Social Security Fund versus the Grand PONZI Scheme
The current state pension scheme is a grand PONZI scheme where the NI or SS levies are channelled to the current budget. Under the proposed concept, all NI contributing citizens are shareholders of the GRASS Fund and it is expected to generate profits to be offered as dividends based on the GDP growth rate as a minimum.
The dividend is however reinvested to buy new GRASS equity. This group of Class A shareholders can only sell their shares at retirement to be invested in an annuity-like Treasury sponsored Social Security Fund.
The Social Security Fund (SSF) to be created is technically the State Pension Fund where the retirees will be subscribed to purchase Social Security Bonds after cash in their GRASS equity. The fund will guarantee a regular fixed stream of cash (a minimum purchase is required) until death. The beneficiaries can invest more for a greater level of fixed income on a monthly basis. The SS Bonds are issued by the Treasury but managed by an independent body by investing mainly in the GRASS Fund.