Issue Brief - Highlights of the 2023 - An Actuarial Perspective on the

The cumulative reduction of roughly 3% affects the system by suppressing realized and projected The 2023 Annual Report of the Board of Trustees of the increases in the system’s payroll tax income. [...] Since the baby boom generation would have for the most part passed away by the 2060s, the projection made at the time of the 1983 amendments implied that the excess benefit payouts attributed to them (i.e., due to that generation’s size versus that of the generations before and after) would essentially be prefunded by contributions made during their working lifetimes. [...] This reform package in the trust fund, the amounts accumulated did not addressed the demographic imbalance implied by the reach the level necessary to fund the entirety of the baby boom and subsequent baby bust, by increasing boomers’ excess benefits. [...] Cost Rates The trustees define the annual cost rate of the system to be the projected cost of benefits divided by the projected taxable payroll. [...] By the middle of the next decade, the number of retirees is projected to have grown faster than the number of workers and the OASDI trust fund is projected to be depleted.