The debate on how to revamp Social Security has focused largely on whether to allow individuals to invest a portion of their contributions in stocks and bonds. Although there are disagreements with private accounts, investing a portion of the Social Security fund in equities could help solve the Social Security funding problem - if we use as a model a pension system that has offered financial security for more than a century.

State and local government pension plans have a remarkable, enviable history of success. The National Conference of Public Employee Pension Systems (NCPERS), whose members, including Charlotte Firefighters, are the trustees and administrators of these successful pension plans,  has developed a five-point proposal for restoring Social Security' long term financial problems. It includes an investment idea, but one much safer than the President's.

NCPERS proposes selecting a new, independent investment board whose members would determine how to invest a portion of the Social Security fund. Following the public pension model, this new investment board would invest 15% of the Social Security trust fund in equity market index funds, and 25% in state and local government bonds devoted to rebuilding the infrastructure of cities, counties and states. These bonds would benefit state and local governments, help rebuild America and create jobs. Both investments offer good returns and limited risks.

For more than a century public pensions plans have been invested following a similar model and offered remarkable stability. Their success is due in large part to the use of considerable research and the advice of investment professionals who understand the world of securities and know how to achieve the long-term returns that are essential to ensuring a sound pension program.

There are two key advantages this investment approach has over private accounts. First, public pension plans have an enviable average of 8% long-term on their investments. Compare that with the smaller average returns of 6.86% on individual defined contribution plans.

Second, the NCPERS' proposal, available at www.NCPERS.org , offers a way of increasing the Social Security fund's assets. Private accounts would cost $2 trillion in transition costs. The President has yet to identify how he would resolve this problem, but most economists - and our President's own advisors - agree that benefit cuts would be the inevitable solution.