Growing Real Ownership for Workers Act 2005Summary
The Growing Real Ownership for Workers Act of 2005 (GROW) bill is based on a similar concept as Senator Jim DeMint’s Stop the Raid on Social Security Act legislation. At present Social Security is running a surplus, taking in more in payroll taxes than it is paying out in benefits. This surplus is dispersed into general Congressional spending. The DeMint plan, and the GROW accounts bill, seeks to end this practice, dedicating Social Security funds to Social Security only. Each worker would receive his or her share of these retained funds in personal accounts of which they are the legal owners. The bill does not address the Social Security solvency crisis, aiming instead first to stem the outflow of Social Security funds while the final resolution is being decided.
Investment options for the funds are limited. Until 2009, accounts must be invested in US Treasury bonds. After that point, owners may elect to place their funds in restricted combinations of stocks and bonds.
It is expected that later versions of the bill will contain measures aimed at addressing a wide range of retirement security issues.
Copy of H.R. 3304.
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H.R. 3304
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