This comfort may come in the form of increased buying power, ability to pay for children's educational expenses, or security in retirement. U.S. Savings Bonds can help with all of these situations because they can be cashed for short-term or intermediate needs or can be held for the long term until retirement. U.S. Savings Bonds earn a market-based interest rate, and there is no ceiling on their return.
Bonds also are exempt from state and local income taxes.
Federal income taxes are deferrable until the bond is redeemed. For more information on purchasing savings bonds, please call Employee Benefits at 453-6668. The booklet contained information about several benefit and premium changes for Fiscal Year 2001, which began on July 1. One of the most significant changes is in the amount that employees pay for health coverage. While the state pays most of the health insurance premiums, employees also pay a portion.