Social Security Personal Savings Guarantee and Prosperity Act of 2005

The Social Security Personal Savings Guarantee and Prosperity Act of 2005 proposed a major restructuring of the Social Security system by allowing workers born after 1949 to redirect a portion of their payroll taxes into private investment accounts. These personal accounts would have been managed by a new federal board, offering participants a choice of investment tiers ranging from government-managed funds to private market options.

For citizens, the bill aimed to provide a path toward personal ownership of retirement funds, with the potential for higher returns than the traditional system and the ability to pass remaining account balances to heirs. While the bill included a guarantee that total benefits would not fall below those promised under the traditional system, it also proposed changes to how future benefits would be calculated and established new spending safeguards to manage the long-term costs of the program.