0.011
12.60
0.00
2055
11.82
13.18
1.36
1,294
0.012
0.012
12.61
0.00
2056
11.77
13.19
1.42
1,332
0.012
0.012
12.62
0.00
2057
11.73
13.20
1.47
1,372
0.012
0.012
12.63
0.00
2058
11.68
13.21
1.53
1,413
0.012
0.012
12.64
0.00
2059
11.62
13.22
1.60
1,456
0.012
0.012
12.65
0.00
2060
11.57
13.23
1.66
1,500
0.012
0.012
12.67
0.00
2061
11.52
13.24
1.72
1,546
0.012
0.012
12.68
0.00
2062
11.47
13.25
1.78
1,594
0.012
0.012
12.69
0.00
2063
11.42
13.26
1.84
1,642
0.012
0.012
12.70
0.00
2064
11.37
13.27
1.90
1,692
0.013
0.013
12.72
0.00
2065
11.33
13.28
1.95
1,744
0.013
0.013
12.73
0.00
2066
11.28
13.29
2.01
1,797
0.013
0.013
12.74
0.00
2067
11.24
13.30
2.06
1,852
0.012
0.012
12.75
0.00
2068
11.20
13.31
2.11
1,908
0.012
0.012
12.77
0.00
2069
11.16
13.32
2.16
1,965
0.012
0.012
12.78
0.00
2070
11.14
13.33
2.19
2,021
0.011
0.011
12.79
0.00
2071
11.12
13.34
2.22
2,079
0.011
0.011
12.80
0.00
2072
11.10
13.35
2.25
2,138
0.011
0.011
12.81
0.00
2073
11.08
13.36
2.28
2,198
0.011
0.011
12.82
0.00
2074
11.06
13.37
2.31
2,260
0.010
0.010
12.83
0.00
2075
11.04
13.38
2.34
2,323
0.010
0.010
12.84
0.00
2076
11.02
13.39
2.37
2,388
0.010
0.010
12.85
0.00
2077
11.00
13.40
2.40
2,454
0.010
0.010
12.86
0.00
2078
10.98
13.41
2.42
2,522
0.009
0.009
12.87
0.00
Summarized
Cost
Rate
Income
Rate
Actuarial
Balance
Change in
Actuarial Balance
2003- 2077
12.05
13.93
1.89
3.80
Based on Intermediate Assumptions of the 2003 Trustees Report. 1/ Includes payroll tax contributions plus reimbursement for minimum DI benefits plus specified General Fund transfers.
Office of the Chief Actuary Social Security Administration September 9, 2003