tag:blogger.com,1999:blog-7334408760351487944.post698882052653432573..comments2023-11-12T06:43:00.060-05:00Comments on Notes on Social Security Reform: Goldwein: Reforming Social Security is easy — but it won't be for longAndrew G. Biggshttp://www.blogger.com/profile/16617460431856611873noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7334408760351487944.post-18978891911344270702013-06-10T12:08:15.597-04:002013-06-10T12:08:15.597-04:00And in terms of percent of payroll, Andrew, all op...And in terms of percent of payroll, Andrew, all options are percent of current-law taxable payroll as opposed to after-option payroll. This is the current convention used by the Chief Actuary.Marchttps://www.blogger.com/profile/06601359977435090052noreply@blogger.comtag:blogger.com,1999:blog-7334408760351487944.post-5623554137697053832013-06-10T12:07:20.772-04:002013-06-10T12:07:20.772-04:00Raising the taxable maximum will result in subsequ...Raising the taxable maximum will result in subsequent increases in benefits since a) wages from $114,000 and up will receive a 15% replacement rate on those wages in the future; and b) those with a few years of wages above the current cap will see their AIMEs increase and a few will even have more income with a 32% replacement rate.<br /><br />The numbers from raising the taxable maximum are reflective of what is calculated by the SSA Chief Actuary. <br /><br />In terms of indexing the age to longevity, there is a little "i" next to each option (including that one) which explains details. It maintains constant ratio of working years to adult life which is about 1 month every 2 years.Marchttps://www.blogger.com/profile/06601359977435090052noreply@blogger.comtag:blogger.com,1999:blog-7334408760351487944.post-13210933853891992432013-06-05T12:56:00.736-04:002013-06-05T12:56:00.736-04:00I haven't double-checked, but policies that in...I haven't double-checked, but policies that increase the tax max often don't look as good when expressed as a percentage of payroll, but that's because the base is expanding.Andrew G. Biggshttps://www.blogger.com/profile/16617460431856611873noreply@blogger.comtag:blogger.com,1999:blog-7334408760351487944.post-84088567377364831082013-06-05T11:56:13.252-04:002013-06-05T11:56:13.252-04:00I looked at the model and played around with the i...I looked at the model and played around with the inputs. I find many to be inconsistent.<br /><br />Applying OASI to all wages does increase revenues, but the chart increases benefit less than the current OASI benefit formula would suggest. Why did they present a chart versus values that would show in more detail what created the chart?<br /><br />Just say indexing retirement age by increased life span is vague. Are we looking at cohort life span at age 67 or full retirement age or population life span? I found the result for this selection to be wrong.WilliamLarsenhttps://www.blogger.com/profile/00226403551284640494noreply@blogger.com