§459. Normal and early retirement

Link to law: http://legislature.vermont.gov/statutes/section/03/016/00459
Published: 2015

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Title

03

:
Executive






Chapter

016

:
VERMONT EMPLOYEES RETIREMENT SYSTEM






Subchapter

001
:
GENERALLY










 

§

459. Normal and early retirement

(a) Normal

retirement.

(1) Group A,

group D, and group F members. Any group A, group D, or group F member who has

reached his or her normal retirement date may retire on a normal retirement

allowance on the first day of any month after his or her separation from

service by filing an application in the manner outlined in subdivision (3) of

this subsection.

(2) Group C

members. Any group C member who is an officer or employee of the Department of

Public Safety assigned to police and law enforcement duties, including the

Commissioner of Public Safety appointed before July 1, 2000, and who has

reached his or her normal retirement date may retire on a normal retirement

allowance, on the first day of any month after he or she may have separated

from service, by filing an application in the manner outlined in subdivision

(3) of this subsection. Any group C member in service shall be retired on a

normal retirement allowance on the first day of the calendar month next

following attainment of age 55. Notwithstanding, it is provided that any such

member who is an official appointed for a term of years may remain in service

until the end of his or her term of office or any extension thereto, resulting

from reappointment.

(3) Where application

for a retirement allowance is required, the member shall apply in writing to

the Retirement Board not later than 90 days, or longer for cause shown, after

the date upon which the retirement allowance is to begin.

(4) [Repealed.]

(b) Normal

retirement allowance.

(1) Upon normal

retirement, a group A member shall receive a normal retirement allowance which

shall be equal to 50 percent of his or her average final compensation;

provided, however, that if the member has not completed 30 years of creditable

service at retirement, or, if earlier, the date of attainment of such age as

may be applicable under the provisions of subdivision (a)(4) of this section,

his or her allowance shall be multiplied by the ratio that the number of his or

her years of creditable service at retirement, or such earlier date, bears to

30.

(2) Upon normal

retirement, a group C member shall receive a normal retirement allowance which

shall be equal to 50 percent of his or her average final compensation;

provided, however, that if the member has not completed 20 years of creditable

service at retirement, or, if earlier, the date of attainment of such age as

may be applicable under the provisions of subdivision (a)(4) of this section,

the member's allowance shall be multiplied by the ratio that the number of his

or her years of creditable service at retirement, or such earlier date, bears

to 20.

(3)(A) Group D

members who are Justices of the Supreme Court, Superior judges, environmental

judges, and district judges; additional retirement allowance. Justices of the

Supreme Court, Superior judges, environmental judges, and district judges, upon

retirement under this section, shall receive an additional retirement allowance

according to years of service as a Supreme Court Justice, a Superior judge, an

environmental judge, or a district judge or any combination thereof as follows:

(i) After 12

years of service an additional retirement allowance of an amount which,

together with service retirement allowance, will make the total equal to two-fifths

of their salary at retirement.

(ii) For each

year of service in excess of 12 years an amount equal to 3 1/3 percent of their

salary at retirement shall be added to the retirement allowance as computed in

subsection (a) of this section. However, at no time shall the total retirement

allowance exceed their salary at retirement. Such additional retirement

allowance shall be treated as the normal retirement allowance for all purposes

of the retirement act.

(B) In order to

qualify for the benefits provided by this title each justice or judge shall

have the maximum employee contribution in accordance with the requirements of

the State Employees' Retirement System. These provisions shall apply to

surviving justices and judges retired before its enactment, but only from the

effective date of its enactment, and not retroactively.

(C) For the

purposes of this section, years of service as a municipal judge are to be

counted as years of service in determining the additional retirement allowance,

insofar as they represent years of membership service.

(4) Group D

members who are probate judges; additional retirement allowance. Probate

judges, having retired under this section, shall be entitled to an additional

retirement allowance according to their years in service as follows:

(A) Upon

completion of 12 years of service an amount which with service retirement

allowance will equal two-fifths of the salary at retirement.

(B) For each

additional year of service, an amount equal to three and one-third percent of

the salary at retirement shall be added to the retirement allowance as computed

in subsection (a) of this section. Such additional retirement allowance shall

be treated as the normal retirement allowance for all purposes of the

retirement act.

(5)(A) Until

January 1, 1995, upon normal retirement, a group F member shall receive a

normal retirement allowance which shall be equal to 1 1/4 percent of his or her

average final compensation times years of creditable service. On and after

January 1, 1995, upon normal retirement, a group F member shall receive a

normal retirement allowance equal to 1 1/4 percent of the member's average

final compensation times years of membership service prior to January 1, 1991

plus a pension which when added to an annuity shall be equal to 1 2/3 percent

of the member's average final compensation times years of membership service on

and after January 1, 1991. The maximum retirement allowance shall be 50 percent

of average final compensation.

(B) A group F

member first included in the membership of the system on or after July 1, 2008,

upon normal retirement, shall receive a normal retirement allowance equal to 1

2/3 percent of the member's average final compensation times years of

membership service. The maximum retirement allowance shall be 60 percent of

average final compensation.

(c) Early

retirement.

(1) Group A and

group D members. Any group A or group D member who has not reached his or her

normal retirement date but who has completed 30 years of creditable service or

who has attained age 55 and completed five years of such service, may retire on

an early retirement allowance.

(2) Group C

members. Any group C member who has not reached his or her normal retirement

date but who has attained age 50 and completed 20 years of creditable service

may retire on an early retirement allowance.

(3) Group F

members. Any group F member who has not attained age 62 but who has attained

age 55 and has completed five years, but less than 30 years, of creditable

service may retire on an early retirement allowance.

(d) Early

retirement allowance.

(1) Upon early

retirement, a group A member, except facility employees in the Department of

Corrections, shall receive an early retirement allowance which shall be the

actuarial equivalent of the normal retirement allowance computed under

subsection (b) of this section, based on the average final compensation and

years of creditable service at the date of early retirement. However, if a

group A member has completed 30 years of creditable service but has not reached

normal retirement date, the early retirement allowance shall be equal to the

normal retirement allowance computed under subsection (b) of this section.

Group A members who have 20 years of service as facility employees in the

Department of Corrections shall receive an early retirement allowance which

shall be equal to the normal retirement allowance at age 55 without reduction.

(2)(A) Upon

early retirement, a group F member, except facility employees of the Department

of Corrections, Department of Corrections employees who provide direct security

and treatment services to offenders under supervision in the community, and

Woodside facility employees, shall receive an early retirement allowance which

shall be equal to the normal retirement allowance reduced by one-half of one

percent for each month the member is under age 62 at the time of early

retirement. Group F members who have 20 years of service as facility employees

of the Department of Corrections, as Department of Corrections employees who provide

direct security and treatment services to offenders under supervision in the

community, or as Woodside facility employees, or as Vermont State Hospital

employees, or as employees of its successor in interest, who provide direct

patient care shall receive an early retirement allowance which shall be equal

to the normal retirement allowance at age 55 without reduction; provided the 20

years of service occurred in one or more of the following capacities as an

employee of the Department of Corrections, Woodside facility, or the Vermont

State Hospital, or its successor in interest: facility employee, community

service center employee, or court and reparative service unit employee.

(B) Upon early

retirement, a group F member first included in the membership of the system on

or after July 1, 2008, except facility employees of the Department of

Corrections and Department of Corrections employees who provide direct security

and treatment services to offenders under supervision in the community, and

Woodside facility employees, shall receive an early retirement allowance which

shall be equal to the normal retirement allowance reduced by:

(i) one-eighth

of one percent for each month the member is under age 65, provided the member

has accrued 35 years of service at the time of early retirement;

(ii) one-quarter

of one percent for each month the member is under age 65, provided the member

has accrued 30 years of service but less than 35 years of service at the time

of early retirement;

(iii) one-third

of one percent for each month the member is under age 65, provided the member

has accrued 25 years of service but less than 30 years of service at the time

of early retirement;

(iv)

five-twelfths of one percent for each month the member is under age 65,

provided the member has accrued 20 years of service but less than 25 years of

service at the time of early retirement;

(v) five-ninths

of one percent for each month the member is under age 65, provided the member

has accrued less than 20 years of service at the time of early retirement.

(3) Upon early

retirement, a group D member shall receive an early retirement allowance which

shall be equal to the normal retirement allowance reduced by one-quarter of one

percent for each month the member is under age 62 at the time of early

retirement.

(4)

Notwithstanding subdivisions (1) and (2) of this subsection, an employee of the

Department of Fish and Wildlife assigned to law enforcement duties, an employee

of the Military Department assigned to airport firefighting duties, or a group

C member shall, upon early retirement, receive an early retirement allowance

which shall be equal to his or her normal retirement allowance computed under

subsection (b) of this section.

(5)

Notwithstanding subdivisions (1) and (2) of this subsection, a State's

Attorney, the Defender General, or sheriff who has completed 20 years of

creditable service, of which 15 years has been as a State's Attorney, the

Defender General, or sheriff, shall receive an early retirement allowance equal

to the normal retirement allowance, at age 55, without reductions.

(e) Any member

who retires before age 62 may, at any time prior to the date the first payment

on account of his or her retirement allowance becomes normally due, elect to

convert the retirement allowance otherwise payable after retirement into an

increased retirement allowance that is its actuarial equivalent and is of such

amount that, with his or her Social Security payment at age 62, the member will

receive, so far as possible, the same amount each year before and after such

Social Security payment commences.

(f) Beginning

July 1, 1989, the normal retirement allowance for group A members shall be not

less than the larger of $3,000.00 a year or 50 percent of his or her average

final compensation for any member or beneficiary who has completed 30 years or

more of creditable service, nor less than a proportionate amount thereof for

any member or beneficiary who has completed less than 30 years of creditable

service. Beginning March 1, 1998, the service retirement allowance shall be not

less than the larger of $4,200.00 a year or 50 percent of the member's average

final compensation for any member or beneficiary who has completed 30 years or

more of creditable service, nor less than a proportionate amount thereof for

any member or beneficiary who has completed at least five years, but less than

30 years, of creditable service. Beginning September 1, 2006, the service

retirement allowance shall be not less than the larger of $6,600.00 per year or

50 percent of the member's average final compensation for any member or

beneficiary who has completed 30 years or more of creditable service, nor less

than a proportionate amount thereof for any member or beneficiary who has

completed at least five years, but less than 30 years, of creditable service.

Beginning September 1, 2011, and on September 1 of every fifth year thereafter,

the minimum service retirement allowance shall be increased by $1,000.00.

(Added 1971, No. 231 (Adj. Sess.), § 4; amended 1975, No. 196 (Adj. Sess.), §

16, eff. July 1, 1976, § 18, eff. March 27, 1976; 1977, No. 80, § 1; 1977, No.

153 (Adj. Sess.), §§ 4, 5, eff. March 28, 1978; 1981, No. 41, §§ 6-9; 1985, No.

156 (Adj. Sess.); 1987, No. 183 (Adj. Sess.), § 26a, eff. Jan. 1, 1989; 1989,

No. 78, §§ 4, 6, 11; 1989, No. 169 (Adj. Sess.), §§ 13, 14; 1989, No. 277 (Adj.

Sess.), §§ 17i-17 l, eff. Jan. 1, 1991; 1991, No. 64, § 1, eff. June 18, 1991;

1991, No. 189 (Adj. Sess.), § 13, eff. May 19, 1992; 1997, No. 68 (Adj. Sess.),

§ 2, eff. March 1, 1998; 1997, No. 89 (Adj. Sess.), § 5; 1997, No. 152 (Adj.

Sess.), § 8; 1999, No. 53, §§ 1, 2; 1999, No. 158 (Adj. Sess.), § 21; 2001, No.

57, § 2; 2001, No. 116 (Adj. Sess.), § 5a, eff. May 28, 2002; 2003, No. 115

(Adj. Sess.), § 2; 2005, No. 163 (Adj. Sess.), § 1; 2007, No. 47, § 14; 2007,

No. 116 (Adj. Sess.), § 2; 2007, No. 146 (Adj. Sess.), § 1; 2011, No. 79 (Adj.

Sess.), § 12, eff. April 4, 2012; 2013, No. 22, § 2; 2013, No. 49, § 1; 2015,

No. 58, § E.203.3.)
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