Interest in preserving the Social Security program has focused in recent months on the question of whether or not to initiate the use of private investment accounts, which supporters argue could strengthen Social Security by allowing investors to earn a higher rate of return in the stock market than in the current system. President Bush has named a Presidential Commission to investigate this question. While there is some information on the feasibility and dynamics of implementing a system of private accounts within the Social Security system, much remains to be learned. With that in mind, the Social Security Administration issued a call for proposals to its Retirement Research Consortium to build our base of information about private accounts. Various proposals have been submitted and are under consideration.

There are many important issues about the development of private accounts that need to be considered. One aspect is addressed in the current Issue in Brief contained in this newsletter. In general, it is important to focus on what individuals stand to gain and to lose if such a system were implemented. Now more than ever, our mandate to generate policy-driven research and to disseminate findings is paramount. Although the Presidential Commission’s report to the President is due this fall, debate will not end there. Building a solid research base for policy-making will continue to be a sound investment in the nation’s future.

Acting Director, MRRC