The President's plan would permit workers under 55 to take 4 percent out of their 12.4 percent payroll tax and put it into personal investment accounts. It would also involve gradually reducing benefits now guaranteed for those in the middle-and upper-income brackets.

Under the GOP plan the system would invest the annual surplus resulting from the difference between the amount of payroll taxes collected and the sums used to pay benefits, about $1.5 trillion.

Instead of being siphoned off into the general revenues to pay for government programs and expenses, the surplus would be invested in Treasury bonds (T Bills) earmarked for each worker who is paying into the system through their payroll taxes and who opts to participate.

A key feature of this plan would be the creation of a so-called lock box that would be set aside for each worker, specifically investing the funds in their names, making the money their personal property that would become part of their estates.

The T Bills would bear a government determined interest rate and participation would be voluntary and available to every worker under 55.

Democrats, who have refused to come up with a reform plan of their own and are bitterly opposed to any system that would allow workers to own part of their payroll taxes called the GOP proposal "a shell game" designed to sneak personal accounts into the system.

Senate Minority Leader Harry Reid says it's "a transparent political gimmick that would weaken Social Security."

The President has not commented on the new proposal and remains committed do his version of personal accounts.

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