Social Security:

Analysis of a Proposal to Privatize Trust Fund Reserves

HRD-91-22: Published: Dec 12, 1990. Publicly Released: Jan 11, 1991.

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed a congressional proposal to create a new system of Individual Social Security Retirement Accounts (ISSRA), in which workers could place accumulated social security reserves for private-sector investment.

GAO found that: (1) the proposal's effect on national saving was unclear; (2) ISSRA could be integrated with the existing progressive benefit structure and, given favorable financial market conditions, could improve retirement incomes; (3) ISSRA could alter the mix of public and private savings; (4) ISSRA impact on individual retirement incomes depended largely on how ISSRA investment returns compared with social security returns; (5) ISSRA raised numerous administrative difficulties and policy issues that needed resolution before it could be considered a fully operational alternative for the use of trust fund reserves; and (6) variations in market returns could result in some retirees being worse off under ISSRA than they would be under social security, which could generate pressure for the government to guarantee that every retiree gain at least as much under ISSRA as under social security.

Mar 5, 2014

Feb 26, 2014

Dec 27, 2013

Dec 17, 2013

Dec 16, 2013

Nov 5, 2013

Sep 23, 2013

Sep 11, 2013

Jul 16, 2013

Jun 5, 2013

Looking for more? Browse all our products here