Appendix Table 11: The Impact of Potential OASI Reforms on Internal Rates of Return White (r=5%) Quintile of Lifetime Earnings: Lowest Middle Highest All Birth Cohort 1945-49 0 Current Rules 5.7 2.5 .8 2.0 1 38% Tax Hike Beginning in Year 2000 5.7 2.3 .5 1.7 2 25% Benefit Cut Beginning in Year 2000 5.0 1.7 -.1 1.1 3 Acclerated Increase in NRA 5.3 1.9 .0 1.3 4 CPI Indexing of Covered Earnings 5.5 2.3 .6 1.7 5 Indexing Benefits by CPI Minus 1% 5.5 2.1 .4 1.6 6 Stabilize Real Per Capita Benefits 5.4 2.1 .4 1.6 7 Freeze Bend Points in Real Terms 5.7 2.4 .7 1.8 8 Eliminate Earnings Ceiling 5.8 2.5 .6 1.9 9 Eliminate Earnings Ceiling w/o Benefit Change 5.7 2.5 .3 1.8 10 Increase Computation Years from 35 to 40 5.6 2.4 .7 1.8 Birth Cohort 1970-74 0 Current Rules 5.9 2.8 .6 1.8 1 38% Tax Hike Beginning in Year 2000 5.3 2.1 -.3 1.0 2 25% Benefit Cut Beginning in Year 2000 5.1 2.0 -.3 1.0 3 Acclerated Increase in NRA 5.5 2.3 .0 1.3 4 CPI Indexing of Covered Earnings 5.6 2.6 .4 1.6 5 Indexing Benefits by CPI Minus 1% 5.5 2.5 .2 1.5 6 Stabilize Real Per Capita Benefits 4.5 1.4 -.9 .4 7 Freeze Bend Points in Real Terms 5.6 2.5 .1 1.4 8 Eliminate Earnings Ceiling 6.0 2.8 .1 1.5 9 Eliminate Earnings Ceiling w/o Benefit Change 5.9 2.8 -.7 1.1 10 Increase Computation Years from 35 to 40 5.7 2.7 .5 1.7 Birth Cohort 1995-00 0 Current Rules 5.8 2.9 .7 1.9 1 38% Tax Hike Beginning in Year 2000 4.9 2.0 -.3 1.0 2 25% Benefit Cut Beginning in Year 2000 5.0 2.1 -.2 1.1 3 Acclerated Increase in NRA 5.4 2.5 .1 1.5 4 CPI Indexing of Covered Earnings 5.5 2.7 .5 1.7 5 Indexing Benefits by CPI Minus 1% 5.5 2.6 .3 1.6 6 Stabilize Real Per Capita Benefits 2.0 -1.2 -3.7 -2.3 7 Freeze Bend Points in Real Terms 5.3 2.3 -.1 1.3 8 Eliminate Earnings Ceiling 5.8 2.9 .1 1.5 9 Eliminate Earnings Ceiling w/o Benefit Change 5.8 2.9 -.8 1.1 10 Increase Computation Years from 35 to 40 5.6 2.8 .6 1.8 ____________________________________________________________________________ Source: Author's calculations.