Under current legislation, U.S. Social Security trust fund assets must be held entirely in special government securities.2 As a result, the expected yield on trust fund assets is lower than it might be otherwise. Recently, the Advisory Commission onMoreUnder current legislation, U.S. Social Security trust fund assets must be held entirely in special government securities.2 As a result, the expected yield on trust fund assets is lower than it might be otherwise.
Recently, the Advisory Commission on Social Security proposed a number of options for improving the long-term viability of the system.3 While the members of the Commission could not agree on a single approach, all members agreed that some redirection of assets toward equities and other private securities would be one element in improving the actuarial outlook for the system.4