Reply #8: Yes (unless changed) however the benefit formula is already progressive.

[Statistical]

Currently the cap is $106,800. The cap is indexed to average wages so it goes up each year (but not necessarily at rate of inflation).

The benefits for 2010 are based on the following formula.

Calculate average pay over top 35 years (adjusted for inflation and subject to cap each year)

Then compute monthly average pay over your entire lifespan.

1. Multiply the first $761 in Step 4 by 90%. . $__________________
2. Multiply the amount in Step 4 over $761 and less than or equal to $4,586 by 32%. . $__________________
3. Multiply the amount in Step 4 over $4,586 by 15%. $__________________

The sum of 1 + 2 + 3 is your retirement benefit on year 0 (at full retirment). Each year after that it is simply adjusted for inflation.

As one can see any wages above $4,586 are returned at 15 cents on the dollar making the system very progressive.