Appendix Table 13: The Impact of Potential OASI Reforms on Internal Rates of Return College (r=5%) Quintile of Lifetime Earnings: Lowest Middle Highest All Birth Cohort 1945-49 0 Current Rules 6.0 2.8 .8 1.9 1 38% Tax Hike Beginning in Year 2000 5.9 2.7 .5 1.6 2 25% Benefit Cut Beginning in Year 2000 5.3 2.1 -.1 1.0 3 Acclerated Increase in NRA 5.6 2.3 -.1 1.2 4 CPI Indexing of Covered Earnings 5.8 2.6 .6 1.6 5 Indexing Benefits by CPI Minus 1% 5.7 2.5 .4 1.5 6 Stabilize Real Per Capita Benefits 5.7 2.5 .4 1.5 7 Freeze Bend Points in Real Terms 5.9 2.7 .7 1.7 8 Eliminate Earnings Ceiling 6.0 2.8 .6 1.7 9 Eliminate Earnings Ceiling w/o Benefit Change 6.0 2.8 .3 1.6 10 Increase Computation Years from 35 to 40 5.9 2.7 .7 1.8 Birth Cohort 1970-74 0 Current Rules 5.9 3.0 .6 1.8 1 38% Tax Hike Beginning in Year 2000 5.4 2.3 -.3 1.0 2 25% Benefit Cut Beginning in Year 2000 5.2 2.2 -.3 .9 3 Acclerated Increase in NRA 5.6 2.5 .0 1.3 4 CPI Indexing of Covered Earnings 5.7 2.8 .4 1.5 5 Indexing Benefits by CPI Minus 1% 5.6 2.6 .1 1.4 6 Stabilize Real Per Capita Benefits 4.6 1.6 -.9 .3 7 Freeze Bend Points in Real Terms 5.7 2.6 .1 1.4 8 Eliminate Earnings Ceiling 6.1 3.0 .1 1.3 9 Eliminate Earnings Ceiling w/o Benefit Change 5.9 3.0 -1.0 .8 10 Increase Computation Years from 35 to 40 5.8 2.9 .5 1.7 Birth Cohort 1995-00 0 Current Rules 6.1 2.9 .7 1.9 1 38% Tax Hike Beginning in Year 2000 5.2 1.9 -.3 .9 2 25% Benefit Cut Beginning in Year 2000 5.3 2.0 -.2 1.0 3 Acclerated Increase in NRA 5.7 2.4 .1 1.4 4 CPI Indexing of Covered Earnings 5.8 2.6 .5 1.6 5 Indexing Benefits by CPI Minus 1% 5.8 2.5 .3 1.5 6 Stabilize Real Per Capita Benefits 2.5 -1.2 -3.7 -2.3 7 Freeze Bend Points in Real Terms 5.6 2.3 -.1 1.2 8 Eliminate Earnings Ceiling 6.1 2.9 .1 1.3 9 Eliminate Earnings Ceiling w/o Benefit Change 6.0 2.8 -1.0 .8 10 Increase Computation Years from 35 to 40 5.9 2.7 .6 1.8 ____________________________________________________________________________ Source: Author's calculations.