May 6, 2005

Online Calculator Computes Social Security Benefits Under Bush's "Progressive Indexation" Proposal

For Immediate Release: May 6, 2005

Contact: Lynn Erskine, 202-293-5380 x115

Washington, DC -- An online calculator that computes Social Security benefits under President Bush's "progressive indexation" proposal was released today by the Center for Economic and Policy Research (CEPR).

The Accurate Benefits Calculator lets users compare the benefits they would receive under Bush's new plan, which calls for phased-in benefit cuts, to their benefits under current law. CEPR's calculator evaluates benefits based on variables such as realistic stock return projections, administrative fees and time off work. The basis for the calculator projections is carefully derived from the Congressional Budget Office's projections for Social Security and fully documented.

The new calculations are based on the Social Security proposal President Bush outlined in his April 28th press conference, including phased-in benefit cuts as laid out by investment executive Robert Pozen. The details of the private accounts were spelled out by President Bush during his January 2005 State of the Union address.