Proposed Provision: Progressive indexing (30th percentile) of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2014, continuing through 2023, and then resuming in 2062: Create a new bend point at the 30th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent formula factors above the 30th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum is reduced by 1.2 percent per year as compared to current law (for the years that progressive indexing applies). Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject to a proportional reduction in benefits, based on the worker's years of disability, upon conversion to retired worker beneficiary status.

OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Present Law Provision Present Law Provision
201112.512.513.313.3
201212.912.913.213.2
201312.912.913.213.2
201412.912.913.213.2
201512.912.913.213.2
201613.013.013.313.3
201713.013.013.513.4
201813.013.013.613.6
201913.013.013.913.8
202013.113.114.214.1
202113.113.114.514.4
202213.113.114.814.7
202313.113.115.115.0
202413.113.115.415.2
202513.113.115.715.4
202613.213.115.915.6
202713.213.216.115.8
202813.213.216.316.0
202913.213.216.516.1
203013.213.216.716.2
203113.213.216.816.3
203213.213.216.916.3
203313.213.216.916.4
203413.213.217.016.4
203513.213.217.016.4
203613.213.217.016.4
203713.213.217.016.4
203813.213.217.016.3
203913.213.217.016.3
204013.213.217.016.2
204113.213.216.916.1
204213.213.216.916.1
204313.213.216.816.0
204413.213.216.816.0
204513.213.216.816.0
204613.213.216.815.9
204713.213.216.715.9
204813.213.216.715.9
204913.213.216.715.8
205013.213.216.715.8
205113.213.216.715.8
205213.213.216.715.8
205313.213.216.715.8
205413.213.216.715.8
205513.313.216.715.8
205613.313.216.715.9
205713.313.216.815.9
205813.313.216.815.9
205913.313.216.815.9
206013.313.216.815.9
206113.313.216.815.9
206213.313.216.815.9
206313.313.216.816.0
206413.313.216.816.0
206513.313.216.916.0
206613.313.216.916.0
206713.313.216.916.0
206813.313.216.916.0
206913.313.217.016.0
207013.313.217.016.0
207113.313.217.016.0
207213.313.217.116.1
207313.313.217.116.1
207413.313.217.116.1
207513.313.217.216.1
207613.313.217.216.0
207713.313.217.216.0
207813.313.217.316.0
207913.313.217.316.0
208013.313.217.416.0
208113.313.217.416.0
208213.313.217.415.9
208313.313.217.515.9
208413.313.217.515.9
208513.313.217.615.9
208613.313.217.615.8
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