Q. for Sen.Santorum. Explain how your plan reduces unfunded liab.

["Carolyn S. Cox" <CarolynSCox@csi.com>]

Sen. Santorum.  I like the simplicity of how your plan deals with the progressivity by permitting 4% & 3% of covered payroll to be re-directed into Personal Retirement Accounts for lower paid workers.   I volunteer with Economic Security 2000 (a national grassroots organization to reform Social Security) and have followed your work on this issue for a number of years.

How does what you propose reduce the unfunded liabilities of the current system?  Does it mean that as the Personal Retirement Account can supply more than the "safety- net" benefit that younger taxpayers no longer have to fund the safety-net amount? Do you forsee that after the transition period (possible 50-60 years)  that the system would move to fully funded defined contribution accounts.

I would hope that eventually public policy would permit workers to invest the entire retirement portion of their FICA taxes (10.5%) in the private sector, using professional money managers.  In Colorado, public employees who are covered by PERA, the Public Employees Retirement Association, benefit from private sector investment while private sector employees are denied that option with FICA taxes - seems wierd doesn't it?

Carolyn Cox