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Full-Text Articles in Retirement Security Law
Social Security Reform: Lessons From Private Pensions, Karen C. Burke, Grayson M.P. Mccouch
Social Security Reform: Lessons From Private Pensions, Karen C. Burke, Grayson M.P. Mccouch
UF Law Faculty Publications
Widespread concerns about the long-term fiscal gap in Social Security have prompted various proposals for structural reform, with individual accounts as the centerpiece. Carving out individual accounts from the existing system would shift significant risks and responsibilities to individual workers. A parallel development has already occurred in the area of private pensions. Experience with 401(k) plans indicates that many workers will have difficulty making prudent decisions concerning investment and withdrawal of funds. Moreover, in implementing any system of voluntary individual accounts, it will be important to design default settings that provide appropriate guidance for workers with heterogeneous levels of financial …
Privatization Of Social Security: Misguided Reform, Kathryn L. Moore
Privatization Of Social Security: Misguided Reform, Kathryn L. Moore
Law Faculty Scholarly Articles
This article begins by briefly describing the social security program. It then discusses the reasons for social security's widespread popularity and its impending funding crisis. The article goes on to briefly describe some of the pending privatization proposals. The article concludes by discussing the practical and theoretical problems with privatizing social security. Specifically, it describes the investment risk participants face under a privatized system and the transition problems created by converting to such a system. Finally, this article explains why the privatization proposals promote misguided paternalism and misconceive the role social security should play in our national retirement system.