Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (161739)	2/20/2003 3:02:58 PM
From: i-node	Respond to of 1576875

Of course, the point of an actuarily sound plan is to benefit the insurance company and provide it with a profit. Social Security was established to benefit people in need. Nonsense. The point of an actuarily sound plan is to provide retirement benefits for the participants. Many plans involve no insurance company at all. And in any case, there exists a fiduciary relationship between the the administrators and the beneficiaries, which means that beneficiaries rights are, by law, protected. Further, there is intensive reporting required, and PBGC reporting to insure the actuarial integrity of the system. The actuarial soundness of the plan has one purpose in life: To protect the interests of the retirees. So institute a new system... do you have any better ideas? Absolutely (well, I can't claim the idea as MINE, but I like it). There is only one solution to the problem, and that is partial privatization, where earnings can grow at higher rates than under the current system. By partially privatizing the plan, once the economy turns around (and it will), the plans assets have a chance of growing at a much faster rate than the fixed income rates at which SS currently earns. The increased risk is minimal, since we are talking about only a portion of th plan assets and periods of time extending 50 years or more. I do not believe there is another solution to this problem; and ANY solution will require a radical restructuring of the program. With Democrats' tactics to scare seniors into voting Democrat, I doubt privatization can be done and thus, SS is DOA.