Private Retirement Accounts, Social Security Reform, and S. 1302
29 June 2005
I have another idea. How about proposing to place the Social Security surplus in a lockbox independent of the personal retirement accounts? I don’t know of many who would oppose securing the trust fund. After the current funds are secure then we move to step two: securing the future.
Securing the future means allowing voluntary personal retirement accounts. Voluntary means making the informed decision to place your Social Security funds in a private retirement account. The informative process should occur before investing and not after. True ownership is being able to say I made this decision after having all the information. It is easier to own a decision you made based on knowing the consequences beforehand and then avoiding the cumbersome process of opting-out.
Based on the ideas above I oppose the current language of Sec. 253 S. 1302. I feel that the language amounts to forcing everyone into an account.
Please consider changing the language to read:
(b) Election to participate—
(1) IN GENERAL-An individual—
(A) who has not attained retirement age (as defined in section 216 (1) (1)), or is
close to retirement age and
(B) has made an informed decision to participate in a personal retirement account. Any individual making an election to have an account under this section shall have the ability to opt-out if done so by the age of 25. If the Participating individual decides to opt back out this decision is irrevocable.
(C) An individual opting-in to a private retirement account completes the paperwork at the local Social Security Administration Office to be forwarded to the Commissioner.
I ask that you consider these ideas and share them with your colleagues. I realize that my language in it s current form may not work. However, it is an idea that can be discussed and improved upon by you and your colleagues. I tried to keep my idea within the proposal, even though I would like to see something that is more like S. 1878 (108th Congress) because I thought that it provided the most comprehensive remedy for the Social Security problem and I would like to see something more along these lines.
In closure, this proposal gives Democrats the argument the we only wish to end Social Security by privatizing it. I know that is not the intent, however, I think we need to make sure that they cannot use that argument against us in this battle. We need a strong bipartisan bill or at least one the Democrats can support.
Thank you.
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