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Summary of Provisions That Would Change the Social Security Program

Description of Proposed Provisions:
Provisions Affecting Trust Fund Investment in Equities

Estimates based on the intermediate assumptions of the 2015 Trustees Report


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  Change from present law
[percent of payroll]
Shortfall eliminated
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
Present law shortfall in long-range actuarial balance is 2.68 percent of payroll and in annual balance for the 75th year is 4.65 percent of payroll.
G1 Invest 40 percent of the OASDI Trust Fund in equities (phased in 2016-2030), assuming an ultimate 6.4 percent annual real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board)
0.57 0.00 21% 0%
G2 Invest 40 percent of the OASDI Trust Fund in equities (phased in 2016-2030), assuming an ultimate 5.4 percent annual real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board)
0.42 0.00 16% 0%
G3 Invest 40 percent of the OASDI Trust Fund in equities (phased in 2016-2030), assuming an ultimate 2.9 percent annual real rate of return on equities. Thus, the ultimate rate of return on equities is the same as that assumed for Trust Fund bonds.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board)
0.00 0.00 0% 0%
G4 Invest 15 percent of the OASDI Trust Fund in equities (phased in 2016-2025), assuming an ultimate 6.4 percent annual real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo (AARP)
0.23 0.00 9% 0%
G5 Invest 15 percent of the OASDI Trust Fund in equities (phased in 2016-2025), assuming an ultimate 2.9 percent annual real rate of return on equities. Thus, the ultimate rate of return on equities is the same as that assumed for Trust Fund bonds.
graph | table | pdf-graph | pdf-table | memo (AARP)
0.00 0.00 0% 0%
G6 Invest 25 percent of the OASDI Trust Fund in equities (phased in 2018-2027), assuming an ultimate 6.4 percent annual real rate of return on equities.
graph | table | pdf-graph | pdf-table | memo (Larson 2014)
0.36 0.00 14% 0%
G7 Invest 25 percent of the OASDI Trust Fund in equities (phased in 2018-2027), assuming an ultimate 2.9 percent annual real rate of return on equities. Thus, the ultimate rate of return on equities is the same as that assumed for Trust Fund bonds.
graph | table | pdf-graph | pdf-table | memo (Larson 2014)
0.00 0.00 0% 0%
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Last reviewed or modified September 14, 2015