Sen. William V. Roth Jr., R-Del., the Senate Finance Committee chairman, today introduced legislation that would dedicate half of the projected federal budget surplus over the next five years to setting up IRAs for all working Americans. Under the bill, each worker would receive at least $250 a year, plus an additional amount based on his/her share of Social Security payroll taxes.
The program would let individuals invest the money in a stock index fund, a bond fund, or in a U.S. Treasury bond fund. Individuals could sign up for either receiving a monthly pension check when they retire, or annual payments based on their life expectancy. The program would be supervised by a new independent board, whose members would be appointed by the president and lawmakers.