CUs, Banks Proposed As Social Security Option

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Lawmakers aired a proposal last week that would pose federally insured Retirement Savings Accounts in credit unions and banks as alternatives to the current Social Security system. The savings accounts would be designed to let workers put part of the money they currently pay into the Social Security system into a product that is similar to a federally insured CD, potentially allowing them to earn a greater return than in other options being considered to Social Security.

Like personal accounts, individuals would own their own RSAs and could pass them on to the heirs. The proposal is one of several being discussed as an alternative to the current Social Security system.

Among those who testified during a House Financial Services Subcommittee hearing on the proposal were: David Brock, president of Community Educators CU, Rockledge, Fla., on behalf of CUNA; as well as bank and retirement fund representatives.

Ed Roberts can be reached at eroberts cujournal.com.

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