Implications of Investing Social Security Funds in the U.S.Stock Market

Public Opinion on the U.S. Health Insurance System: Gender and Plan Type Comparisons

September 1999, Vol. 20, No. 9
Paperback, 16 pp.
PDF, 78 kb
Employee Benefit Research Institute, 1999

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Executive Summary

                              

Implications of Investing Social Security Funds in the U.S. Stock Market—The viability of America's long-term retirement policies rests on a three-legged stool: Social Security, private and public pension plans, and personal savings. Among these three, only the private pension fund pool is currently adequately funded. Both personal savings and the Social Security system require further improvement. The Social Security system is expected to be unable to meet its full future obligations by 2034, or earlier. In an attempt to prevent, or defer, that outcome, various proposals are now being considered that would invest some, or all, of the Social Security Trust Fund in the U.S. equity market.

A report by economists at Goldman, Sachs and Co., Invesco, Morgan Stanley Dean Witter, and J.P. Morgan was commissioned by CIEBA to answer three questions: 1) How much will equity investing improve the long-term solvency of the U.S. Social Security system? 2) What impact will Social Security equity investments have on the U.S. financial markets and the American economy? 3) If a large Social Security equity portfolio is funded, how should that portfolio be structured and managed?

Public Opinion on the U.S. Health Insurance System: Gender and Plan Type Comparisons—Almost 70 percent of Americans covered by an employment-based health plan are satisfied with the mix of cash wages and health benefits they receive, and 75 percent prefer to receive their health insurance through the employment-based system rather than purchase it on their own, according to a recent survey conducted by the Employee Benefit Research Institute (EBRI).