Patrick Hynes: Social Security: The 6.2% Solution:
The phrase “guaranteed benefits” has been used a lot recently to describe the future benefits under the existing Social Security system. It shouldn’t be; benefits under Social Security are not guaranteed.
Because of the Court’s decision in Flemming v. Nestor, Congress can cut your benefits at any time or even eliminate them altogether.
The only way to guarantee benefits would be through personal retirement accounts. In fact, under the Cato Institute’s own plan, The 6.2 Percent Solution, you would be given a recognition bond for the contributions you made under the traditional Social Security system, which the government could never take away. In addition, you would be permitted to invest 6.2 % of your wages – your half of your overall Social Security contribution -- into a personal retirement account. The government could never take that away from you either.
Via Lorie at PoliPundit.
Saturday, February 12, 2005
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