The House Republican plan to overhaul Social Security requires retirees to give up their guaranteed benefit level if they want a personal account that can be passed on to heirs, GOP aides said Monday.
Only those who invest the accounts in government securities while they are working and in an annuity when they retire can be certain of receiving the full Social Security benefit they are promised, the aides said.
Other investment decisions would expose individuals to the ups and downs of the financial markets. That means their monthly benefit could wind up lower or higher than now envisioned. The aides, who work for the House Ways and Means Committee, described details of the bill to reporters on condition of anonymity.
Creation of personal accounts that give workers a nest egg they can pass along to their heirs has been a major selling point in the GOP drive to overhaul Social Security. [via Rachel Maddow]
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