Notes EBRI Notes Vol. Employee economic security systems in the United States have traditionally been based on the following assumptions.
Individuals can neither manage life risks nor save enough money for retirement.
The jobs of managing risk and increasing savings should be split among government, employers, and individuals. Government should provide protection with a social insurance system. Employers are encouraged to provide benefits with the current tax deductions for nondiscriminatory plans. Employees don't pay taxes until benefits are received. Individuals are responsible for their own security beyond what is provided by the government and the employer.