Loan & Distribution Specialist AimPoint Pension
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Compass
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AimPoint Pension
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Bates & Company, Inc.
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Regional Vice President of Sales The Retirement Plan Company
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Junior Must Pay: Pricing the Implicit Put in Privatizing Social Security
National Bureau of Economic Research [NBER] Apr. 25, 2002 Working paper available from ssrn.com for $5. Excerpt: Proposals that portion of the Social Security Trust Fund assets be invested in equities entail the possibility that a severe decline in equity prices renders the Fund assets insufficient ... In this event, existing taxpayers may be compelled to act as insurers of last resort. The cost to taxpayers of such an implicit commitment equals the value of a put option with payoff equal to the benefit's shortfall. |
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