X1 Herald & lantern 20 |une '84 follSIIlGSS «£_ 59

Sturdy Money Market High fj Ocean City Severs Super Now, T-Bill I

By JOSEPH R. ZELNIK Interest rates on shortterm Treasury securities galloped to their highest levels in two years last week, prompting antoher Cape May County financial institution to cut the reins. Ocean City Home Savings & Loan had been paying the 91 -Treasury Bill rate minus 1 percent on its Super Now account. That is an account similar to the insured money market savings account, but with unlimited checking.

But the T-Bill hit 10.07 percent last week and Ocean City's 9.07 would have been paying more on a checking account than for some certificates of deposit. So, it went to "management decision," according to Robert Smith, president, and set a rate qf 8.83 percent. , "We had to do that to ( keep the rate in perspec- \ tive," said Smith. N Ocean City's 9.25 percent interest rate on the insured pioney market deposit account was tied with Crest

Savings & Loan for the third highest in the county. HIGHEST RATE of 9 82 was being paid by Sturdy Savings & Loan which bases its rate on the T-Bill minus .25. Second highest was First Savings & Loan of Sea Isle-"" City was 9.65 percent, f Sturdy compounds itslin- , terest monthly ; First dally. V These so-called Super nqw accounte^-iqciddnta 1ly, reportedly are little used by county businesses which apparently are unaware they can be getting interest rates ranging from 7 to 8.9 percent (First Savings) on what amounts to a checking account. The institutions aren't pro-

moting the accounts . because they are not very { profitable. The insured money ] market accounts require a r $2,500 minimum and per ( mit a maximum of six tran sactions a month, three of -~them checks. FALLOWING LIST, in ] alphabetical order, gives last week's money fiarket interest rates being paid by the county's 15 financial | institutions: Anchor Savings & Loan, 8.75, 7.25. Cape May County Savings & Loan, 8.78, 6.5. Citizens United Bank, 8.5, 7. Collective Federal Sav- j ings & Loan, 8.85, 8.

Crest Savings & Loan. 8.25. First Jersey National Bank, South: GMIV$\, 8.5; no Super Now; LIA, 8.35, 6.77. First National Bank of Tom's River, 8.75, 8 First National State Bank of South Jersey, 8.85. 7.2. First Savings & Loan,

9.65. 8.9l? Heritage Bank. 8 65. 7 25 Mari^KNational Bank. 8.75, 7.J Midlapie Union Trust Co. of iBdwood. 8 8. 7 \ OceaflCity Home Savings & Clan. 9.25. 8.83 SccuM Savings & Loan. 8 75, 7mf Sturw Savings & Loan. 9.82, n^Super Now ^

STUDENT OF MONTH — Chris Herndon. center, honor student at Richard M. Teitelman School. Lower Cap May Chamber of Commerce student of month, receives plaque and savings bond from chamber president. E. Warren Garretson. Looking on is student's father. Gary Herndon.

SSA Modernizing Computer System

By Del Brooks Social Security Manager in Wildwood . The dkta processing operation mat is part of the , Social Security Administration (SSAjis one of the largest in th<Hvorld. A few statistics should be enough to show its importance in the day-to-day operation of S SsA throughout the country. J SSA maintains records on, more than 240 million people who have acjive Social Security nuipbers; makes monthly/ Social Security payments to almost 36 million ^-pgopl®^ and supplemental security income payments to 3.6 million people; processes new applications for more than 7/5 million people each year; and each^year processes about 380 million wage reports from employers of workers in Social Security-covered

employment. The steadily increasing volume of work makes it necessary for SSA to keep its computer system up to date so that it can remain abreast of expanding workloads. SSA is currently involved in a $500 million systems modernization program Among its goals is the installation of new computers to replace antiquated equipment at Social Security headquarters in Baltimore and install new computer terminals in Social Security field offices throughout the country. The modernization pro\gram is designed to inI crease SSA's computing capacity and thus expand and improve its service to the public. Records will be updated more promptly, and local Social Security offices will have quicker acpess to a person's curr^iy records.

Direct SS Deposit Has Advantages

People in the Cape May County area who get Social Security checks can have them deposited directly into a checking or savings account at a financial institution of their choice, Del Brooks, Social Security Manager in Wildwood, said recently. Direct deposit has several advantages, Brooks saidjncluding: No need to worry about a check being lost; no need to worry about a check lying in a mailbox when away from home; savings in time and transportation and no standing in line to cash or deposit the checks ; money in an account is safer than carrying cash. A person can deal with any financial institution he or she chooses, including a

commercial bank, savings bank, savings and loan association, federal or state credit union, or similar institution. Since banking practices vary, a person should find out how the financial institution handles direct deposits, whether a statement is sent, about any service charge, minimum deposits, interest rates, and special services provided. To arrange directs deposit, a person should complete a form SF-1199, available at the financial institution. A monthly benefit check shows all the information needed to complete the form Direct deposit authorizes deposits only into a per son's account. More information about direct deposit can be ob-

vtained at the Wildwood Social Security office or at any financial institution. The Wildwood office is at 136 E Spicer Ave and the telephone number is j 800-272-1111

/ • •• .* Employers Given Tax Write-Off

Newark, — New Jersey employers who hir%~lemporary help this summer may be able to take a significant tax write-off if the employes are between 16 and 18 and come from low-income households, reports the Newark District Office of the Internal Revenue Service. Under the targeted jobs summer youth credit, employers may be able to reduce their taxes by as

much as $2,550, or 85 percent of up to the first $3,000 in wages paid to each first.time employee who is on the payroll for 90 days between -May 1 and Sept. 15. IN ORDER {p qualify, the employes miist be certified by a designated local agency as being a member of a family whose income is 70 percent or less of the "lower living standard" of the Bureau of Labor Statistics.

Other targeted job i credits can also be taken for employees who fall into i several other "economically disadva ntaged ►Categories. Generally, these benefits would apply on up to 50 percent of the first $6,000 earned the first year and 25 percent of the first $6,000 paid in wages the second year. Employers may obtain more information on these credits by calling the IRS toll free at 800-424-1040

a word to the wise V

Social Security Really Necessary?

By DEL BROOKS One argument against the Social Security system that still surfaces occasionally is that individuals should be free to decide whether to insure themselves instead of being forced to rely on a government-sponsored program. On the surface the argument has a certain appeal. What could be more democratic than permitting each American to decide for himself or herself whether to elect Social Security coverage? Closer scrutiny, however, , indicates that the argu-

r ment is not only simple but simplistic. The social insurance programs cover millions of workers, their employers, and the self-employed, all of whom pay Social Security taxes used to pay benefits to the 36 million men, women and children receiving retirement, survivor, and disability benefits today. Participation in the program is compulsory and almost universal. THERE IS no doubt that some people, if left to their own devices, would be better off providing for / themselves than they are under Social Securttyr — ' ^ \

These are the people who throughout their working lives would escape disabling illness or injury, invest their money wisely, and, with a little luck, be able to retire at the end of their working years with little more to do than clip coupons and collect their interest and dividends But who can foresee the future? Who can guarantee freedom frdm disabling illness or injury? Who can guarantee profitable investments? And who can guarantee the element of luck needed to assure an income during periods of disability or retirmenet or. v, in the event of death, to

survivors? IT IS THESE uncertain ties that preclude reliance solely on individual initiative in insuring against loss of wages. It is only when millions of workers and their employers join together that Americans can be assured of partial wage replacement at times of disability, retirement, or death. And that is why the Social Security program is as relevant today as it was when enacted 48 years ago. Del Brooks is Social Security Manager in Wildwood.

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