The Porter ISSRA plan includes the following provisions -
1. No changes in benefits for current retirees
2. Workers may choose a new voluntary private investment account (ISSRA) option similar to Individual Retirement Accounts (IRAs) or 401(k) plans to replace traditional social security.
3. A portion of the ISSRA account contribution will be used to purchase private disability and life insurance policies covering at least the same individuals at the same levels as the current SS program.
4. IRA-like regulations will govern ISSRA accounts, except that -
5. Taxation of ISSRAs -
6. At retirement age (59-1/2), workers may use ISSRA funds to purchase an annuity or to finance regular periodic withdrawals. During retirement, fully funded ISSRA accounts must maintain the funds necessary to finance the beneficiary's minimum retirement benefit.
7. In recognition of Social Security taxes already paid, Recognition Bonds will be issued by the Treasury to those workers who opt to form ISSRAs -
8. The federal government would guarantee a minimum ISSRA retirement benefit. If an individual's account failed to have adequate resources to accommodate a minimum benefit, the shortfall would be financed from general revenues, thereby removing the risk of lost retirement benefits due to market fluctuations. This guaranteed minimum benefit will be the equal to the lesser of 40% of average pre-retirement income or 95% of expected SS retirement benefits.
9. The amount of money remaining in a beneficiary's account will become a portion their estate.
10. For future retirees who choose to remain in the traditional Social Security system -