RE: Some reactions to a few of the comments

[Michael Jones <powderfinger99@yahoo.com>]

<<<<
More importantly,
workers' concerns over private pension variability is reduced
because everyone has a source of secure, predictable, inflation-protected
retirement income - namely Social Security - that serves as the essential
foundation upon which other more volatile sources of income can be
built.  Replace that secure foundation with a less certain one and
the political dynamic will change.
>>>>

Perhaps I should be more grateful. I now know that my benefit
which will never even come close to my total contributions is
secure. I feel better knowing that whatever meager scraps remain
when I retire with be totally secure. Thanks.

<<<<
The returns on contributions made to a mandatory pension system
have nothing to do with whether the system's balances are held in
individual accounts or held in a collective trust fund.
>>>>

Mr. Reischauer is implying that your benefits would be increased
by the same amount in either case.  If the trust fund were to increase
its return, this does not imply that my benefits would increase
by the same amount. This is up to the politicians to decide
who is more worthy of the extra money. Chances are it wouldn't
be me, due the welfare-based setting of benefits.

If the money in an account that is my property increased in value,
there is no question that I would get an increased return, because
I own it!

I dont trust the government with more money, either through
increased taxes or increased investment return. More money 
will only mean expanded benefits for other "deserving" people.

<<<<
Administrative costs would be less for reserves that were collectively
held and invested than for reserves that were divided among 150
million individual accounts.
>>>>

SSA already keeps 150 million accounts right now. It tracks the
earnings for all 150 million accounts. The costs to implement
a new system to add additional capability to the computer system
would cost money, but this cost is mostly fixed. 

Administrative costs do matter. They are a real concern even for
"rich" investors in the private sector. But, they are not 
everything. 

Michael