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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Sept. 17, 1981)
Page 6 THE BATTALION THURSDAY, SEPTEMBER 17, 1981 Local / State A&M prof supports new retirement plan With the recent changes in the income tax laws, a Texas A&M University accounting professor suggests that now is the time for Americans to consider taking advantage of deferred tax retire ment investments. “It’s important that people in vest their money for retirement during inflationary times,’’ Dr. Karl Putnam says. “Assuming a 7 percent inflation rate, a dollar 30 years from now will buy what ab out 13 cents does today.” Starting January 1982, em ployees can deposit up to $2,000 per year in an Individual Retire ment Account (IRA), regardless of whether they are already in an employer-sponsored pension plan. Putnam said practically ev erybody should be able to deposit money into deferred compensa tion under a new law adopted by the Reagan Administration that expands eligibility. “The beauty of this plan is that in addition to a person’s income tax dollars that would otherwise be deducted from his paycheck also can be invested,” he said. “And compounding interest rates will make the returns on invest ment bigger each year.” The plan stipulates that money put into IRA’s can’t be withdrawn without financial penalties until six months after an individual’s 59th birthday, Putnam said. The new laws are meant to en courage people to save by permit ting them to earn more by paying lower taxes on invested money, Putnam explained. “When you invest larger amounts, and as the money stays in the account for longer periods of time, profits will be much grea ter,” he said. “It’s like letting your money make money so when you retire you’ll have more of it. ” Several types of investments are available, Putnam said, and if one proves unsatisfactory, funds may generally be “rolled over” into another investment without being taxed. Commercial banks, savings and loans, mutual funds and insurance companies all re ceive deferred compensation de posits, he said. "No matter which investment vehicle is chosen, funds may gen erally be withdrawn at retirement in a lump sum, and a lifetime annuity can be purchased,” he said, “or funds may continue earn ing money while paid out over a set period of time. ” Errors rising in Blue Cross United Press International DALLAS — Blue Cross and Blue Shield of Texas made more than $14 million in overpay ments and mistakenly withheld $10 million in benefits from elderly clients in 1980, accord ing to a federal government re port. The Health Care Financing Administration said Tuesday that although the largest health insurance company in Texas had made progress in reducing the time it takes to pay a claim, its error rate, which rose from 2.7 percent in 1980 to 3.6 per cent in early 1981, had become a major problem. Of the nation’s 50 Medicare contractors. Blue Cross was near the botton in accuracy — ranking 41st in 1981. The vice president of the Blue Cross Medicare division, Bill West, refused to comment. The federal health agency’s manager of quality control, Joe Christenberry, said it is com mon for payment accuracy to falter as the backlog of claims grows. “In a situation like that, it comes to the point where you have to move those claims,” Christenberry said. In June, the company’s back log of claims rose to 1.3 million — contrasting with what Blue Cross officials have claimed is an average backlog of 400,000. The federal health agency’s officials said they think the firm’s new computerized pay ments system will continue to send payments to the wrong people. f: AGGIELAND CLASS PHOTOS TO BE TAKEN. HOURS: 8 a.m. to 12 noon 1 p.m. to 5 p.m. Monday through Friday FRESHMEN A-M Sept. 16'Sept. 22 FRESHMEN N-Z Sept. 23-Sept. 30 SOPH A-M ALL FRESHMEN SOPH N-Z ALL FRESHMEN Oct. 1 -Oct. 9 Oct. 12-23 YEARBOOK ASSOCIATES STUDIO PURYEAR CULPEPPER OFFICES SUITE #140 Phone EXXON HIGHWAY 6 Council to dimOfft with Vandiver Texas A&M President and Mrs. Frank E. Vandiver today will meet with members of the Uni versity’s Academic Council and their spouses at a dinner hosted by Texas A&M System Chancellor and Mrs. Frank W.R. Hubert. The 7 p.m. dinner in the Memorial Student Center will give Vandiver his first opportunity to meet heads of the University’s academic departments, as well as a cross-section of faculty members who serve on the Academic Council. The 150-member Academic Council is the University’s fore policy role in many of the iD5:l tion’s activities. In addition to the faculty JUpg'] hers and department heads l»f] vt he council includes deans and i|L Zun presidents. l day j( Vandiver met withthedea wild on j the first time last tree); did lay tl already conducted a serie;|uti' ie meetings with vice presidents Jlwe h; other staff members. Heandiwiequipi his wife, Renee, were intnx ffireanc to new faculty members at jo-pilot Ri ception prior to the start o je desigr new school year. Vandiver’s term of office hB most faculty group and has a key Sept. 1. Toy deer talk sc I- Unfit LUBBC A wildlife professor today will present a program on the toy deer of the Florida Keys at a meeting of the Rio Brazos Audubon Society. The meeting is scheduled for 7 p.m. in the Brazos Valley Museum at the Brazos Center in Bryan. Dr. Nova Silvy, associate pro fessor of wildlife and fisheries sci ence at Texas A&M University, (fexas Tec will discuss the toy deeranc sloped a endangered species. E give r Steven Carlson, society I chance dent society, said the groupimmunit sents guest speakers at sev.: titutional their monthly meetings. Meet*i, are held SeptemberthroughvM" c ^ OI Carlson said the society! O'^ ; out 40 members. All ink: IF ^ c> ' people are invited to attend® 501 ' ‘ meetings, he said. ff 11 " ills. What’s up at Texas A&M in Thursday OFF CAMPUS AGGIES:Apartment Council elcctioi](ilm- this week. Gist day of filing is Friday. Elections will be lie Sept. 24, 25. PRE-VET SOCIETY:Dr. Bay will speak on vet schooladm sions at 7:30 p.m. in 301 Rudder. CATHOLIC STUDENT ASSOCIATIONsMarriedstudet! meet at 9 p.m. in Student Center, Reflective StudsW at 7:30 p.m. in Student Center, Night Prayer hcfcfatWp.nu St. Man' s Church. I Unfit ||al i, a equest ft 111,6 milli tairofTe) ■action: e brohib eporters. Stock ai wiss Sky skiiu' U.S wtSandc: y\ Cincli Hinged uesday. PSI CHI :Meeting to get reacquainted with members at"1 ; p.m. in 425 Academic. FLORICULTURE ORNAMENTAL HORTICULTUffi CLUBtNew and old members to discuss upcoming dates» ; projects at 7 p.m. in 113 Plant Sciences Building. ■ Unftei Today i: CAMPUS CRUSADE FOR CHRIST:Willmeetat8:15p,:|f ,,h c in 204 Harrington. The mo< s|quarte] SAILING TEAM:Organizational meeting at 7:30 p.m. inUBhe mo Physics Building. Theevei TAMU INTERNATIONAL FOLK DANCERSiNewwt^ ers encouraged to come and watch or dance at 8 p.m. at' ^,.. ,1. Hillel Jewish Student Center, 800 Jersey. P'^Hr the meric; Friday OFF CAMPUS AGGIES: Apartment Council election fife this week. Last day of filing is Friday. Elections will betei: I T Sept. 24, 25. HONDURAS STUDENT ASSOCIATIONAleeting t commemorate the Independence Day and the foundation^ the association at 7 p.m. in Rudder Tower. INTERNATIONAL STUDENTS ASSOCIATIONS al assembly, mixer. All students invited to come and sign? for 1981-82 activities at 7 p.m. in 201 MSG. LIT ne\ CATHOLIC STUDENT ASSOClATION:Out-of.state<j dents meet at the Student Center at 3:30 p.m. to go thedd; Dallas. Newman Club will have a pot-luck dinner at 6 p.nd the Student Center with a '60s party to follow. FIRST REGIMENT: Mixer at the Q-hutsfrom$f0p.m,12l p.m. All girls are invited. HILLEL JEWISH STUDENT CENTERiShabbatsen* lead by visiting Rabbi Bill Kraus at 8 p.m. 1 MOCK LSAI it ( Saturday September 19 8 o’clock Room 102 Zach. Sign ixp toy Sept. 18 in Urn. lOO Harrington Tower COST: $ 5 00 S10 J