Focus Point - Saving Social Security Texas StyleCommentary by Pete du Pont
October 24, 2001
In the early '80s, before congress made it illegal, Galveston, Matagorda and Brazoria counties opted out of social security for county employees. They still pay medicare, but their 12.4 percent that went to social security now is paid to their retirement program. A plan manager pools the money and loans it to a major financial institution for a competitive, guaranteed return.
A high-income worker gets more than $3,800 monthly income compared with $1,540 a month from social security. A low-income worker gets about $1,300 a month from the plan, compared with just $780 from social security.
The point is that such market accounts work. And since the payment is guaranteed, there are no market ups and downs. I know there are a lot of diversions in Washington now, but fixing social security should still be at the top of the list.
Those are my ideas, and at the ncpa we know ideas can change the world. I'm pete du pont. Next time, the great game.