1. Constitutionality: Perry has asserted that a federally run Social Security program is unconstitutional. If this remains his position, it suggests that the program must be devolved to the states notwithstanding the advisability of such an approach. The first question in understanding Perry’s approach must be whether he believes there is no choice but to devolve or, alternatively, if he believes it is the right policy solution. …

2. Unfunded Liabilities: … How would Perry suggest a state such as Texas address this challenge? Should it raise taxes, reduce benefits, or pursue other types of reform?

3. Trust Fund Accounting: What would happen to the Trust Fund that accrued while the system was in surplus? Interest payments from the fund and draw-down on the principal are crucial funding streams for the national system that are unavailable to the states. How would those funds be equitably allocated to the states?

“4. Mobility: How would a state-by-state system accommodate the enormous number of Americans who move across state lines during their lives, and especially as retirement nears? Would each state be responsible for supporting its current disabled and elderly population on its current payroll? Would funds paid into the system in one state follow a resident to another state later in life?

5. State Obligations: Would states be free to forego a pension program altogether? If so, what if any provision would be made for the disabled and elderly in that state? Or would they be expected to move to other states with more generous benefits, inevitably overwhelming those systems?

6. Administration: Would individuals retain national Social Security numbers or would each state administer its own system? Would individuals have any guarantee that commitments made during their working life are honored in retirement? Who would pay for the added expense associated with administering fifty programs instead of one?”