Vermont’s pensions are in good shape. The state generally makes close to the full annual required contribution to its state employee and municipal funds, but has fallen short of fully funding the contribution for the teachers’ fund. (In the last three years, that contribution ranged from 44% of the required annual amount in 2004 to 59% in 2006.) The teachers’ fund is still funded at a level that is above the national average—but the nearly 85% funding ratio in 2006 is down from the 91% level in 2005. Vermont has a moderate level of non-pension benefits, somewhat lower than most other New England states. As of 2006, Vermont had not set any funds aside for its non-pension benefits—but if the state consistently and fully funds those obligations in an irrevocable trust, its long-term bill will drop from $552 million to $304 million. This is because the interest the state is likely to earn when it invests more money over the long term can be applied to paying down the bill.