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Highlights of the Proposal

Thursday, February 3, 2005; Page A01

• ELIGIBILITY: People born before 1950 would not be affected.

• INDIVIDUAL ACCOUNTS: People born in 1950 or later could divert up to 4 percent of income subject to Social Security taxes into individual accounts, up to $1,000 a year -- a cap that would be phased out.

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Social Security

• WHEN: The accounts would be phased in between 2009 and 2011.

• OPTIONS: Workers would be able to choose among several stock, bond and mixed-investment funds.

• LIMITATIONS: Participants would have no access to the accounts before retirement and could not borrow against the balance.

• AT RETIREMENT: Participants would be required to buy annuities to ensure steady payments out of the accounts over a lifetime.

• OVERSIGHT: The federal government would administer accounts.

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