... of employment are automatically defaulted into the traditional DB plan. In recent years, numerous proposals have been forwarded to fully or partially replace the defined benefits provided by the U.S. Social Security system with personal retirement accounts (PRAs). The SURS system looms large as part...

... to individual risk preferences. With this new form of risk reduction, substituting an investment-based personal retirement account (PRA) for the traditional pure PAYGO plan could achieve both a significantly higher expected retirement income and a very high probability that the investment-based annuity would...

... account (PRA) component, retirement savers would have to decide how to allocate their PRA portfolios across a broad range of asset classes and financial products. Asset allocation decisions have important consequences for retirement wealth accumulation because they affect the expenses of investing as well...

... returns. The model used in the analysis focuses on a cohort of workers who should expect to have their traditional benefits reduced at some point when the Social Security system is restored to solvency. Direct restrictions on equity holding in PRAs are likely to prove unpopular, particularly among those...