Plan 2-V--2-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets With a Variable Annuity Invested as Before Retirement
CPI Indexed PIA
Starting in 2009
PA Portfolio/Yield*
Scaled LOW Earner
($15,875 in 2002)
Scaled MEDIUM Earner
($35,277 in 2002)
Scaled HIGH Earner
($56,443 in 2002)
Scaled MAXIMUM Earner
($84,900 in 2002)
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
 
(Billions of Constant 2001 Dollars)
2012 Retiree
Present Law
Scheduled Benefit
$723
$723
$723
$1,194
$1,194
$1,194
$1,578
$1,578
$1,578
$1,873
$1,873
$1,873
% Basic Change for All
1.2
1.2
1.2
-0.9
-0.9
-0.9
-0.9
-0.9
-0.9
-0.9
-0.9
-0.9
% for PA Annuity**
3.6
4.6
4.8
4.2
5.4
5.7
3.2
4.1
4.3
2.7
3.5
3.6
% for Benefit Offset
-3.2
-3.2
-3.2
-3.8
-3.8
-3.8
-2.9
-2.9
-2.9
-2.4
-2.4
-2.4
Proposed Benefit
$734
$742
$743
$1,188
$1,203
$1,205
$1,568
$1,583
$1,586
$1,861
$1,876
$1,878
% of Present Law
Scheduled Benefit
101.5
102.6
102.8
99.5
100.7
100.9
99.4
100.3
100.5
99.3
100.1
100.3
% of Present Law
Payable Benefit
101.5
102.6
102.8
99.5
100.7
100.9
99.4
100.3
100.5
99.3
100.1
100.3
% of 2001
Real Benefit
115.3
116.5
116.7
112.9
114.3
114.6
114.8
115.9
116.1
121.0
122.0
122.1
2022 Retiree
Present Law
Scheduled Benefit
$767
$767
$767
$1,266
$1,266
$1,266
$1,673
$1,673
$1,673
$2,024
$2,024
$2,024
% Basic Change for All
9.2
9.2
9.2
-9.9
-9.9
-9.9
-9.9
-9.9
-9.9
-9.9
-9.9
-9.9
% for PA Annuity**
10.6
15.4
16.4
10.5
15.1
16.0
8.0
11.4
12.2
6.6
9.5
10.0
% for Benefit Offset
-9.2
-9.2
-9.2
-9.1
-9.1
-9.1
-6.9
-6.9
-6.9
-5.7
-5.7
-5.7
Proposed Benefit
$848
$885
$893
$1,158
$1,216
$1,228
$1,525
$1,583
$1,595
$1,841
$1,899
$1,911
% of Present Law
Scheduled Benefit
110.6
115.4
116.4
91.5
96.1
97.0
91.1
94.6
95.3
91.0
93.8
94.4
% of Present Law
Payable Benefit
110.6
115.4
116.4
91.5
96.1
97.0
91.1
94.6
95.3
91.0
93.8
94.4
% of 2001
Real Benefit
133.1
138.9
140.1
110.1
115.6
116.8
111.6
115.9
116.8
119.7
123.5
124.3
2032 Retiree
Present Law
Scheduled Benefit
$813
$813
$813
$1,343
$1,343
$1,343
$1,774
$1,774
$1,774
$2,151
$2,151
$2,151
% Basic Change for All
-0.9
-0.9
-0.9
-18.2
-18.2
-18.2
-18.2
-18.2
-18.2
-18.2
-18.2
-18.2
% for PA Annuity**
19.2
31.3
34.0
18.2
29.3
31.7
13.8
22.2
24.0
11.4
18.3
19.8
% for Benefit Offset
-16.0
-16.0
-16.0
-15.2
-15.2
-15.2
-11.6
-11.6
-11.6
-9.5
-9.5
-9.5
Proposed Benefit
$832
$930
$952
$1,138
$1,287
$1,320
$1,491
$1,640
$1,674
$1,800
$1,949
$1,982
% of Present Law
Scheduled Benefit
102.3
114.4
117.1
84.8
95.9
98.3
84.1
92.5
94.3
83.7
90.6
92.1
% of Present Law
Payable Benefit
102.3
114.4
117.1
84.8
95.9
98.3
84.1
92.5
94.3
83.7
90.6
92.1
% of 2001
Real Benefit
130.6
146.1
149.5
108.2
122.4
125.5
109.2
120.1
122.5
117.0
126.7
128.9
2042 Retiree
Present Law
Scheduled Benefit
$896
$896
$896
$1,478
$1,478
$1,478
$1,953
$1,953
$1,953
$2,365
$2,365
$2,365
% Basic Change for All
-10.0
-10.0
-10.0
-25.7
-25.7
-25.7
-25.7
-25.7
-25.7
-25.7
-25.7
-25.7
% for PA Annuity**
27.1
49.1
54.3
26.6
48.3
53.5
20.1
36.5
40.5
16.6
30.2
33.4
% for Benefit Offset
-21.8
-21.8
-21.8
-21.4
-21.4
-21.4
-16.2
-16.2
-16.2
-13.4
-13.4
-13.4
Proposed Benefit
$853
$1,051
$1,098
$1,175
$1,496
$1,573
$1,528
$1,849
$1,926
$1,834
$2,155
$2,232
% of Present Law
Scheduled Benefit
95.3
117.3
122.6
79.5
101.2
106.4
78.2
94.7
98.6
77.6
91.1
94.4
% of Present Law
Payable Benefit
130.3
160.5
167.6
108.7
138.4
145.6
107.0
129.5
134.9
106.1
124.7
129.1
% of 2001
Real Benefit
134.0
164.9
172.3
111.7
142.2
149.6
111.9
135.4
141.0
119.3
140.1
145.1
2052 Retiree
Present Law
Scheduled Benefit
$986
$986
$986
$1,628
$1,628
$1,628
$2,151
$2,151
$2,151
$2,604
$2,604
$2,604
% Basic Change for All
-18.2
-18.2
-18.2
-32.5
-32.5
-32.5
-32.5
-32.5
-32.5
-32.5
-32.5
-32.5
% for PA Annuity**
29.9
56.9
63.6
30.6
59.1
66.2
24.0
47.0
52.8
19.4
37.5
42.1
% for Benefit Offset
-23.7
-23.7
-23.7
-24.1
-24.1
-24.1
-18.9
-18.9
-18.9
-15.3
-15.3
-15.3
Proposed Benefit
$867
$1,134
$1,199
$1,204
$1,668
$1,783
$1,563
$2,057
$2,181
$1,865
$2,338
$2,456
% of Present Law
Scheduled Benefit
88.0
115.0
121.6
73.9
102.4
109.6
72.6
95.6
101.4
71.6
89.8
94.3
% of Present Law
Payable Benefit
121.5
158.8
168.0
102.1
141.5
151.3
100.4
132.1
140.1
98.9
124.0
130.3
% of 2001
Real Benefit
136.2
178.0
188.3
114.4
158.5
169.5
114.4
150.6
159.7
121.2
152.0
159.7
2075 Retiree
Present Law
Scheduled Benefit
$1,231
$1,231
$1,231
$2,032
$2,032
$2,032
$2,685
$2,685
$2,685
$3,250
$3,250
$3,250
% Basic Change for All
-34.5
-34.5
-34.5
-45.9
-45.9
-45.9
-45.9
-45.9
-45.9
-45.9
-45.9
-45.9
% for PA Annuity**
28.9
55.4
61.9
29.6
57.5
64.4
23.2
45.7
51.4
18.7
36.5
40.9
% for Benefit Offset
-22.9
-22.9
-22.9
-23.3
-23.3
-23.3
-18.2
-18.2
-18.2
-14.7
-14.7
-14.7
Proposed Benefit
$881
$1,207
$1,287
$1,227
$1,794
$1,935
$1,587
$2,191
$2,343
$1,888
$2,466
$2,610
% of Present Law
Scheduled Benefit
71.6
98.0
104.6
60.4
88.3
95.3
59.1
81.6
87.3
58.1
75.9
80.3
% of Present Law
Payable Benefit
106.8
146.2
156.0
90.1
131.7
142.1
88.2
121.7
130.2
86.7
113.2
119.8
% of 2001
Real Benefit
138.3
189.4
202.0
116.6
170.5
184.0
116.2
160.4
171.5
122.7
160.3
169.7
* Low Yield assumes the Treasury Bond yield on all assets, or risk adjusted returns. High Yield reflects a higher 7.1% ultimate real yield on equities, OR investing 60% of PA in equities at the assumed 6.5% yield.
** Annuity is assumed to have a net real yield equal to Long-Term Treasury Bonds, except for 100% Treasury case, where gross annuity yield is equal to Treasury.

Note: Based on 2001 Trustees Intermediate assumptions, including 3.0% Treasury ultimate real yield; plus 6.5% equity, 3.5% corporate bond ultimate real yields, and 0.3% annual ultimate PA and annuity administrative cost. For portfolios with part equity, balance is assumed 60% corporate and 40% Treasury bonds.
Office of the Actuary
Social Security Administration
January 29, 2002

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