44
Vermont Employees Retirement System
(Continued from page 25)
throughout the lifetime of a beneficiary
nominated at the time of his retirement.
Contributions Payable by Members
Members of the retirement system
are required to contribute to the sys
tem a certain percentage of their sal
ary, which will be deducted on each
pay day. The following tables give the
percentage rates of contribution pay
able by members for full benefits. The
tables show separate rates for men and
women. Any member not desiring to
pay the full rate may elect to reduce
his rate as shown by the table to 4 per
cent in which case his annunity will be
proportionately less.
Age at
Beginning /o
Contribuì e
Men
W omen
20
4.09%
4.73%
23
4.3 3
3.26
30
3.23
6.04
3 3
3.33
6.16
40
3.48
6.33
43
3.66
6.34
30
3.87
6.78
33
6.12
7.07
60
6.3 8
7.37
64
6.61
7.64
(The rate applicable is the percentage
shown for nearest birthday.)
In order to find his contribution
rate one must first determine what his
age will be on his nearest birthday as
of the date he becomes a member. Then
he will find the rate opposite such age
in the appropriate column.
For example, if he is a man and is
age 30 at the time when he becomes a
member his rate will be 5.23 per cent
of his salary. If his salary is $200 a
month his monthly contribution would
be 5.23 per cent of $200 or $10.46.
If his salary should increase, his per
centage rate of contribution would re
main constant at 5.23 per cent, but the
amount of his contributions would in
crease. For example, if his monthly sal
ary increased to $260 then his monthly
contribution would be 5.23 per cent of
$260 or $13.60.
If an employee is age 65 or over
when he becomes a member, he con
tributes the rate for age 64. The mini
mum rate of member contribution has
been set at 4 per cent and if one pre
fers to receive a reduced annuity at
retirement he may elect the 4 per cent
rate at the time of joining the system.
This will not affect the pension to be
provided by the state since the pension
will remain the same as explained un
der Service Retirement Allowance
above.
Contributions Payable by the State
The state makes contributions based
upon the payroll of the membership
and reserves are accumulated from
which the benefits provided by the state
are paid. The state provides:
(a) Pensions at least equal to the annum-
ties which members are expected to provide
by their contributions.
(b) All the benefits payable on account of
service rendered prior to April 1, 1944.
(c) That part of the ordinary disability
allowance which is not provided by the
member’s contributions.
(d) All of the administrative and over
head expenses in connection with the oper
ating of the system.
Administration of System
The responsibility for .the adminis
tration of the retirement system is
placed in the Retirement Board w hich
consists of three members, The Gov
ernor, The State Treasurer, and The
Auditor of Accounts.
Questions and Answers
21. Q. Suppose a man at age 65 is
entitled to retire on a regular retire
ment allowance of $1,000 per annum,
which is made up of (a) an annuity of
$500 which is provided by his contri
butions, with interest, amounting to