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Summary Measures and Graphs

Description of Proposed Provision:
Increase contribution and benefit base (taxable maximum) by an additional 2 percent per year beginning in 2012 until taxable earnings are equal to 90 percent of covered earnings (estimated to occur in 2049). Additional taxable earnings would be credited for the purpose of computing benefits. Create a new bend point equal to the current-law taxable maximum and provide a 5 percent PIA formula factor for AIME above the new bend point.

Estimates based on the intermediate assumptions of the 2010 Trustees Report

Summary Measures
[As a percentage of taxable payroll]
Present Law Change from present law Results with this provision
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
-1.92 -4.12 0.67 0.90 -1.25 -3.21


graph of OASDI cost rates and income rates by year, under
                 present law and provision. click on graph to view underlying
                 data. graph of OASDI trust fund ratio by year, under present law
                 and provision. click on graph to view underlying data.
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Last reviewed or modified March 2, 2011