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Show New law assures future of social security The 814 people in Grand County who get social security secur-ity benefits have a renewed promise from the Federal Government that their monthly month-ly checks will keep coming in the months and years ahead, John Wainwright, social security sec-urity district manager in the city of Grand Junction said today. New legislation will provide additional income to assure the financial stability of the social security system well into the next century, Wainwright Wain-wright said. The added revenues will come from increases in both the social security tax rate and the "wage base "-the maximum max-imum earnings on which the social security taxes are collected col-lected in a year. "Nobody likes to see taxes go up," said Wainwright, "but the new revenues offer solid reassurance to the 34 million people in this country who are getting social security checks now. Their payments simply could not have continued beyond be-yond the next few years without additional income to the system." For the average worker, the tax increase will be relatively rela-tively small over the next few years, Wainwright said. On wages of $10,000 a year, he explained, the social security secur-ity tax bill will be $605 in 1978-only $20 more than the $585 payable on the same income in 1977. In 1979 and 1980, the social security tax on $10,000 in earnings will be $613. The tax burden will be heavier on those in higher wage brackets because more of their income will be taxable for social security. In 1977, the maximum amount am-ount taxed for social security is $16,500. This wage base will go to $17,700 in 1978-as provided under previous law-with law-with subsequent jumps to $22,900 in 1979, $25,900 in 1980, and $29,700 in 1981. After 1981, the base will rise automatically to keep pace with increases in average wages covered by social security. sec-urity. While the wage base increases in-creases mean a bigger tax bill for those workers in the higher income brackets, they also will mean higher social security benefits later since payment amounts are based on covered earnings. In addition to assuring the future financial stability of social security, the new law provides that beneficiaries over ov-er 65 can earn as much as $4,000 in 1978 without any cutback in their social security secur-ity checks. The earnings limit was $3,000 in 1977 for beneficiaries benefi-ciaries under 72. Once a person's earnings exceed $4,000 for 1978, $1 in benefits will be withheld for each $2 in earnings. Additional increases are scheduled in the annual earn-. ings limit. The limit will rise to $4,500 for 1979, $5,000 for 1980, $5,500 for 1981, and to $6,000 for 1982. In later years, the limit will go up automatically automati-cally to keep pace with increases in-creases in average wages covered by social security. In 1978, people under 65 can receive all benefits if their annual earnings are $3,240 or less. The $1 for $2 reduction applies to earnings above $3,240. Future increases in this limit will also be made automatically. Also, Wainwright said, other oth-er changes were made in social security. The most important im-portant include: A change in the way benefits bene-fits are figured to ensure that people continue to get about the same proportion of preretirement prere-tirement earnings as present retirees now do. The new method goes into effect in 1979. Increases from the present 1 percent to 3 percent a year are the extra credit a worker gets if he or she does not receive benefits between 65 and 72 because of work. The increase is effective for workers work-ers who reach 62 after 1978. The credit, which previously applied only to the worker's benefit, will now be added to widows' and widowers' benefits bene-fits beginning with June in 1978. Reduces to 70 from the present 72 the age at which a worker's earnings do not reduce re-duce benefits. The change is effective beginning in 1982. Changes the measure used to determine whether a person per-son received a quarter of coverage. Beginning with 1978, a worker will receive one quarter of coverage for each $250 of annual earnings up to a maximum of 4 quarters quar-ters for annual earnings of $1,000 or more. Reduces from 20 to 10 years the length of time a marriage must have lasted for a divorced divorc-ed woman to get benefits on her former husband's record. The change is effective beginning begin-ning January, 1979. Provides that benefits to a widow or widower who remarries re-marries after age 60 will not be reduced as they are under present law. The change is effective beginning January 1979. These and the other changes chang-es made in the social security law will be described more fully in a leaflet that will be soon available at the Grand Junction social security office, Wainwright said. The Grand Junction social security office is located at 101 S. Third Street. The telephone number is 242-6116. |