Appendix Table 9: The Impact of Potential OASI Reforms on Internal Rates of Return Men (r=5%) Quintile of Lifetime Earnings: Lowest Middle Highest All Birth Cohort 1945-49 0 Current Rules 4.3 1.6 .5 1.0 1 38% Tax Hike Beginning in Year 2000 4.2 1.4 .2 .7 2 25% Benefit Cut Beginning in Year 2000 3.5 .7 -.4 .1 3 Acclerated Increase in NRA 3.7 .7 -.4 .1 4 CPI Indexing of Covered Earnings 4.1 1.4 .3 .8 5 Indexing Benefits by CPI Minus 1% 4.1 1.3 .1 .6 6 Stabilize Real Per Capita Benefits 4.0 1.2 .1 .6 7 Freeze Bend Points in Real Terms 4.3 1.5 .4 .9 8 Eliminate Earnings Ceiling 4.4 1.6 .4 .9 9 Eliminate Earnings Ceiling w/o Benefit Change 4.3 1.6 .1 .8 10 Increase Computation Years from 35 to 40 4.1 1.5 .4 .9 Birth Cohort 1970-74 0 Current Rules 3.7 2.1 .4 1.0 1 38% Tax Hike Beginning in Year 2000 3.0 1.3 -.5 .1 2 25% Benefit Cut Beginning in Year 2000 2.9 1.2 -.5 .1 3 Acclerated Increase in NRA 3.1 1.5 -.3 .4 4 CPI Indexing of Covered Earnings 3.3 1.9 .2 .8 5 Indexing Benefits by CPI Minus 1% 3.4 1.8 .0 .6 6 Stabilize Real Per Capita Benefits 2.2 .6 -1.2 -.5 7 Freeze Bend Points in Real Terms 3.6 1.8 -.1 .6 8 Eliminate Earnings Ceiling 3.8 2.1 -.1 .6 9 Eliminate Earnings Ceiling w/o Benefit Change 3.7 2.1 -.9 .2 10 Increase Computation Years from 35 to 40 3.5 2.0 .3 .9 Birth Cohort 1995-00 0 Current Rules 4.6 2.4 .4 1.3 1 38% Tax Hike Beginning in Year 2000 3.6 1.4 -.6 .3 2 25% Benefit Cut Beginning in Year 2000 3.7 1.4 -.5 .4 3 Acclerated Increase in NRA 4.2 1.8 -.1 .8 4 CPI Indexing of Covered Earnings 4.2 2.1 .3 1.1 5 Indexing Benefits by CPI Minus 1% 4.3 2.0 .1 1.0 6 Stabilize Real Per Capita Benefits .2 -2.1 -4.1 -3.2 7 Freeze Bend Points in Real Terms 4.2 1.8 -.3 .6 8 Eliminate Earnings Ceiling 4.6 2.4 -.1 .8 9 Eliminate Earnings Ceiling w/o Benefit Change 4.6 2.4 -1.0 .4 10 Increase Computation Years from 35 to 40 4.4 2.3 .4 1.2 ____________________________________________________________________________ Source: Author's calculations.