Appendix Table  12:
The Impact of Potential OASI Reforms on Internal Rates of Return
                              Non-White (r=5%)                   

Quintile of Lifetime Earnings:                   Lowest  Middle Highest  All 

                                                      Birth Cohort 1945-49

 0 Current Rules                                    5.7    2.1    1.0    1.9
 1 38% Tax Hike Beginning in Year 2000              5.7    1.9     .8    1.7
 2 25% Benefit Cut Beginning in Year 2000           5.1    1.3     .2    1.1
 3 Acclerated Increase in NRA                       5.3    1.6     .2    1.2
 4 CPI Indexing of Covered Earnings                 5.5    1.8     .8    1.7
 5 Indexing Benefits by CPI Minus 1%                5.5    1.7     .6    1.5
 6 Stabilize Real Per Capita Benefits               5.4    1.7     .7    1.5
 7 Freeze Bend Points in Real Terms                 5.7    2.0     .9    1.8
 8 Eliminate Earnings Ceiling                       5.7    2.1     .9    1.9
 9 Eliminate Earnings Ceiling w/o Benefit Change    5.7    2.1     .8    1.8
10 Increase Computation Years from 35 to 40         5.6    2.0     .9    1.8
  
                                                      Birth Cohort 1970-74

 0 Current Rules                                    5.4    2.6     .9    1.9
 1 38% Tax Hike Beginning in Year 2000              4.9    1.8     .1    1.1
 2 25% Benefit Cut Beginning in Year 2000           4.6    1.7     .0    1.0
 3 Acclerated Increase in NRA                       5.1    2.1     .3    1.4
 4 CPI Indexing of Covered Earnings                 5.1    2.3     .7    1.6
 5 Indexing Benefits by CPI Minus 1%                5.1    2.2     .5    1.5
 6 Stabilize Real Per Capita Benefits               4.2    1.2    -.6     .5
 7 Freeze Bend Points in Real Terms                 5.2    2.2     .4    1.5
 8 Eliminate Earnings Ceiling                       5.5    2.6     .4    1.5
 9 Eliminate Earnings Ceiling w/o Benefit Change    5.4    2.5    -.6    1.1
10 Increase Computation Years from 35 to 40         5.3    2.5     .8    1.8
  
                                                      Birth Cohort 1995-00

 0 Current Rules                                    5.4    2.3     .3    1.7
 1 38% Tax Hike Beginning in Year 2000              4.5    1.4    -.7     .8
 2 25% Benefit Cut Beginning in Year 2000           4.6    1.5    -.6     .8
 3 Acclerated Increase in NRA                       5.0    1.8    -.2    1.2
 4 CPI Indexing of Covered Earnings                 5.1    2.1     .1    1.4
 5 Indexing Benefits by CPI Minus 1%                5.0    2.0    -.1    1.3
 6 Stabilize Real Per Capita Benefits               2.0   -1.7   -4.0   -2.4
 7 Freeze Bend Points in Real Terms                 5.0    1.8    -.4    1.0
 8 Eliminate Earnings Ceiling                       5.4    2.3    -.2    1.4
 9 Eliminate Earnings Ceiling w/o Benefit Change    5.3    2.3    -.9    1.1
10 Increase Computation Years from 35 to 40         5.2    2.2     .3    1.6
____________________________________________________________________________
Source: Author's calculations.