Plan 3--1-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets at Retirement With a CPI-Indexed Life Annuity on a Joint and 2/3 Survivor Basis
Index PIAby 0.995%
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
$1,078
$1,078
$1,078
$1,780
$1,780
$1,780
$2,353
$2,353
$2,353
$2,793
$2,793
$2,793
% Basic Change for All
0.2
0.2
0.2
-0.9
-0.9
-0.9
-1.0
-1.0
-1.0
-1.2
-1.2
-1.2
% for PA Annuity**
2.1
2.3
2.4
2.8
3.2
3.2
3.1
3.5
3.5
3.3
3.7
3.8
% for Benefit Offset
-1.5
-1.5
-1.5
-2.0
-2.0
-2.0
-2.1
-2.1
-2.1
-1.7
-1.7
-1.7
Proposed Benefit
$1,088
$1,090
$1,091
$1,781
$1,786
$1,787
$2,354
$2,362
$2,363
$2,804
$2,814
$2,815
% of Present Law
Scheduled Benefit
100.9
101.1
101.2
100.0
100.3
100.4
100.1
100.4
100.5
100.4
100.8
100.8
% of Present Law
Payable Benefit
100.9
101.1
101.2
100.0
100.3
100.4
100.1
100.4
100.5
100.4
100.8
100.8
% of 2001
Real Benefit
113.8
114.1
114.2
112.8
113.2
113.3
114.9
115.3
115.4
121.5
122.0
122.0
2022 Retiree
Present Law
Scheduled Benefit
$1,140
$1,140
$1,140
$1,881
$1,881
$1,881
$2,486
$2,486
$2,486
$3,008
$3,008
$3,008
% Basic Change for All
2.1
2.1
2.1
-8.0
-8.0
-8.0
-9.2
-9.2
-9.2
-11.9
-11.9
-11.9
% for PA Annuity**
6.2
7.8
8.1
8.4
10.5
10.9
8.2
10.2
10.6
8.2
10.1
10.4
% for Benefit Offset
-4.3
-4.3
-4.3
-5.8
-5.8
-5.8
-5.1
-5.1
-5.1
-4.3
-4.3
-4.3
Proposed Benefit
$1,186
$1,204
$1,207
$1,781
$1,820
$1,827
$2,335
$2,384
$2,392
$2,767
$2,825
$2,834
% of Present Law
Scheduled Benefit
104.1
105.7
105.9
94.6
96.8
97.1
93.9
95.9
96.2
92.0
93.9
94.2
% of Present Law
Payable Benefit
104.1
105.7
105.9
94.6
96.8
97.1
93.9
95.9
96.2
92.0
93.9
94.2
% of 2001
Real Benefit
124.2
126.0
126.3
112.9
115.4
115.8
114.0
116.4
116.8
120.0
122.5
122.9
2032 Retiree
Present Law
Scheduled Benefit
$1,204
$1,204
$1,204
$1,988
$1,988
$1,988
$2,627
$2,627
$2,627
$3,185
$3,185
$3,185
% Basic Change for All
-3.9
-3.9
-3.9
-13.5
-13.5
-13.5
-15.5
-15.5
-15.5
-20.2
-20.2
-20.2
% for PA Annuity**
11.3
15.8
16.7
15.3
21.3
22.4
14.6
20.2
21.2
14.2
19.5
20.5
% for Benefit Offset
-7.7
-7.7
-7.7
-10.3
-10.3
-10.3
-8.8
-8.8
-8.8
-7.3
-7.3
-7.3
Proposed Benefit
$1,201
$1,255
$1,265
$1,818
$1,938
$1,961
$2,369
$2,517
$2,544
$2,760
$2,931
$2,963
% of Present Law
Scheduled Benefit
99.7
104.2
105.0
91.5
97.5
98.6
90.2
95.8
96.9
86.6
92.0
93.0
% of Present Law
Payable Benefit
99.7
104.2
105.0
91.5
97.5
98.6
90.2
95.8
96.9
86.6
92.0
93.0
% of 2001
Real Benefit
125.7
131.3
132.4
115.2
122.8
124.3
115.6
122.8
124.2
119.6
127.0
128.4
2042 Retiree
Present Law
Scheduled Benefit
$1,326
$1,326
$1,326
$2,189
$2,189
$2,189
$2,893
$2,893
$2,893
$3,502
$3,502
$3,502
% Basic Change for All
-8.6
-8.6
-8.6
-17.7
-17.7
-17.7
-19.7
-19.7
-19.7
-24.1
-24.1
-24.1
% for PA Annuity**
16.0
24.8
26.6
21.5
33.3
35.8
21.0
32.6
35.0
20.7
32.2
34.5
% for Benefit Offset
-10.7
-10.7
-10.7
-14.4
-14.4
-14.4
-12.7
-12.7
-12.7
-10.5
-10.5
-10.5
Proposed Benefit
$1,282
$1,398
$1,422
$1,957
$2,215
$2,269
$2,563
$2,897
$2,967
$3,015
$3,415
$3,499
% of Present Law
Scheduled Benefit
96.6
105.4
107.2
89.4
101.2
103.6
88.6
100.2
102.6
86.1
97.5
99.9
% of Present Law
Payable Benefit<
132.2
144.2
146.6
122.3
138.4
141.8
121.2
137.0
140.3
117.8
133.4
136.6
% of 2001
Real Benefit
134.1
146.3
148.8
124.0
140.4
143.8
125.1
141.4
144.8
130.7
148.0
151.6
2052 Retiree
Present Law
Scheduled Benefit
$1,460
$1,460
$1,460
$2,410
$2,410
$2,410
$3,185
$3,185
$3,185
$3,856
$3,856
$3,856
% Basic Change for All
-13.1
-13.1
-13.1
-21.7
-21.7
-21.7
-23.6
-23.6
-23.6
-27.8
-27.8
-27.8
% for PA Annuity**
17.7
28.7
31.0
23.8
38.6
41.7
23.9
39.1
42.3
24.2
39.9
43.3
% for Benefit Offset
-11.8
-11.8
-11.8
-15.9
-15.9
-15.9
-14.6
-14.6
-14.6
-12.2
-12.2
-12.2
Proposed Benefit
$1,355
$1,515
$1,549
$2,078
$2,434
$2,510
$2,729
$3,213
$3,317
$3,245
$3,851
$3,983
% of Present Law
Scheduled Benefit
92.8
103.8
106.1
86.2
101.0
104.1
85.7
100.9
104.2
84.1
99.9
103.3
% of Present Law
Payable Benefit
128.2
143.3
146.6
119.1
139.5
143.8
118.3
139.3
143.9
116.2
137.9
142.7
% of 2001
Real Benefit
141.8
158.6
162.1
131.7
154.3
159.1
133.2
156.8
161.9
140.7
166.9
172.7
2075 Retiree
Present Law
Scheduled Benefit
$1,823
$1,823
$1,823
$3,009
$3,009
$3,009
$3,975
$3,975
$3,975
$4,812
$4,812
$4,812
% Basic Change for All
-22.2
-22.2
-22.2
-29.9
-29.9
-29.9
-31.6
-31.6
-31.6
-35.4
-35.4
-35.4
% for PA Annuity**
17.1
27.7
30.0
23.0
37.3
40.4
23.1
37.8
41.0
23.3
38.6
41.9
% for Benefit Offset
-11.4
-11.4
-11.4
-15.3
-15.3
-15.3
-14.1
-14.1
-14.1
-11.8
-11.8
-11.8
Proposed Benefit
$1,522
$1,716
$1,757
$2,340
$2,771
$2,863
$3,077
$3,662
$3,789
$3,668
$4,401
$4,561
% of Present Law
Scheduled Benefit
83.5
94.2
96.4
77.8
92.1
95.1
77.4
92.1
95.3
76.2
91.5
94.8
% of Present Law
Payable Benefit
124.6
140.5
143.8
116.0
137.4
141.9
115.5
137.4
142.2
113.7
136.4
141.4
% of 2001
Real Benefit
159.3
179.6
183.9
148.3
175.6
181.4
150.2
178.7
184.9
159.0
190.8
197.7
* 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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