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Office of the Chief Actuary Updates Actuarial Valuations of OASDI for 2020

Government Affairs

The Social Security Administration (SSA) has announced that the Office of the Chief Actuary has updated the actuarial valuation of the combined Old Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds. 

The update accounts for the implications of the pandemic and the recession. The updated baseline will be used as an interim baseline until the issuance of the 2021 Trustees Report in 2021. The Social Security Board of Trustees issued their 2020 report on April 22, 2020; their projections for the long-term financial status of the OASI and DI trust funds were the same as those they issued in 2019. 

Expressed as a percentage of taxable payroll, with the changes:

  • the cost rate for 2020 is 0.88% higher;
  • the income rate for 2020 is 0.91% higher; and 
  • the annual balance for 2020 is 0.03% higher. 

And for the period 2020-2094: 

  • the cost rate is 0.07% higher;
  • the income rate is unchanged; and 
  • the change in actuarial balance is 0.07% lower. 

The long-range assumptions (i.e., those for years after the first 10 years of the projection) used for the interim baseline are the same as those used for the 2020 Trustees Report.