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The Vermont Statutes Online
Title
03
:
Executive
Chapter
016
:
VERMONT EMPLOYEES RETIREMENT SYSTEM
Subchapter
002
:
EMPLOYEES OF POLITICAL SUBDIVISIONS
§
490. Default; paid up deferred annuity
The agreement of
any employer to contribute on account of its employees shall be irrevocable,
but should any employer for any reason become financially unable to make the
contributions on account of its employees as provided in this subchapter, then
such employer shall be deemed to be in default. All members of the Vermont
state retirement system who were employed by such employer at the time of
default shall thereupon be entitled to discontinue membership in such retirement
system and to a refund of their previous contributions upon demand made within
90 days thereafter. As of a date 90 days following the date of such default,
the actuary of the Vermont state retirement system shall determine by actuarial
valuation the amount of the reserve held on account of each remaining active
member and beneficiary of such employer and shall credit to each such member
and beneficiary the amount of the reserve so held. The reserve so credited,
together with the amount of the accumulated contributions of each such active
member, shall be used to provide for him or her a paid up deferred annuity
beginning at age 65, and the reserve of each beneficiary shall be used in
providing such part of his or her existing pension as the reserve so held will
provide, which pension, together with his or her annuity, shall thereafter be
payable to him or her. The rights and privileges of both active members and
beneficiaries of such employer shall thereupon terminate, except as to payment
of the deferred annuities so provided and the annuities and pensions, or parts
thereof, provided for the beneficiaries. (Added 1971, No. 231 (Adj. Sess.), §
4.)