The commission is to present its findings to Bush in the fall, and should include a plan to allow younger workers to invest a portion of their payroll taxes in private accounts. By 2016, Social Security is expected to start paying out more than it collects because of an influx of baby boom retirees. The fund will run out of cash after 2038. Bush has proposed salvaging the program by letting younger workers voluntarily invest some of their payroll taxes in private accounts. Supporters say the stock market will provide a much greater return over time.
Opponents point to recent stock market volatility as ammunition.
They also argue the private accounts would drain too much money from the program. Many commission members share similar philosophies about property rights, control of your own money and wealth accumulation, said Michael Tanner, health and welfare studies director of the Cato Institute, a Washington think tank promoting privatization. They want to tackle broader reform, not just solvency, he said. Moynihan and another member, former Rep. Tim Penny, D-Minn., have long supported private retirement accounts. Others on the new commission have written books, papers and columns advocating privatization.