§ 459 — Normal and early retirement

Vermont § 459

• Jurisdiction: Vermont
• Title 3: Title 3: Executive
• Ch. 16: Chapter 016: Vermont Employees' Retirement System

Text

(a) Normal retirement.
(1) Group A, Group D, Group F, and Group G members. Any Group A, Group D, Group F, or Group G member who has reached the member’s normal retirement date may retire on a normal retirement allowance on the first day of any month after the member’s 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 the member 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 57 years of age. 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 the member’s 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(4) [Repealed.]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 that shall be equal to 50 percent of the member’s 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, the member’s allowance shall be multiplied by the ratio that the number of the member’s years of creditable service at retirement, or such earlier date, bears to 30.
(2)(A) Upon normal retirement, a Group C member shall receive a normal retirement allowance that shall be equal to 50 percent of the member’s 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 the member’s years of creditable service at retirement, or such earlier date, bears to 20.
(B) For a Group C member, for each year of service that is completed on or after July 1, 2022 after attaining the later of 50 years of age or completing 20 years of service, a member’s maximum normal retirement allowance shall increase by an amount equal to one and one-half percent of the member’s average final compensation.
(3)(A) Group D members, upon normal retirement, shall receive a normal retirement allowance equal to one and two-thirds percent of the member’s average final compensation times the years of Group D membership service up to 12 years. Group D members shall receive an additional retirement allowance according to years of service as a Supreme Court Justice, a Superior judge, an Environmental judge, a District judge, or a Probate judge, or any combination thereof, as follows:
(i) After 12 years of service, an additional retirement allowance of an amount that, together with the normal service retirement allowance for the first 12 years, will make the total equal to two-fifths of their average final compensation.
(ii) For each year of service in excess of 12 years, an amount equal to three and one-third percent of their average final compensation shall be added to the retirement allowance as computed in subdivision (i) of this subdivision (3)(A). However, at no time shall the total retirement allowance exceed their salary at retirement. In addition to the normal retirement allowance, such additional retirement allowance shall be treated as the normal retirement allowance.
(B) The total retirement allowance for Group D members shall be as follows:
(i) For a Group D member who retires on or before June 30, 2022, the total retirement allowance shall not exceed the member’s salary at retirement.
(ii) For a Group D member who, on or before June 30, 2022, has five years or more of service as a Supreme Court Justice, a Superior judge, an Environmental judge, a District judge, or a Probate judge, or any combination thereof, and has attained 57 years of age or older, or is a Group D member on or before June 30, 2022 and has 15 years or more of creditable service, the total retirement allowance shall not exceed the member’s salary at retirement.
(iii) For a Group D member who retires on or after July 1, 2022, and who does not meet the requirements set forth in subdivision (i) or (ii) of this subdivision (3)(B), the member’s total retirement allowance shall not exceed 80 percent of the member’s average final compensation.
(C) [Repealed.]
(4) [Repealed.]
(5)(A) Until January 1, 1995, upon normal retirement, a Group F member shall receive a normal retirement allowance that shall be equal to 1¼ 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 1¼ percent of the member’s average final compensation times years of membership service prior to January 1, 1991 plus a pension that when added to an annuity shall be equal to 1⅔ 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 1⅔ 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.
(6)(A) Upon normal retirement pursuant to subdivisions 455(a)(13)(E)(i), (iii), (iv), and (vi) of this chapter, a Group G member shall receive a normal retirement allowance equal to two and one-half of a percent of the member’s average final compensation times years of membership service in Group G. The maximum retirement allowance shall be 50 percent of average final compensation.
(B) Upon normal retirement pursuant to subdivisions 455(a)(13)(E)(ii) and (v) of this chapter, a Group G member shall receive a normal retirement allowance equal to two and one-half of a percent of the member’s average final compensation times years of membership service in Group G. 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.
(4) Group G members. Any Group G member who has attained 55 years of age and has completed five 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 that 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 that 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 that 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 that 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 that 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 that shall be equal to the normal retirement allowance reduced by one-quarter of one percent for each month the member is under the member’s normal retirement date at the time of early retirement.
(4)(A) Upon early retirement, a Group G member who was previously a Group F member first included in the membership of the System on or before June 30, 2008, and who elected to transfer into Group G pursuant to the terms set by the Board, shall receive an early retirement allowance that shall be equal to the normal retirement allowance reduced by the lesser of (i) one-half of one percent for each month equal to the difference between the 240 months and the member’s months of creditable service, or (ii) an amount that shall be the actuarial equivalent of the normal retirement allowance computed under subsection (b) of this section.
(B) Upon early retirement, a Group G member who was previously a Group F member first included in the membership of the System on or after July 1, 2008, and who elected to transfer into Group G pursuant to the terms set by the Board, shall receive an early retirement allowance that shall be equal to the normal retirement allowance reduced by the lesser of five-ninths of one percent for each month equal to the difference between the 240 months and the member’s months of creditable service; or
(C) Upon early retirement, all Group G members other than those specified in subdivision (A) of this subdivision (d)(4) shall receive an early retirement allowance that shall be equal to the normal retirement allowance reduced by an amount that shall be the actuarial equivalent of the normal retirement allowance computed under subsection (b) of this section.
(5) 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 that shall be equal to the normal retirement allowance computed under subsection (b) of this section.
(6) 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 55 years of age, 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-17l, 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; 2021, No. 114 (Adj. Sess.), § 5, eff. July 1, 2022; 2023, No. 130 (Adj. Sess.), § 2, eff. July 1, 2024.)