The three systems had combined assets of approximately $3.36 billion on June 30, 2007. Asset levels have continued to rise over the long term largely due to investment returns exceeding net contributions and withdrawals.

In fiscal year 2007 the returns improved versus fiscal year 2006, with rates of return of:

• 16.5% for the Vermont State Retirement System
• 17.4% for the State Teachers' Retirement System
• 16.6% for the Vermont Municipal Employees' Retirement System.

For the ten years ended June 30, 2007, the median public retirement plan in the United States had an average annualized total return of 8.2%, compared with:

• 8.1% for the Vermont State Retirement System
• 8.7% for the State Teachers' Retirement System
• 9.1% for the Vermont Municipal Employees' Retirement System.

Asset levels continued to increase, as investment return is a major contributor to the overall asset growth. In fiscal year 2007 net assets increases were:

• 14.9% for the Vermont State Retirement System
• 15.0% for the State Teachers' Retirement System
• 17.4% for the Vermont Municipal Employees' Retirement System.

Over the long term, Vermont's systems have outperformed the majority of public pension plans.

Pension Systems Assets

Pension Systems Rate of Return

Pension Systems Funding Level (Based on GASB 25)*

* Note: In FY 2006, the actuarial methodology for the Teachers' and State Retirement System was changed from "frozen initial liability" to "entry age normal". Comparisons of current (FY 2006) funding levels to prior years is impacted accordingly.

For a discussion of this new actuarial methodology please refer to: Report of the Commission on Funding the Vermont State Teachers' Retirement System

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