Does reform keep Social Security mandatory?
The government has a legitimate interest in seeing that people do not under-save during their working lives and become reliant on the safety net in retirement. Moving toward personal ownership need not and should not mean “pivatizing” Social Security. Any new personal accounts should be a mandatory part of the Social Security system. Choice is not important in a compulsory social insurance program whose primary function is to protect people against poor choices. Does reform preserve Social Security’s full range of insurance protection? Social Security does more than write checks to retirees. It also pays benefits to disabled workers, widows, widowers, and surviving children. A reformed system should continue to provide insurance protection that is at least equal to what the current system offers. Does reform maintain Social Security’s progressivity? While individual equity (“moneysworth”) is important, so too is social adequacy. Social Security’s current benefit formula is designed so
