A banking view of Social Security's financial problem.(The Economy)

The rhetoric in Washington has grown in intensity ever since the President's Inaugural Address firmly established Social Security reform as the "top domestic priority" for his administration. While there are many aspects of reform, there are two main areas of debate: 1. how to finance...

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Bibliographic Details
Published in:	ABA banking journal 2005-04, Vol.97 (4), p.7
Main Author:	Strand, Rob
Format:	Magazinearticle
Language:	eng
Subjects:	Bankers associations Banking Bush, George W Compensation and benefits Government regulation Investment advisors Liability Presidents Reforms Retirees Retirement Savings accounts Savings plans Social security Social security taxes Treasuries Trust funds
Online Access:	Get full text
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Summary:	The rhetoric in Washington has grown in intensity ever since the President's Inaugural Address firmly established Social Security reform as the "top domestic priority" for his administration. While there are many aspects of reform, there are two main areas of debate: 1. how to finance the unfunded liability (the difference between the promised benefits over time and the expected revenues), and 2. carving out a portion of Social Security taxes and benefits for new Personal Savings Accounts. President Bush has promoted the concept of Personal Savings Accounts (PSAs), which would allow individuals to invest a portion of their contributions to Social Security in stock and/or bonds. PSAs are tied to the President's "commitment to an Ownership Society" and represent a fundamental change in government's role in providing for retirement benefits.
ISSN:	0194-5947 2161-5101