Actuarial status of the OASI and DI Trust Funds.
This article presents the summary of the 1988 Annual Report of the Board of Trustees of the Old-Age, Survivors, and Disability Insurance (OASDI) Trust Funds. It summarizes the financial condition and actuarial status of the OASDI program based on the alternative projections. The long-range 75-year estimates indicate that, under the intermediate (II-A and II-B) assumptions, the OASDI program will experience about three decades of positive annual balances, with continuing annual deficits thereafter. The positive balances in the first part of the 75-year projection period nearly offset the later deficits, so that the program, as a whole is in close actuarial balance. Over the long-range projection period, the OASDI program has an actuarial deficit of 0.58 percent of taxable payroll, based on the intermediate alternative II-B assumptions and calculated on a level-financing basis. The DI program by itself, however, is not in close actuarial balance for the next 75 years. The actuarial deficit for the DI program could be remedied by a small reallocation of the contribution rate from OASI to DI, in such a way that the OASI program would remain in close actuarial balance. Although the Trustees are not recommending such a reallocation, they note that the financial condition of the DI program will need to be carefully monitored.
D000206:Actuarial Analysis; D000368:Aged; D005102:Health Expenditures; D006285:Health Planning; D006801:Humans; D007182:Income; D006278:Medicare / Q000191:economics*; D013660:Taxes; D014481:United States