AUTOMATIC ADJUSTMENT
OF BENEFITS TO PRICES

1. WHEN THE CPI INCREASES AT LEAST
3 PERCENT

2. BUT NO MORE OFTEN THAN ONCE A YEAR

3. INCREASES EFFECTIVE FOR JANUARY, BEGINNING WITH 1971

DECLINE IN REAL VALUE OF BENEFITS SINCE 1954 DUE TO LAG IN BENEFIT INCREASES

$9000 CONTRIBUTION AND BENEFIT BASE IN 1972 MAINTAINS RELATIONSHIP OF BASE TO EARNINGS LEVELS

1. MAXIMUM INCREASED BY PERCENTAGE INCREASE IN AVERAGE WAGES, ROUNDED TO NEAREST $600

2.INCREASE LIMITED TO EVERY TWO YEARS, BEGINNING WITH 1974

ELIMINATING WORK DISINCENTIVES IN THE RETIREMENT TEST

ANNUAL EXEMPT AMOUNT

$1-for-$2 ADJUSTMENT +1680-$2880 Above $1800

$1-for-+1 ADJUSTMENT Above $2880

MONTHLY MEASURE

*

WIDOW'S BENEFIT AT AGE 65 INCREASED TO 100% OF WORKER'S BENEFIT

INCLUDES THE EFFECT OF THE HIGHER BENEFITS PAYABLE ON THE HIGHER EARNINGS THAT ARE CREDITABLE UNDER THE BILL

BENEFIT COMPUTATION UNDER PRESENT LAW

BENEFITS BASED ON AVERAGE MONTHLY EARNINGS FIGURED OVER A NUMBER OF
YEARS EQUAL TO 5 LESS THAN THE NUMBER OF YEARS

1951 52 53 54 55 56 57 58 59 60 61 62 65 64 65 66 67 68 69 70

OTHER IMPROVEMENTS IN SOCIAL SECURITY PROTECTION

• EXTEND CHILDHOOD DISABILITY BENEFITS TO PEOPLE DISABLED BETWEEN AGES 18 AND 22

EXTEND NONCONTRIBUTORY WAGE CREDITS FOR MILITARY SERVICE TO THE PERIOD JAN.1957 TO DEC.1967

• EXTEND BENEFITS TO DEPENDENT PARENTS OF RETIRED AND DISABLED BENEFICIARIES

AMENDMENTS AFFECTING HEALTH BENEFIT COSTS

1. Tie depreciation payments to State health planning.
2. Make corporate planning a condition of participation.
3. Expand authority for reimbursement experimentation.
4. Bar providers and physicians who abuse the program.
5. Pay customary charges if less than cost.

6. Withhold payment where UR finds admission not warranted.
7. Authority to estimate overpayments for recoupment.

STATUS OF THE CASH-BENEFITS
TRUST FUNDS

ACTUARIAL BALANCE

(PERCENT OF PAYROLL)

AFTER 1967 AMENDMENTS (FEB. 1968)

+0.01%

1969 TRUSTEES REPORT (JAN. 1969)

REVISED COST ESTIMATE (SEPT. 1969)

+0.53

+1.16