§ 1937 - Service retirement - Vermont Statutes

§ 1937. Service retirement

(a) Upon written application to the board not later than 90 days, or longer for good cause shown, after the date upon which the retirement allowance is to begin, any group A member may retire on a service retirement allowance on the first day of the calendar month next following the member's separation from service, provided that the member shall have attained age 60, and following completion of five years of creditable service for those members hired on or after July 1, 2004, or have completed 30 years of creditable service at the date of the member's retirement. Upon written application to the board not later than 90 days, or longer for good cause shown, after the date upon which the retirement allowance is to begin, any group C member may retire on a service retirement allowance on the first day of the calendar month next following the member's separation from service, provided that such member shall have attained age 62, and following completion of five years of creditable service for those members who are hired on or after July 1, 2004, or have completed 30 years of creditable service at the date of the member's retirement.

(b) Upon service retirement, a group A member shall receive a service retirement allowance which shall consist of:

(1) An annuity which shall be the actuarial equivalent of the member's accumulated contributions at the time of retirement except as subdivisions 1937(b)(4) and 1944(b)(2) of this title increase the annuity;

(2) A pension which shall be equal to one-one hundred and twentieth of the member's average final compensation multiplied by the number of years of the member's membership service; and

(3) If any member or beneficiary has a prior service certificate in full force and effect, an additional pension which shall be equal to one-sixtieth of the member's average final compensation not less than $2,600.00 multiplied by the number of years of the member's prior service not exceeding the number of years which, when added to the member's years of membership service, shall equal 30 years; provided, however, no member of the existing system shall receive a retirement allowance of less than the member would have received under the existing system.

(4) Beginning July 1, 1989, the service retirement allowance shall be not less than the larger of $4,550.00 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 less than 30 years of creditable service. Beginning March 1, 1998, the service retirement allowance shall be not less than the larger of $6,600.00 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. For this purpose, any annuity derived from the member's contributions transferred from the existing system under subsection 1934(c) of this title and from additional contributions made under subdivisions 1944(b)(5) and (6) of this title shall not be included as part of the retirement allowance. Beginning September 1, 2006, the service retirement allowance shall be not less than the larger of $9,000.00 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.

(c) Upon service retirement, a group C member shall receive a service retirement allowance equal to 1-1/4 percent of the member's average final compensation times years of membership service prior to July 1, 1990 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 July 1, 1990. The maximum retirement allowance shall be 50 percent of average final compensation.

(d) Upon written application to the board, any group A member who has not attained age 60 but who has attained age 55 may retire on an early retirement allowance on the first day of the calendar month next following the filing of the application or the member's separation from service, whichever date is later, provided that the applicant has notified the superintendent of schools in writing 30 calendar days prior to the effective date of the application.

(e) Upon early retirement a group A member shall receive an early retirement allowance which shall be the actuarial equivalent of

(1) A normal retirement allowance payable at normal retirement date, based on the member's average final compensation at early retirement and the number of years of creditable service the member would have completed had the member remained in service to the member's normal retirement date, multiplied by

(2) The ratio that the number of the member's years of creditable service at early retirement bear to the number of years of such service the member would have completed had the member remained in service to the member's normal retirement date.

(f) Upon written application to the board, any group C member who has not attained age 62 but who has attained age 55 and has completed five years, but less than 30 years, of membership service may retire on an early retirement allowance on the first day of the calendar month next following the filing of the application or the member's separation from service, whichever date is later, provided that the applicant has notified the superintendent of schools in writing 30 calendar days prior to the effective date of the application.

(g) Upon early retirement, a group C member shall receive an early retirement allowance equal to the service retirement allowance reduced by one-half of one percent for each month the member is under age 62 at the time of early retirement.

(h) Any member who retires prior to age 62 may, at any time prior to the date the first payment on account of the member's retirement allowance normally becomes due, elect to convert the retirement allowance otherwise payable to the member after retirement into a reduced retirement allowance that is its actuarial equivalent and is of such amount that, with the member's primary insurance amount under Title II of the Social Security Act, the member will receive, so far as possible, the same amount each year before and after such primary insurance amount commences.

(i) When a member has a minimum of 25 years of creditable service, he or she may elect to purchase up to five years of additional service credit. A member who makes an election under this subsection shall deposit in the fund by a single contribution, an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to 1-2/3 percent of the member's average final compensation multiplied by the number of years purchased. If through a negotiated agreement or binding contract, a school district or supervisory union is required to purchase the whole or part of the additional years of service credit necessary to enable the member to take normal retirement, the school district or supervisory union may deposit a single contribution into the fund or make the contribution in four equal annual payments on dates established by the state treasurer. If a school district or supervisory union elects to make the contribution in four equal annual payments it shall, in addition, pay interest at the actuarially assumed interest rate at the time of each annual payment. Any payment not received within 30 days of the date it is due shall be considered delinquent and the delinquent payment and interest may be recovered by action in a court of competent jurisdiction against the school district or supervisory union liable therefor or may be deducted by the state treasurer from any other monies payable to such school district or supervisory union by the state or any department or agency thereof. (Amended 1959, No. 72, §§ 1, 2, eff. April 1, 1959; 1961, No. 85, § 1; 1963, No. 182, § 1; 1967, No. 172, § 1; 1969, No. 72; 1971, No. 201 (Adj. Sess.), §§ 1, 3; 1973, No. 5; 1973, No. 141 (Adj. Sess.), § 2; 1977, No. 38; 1981, No. 41, § 25; 1989, No. 78, § 5; 1989, No. 169 (Adj. Sess.), § 4; 1993, No. 33, § 2; 1997, No. 68 (Adj. Sess.), § 1, eff. March 1, 1998; 1999, No. 158 (Adj. Sess.), §§ 3, 8; 2003, No. 122 (Adj. Sess.), § 297e; 2005, No. 163 (Adj. Sess.), § 6; 2007, No. 13, § 27.)