Galesburg Register-Mail from Galesburg, Illinois on June 19, 1973 · Page 22
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Galesburg Register-Mail from Galesburg, Illinois · Page 22

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Galesburg, Illinois
Issue Date:
Tuesday, June 19, 1973
Page:
Page 22
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! 1 22Gofesburq ReQister'MaiLGojesburg, 111. Tuesday, June 19, 1973 Pension Systems: Some Facts You Need to Know By OERAEt) M. &TMNNON WASHINGTON (NEA) *-AlxMit half Mie working people In the tMed States are coveted by pension plans es- taiblilstied by their employers. These ptes are now rthe subject of much open debate and quiet (political maneuvering in First In a Series Washington, What is ultimately involved is 'how ordinary people (make out under these plans when they retire. Here lare a few pertinent questions arid answers: WHAT IS AN EMPLOYER PENSION PLAN? lit is a deal in which employers put funds aside to £i- mawee retirement benefits for employes. Sometimes it is set up as a profit-sharing plan, but tihe big money is involved im arrangements (that ultimately provide retirement) benefits. benefits. Normally when an employer pays Wages, the wages are deducted by the employer and taxes paid by •the employe. In a qualified pension plan, the employer gets the deduction but there ds no employe tax until the money is paid out as retire ary, snore of it would have gone to taxes than when It is paid to him in .the form of pension benefits. DOES EVERY PENSION PLAN GET THIS BENEFIT? To get these benefits the employer's plan must be qualified which means thai it putting some of his cash wages into his own retiremeiniti plan, there is no tax benefit. WHAT'S ALL THE SHOUTING ABOUT? There are a tat of tilings to shout about, but it boils down to two main issues. (1) The security of the pen* Dr. Brannon Is director of tax research for Tax Analysts and Advocates, a Washington, D.C. organization which provides research services for the news media and engages in a public interest tax law practice. He also is research professor at Georgetown University and formerly was director of the Office of Tax Analysis in the Treasury Department. WHY ARE PENSION PLANS A TAX ISSUE? Because they involve tax (assured of benefits. (The technical term is to have a vested interest in bis benefit.) Even with vested benefit®, however, an employe can get much less thaw he expected if the employer doesn't put in enough money to cover the promises. The tax law does not require Strike Halts Work in 13 Counties Counties affected by the strike CARBONDALBJ, til. (UP1)- Work at nearly all construction projects in the 13 southernmost Illinois counties has been halted by a walkout of Local 318 of the Operating Engineers of America. included Randolph, Perry, Franklin, Hamilton, White, Jackson, Williamson, Saline, Union, Gallatin, Johnson, Hardin, Pulaski and Massae. vestment income is taxed until it is paid out in retirement benefits. This as a good deal for the beneficiaries. Postponing the tax for up to 30 years means that more money is available to invest and this will produce investment income which can be used to increase benefits. Moreover, the beneficiary probably will be in a lower itlax bracket than he was when money was put into the pension fund in his behalf. If he had taken the money as sal- stockholder employes. Practically speaking, employers don't set up plans unless they are qualified. One hooker in this is that the plan must go through the employe a*. If an ordinary (worker just decides to start some of his earnings were going into a pension plan may find .that there is nothing for him when he retires. This can be because the plan itself requires that an employe stay with the same employer until near retirement in order to be - extension of pension benefits to more people. At) present, only about half ofi the workers are covered by pension plans and not much mare than 50 per cent will retire with pension benefits. Moonlight Madness (Nextt Security of Pension Promises) moonlight madness wed. night 'til 9 — a pair of decorative bargains beaded curtains 25% off bamboo with beads in assorted colors for door or window reg. $7.95 bedspreads 50% off selected styles of handwoverr indict prints and solids in twin and double sizes, reg. from $7.95 calico cat open 10 a.m. to 9 p.m. tomorrow 78 so. seminary galesburg phone 342-2212 Admiral Mayor at Alexis: Approval Sought For Street Work ALEXIS — An engineering report on resurfacing Alexis streets has been sent to the Illinois Division of Highways for approval, according to Charles Sabbath, president of the Village Board of Trustees. Sabbath said if the plans are approved, bids will be let later this summer. The report calls for all streets not resurfaced last year to be given a new surface this year. Cost of the project is estimated at $10,000. Work presently planned by the street department includes repairing potholes and chipping on streets where oil lhas seeped through and made the surface taoky. The board has arranged a meeting with representatives of RatJiffe Brothers Construction Co., Kewanee, to discuss a method of sealing sewer lines to prevent seepage of surface waitier into them after a storm. The system has been used by other communities, including Cambridge. 1 MOUNT ERIE, 111. (UPI)State police said today that three men may have robbed the Mount Erie State Bank Monday of $9,505, and that they may be holding a hostage. State police in Effingham said they are basing their beliefs on the fact that the car believed to have been involved in the holdup has been re-| Wednesday Night Only Short* 1 Group $3.00 1 Group $3.00 Posthumous Award Dr. John T. Bernhard, left, Western Illinois University president, presented a 1973 Humanitarian Award posthumously to WIU student Jill Diane Lock, who was killed Feb. 5 in an automobile accident. Accepting the award at WIU's spring commencement exer­ cises June 16 were her parents, Mr. and Mrs. Dean S. Lock of near Avon. The award was established to honor graduating seniors who have demonstrated by example land precept a personal commitment to humanitarian values. Dr. Wesley Simons is a right. 3 Suspected in Hold-up, Hostage Held? SUE CLOSE-OUT OF 1973 ADMIRAL COLOR TELEVISION SETS — Must Moke Room For 1974 Model* — 1 ' covered, and a report Monday night of an auto accident that did not exist Police said Mrs. Eddie Gillard of the Mount Erie area reported to state police in Albion that her husband was taking three auto accident victims to a hospital in Olney, but that they never showed up. Police said the three men $ Admiral, THE ATLANTA/MODEL 5L5655 SAVINGS UP TO 150 00 ON COLOR CONSOLES Galesburg Appliance » 258 f. SIMMONS $1, PH. 343-9805 COOL SUMMER SEATING Tamiami by Brown Jordan A fresh design in outdoor furniture giving solid comfort. The unique diagonal lacing provides a special look. A Look distinctively Tamiami. Constructed of 7 /» Inch tubular aluminum, heli-arc welded for light weight strength. See this set and our many other pieces of summer and patio furniture today, Table & 4 Chairs $336.00 Chaise 149.00 21' Square Table 54.00 FERRIS FURNITURE 465 Mulberry Open 9 to 5 Friday 'til 9 PM Convenient Parking Master Charge Extended Payments Americard may have been the bandits who rcfobed the Mount Erie State Bank. A bulletin for Gillard's 1968 green Pontiac has been issued, police said. Monday's holdup at the bank was the second in three years. Two tall men, one described as "toothless" and the other wearing a black shirt too big for him, walked into the bank, quietly handed a note to Mrs. Danna Molt, a teller, and forced her to turn over the money from her cash drawer. •Hand It Over' "The note read, 'Hand over the money. Don't say anything and don't show it or something like that,' " a bank official said. The men did not appear to be armed. "At least none that we could see," the official said. Police said the men fled in a black Ford Mustang which had the word "Yamaha" spelled out on its rear window. Pants — „™_ 1 Group $7.00 Dresses _ 1 Group 20% Off Jeans 1 Group $4.00 All Regular Merchandise 10% Off GALESBURG HOURS ~ 6-9 WED., JUNE 20-6 pm-9 pm KITCHEN 1 6R0US CARPET Rubber Back Nylon Tweeds From NYLON SHAG Solidi ft Tweed* Bresiin's "Home of Stylo & Quality Floor Coverings'' 44 N. Seminary St. 342-9197 Downtown Golesburg f

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