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This implies that if someone has a higher salary (i.e. a higher contribution base), he will contribute more overall and will be entitled to receive a higher pension.
"Special arrangements such as lower retirement ages and higher contribution rates need to be explained.
The international experience is that countries that ask for a higher contribution from university students – such as Norway, New Zealand and Australia – have a higher participation rate.
Senator Tom Daschle of South Dakota, the minority leader, said the higher contribution limits would increase the influence of wealthy donors.
If firms are to set higher contribution rates and riskier investment portfolios, they will require some form of legal protection.
To do so might make the problem worse, especially if higher contribution rates increased the disincentive to stay at work.
The breakdown provides the first glimpse of the results of the new McCain-Feingold campaign finance law and suggests that the higher contribution limits for individuals will make the primary elections more expensive.
Armed with the higher contribution limits and the power of incumbency, Bush advisers hope to raise $200 million or more for the re-election, twice what they raised in 2000.
According to election lawyers, existing law would require candidates seeking re-election to lower offices to return portions of the donations they received for their citywide campaigns, which have higher contribution limits.
The accounts were designed to work in the same way as some existing I.R.A.s but with much higher contribution limits — seventy-five hundred dollars a year for each person — and fewer restrictions on withdrawals.
All these pressures are compounded by the threats to pension arrangements: the government has decided to seek higher contribution rates from members from 2012, and to reopen the 2007 settlement negotiated for new and existing senior public servants.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com