Social Security Reform: Successes and Lessons Learned : Hearing Before the Subcommittee on Domestic and International Monetary Policy, Trade and Technology of the Committee on Financial Services, U.S. House of Representatives, One Hundred Ninth Congress, First Session, May 5, 2005 |
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20 percent add-on Administration's administrative costs agency AMELIO annuities Argentina asset managers basis points Cavanaugh Center for Policy Chairman PRYCE Chile Congress contribution rate debt earnings Estelle James Executive Director federal employees fees FERS FERSA fiduciary financial markets flat benefit FRANK income increase index funds Index Investment individual accounts Investment Fund investors Joseph Stiglitz Kazakhstan Kosovo labor Latin America Lessons from Thirty mandatory million minimum pension guarantee mutual funds National Center NCPA participants Patrick Purcell payouts payroll tax Pension Reform percent of assets personal account system Policy Analysis portfolios poverty line private accounts proposal rate of return reduce Reforming Social Security Retirement System risk Security trust fund small businesses Social Security Reform Social Security system Social Security trust Subcommittee switch Thank Thirty Countries Thrift Investment Board Thrift Plan Thrift Savings Plan transition costs Treasury Treasury securities withdrawals women workers
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Page 63 - As an alternative the committee considered permitting any qualified institution to offer to employee[s] specific investment vehicles. However, the committee rejected that approach for a number of reasons. First, there are literally thousands of qualified institutions who would bombard employees with promotions for their services. The committee concluded that employees would not favor such an approach. Second, few, if any, private employers offer such an arrangement. Third, even qualified institutions...
Page 52 - The money, in essence, is held in trust for the employee and managed and invested on the employee's behalf until the employee is eligible to receive it. This arrangement confers upon the employee property and other legal rights to the contributions and their earnings. Whether the money is invested in Government or private securities is immaterial with respect to employee ownership. The employee owns it, and it cannot be tampered with by any entity including Congress.
Page 51 - substantial experience, training, and expertise in the management of financial investments and pension benefit plans." 5 USC § 8472(d). With input from the executive director and Agency staff, the Board members collectively establish the policies under which the TSP operates and furnish general oversight. The executive director carries out the policies established by the Board members and otherwise acts as the full-time chief executive of the Agency. The Board and the executive director convene...
Page 51 - Concerns over the specter of political involvement in the thrift plan management seem to focus on two distinct issues. One, the Board, composed of Presidential appointees, could be susceptible to pressure from an Administration. Two, the Congress might be tempted to use the large pool of thrift money for political purposes. Neither case would be likely to occur given present legal and constitutional restraints.
Page 134 - ... history; the TSP management structure; and the TSP investment structure. Congress itself made the TSP politically untouchable. INTENT OF CONGRESS. Congressional concern about possible political influence over TSP investments is evident from the following statement in the Conference Report on FERSA:"5 Concerns over the specter of political involvement in the thrift plan management seem to focus on two distinct issues. One, the board, composed of presidential appointees, could be susceptible to...
Page 52 - Unlike a defined benefit plan where an employer essentially promises a certain benefit, a thrift plan is an employee savings plan. In other words, the employees own the money. The money, in essence, is held in trust for the employee and managed and invested in the employee's behalf until the employee is eligible to receive it. This arrangement confers upon the employee property and other legal rights to the contributions and their earnings.
Page 53 - In keeping with the intent of Congress that the Plan be administered in accordance with fiduciary standards derived from those applicable to private sector employee benefit plans — as distinct from the usual administration of an Executive Branch agency...
Page 118 - Committee on Financial Services Subcommittee on Domestic and International Monetary Policy, Trade and Technology "Matching Capital and Accountability — The Millennium Challenge Account...
Page 48 - Testimony before the House Subcommittee on Domestic and International Monetary Policy, Trade and Technology...
Page 63 - ... considered in FERSA by Congress. According to the Joint Explanatory Statement of the Committee of Conference quoted earlier: Because of the many concerns raised, the conferees spent more time on this issue than any other. Proposals were made to decentralize the investment management and to give employees more choice by permitting them to choose their own financial institution in which to invest. While the conferees applaud the use of IRAs, they find such an approach for an employer-sponsored...