Report Says SS Benefits Would Be Slashed Under Bush Plan

June 20, 2002--A Working Paper by the Brookings Institution concludes that the Bush administration''s plan to create personal investment accounts within Social Security would lead to deep cuts in benefits. For wage earners retiring in 2075, benefits would be as much as 27 percent lower than those promised under current law, and even larger if adjusted for the risk of investing in the stock market, according to the paper by Peter A. Diamond, an economics professor at the Massachusetts Institute of Technology, and Peter R. Orszag, a senior fellow at Brookings.

Full story: The New York Times, June 19, 2002. http://www.nytimes.com/2002/06/19/politics/19SOCI.html

Read an abstract of the Brookings Working Paper and download the full paper: http://www.brookings.org/views/papers/orszag/20020618.htm