Issue Brief - Individual Equity and Social Adequacy - A Principle-Based Study of

• Comparing the ratios for differential mortality (the green line in Figure 1) of 1.7 at the 10th percentile to 1.0 at the 50th percentile and 0.7 at the 100th percentile gives an indication of the degree to which higher-income workers are subsidizing the benefits of lower-income workers, even after adjusting for differences in mortality. [...] The principal provisions that address the deficit are the increase in the age at which full benefits are paid, the reduction in benefits for the upper 55% of workers, and a change in the way the annual cost-of-living increases are calculated. [...] The principal provisions that address the deficit are the increase in the payroll tax and a change in the maximum amount of wages subject to the payroll tax. [...] • The bend in the green line at the 90th decile reflects the provision in the BPC proposal that would raise the maximum wage subject to the payroll tax and includes a provision for an additional benefit based on those wages. [...] Benefit Formula calculation and calculate the benefit calculation and calculate the benefit Annually** as the sum of each year’s benefit as the sum of each year’s benefit accrual updated for changes in the accrual updated for changes in the national average wage.