Peach State Reserves news, 1st quarter, Jan.-Mar. 2006

Peach State Reserves News
1st QUARTER, JANUARY - MARCH 2006
Quarterly Account Statement
Enclosed is your Quarterly Account Statement covering investment activity in Peach State Reserves The Georgia Retirement Investment Plan. This statement is for the period of January 1, 2006 through March 31, 2006. If you have any questions, contact Great-West between 9:00 a.m. and 7:00 p.m., Monday through Friday, at 1-800-701-8255. Also enclosed is the Investment Options at a Glance, showing comparative performances of the investment options.
Fixed Income Option Quarterly Range of Return
For the current quarter ending June 30, 2006, the projected range of return for the Fixed Income Option is expected to be between 4.5% and 5.5% annualized until the end of the quarter. The return may be higher or lower. There is no guarantee that the fund will earn a yield within this range. The actual annualized rate of return for the Fixed Income Option for the quarter ending March 31, 2006 was 4.78%

Contribute As Much As You Can Now For A Financially Rewarding Retirement
Deciding how much to invest towards your retirement is an individual decision based on your unique goals, resources and time frame. Remember, the earlier you start and the more you save and invest now, the bigger your retirement nest egg can be. Visit our website at www.ersga.org and access the Ballpark Estimate to easily calculate your retirement savings needs.
Your contributions may not exceed the yearly maximum set by the IRS. You can enroll in both the 401(k) and 457 Plans, deferring the maximum amount to each plan. If you are age 50 or older and contribute the maximum amount allowable to the Plan, you may contribute an additional contribution up to the annual IRS limit.
The table below can help you determine how much to save each month to try to reach your savings goal.

Annual Salary

2%

$ 20,000

$ 33

$ 25,000

$ 42

$ 30,000

$ 50

$ 35,000

$ 58

$ 40,000

$ 67

$ 45,000

$ 75

$ 50,000

$ 83

5% $ 83 $ 104 $ 125 $ 146 $ 167 $ 188 $ 208

10% $ 167 $ 208 $ 250 $ 292 $ 333 $ 375 $ 417

15% $ 250 $ 313 $ 375 $ 438 $ 500 $ 563 $ 625

20% $ 333 $ 417 $ 500 $583 $ 667 $750 $833

25% $ 417 $ 521 $ 625 $ 729 $ 833 $ 938 $ 1,042

The ability to transfer (rollover) assets between retirement plans is one of the many new benefits that came about as a result of changes in tax law. Many retirement planners and financial organizations are actively encouraging participants to roll their Peach State Reserves assets to their company or plan. Perhaps you have received this type of solicitation. We believe that for many participants, staying in Peach State Reserves is the best course of action. However, we encourage you to make your own assessment by obtaining answers to many important questions and, if necessary, by verifying information with a third party who does not stand to benefit from your decision. Below are some questions you may want to ask.
You can also compare administrative costs and fees using a cost-comparison worksheet available on our website at www.ersga.org. Look in the Peach State Reserves News section to download or access the worksheets.
We appreciate your participation in Peach State Reserves and look forward to your continued progress toward your retirement savings goals.
Questions you may want to ask before transferring your assets:
Will I be subject to a 10% penalty tax before age 59 if I take a withdrawal from the new plan?
Will the prospective plan provider allow me to change my benefit payment option at any time without cost?

Can I make transfers between the investment options? Is there a charge for such transfers?
Does the prospective plan provider charge an annual maintenance fee? Are there hidden costs?
Will I pay an asset-based fee to the prospective plan provider for the management of my account? Are there transaction costs?
What are the operating expense ratios of the mutual funds I will be investing in?
If you are eligible to receive payments, there are many excellent reasons to maintain your Peach State Reserves account, including:
Flexibility to change the timing and amount of your payments (at no cost). Ability to consolidate other retirement plans into Peach State Reserves by rolling those assets into the plan. No penalties for withdrawals prior to the age of 59 (457 Plan only). Continued tax-deferred growth of your plan assets. Ability to transfer assets among the core investment options, with no restrictions or trading fees. No "surrender" charges if you decide to withdraw any or all of your assets from the Plan now or at a later date. Availability of a Self-Directed Brokerage Option with access to thousands of mutual funds, as well as individual securities (currently $60 annual fee, trading fees may apply).

Self-Directed Brokerage Transition
For participants in the Self-Directed Brokerage (SDB), the transition from Harrisdirect to Ameritrade was completed on March 17th. Your statement reflects this transaction. If you have any questions regarding your new Ameritrade account, please contact Ameritrade directly at 1-866-766-4015.
Peach State Reserves - Two Northside 75 - Atlanta, GA 30318-7778 www.ersga.org