Privatizing Social Security

The greatest idea ever!

Falling stock markets and interest rates have wiped £15bn off the value of UK company pension schemes so far this year, calling into question their investment strategies and reviving concerns about underfunding.

By the close of markets on Friday, there was an aggregate £5bn shortfall in the plans of the FTSE 350 largest companies, compared with a £10bn surplus at the end of December, according to data from PwC.

At one point the size of the hit to the schemes was £25bn. The gyrations highlight the fact that pension finances remain firmly tied to the fortunes of stock markets, in spite of companies’ efforts to diversify.

Markets can solve everything! FREEEDDOOOMMMM!!!!!!!!!!!!!!! (and more profits for corporate fatcats!)

It's insurance. It's a good thing.

Reruns

Been there, done that:

The Bush administration said Monday the only way to permanently fix Social Security is through some combination of benefit cuts and tax increases.

That was one of the key findings in a new paper on Social Security released by the Treasury Department in an effort to achieve common ground on the politically explosive issue.

"Social Security can be made permanently solvent only by reducing the present value of scheduled benefits and/or increasing the present value of scheduled tax increases," the paper said. The Treasury paper said that while other changes to the giant benefit program might be desirable "only these changes can restore solvency permanently."

Al Gore solved this problem before dinosaurs roamed the Earth. It's called a lockbox.