[billbears]

there has got to be a serious hidden defect

There is. Beginning with this plan

move with voluntary private accounts sweetened with a generous match from the federal government

Just another renamed entitlement program from the federal government.

[ellery]

The lure of the accounts is that the government would match, on a 2 1/2 to 1 basis, contributions from the first $1,000 of wages each month; for contributions from wages above that amount, the government would match 50 cents for every dollar contributed. For those who chose to participate in the accounts, however, their guaranteed benefits would be further reduced -- about 30 percent over the course of a career -- or they would have to work an additional five years beyond the current retirement age (now 67) to receive full benefits. Over time, Mr. Thompson argues, this is a good bargain: Workers would probably accumulate significant nest eggs, more than offsetting the reduction in benefits.

[kevkrom]

Just another renamed entitlement program from the federal government.

Considering that this "match" is coming from the FICA taxes the wage earner is already paying, I'd simply call it a refund (with restrictions) rather than an entitlement.