Set the interest rate for Social Security bonds and payments at 3.3%
above the current inflation rate, adjusted quarterly. This reform will
guarantee a 60% or higher payment to every retirement recipient at age
65 and it will maintain the solvency of the trust fund and payments to
personal accounts..
  Raise the limit on contributions to $250,000 of annual wages, instead
of the current cap of $90,000. If combined with principle #4 these
high-income individuals will receive a commensurate return on their
increased payments.
  Base recipient payments solely on the amount contributed over their
lifetime of work - in short, the sum of their set and voluntary
contributions, employer contributions and interest earned. Personal
accounts benefits will be based on the same formula - 3.3% above the
current inflation rate.
  Permit the designation of all individual contributions to be placed
in the trust fund of another person or persons. For example, the
$86,261 - accumulated by the $20,000 wage earner in our benefits table
- could be transferred to the trust fund of a spouse, children,
grandchildren or other loved ones. This voluntary allocation of private
accounts would enhance their benefits and this estate would be part of
their contribution base for future, similar endowments.
  Remove all federal, state and local taxes on the payments of benefits
to trust fund recipients. This reform for personal accounts is in
exchange for sacrificing the interest earned by their contributions
over a lifetime, tax free.
  Invest the trust fund, not just in United States Treasury notes, but
in municipal bonds, which are guaranteed by state or local tax bases.
This would eliminate an enormous premium on interest rates, now paid by
governments, and end excessive bond counsel and other fees, encouraging
new school and road construction, and repairs to the nation's
infrastructure.
  Allow the voluntary contribution of more than 6.2% by individuals.
These voluntary pension private accounts would form part of the base of
their retirement benefits. All funds and the interest they earned would
be payable in the same manner as an I.R.A. - withdrawn as early as 59
1/2, with mandatory deductions at age 70. These disbursements would be
taxable as withdrawn, and loans would be permitted under the current
401K rules.  See www.socialsecurityplan.org