Vermont State Employees' Retirement System

Overview

The Vermont State Employees' Retirement System (VSERS) is a public pension plan established in 1944 to provide retirement benefits to state employees in Vermont. Governed by Vermont Statute Title 3, Chapter 16, VSERS has undergone several major changes over the years, including the merger of the State Police and Motor Vehicle Inspectors' Retirement System, benefits and contribution reforms in 1972, and the creation of a non-contributory retirement plan for rank-and-file state employees in 1981. As of June 30, 2025, the system serves 8,963 active members, 2,721 inactive members, 934 terminated vested members, and 8,256 retirees. VSERS offers various group plans tailored to different employee categories, such as Group F for state employees and Group D for judges. The system is managed by the Vermont State Treasurer's Office, which also oversees other retirement systems like the Vermont Teachers' Retirement System and the Vermont Municipal Employees' Retirement System. The Retirement Division of the State Treasurer's Office is responsible for the administration of these systems, including the management of assets and benefits. The system's investment strategy focuses on a diversified portfolio that includes fixed income, equity, real estate, private equity, infrastructure, commodities, hedge funds, distressed and special situations, venture capital, crypto, ESG and impact investing, and collectibles & art. This approach aims to balance risk and return to ensure the long-term sustainability of the fund. The geographical focus of VSERS' investments spans multiple regions, including the United States, Canada, Europe, Asia, Australia, South America, Africa, the Middle East, Southeast Asia, South Asia, East Asia, Central Asia, Western Europe, Eastern Europe, Northern Europe, Southern Europe, North America, Central America, the Caribbean, and Oceania. The system invests across various industries, such as technology, healthcare, financial services, energy, consumer goods, telecommunications, utilities, materials, industrials, consumer services, real estate, media, transportation, retail, and education. Investment sizes typically range from $1 million to $50 million, depending on the opportunity and alignment with the system's investment objectives. VSERS is committed to ensuring the financial security of its members by implementing a prudent investment strategy, adhering to sound governance practices, and maintaining transparency in its operations. The system regularly reviews and updates its investment policies to adapt to changing market conditions and to meet the evolving needs of its members. Through these efforts, VSERS aims to provide reliable and sustainable retirement benefits to Vermont's state employees.