Bush Social Security Plan Would Include Annuitization
The so-called privatization of Social Security proposed by President Bush would include an annuitization component, according to a background briefing the White House conducted prior to the Presidents State of the Union address on Feb. 2.
Informed about the details of the Presidents plans, which have been kept close to the vest by the administration, an American Council of Life Insurers spokesman was supportive. “Our message is getting through: The administration appears to recognize the importance of annuitization,” said Jack Dolan.
Industry officials say one likely beneficiary would be Metropolitan Life Insurance Company, which provides the annuity option in the thrift savings plan for government employees that will be the model for the privatization planas proposed by the President. A MetLife spokesman confirmed that the company is the underwriter of the annuity component of the federal savings plan but declined further comment pending discussions with top officials.
Under the Presidents plan, the investment options that individuals would have would be somewhat similar to the thrift savings plan, reporters were told before the President delivered his speech. Under the thrift savings plan, federal government employees can invest through an option of 5 funds.