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| Retirement Planning |
Taking Steps for a Secure Future
State Sponsored Pension Plan
The State of Vermont offers a defined benefit pension plan. There are five groups or plans with most state employees covered by group F. Group F members make annual, pre-tax contributions equal to 3.35% of their pay into the trust fund. Earnings on the trust fund investments provide a portion of your benefit, along with the State of Vermont’s contribution. Your actual retirement benefit is determined by a formula which contains three aspects: your service credit, your age at retirement, and your average final compensation. You will be vested in the Vermont State Employees Retirement System when you have attained five years of creditable state service.
Deferred Compensation:
Tax Savings While You Work ~ Financial Security in Retirement
Deferred Compensation is a savings and investment plan for your retirement. The State of Vermont sponsors the plan and oversees the investment options that the plan offers. You are eligible if you are a State employee or legislator; a state teacher working for Corrections, Education or SRS; or a Municipal employee in a participating municipality. The advantages of the Deferred Compensation plan are:
- All contributions are tax-free,
- All earnings from investments in the plan are tax-deferred until you withdraw the money at retirement,
- Financial security. Remember, a secure retirement depends upon three income sources: your pension or Defined Contribution retirement account, Social Security, and your personal savings. Deferred Compensation is a great way to create a personal savings account for your retirement.
For more information: Retirement Office |
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