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Conflict periods, but were pre-viously unable to receive agrant of credit because youwere receiving or eligible toreceive a military pension for guard or reserve service, youshould contact the RetirementDivision to apply for the grantat this time.In addition, new legislation that affectsretired state employees was also en-acted:
a retroactive adjustment to aretiree’s pension if he servedin the military during the con-flicts in Korea or Vietnam.This pension adjustment onlyapplies if the individual wasnot eligible for a VermontState Employees’ Retirementgrant for this military service prior to his retirement becausehe was eligible to receive amilitary pension for
regular military service. Non-regular military service is de-fined as guard or reserve duty.
a one-time stipend of $500 for each year served, up to a maxi-mum of 3 years, to state em- ployees who retired prior toJuly 1, 1999, and who servedin WWII, the Korean Conflictor the Vietnam Conflict, inrecognition of their service toour country.
Retirement Board of TrusteesChair: Roger DumasMembers:
Patricia McDonald Jane Osgatharp
Warren Whitney Catherine Simpson,
Director of RetirementSystems:Cynthia Webster133 State StreetMontpelier Vermont 05633-6901828-2305 or 1-80-642-3191 (In-State)
is pub-lished quarterly by the Vermont State Employ-ees’ Retirement System.Editor: Joseph Bahr
Treasurer’s Message (continued from page 1)
out of each paycheck. Even after 10 years, the$20 minimum will have grown to over $7500,if compounded at 8%, which is three times whatyou contributed. At present, the maximum youcan contribute each year is 25% of your salary or $8500, whichever is less.The Deferred Comp Plan has 18 different mutualfund investment options. Most of these are do-mestic stock funds, but there are internationalstock funds, bond funds and blended funds aswell. If you feel insecure about investing, thefolks at Citistreet will be glad to assist you. In ad-dition, they offer three pre-assembled portfoliosthat have an asset mix all set for you. All youneed to do is determine how many years you haveuntil retirement and how much risk you are willingto assume. More risk usually means higher ratesof return, but you have to be able to sleep at nighttoo.Another tax-advantaged savings plan available inVermont is the Vermont Higher Education Invest-ment Plan offered through the Vermont StudentAssistance Corporation (VSAC). This plan helps parents save the money necessary to provide a col-lege education for their children. The contribu-tions are after-tax, but when withdrawals are madefor qualified higher education expenses, the in-come is exempt from Vermont State Income Taxand is scheduled to be exempt from Federal In-come Tax next January 1.I urge all of you to consider the Deferred Compen-sation Plan. I have been contributing to it for years, and it has been terrific to watch my assetsgrow. Now is the time to start saving; a little bitcan go a very long way when it has a long time togrow before you retire.
Cynthia L. Webster