Strengthening Social Security and Creating Personal Wealth for All Americans

By Parsons, Richard

Book Id: WPLBN0000657622
Format Type: PDF eBook
File Size: 12.91 MB.
Reproduction Date: 2005

Title:	Strengthening Social Security and Creating Personal Wealth for All Americans
Author:	Parsons, Richard
Volume:
Language:	English
Subject:	Government publications, Economics., United States. Department of the Treasury--Appropriations and Expenditures.
Collections:	U.S. Department of the Treasury Collection
Historic Publication Date:
Publisher:	United States Department of the Treasury


Citation APA MLA Chicago Parsons, R. (n.d.). Strengthening Social Security and Creating Personal Wealth for All Americans. Retrieved from http://www.self.gutenberg.org/

Description
Government Reference Publication

Excerpt
Excerpt: Introduction By the Co-Chairs. From the first, Social Security was a work in progress. It remains so now. In 1939, just four years after enactment, the Administration and Congress added major provisions. FDR called for more. As he signed the 1939 Amendments he stated: we must expect a great program of social legislation, as such as is represented in the Social Security Act, to be improved and strengthened in the light of additional experience and understanding. He urged an active study of future possibilities.

Table of Contents
Table of Contents Commission Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Introduction by the Co-Chairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 The President?s Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Unifying Elements of the Three Reform Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Three Reform Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Specifications of Commission Reform Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Chapter 1: Strengthening Social Security Through Personal Accounts . . . . . . . . . . . . . . . . . . . . . . . . . .25 Chapter 2: Administration of Personal Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 Chapter 3: Achieving a Fiscally Sustainable Social Security System . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 The Fiscal Problems Facing Social Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 Fiscal Sustainability Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Chapter 4: Alternative Paths to Fiscal Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80 Specifications of Commission Reform Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85 Fiscal Sustainability Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90 Expected Personal Account Assets and Gain in System Assets by End of Valuation Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90 Reductions in General Revenue Requirements Relative to Present Law . . . . . . . . . . . . . . . . . . . . .90 Social Security Cashflow Patterns Relative to Present Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 Improvement in Actuarial Balance Over 75-Year Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 Transition Investment and Long-Term System Costs as a Percent of GDP . . . . . . . . . . . . . . . . . . .92 Personal Accounts and Social Security Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97 How the Commission?s Reform Models Improve Social Security?s Treatment of Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 Reform Model 1: Voluntary Personal Account and Offset, Combined with No Change to Traditional Social Security System . . . . . . . . . . . . . . . . . . . . . . . . .109 Reform Model 2: Voluntary Progressive Personal Accounts Combined with an Inflation-Indexed but More Progressive Traditional System . . . . . . . . . . . . . . .119 Reform Model 3: Voluntary Add-On Accounts with Matches from Payroll Taxes Overlaying a Traditional System Balanced with a Blend of Revenue and Outlay Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131 The Role of Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143 The Role of Supplemental Security Income In Social Security Reform . . . . . . . . . . . . . . . . . . . . . . . . . .147 Treatment of Disability Insurance In Social Security Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149 Additional Savings Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Participation from Outside Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i Introduction to Actuaries Memo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xv