PPP Dollar Usage
This document explains how the Group Income Program applies the PPP (Purchasing Power Parity) dollar when calculating payouts for participants living outside the United States. The goal is to ensure equitable economic supportglobally, accounting for differences in cost of living wherever a participant is physically located.
PPP Dollar: A unit representing the amount of money required to purchase a standard basket of goods and services in a given country, relative to the U.S. dollar.
Using the PPP dollar ensures that participants receive the same real standard of living, regardless of where they are living.
Determine Local PPP Conversion Rate:
Based on the participant’s current location (not citizenship or official residence).
Reliable sources include World Bank or IMF PPP data.
Convert Base Payouts:
Base payouts (e.g., $500 PPP) are multiplied by the local PPP conversion rate to determine the equivalent in local currency.
Adjust for Program Rules:
Debt adjustments, windfalls, wealth tax, and affinity group contributions are calculated in PPP-adjusted local currency.
Percentages (e.g., 10% contribution) remain the same but apply to Effective Income in PPP-adjusted local currency.
Affinity groups or nested communities in international locations may apply additional sharing rules on top of the PPP-adjusted base payout.
Community rules can reflect local cost-of-living norms, cultural preferences, or collective agreements.
Participants are responsible for understanding tax laws where they are living, including whether contributions or payouts are taxable.
The program does not share individual financial information with any government, though overall program finances remain transparent.
PPP adjustments ensure that participants living in lower-cost locations receive payouts equivalent in real purchasing power to those living in higher-cost locations.
Adjustments are updated annually to reflect changes in PPP rates and inflation.
All PPP-adjusted payouts are recorded in local currency and PPP dollars for transparency.
Annual program reports include aggregate international payout data to monitor equity and program effectiveness.
The program platform tracks PPP-adjusted Effective Income, contributions, and payouts for participants globally.
Participants always see expected payouts in both local currency and PPP dollars.
Location-based, not citizenship-based, PPP adjustments ensure fairness.
Program rules (base contributions, affinity groups, windfalls, debt adjustments) apply consistently regardless of location.
Participant privacy is fully maintained; only aggregate program-level data is shared for transparency.