I hope Pence isn't describing something coming from the White House. The point of transcribing those Cheney comments was to just clarify that the White House is still on board with personal accounts, so I agree with you in that it's bewildering to see this "no personal accounts" crap flying around. I don't think Cheney would do an interview and say what he said if there was some backdoor proposal that does away with private accounts.
What is bewildering? There are elements that know how to push your buttons. Don't let them.
FWIW, Cheney was on Rush's show today and left no doubt that personal accounts remain the cornerstone of SS reform. He was emphatic in his support of them and torpedoed the rumors that the White House has given up on the plan.