§490. Default; paid up deferred annuity

Link to law: http://legislature.vermont.gov/statutes/section/03/016/00490
Published: 2015

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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.)
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