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The Vermont Statutes Online
Title
03
:
Executive
Chapter
016
:
VERMONT EMPLOYEES RETIREMENT SYSTEM
Subchapter
001
:
GENERALLY
§
479. Group insurance
(a) As provided
under section 631 of this title, a member who is insured by the respective
group insurance plans immediately preceding the member's effective date of
retirement shall be entitled to continuation of group insurance as follows:
(1)(A) coverage
in the group medical benefit plan provided by the State of Vermont for active
State employees; or
(B) for a group
F plan member first included in the membership of the system on or after July
1, 2008, coverage in the group medical benefit plan offered by the State of
Vermont for active State employees and pursuant to the following, provided:
(i) a member who
has completed five years and less than 10 years of creditable service at his or
her retirement shall pay the full cost of the premium;
(ii) a member
who has completed 10 years and less than 15 years of creditable service at his
or her retirement shall pay 60 percent of the cost of the premium;
(iii) a member
who has completed 15 years and less than 20 years of creditable service at his
or her retirement shall pay 40 percent of the cost of the premium;
(iv) a member
who has completed 20 years or more of creditable service at his or her
retirement shall pay 20 percent of the cost of the premium; and
(2) members who
have completed 20 years of creditable service at their effective date of
retirement shall be entitled to the continuation of life insurance in the
amount of $10,000.00.
(b) As of July
1, 2007, members of the group C plan who separate from service prior to being
eligible for retirement benefits under this chapter, who have at least 20 years
of creditable service, and who participated in the group medical benefit plan
at the time of separation from service shall have a one-time option at the time
retirement benefits commence to participate in the group medical benefit plan
provided by the State of Vermont for active State employees. Premiums for the
plan shall be prorated between the retired member and the Retirement System
pursuant to section 631 of this title.
(c) Premiums for
coverage of retired members of the group C plan and their dependents in the
group medical benefit plan shall be prorated on the same basis as is provided
for active employees by the current collective bargaining agreement for the
nonmanagement unit. The amounts designated as the State's share of premium for
the medical benefit plan and the total premium for group life insurance
provided under subdivision (a)(2) of this section shall be paid by the Fund as
an operating expense in accordance with subsection 473(d) of this title.
(d) After
January 1, 2007, the State Treasurer may offer and administer a dental benefit
plan for retired members, beneficiaries, eligible dependents, and eligible
retirees of special affiliated groups and the dependents of members of those
groups who are eligible for coverage in the State Employee Group Medical
Benefit Plan. The Plan shall be separate and apart from any dental benefit plan
offered to Vermont State employees. The original plan of benefits, and any
changes thereto, shall be determined by the State Treasurer with due
consideration of recommendations from the Retired Employees' Committee on
Insurance established in section 636 of this title.
(1) For purposes
of dental benefits, "retired members" shall include retired employees
of the State who are receiving a retirement allowance from the Vermont State
Retirement System. In addition, "retired members" shall include
retired employees who are receiving a retirement allowance based upon their
employment with the Vermont State Employees' Association, the Vermont State
Employees' Credit Union, and the Vermont Council on the Arts, as long as they
were covered under a group dental plan as active employees on their retirement
date, and:
(A) they have at
least 20 years' service with that employer; or
(B) have
attained 62 years of age, and have at least 15 years' service with that
employer.
(2) One hundred
percent of the premiums for providing dental benefit coverage to retired
members, beneficiaries, and eligible dependents shall be paid in full by
retired members and beneficiaries and shall be deducted from each member's
retirement allowance each month. Nothing in this subdivision creates a legal
obligation on the part of the State to pay any portion of the premiums required
to provide dental benefit coverage to retired members, dependents,
beneficiaries, or other eligible participants.
(3) Dependent
eligibility shall be determined in the manner applied to determinations for
coverage in the State Employee Medical Benefit Plan.
(4) Repealed.]
(e) As of
January 1, 2007, and thereafter, upon retirement, members entitled to prorated
group medical benefit plan premium payments from the Retirement System under
the terms of this section shall have a one-time option to reduce the percentage
of premium payments from the Retirement System during the member's life, with
the provision that the Fund shall continue making an equal percentage of
premium payments after the member's death for the life of the dependent
beneficiary nominated by the member under section 468 of this title, should
such dependent beneficiary survive the member. The Retirement Board, after
consultation with its actuary, shall establish reduced premium payment
percentages that are as cost neutral to the Fund as possible.
(f) There is
created a medical account to be maintained under the Retirement System pursuant
to 26 U.S.C. § 401(h), which shall be used to pay for health and medical
benefits as the Board may arrange pursuant to this section. Contributions to
the account shall be reasonable and ascertainable. The medical account shall be
subordinate to the retirement benefits provided by the Retirement System. It
shall be impossible, at any time before satisfaction of all liabilities to
provide retiree medical benefits, for any part of the corpus or income of the
account to be used for, or diverted to, any purpose other than providing health
and medical benefits. All balances in the account at the end of the fiscal year
shall be carried forward, and interest earned shall remain in the account.
Notwithstanding the exclusive benefit rule of subsection 472a(b) of this title,
in the event of termination of the account on satisfaction of all liabilities
under the Plan to provide retiree medical benefits, any assets remaining in the
account shall be returned to the State of Vermont. The aggregate actual
contributions for medical benefits, when added to the actual contributions for
life insurance, if any, under the Plan, is limited to 25 percent of the total
actual contributions made to the Plan (other than contributions to fund past
service credits) after the date on which the Section 401(h) account is
established.
(g) A member of
the group F plan who is first included in the membership of the System on or
after July 1, 2008, who separates from service prior to being eligible for
retirement benefits under this chapter, who has at least 20 years of creditable
service, and who participated in the group medical benefit plan at the time of
separation from service shall have a one-time option at the time retirement
benefits commence to reinstate the same level of coverage, in the group medical
benefit plan provided by the State of Vermont for active State employees, that
existed at the date of separation from service. Premiums for the plan shall be
prorated between the retired member and the Retirement System pursuant to
subsection 479(a) of this title.
(h) For purposes
of entitlement to medical benefits in retirement, former county court employees
hired by the counties to court positions on or before June 30, 2008 who became
State employees on February 1, 2011 pursuant to 2010 Acts and Resolves No. 154
shall be deemed to have been first included in membership of the system on or
before June 30, 2008. (Added 1981, No. 249 (Adj. Sess.), § 30b, eff. July 4,
1982; amended 2003, No. 156 (Adj. Sess.), § 13; 2005, No. 163 (Adj. Sess.), §
3; 2005, No. 165 (Adj. Sess.), § 2; 2007, No. 12, § 2; 2007, No. 13, § 15a;
2007, No. 116 (Adj. Sess.), § 6; 2011, No.1, § 1, eff. Feb. 2, 2011; 2013, No.
22, § 5; 2015, No. 18, § 4.)