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		December 2003
	The State of Connecticut 403(b) Program

	Saving money through the State of Connecticut 403(b) Program is a great way to put aside money for your retirement. The Program features tax advantages and the ease of saving through convenient payroll deductions, just two reasons why contributing to the Program makes sense. And, with the increased contribution limits for 2004 described in this newsletter, now it's possible for you to save even more. This issue of "Dollar Wise" includes details on what you need to do if you want to increase your annual contribution rate. It also tells you what you need to do if you think you might exceed the annual contribution limit. So look inside for information on how you can maximize this savings opportunity.
We're Going Online! Beginning in 2004, Dollar Wise will be available exclusively on the Office of the State Comptroller website at www.osc.ct.gov. This is the final printed issue of Dollar Wise you will receive.
		Nancy Wyman State Comptroller

Now You Can Save More for

The State of Connecticut 403(b) Program offers you several advantages over other savings vehicles. For example, when you save through the Program you are saving before-tax dollars, which means you are reducing the amount of your current taxable income. In the end, you have more spendable pay since you will pay less in taxes. You also get to save through convenient payroll deductions, so you don't have to worry about remembering to set aside your savings from each paycheck. These are just two of the reasons why you may want to consider increasing your contribution rate for the coming year.

In 2004, the annual contribution limit for 403(b) plans is $13,000, an increase from the $12,000 allowed in 2003. Since you are eligible to participate in the State's 403(b) Program, you're also eligible to participate in the State of Connecticut Deferred Compensation Plan (a 457 plan). That means you can contribute the annual IRS maximum to both plans. For 2003, you can contribute up to $13,000 to the 403(b) Program and up to $13,000 to the 457 Plan!

And, if you will reach age 50 or older by December 31, 2004, you will be eligible to make age 50 "catch-up" contributions that allow you to contribute an extra $3,000 to the Program. So, if you are eligible for the catch-up contributions, you could contribute a total of $16,000 to the 403(b) Program in 2004.

The following table shows the maximum annual contribution limit for the next three years. You should consider increasing your payroll deductions so you can take full advantage of the benefits offered by the 403(b) Program.

Catch-Up Contributions Reminder

If you will be age 50 or older by December 31, 2004, and you would like to contribute the $3,000 extra over the annual maximum to the Program next year, you may do so with age 50 catch-up contributions. In addition, if you have completed more than 15 years of service with the State, you may be eligible to make additional catch-up contributions during this time. Contact your financial services organization for more details.

Comparison of Investment Options for
the Connecticut 403(b) Program

Performances and Expenses as of September 30, 2003

Asset transfer provision for transfer of assets from other carrier: none

The Fidelity Capital & Income, Mid-Cap Stock, Low-Priced Stock, Small Cap Stock and Diversified International funds may charge a short-term trading fee.

The Low-Priced Stock fund charges 1.50% on shares held less than 90 days, the Small Cap Stock fund charges 2.00% on shares held less than 90 days and the Diversified International fund charges 1.00% on shares held less than 30 days.

* In accordance with the requirements of the operating provisions of the 403(b) Program, Fidelity Investments will deduct a quarterly fee to all accounts on file beginning fourth quarter 2002. The purpose of this fee is to pay expenses associated with the 403(b) Program's limited scope third party administrator.

** FMR Co. has voluntarily agreed to reimburse shareholders a portion of the funds' management fee. This agreement can be terminated at any time. Without this reimbursement, each fund's yield would have been lower.

Although the information contained above has been carefully verified, its accuracy cannot be guaranteed. All numbers are unaudited.

Asset transfer provision for transfer of assets from other carrier: lesser of 2% or actual deferred sales charge/surrender charge

* The Declared Rate is credited through the close of the calendar year on contributions received during the designated calendar quarter. The rate for the 4th quarter, 2003, is 4.15%. For contributions received prior to January 1, 2003, the Declared Rate is 4.15%. Rates quoted are effective annual yields.

Asset transfer provision for transfer of assets from other carrier: none

* In accordance with the requirements of the operating provisions of the 403(b) Program, TIAA-CREF will assess a fee for each active account on a monthly basis beginning December 2002. The purpose of this fee is to pay expenses associated with the 403(b) Program's limited scope third party administrator.

** Rates for the TIAA Traditional Annuity are quoted after all operation charges have been deducted. These charges are very low, averaging about 1/3 of 1% of assets. New contributions applied to the TIAA Traditional Annuity under a Group Supplemental Retirement Annuity (GSRA) contract during the period from October 1, 2003 through December 31, 2003 will be credited with an interest rate of 3.25%.

*** TIAA Real Estate Account and the NCREIF Index returns are presented one quarter in arrears due to a lag in the availability of the benchmark return.

Asset transfer provision for transfer of assets from other carrier: none

* M&E expenses are expected to decrease as the level of total 403(b) assets increase under the State contract.

** The interest rate varies monthly. For October 2003, the rate is 4.45%. The rate is guaranteed to be no less than 4.45% through December 31, 2003.

No annual maintenance fee.

Asset transfer provision for transfer of assets from other carrier: none

* Premium payments will be credited with the effective interest rate established for the date each payment is received. The current rate as of September 30, 2003, is 3.2%. The effective rate reflects the effects of daily compounding of interest. The minimum annual effective rate guarantee is 3.00%.

Asset transfer provision for transfer of assets from other carrier: lesser of 2% or actual deferred sales charge/surrender charge

* Interest rate varies quarterly. The rate for the third quarter of 2003 is 3.40%.

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