Appendix Table  14:
The Impact of Potential OASI Reforms on Internal Rates of Return
                             Non-College (r=5%)                  

Quintile of Lifetime Earnings:                   Lowest  Middle Highest  All 

                                                      Birth Cohort 1945-49

 0 Current Rules                                    5.7    2.3     .9    2.0
 1 38% Tax Hike Beginning in Year 2000              5.6    2.1     .5    1.8
 2 25% Benefit Cut Beginning in Year 2000           5.0    1.5    -.1    1.1
 3 Acclerated Increase in NRA                       5.2    1.7     .0    1.3
 4 CPI Indexing of Covered Earnings                 5.5    2.0     .7    1.8
 5 Indexing Benefits by CPI Minus 1%                5.4    2.0     .5    1.6
 6 Stabilize Real Per Capita Benefits               5.3    1.9     .5    1.6
 7 Freeze Bend Points in Real Terms                 5.6    2.2     .7    1.9
 8 Eliminate Earnings Ceiling                       5.7    2.3     .7    1.9
 9 Eliminate Earnings Ceiling w/o Benefit Change    5.7    2.3     .5    1.9
10 Increase Computation Years from 35 to 40         5.5    2.2     .8    1.9
  
                                                      Birth Cohort 1970-74

 0 Current Rules                                    5.7    2.6     .7    1.9
 1 38% Tax Hike Beginning in Year 2000              5.1    1.8    -.1    1.1
 2 25% Benefit Cut Beginning in Year 2000           4.9    1.8    -.2    1.1
 3 Acclerated Increase in NRA                       5.3    2.1     .1    1.4
 4 CPI Indexing of Covered Earnings                 5.4    2.3     .5    1.7
 5 Indexing Benefits by CPI Minus 1%                5.4    2.2     .3    1.5
 6 Stabilize Real Per Capita Benefits               4.4    1.2    -.8     .5
 7 Freeze Bend Points in Real Terms                 5.4    2.2     .3    1.5
 8 Eliminate Earnings Ceiling                       5.8    2.6     .4    1.7
 9 Eliminate Earnings Ceiling w/o Benefit Change    5.7    2.6    -.4    1.4
10 Increase Computation Years from 35 to 40         5.5    2.5     .6    1.8
  
                                                      Birth Cohort 1995-00

 0 Current Rules                                    5.4    2.8     .5    1.9
 1 38% Tax Hike Beginning in Year 2000              4.6    1.8    -.5    1.0
 2 25% Benefit Cut Beginning in Year 2000           4.6    1.9    -.4    1.1
 3 Acclerated Increase in NRA                       5.1    2.3    -.1    1.5
 4 CPI Indexing of Covered Earnings                 5.2    2.5     .3    1.7
 5 Indexing Benefits by CPI Minus 1%                5.1    2.4     .1    1.6
 6 Stabilize Real Per Capita Benefits               1.6   -1.4   -3.9   -2.3
 7 Freeze Bend Points in Real Terms                 5.0    2.2    -.3    1.3
 8 Eliminate Earnings Ceiling                       5.5    2.8     .1    1.7
 9 Eliminate Earnings Ceiling w/o Benefit Change    5.4    2.8    -.5    1.5
10 Increase Computation Years from 35 to 40         5.3    2.7     .5    1.8
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Source: Author's calculations.