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Social Security Reform: Implementation Issues for Individual Accounts

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Report Type Reports and Testimonies
Report Date June 18, 1999
Report No. HEHS-99-122
Subject
Summary:

Social Security is one of the nation's most important and visible programs. Although individual accounts offer the possibility of a better rate of return on individual contributions, a flawed or failed system of accounts could have devastating effects on retirees and undermine public confidence in government. GAO believes that the following three critical questions need to be addressed in designing and implementing a system of individual accounts: Who would assume new administrative and record-keeping responsibilities? How much choice would individuals have in selecting and controlling their investment options? How much flexibility would workers have when they retire and begin to draw on their accounts? This report discusses the fundamental choices associated with each question and several options that could be considered.

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