Governor Bush’s Individual Account Proposal: Implications for Retirement Benefits

Alicia H. Munnell,
Alicia H. Munnell Director, Center for Retirement Research at Boston College
Henry J. Aaron,
Henry J. Aaron The Bruce and Virginia MacLaury Chair, Senior Fellow Emeritus - Economic Studies

Peter R. Orszag, and
Peter R. Orszag Vice Chairman of Investment Banking, Managing Director, and Global Co-Head of Healthcare - Lazard
Alan Blinder

June 5, 2000


Governor Bush has proposed allowing workers to divert part of their Social Security payroll taxes into individual accounts. He has also promised to maintain current-law Social Security benefits for disabled workers and survivors, as well as for both current retirees and workers nearing retirement. The purpose of this analysis is to examine some of the implications of fulfilling these promises while at the same time diverting payroll tax revenue from Social Security to individual accounts.

Download Full Paper in PDF format from the Social Security Network web site (122KB).