“Never before has there been a piece of legislation that so thoroughly addresses the ominous Social Security crisis in our nation and provides sensible, effective solutions that will secure Social Security benefits for generations to come,” Franks said.  “I commend my colleague Congressman Ryan, for issuing this catalyst for debate on the crucial issue of true market-based solutions to the Social Security crisis.  It is an issue that demands our immediate attention as lawmakers and as Americans.”

The Social Security Personal Guarantee and Prosperity Act allows workers to shift to their personal accounts 10 percentage points of the current 12.4% Social Security payroll tax on the first $10,000 of wages each year, and 5 percentage points on all taxable wages above that.  Workers choose investments by picking a fund managed by a major private investment firm, from a list officially approved for this purpose and regulated for safety and soundness, similar to the operation of the Thrift Saving Plan for federal employees.

Workers exercising the personal accounts would receive traditional Social Security retirement benefits based on the past taxes they have already paid into the program.  Workers would then also receive in addition the money payable through the personal accounts.

Under the Chief Actuary of Social Security’s score of the proposal, Social Security would achieve permanent and growing surpluses by 2030.

“By allowing for volunteer investment options, every citizen of this nation will possess the opportunity to directly invest in this nation’s economy and create an estate for themselves and for their children and grandchildren.  It is a monumental concept that could revolutionize a troubled program, while providing retiring generations with the financial security and prosperity they have worked for and deserve.”