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April 20, 2005 at 08:00 PM
A member of the U.S. House Education and the Workforce Committee is promoting a new strategy for beefing up federal retirement income insurance funding.
Rep. Thomas Petri, R-Wis., has introduced a bill, H.R. 1800, that calls for the federal government to contribute $1,000 to a Personal Social Security Investment Account for each child born in the U.S.
Parents could add voluntary contributions to the accounts and invest the assets in funds similar to the funds available through federal employees’ Thrift Savings Plan. Earnings would accrue free of taxes.
Social Security would take money out of the personal accounts to pay Social Security benefits before dipping into Social Security Trust Fund assets, and individuals who accumulated more than enough personal account assets to fund their Social Security benefits would own the excess funds, Petri says in a discussion of the bill published in the Congressional Record.
