Commission Will Propose Options for Creating Personal Investment Accounts Within a Retirement System

November 12, 2001

The President's Commission to Strengthen Social Security held a public meeting on November 9th. Topics on the agenda included the administration of personal accounts and the achievement of a fiscally sustainable Social Security system.

The Commission will offer the Bush Administration a series of proposals next month. Co-Chairmen, Daniel Patrick Moynihan, a former Democrat Senator from New York, and Richard Parson, Operating Officer of AOL/Time Warner, believe that a series of options will allow the Administration to better achieve its goals of creating personal investment accounts within the retirement system and of fixing the current system's future financial strains.

On the subject of finances, Commissioner Olivia Mitchell, a Professor at the University of Pennsylvania's Wharton School, suggested that a clear layout of options and criteria would allow the President to see the framework for a sustainable system.

Also, discussion sparked on the issue of access to the individual accounts after retirement. Some Commissioners noted concern over complete access, with fear that individuals may exhaust their funds early in retirement. Commissioner Robert Johnson, CEO of Black Entertainment Television, responded that retirees should be able to use their accumulated wealth in the manor they see best fit, for instance by realizing one's dreams of owning a Bed and Breakfast, or sailing around the world.

The Commission will hold its next public meeting on November 29th and its report is due on December 11th.

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