The latest in retirement news--I'm reluctant to call it "Social Security news" because the connection isn't clear yet--is the idea of a universal 401(k).  We have talked about this idea a little already, and a lot of folks have expressed interest in the concept. 

Senator Jeff Sessions offered a clearer view of how such an idea might come to fruition with his op-ed in the Washington Post ("A Bipartisan Fix for Retirees," see "In the News" to the right).  Sessions proposes the creation of a PLUS Account (Portable Lifelong Universal Savings) of $1000 for each newborn, with additional contributions diverted automatically when the babies grow up and begin toddling in the workplace.

Gene Sperling of the Center for American Progress published his universal 401(k) plan, A Progressive Framework for Social Security Reform, nearly a year ago.  His framework calls for a government match of 2-to-1 on the contributions of low-income families and 1-to-1 on middle-income families.   

Sessions and Sperling are just two of many people offering plans, though I would bet that Sessions is the only one among them with four S's in his last name.  Some plans, such as Sperling's, include sections that deal specifically with Social Security. (Sperling includes a "3 percent surcharge on income over $200,000"--also known as a tax increase--in his proposal.)  But if we take these parts out and focus exclusively on the idea of a universal 401(k), we're left wondering how much good is in this idea. 

It's a fair question, particularly as we find out to what extent a universal 401(k) will impact Social Security.  An op-ed in the New York Times suggests, "For every dollar spent on the universal 401(k), the federal government could spend one dollar less on Medicare and Social Security benefits."  Sessions, on the other hand, writes, "[M]y plan would simply serve as a supplement to the Social Security system, not altering the program in any way."

We'll stay tuned to this debate and keep you updated.  In the meantime, add "Get personal accounts INSIDE Social Security" to your list of resolutions for 2007.