The Three Advisory Council Proposals Plan Govt Buys Stock Indiv. The Advisory Council's report attempts to allay these fears. By investing some of its funds in Wall Street, Council members say, the Trust Fund could average an annual return rate of 7 percent instead of the current rate of little more than 2 percent. Council members could not agree on whether private retirement accounts should be maintained from funds set aside from the payroll tax, and on the degree of control over such investments workers should have. Given the staggering sums of money likely to be invested, whether privately or by the government, even a modest increase in the annual rate of return, compounded over decades, will assure the Fund s solvency.
Privatization is the most radical of the proposals put forward.
Upon the release of the Council report, the Administration was noncommittal in its reaction. Mr. McCurry stressed, however, that the Administration s first priority was dealing with Medicare. While investment in the stock market is widely favored, it is likely that Social Security privatization will face rougher going. Action is not expected to be taken on the Advisory Council's proposals for several years-if at all. 201 Walton Ferry Road, Hendersonville, Tennessee 37077-0364.