Direct Deposit: Be Alert With Bank Mergers

NOVEMBER 1999 - If
the State and Teacher’s Retirement Systems are any indication as to the
number of retirees utilizing direct deposit (approximately 66% and 80%
respectively), then we expect that a large majority of our members may
use this method to receive their pensions. While most retirees never
experience a problem, unfortunately there are times - however
infrequent - when an electronic transfer of one’s pension may not be
completed.

There could be a variety
of reasons for this breakdown. Among them could be a change in your
account number because your bank had merged or consolidated with
another bank - a not uncommon occurrence these days.

Since
your retirement board is not automatically notified, the transfer to
the old, as opposed to new, account will not be completed. Forced to
wait for a correction, you’d naturally be upset.

It
must be emphasized that most bank mergers or consolidations do not
alter account numbers. But it certainly doesn’t hurt to check, if your
bank does change hands.

When a
change in your account numbers has been made, then we suggest that you
contact your retirement board so that they can review and, if need be,
correct their records. This way you’re assured of getting your pension
on time.

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