Fund to Oppose Privatizing Social Security

SACRAMENTO -- The nation's largest public pension fund voted Wednesday to oppose the Bush Administration's plans to privatize part of the Social Security retirement system, The Associated Press reported Thursday.

The California Public Employees Retirement System (CalPERS) said such a plan would contribute to the national deficit, cost retirees more in management costs and potentially risk their retirement savings.

"It is clear that Social Security needs to be reformed, but privatization is not the answer," said Rob Feckner, vice president of the CalPERS board. "It will give less retirement stability for workers, and result in higher costs for America's taxpayers."

While the Bush Administration has talked of allowing younger workers to invest some of their payroll taxes into personal investment accounts, it has not yet adopted a formal plan. In order to pay all promised benefits, Social Security faces an estimated $3.7 trillion shortfall over 75 years.

-- NYSSCPA.org News Staff

Posted on 12/16/04