Questions and Answers (cont'd)

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Questions and Answers (cont'd)

  • What is an example of a government retirement system that includes private accounts? [The Federal Thrift Savings Plan]

  • Would individual accounts, on a "carve-out" basis, involve significant transition costs? [Yes]

  • What other possible implications would individual accounts have?

    • Personal savings rate
    • Rates of return on Social Security payroll taxes
    • Pre- and post-retirement survivors' benefits
    • Savings and investment education
    • Supplemental retirement savings vehicle