. For each of the reforms listed, briefly discuss the pros and cons of the reform, paying attention in particular to efficiency implications (through potential behavioral responses to the change) and equity implications (who wins and who loses). [Note that all reforms are intended to save the system money, so you do not need to list this as a benefit.]

1. Increase the number of years used to calculate benefits from 35 to 40.

2. Add new state and local government workers to the pool of covered workers (i.e., they pay payroll taxes now and receive benefits when they are old).

b. Reduce benefits for beneficiaries with high asset levels (wealth).