Question 1: What is the funds status in the base case? COLA 0.035 (3.5 percent) There is no added tax base 0 Number GDP deflator 0 Number Interest deflator 0

Enter the inputs and then observe the outputs in the Summary of Key Results area. Next, you should record the results in a summary area by copying the data from the Summary of Key Results cells and pasting it into the summary area. Highlight the area to be copied, and click the Copy button in the Clipboard group of the Home tab. Next, click the Paste button in the Clipboard group, select Paste Special from the menu, and then select Values in the next window. Use a second worksheet for this purpose.

• Expected total Benefit payments, with COLA This amount is the expected total benefit payments from the Constants section increased by the COLA percentage from the Inputs section.
• Overstatement of payroll tax receipts GDP deflator This amount is a function of the GDP Deflator percentage from the Inputs section and expected payroll tax receipts from the Constants section.
• Additional payroll tax receipts 4^th quintile This amount is a function of the additional payroll tax base from the Input section, the tax rate of 0.124, and the number of households in the fourth quintile, which is a value from the Constants section. Because the tax rate is always 0.124, it can be hard-coded. For example, if the base is increased by $1,000 and 10 million households are paying, the added receipts would be $1,000 * 10,000,000 * 0.124.
• Additional payroll tax receipts top quintile This amount is a function of the additional payroll tax base from the Inputs section the tax rate of 0.124, and the number of households in the top quintile, which is a value from the Constants section. Because the tax rate is always 0.124, it can be hard-coded.