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President Bush has
proposed adding optional personal accounts as one of the central elements of a
major Social Security reform proposal. Although many details remain to be worked
out, the proposal would allow individuals who choose to do so to divert part of
the money they currently pay in Social Security taxes into individual investment
accounts. Individuals would have a choice of fund managers, and the return that
they earn from those accounts would then partially determine the Social Security
benefit they receive when they retire.
Individual accounts pose
a number of important and complex design and implementation issues, including
how to lower the cost of administering accounts so that they do not erode the
value of pensions that individuals receive when they retire, how many and what
kinds of fund choices should be offered, and how to engage workers in choosing
funds.
In the late 1990s, Sweden adde
A. People can transfer some money from their investment accounts to the Social Security taxes
B. The return people earn from their accounts can decide their social benefit decisively
C. People can spent more on investment and meanwhile receive more benefit in the future
D. These accounts will determine how much people can receive in their lives