Alternative Methods of Price Indexing Social Security: Implications for Benefits and System Financing / Andrew G. Biggs, Jeffrey R. Brown, Glenn Springstead.

Format:

Book

Author/Creator:

Biggs, Andrew G.

Contributor:

National Bureau of Economic Research.

Brown, Jeffrey R.

Springstead, Glenn.

Series:

Working Paper Series (National Bureau of Economic Research) no. w11406.

NBER working paper series no. w11406

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Alternative Methods of Price Indexing Social Security

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2005.

Summary:

This paper explains four methods of "price indexing" initial Social Security retirement benefits, and discusses the effect of each method on the fiscal sustainability of Social Security, benefit levels and replacement rates, redistribution, and sensitivity of system finances to demographic and economic shocks. Of these methods, PIA Factor Indexing would generate the largest cost savings while reducing benefit growth at approximately an equal rate for all income levels. Methods that index the AIME, the formula "bend points," or both, would reduce benefit growth at a slower rate and would have different effects on benefit distribution and system sustainability.

Notes:

Print version record

June 2005.