But due to the nature of the formula SS is not set up as a DC pension would be

Reader comment on: Cuomo's Defined Contribution Pension

Submitted by Lyle (United States), Jan 17, 2012 22:48

If you look at the current benefit formula SS is designed to help the low income worker far more than the high (under the FICA limit) worker. Given the wage rate indexed 35 year average earnings, it replaces 90% of the first 767, then 32 percent up to 4624 and 15 percent above that. If you did what Newt suggested the low income workers would all be in poverty.

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