Lost in all the debate and disparagement of personal savings accounts for Social Security is this salient fact: federal employees have prospered under a program very similar to the reform that President Bush is proposing. Pete Dupont reviews “The New New Deal” on Opinion Journal:
There already is a model for such a reform, the Thrift Savings Plan, or TSP, for federal employees. It allows them to contribute up to $12,000 into a personal account they own and control. Employees can chose from five different funds: government bonds, a fixed-income fund, a common stock fund, international investments and a small-cap stock-investment fund--or a mixture of them. Today, nearly 3.5 million federal employees participate, and the fund's value is more than $120 billion. No one has lost his shirt, and participants own real assets for their retirement.“Ownership of assets!?!” harrumphs the AARP and now the AFL-CIO. Heresy!