Senators Graham, Paul and Lee

SOCIAL SECURITY SOLVENCY AND

SUSTAINABILITY ACT
THE PROBLEM

Demographic Changes Are Impacting Social Security Solvency

 When Social Security was created, there were over 40 workers for every retiree.
 In 1950, there were 16 workers supporting 1 retiree.
 Today, the ratio is 3 workers to 1 retiree.
 In 2035, the ratio drops to 2 to 1.

The Trustees Of Social Security Have Warned Us Of Serious, Structural Problems Facing The System
 In 2015 the program will begin to permanently pay out more in benefits than it takes in as taxes.
 In 2037, the Trust Fund will be exhausted and unable to pay full benefits to retirees.

SENATORS PROPOSE:

 What Our Plan Accomplishes:

- Reduces debt held by the public by $6.2 trillion by 2085;

- Eliminates the current difference of $5.4 trillion between benefits promised and what Social
Security can actually pay, and;
- Creates a fully solvent and sustainable Social Security system that will be able to provide the
benefits it promises to future generations without raising taxes.

 Gradual Increase In The Social Security Retirement Age – The Senators propose a gradual increase in
the Social Security full retirement age to 70 by 2032.
 Indexing The Retirement Age To Longevity – When retirement age of 70 is achieved, the full
retirement age will then be indexed to increases or decreases in life expectancy. Indexing will help
maintain a constant ratio of years worked to years spent in retirement. (See attached chart detailing
current law and the Social Security Solvency and Sustainability Act retirement ages)
 Gradual Increase In The Early Retirement Age – The Senators propose a gradual increase in the
Social Security early retirement age from 62 to 64 by 2028.

 Slower Benefit Accumulation For Higher Lifetime Earners – After 2018, all new retirees coming into
the system will have benefits based on the first $43,000 of their average lifetime yearly earnings
calculated based on the current formula. Benefits for earnings above $43,000, will be calculated at a
lower rate as earnings rise.