FIXING SOCIAL SECURITY

February 2005
		President Bush has launched a national campaign to generate support for his plans to reshape Social Security, including the controversial option of personal investment accounts for younger workers. Peter Orszag, senior fellow in economic studies at the Brookings Institution, and Michael Tanner, director of health and welfare studies at the Cato Institute, answer your questions about the voluntary personal accounts and other aspects of the president's plan. Special Report: Social Security Reform

Forum Introduction What are President Bush's plans for Social Security disability? Didn't Great Britain undertake the personal accounts experiment with their version of Social Security to detrimental results? How do the personal accounts affect employers' contributions to Social Security? How would removing the $90,000 income limit on Social Security taxes affect the system's future? What happens if a person's private account runs out? How will the average person who knows nothing about investing fare under President Bush's new plan? How does the federal Thrift Savings Plan differ from Social Security? Under the personal accounts proposal, will there be fees for investing, and who and how will they be paid? If the IOUs in the Social Security trust fund were paid, would the system remain solvent for a much longer time? Why would anyone want to change Social Security, an insurance program, into a savings account? I'm 48, how drastic are my benefit cuts going to be?	Tom Flynn of Jamestown, N.Y., asks: Federal Govt. employees, i.e., Social Security employees have their own retirement system [Thrift Savings Plan]. In what ways does that system differ from the Social Security program that everyone else participates in? Michael Tanner responds: The president has suggested that the system of individual accounts be designed to resemble the TSP, a small number of broadly diversified investment options. Peter Orszag responds: The Thrift Savings Plan is in addition to Social Security, not instead of it. If President Bush wanted to offer every worker the opportunity to participate in the Thrift Savings Plan in addition to Social Security, rather than as a replacement, I think he could have a signing ceremony on the legislation tomorrow.

The PBS NewsHour is Funded in part by: Additional Foundation and Corporate Sponsors
	Program Support From:
About Us Feedback Subscriptions/Feeds Privacy Copyright © 1996- MacNeil/Lehrer Productions. All Rights Reserved.
Support the kind of journalism done by the NewsHour...Become a member of your local PBS station.