Vermont H 448: An act relating to miscellaneous amendments to the Vermont State Employees’ Retirement System

Bill Text

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VT LEG #380858 v.1
H.448 1
Introduced by Representatives Morris of Springfield, Cina of Burlington, 2
Galfetti of Barre Town, Goslant of Northfield, Greer of 3
Bennington, Hooper of Randolph, Krasnow of South 4
Burlington, Logan of Burlington, Minier of South Burlington, 5
and Oliver of Sheldon 6
Referred to Committee on 7
Date: 8
Subject: Executive; retirement; Vermont State Employees’ Retirement System 9
Statement of purpose of bill as introduced: This bill proposes to amend the 10
membership, normal retirement allowance, and contribution rates for Group G 11
in the Vermont State Employees’ Retirement System. This bill also proposes 12
to allow a member of the State Employees’ Retirement System to earn 13
creditable service for employment in a temporary or seasonal position with the 14
State and expands the circumstances where a member may receive creditable 15
service for prior military service without the need to make contributions. In 16
addition, this bill proposes to create a statutory contractual right for members 17
of the State Employees’ Retirement System. 18
An act relating to miscellaneous amendments to the Vermont State 19
Employees’ Retirement System 20

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VT LEG #380858 v.1
It is hereby enacted by the General Assembly of the State of Vermont: 1
Sec. 1. 3 V.S.A. § 455 is amended to read: 2
§ 455. DEFINITIONS 3
(a) As used in this subchapter: 4
* * * 5
(4) “Average final compensation” shall mean: 6
* * * 7
(E) For Group A, C, F, or G members who retire on or after July 1, 8
2012, an increase in compensable hours in any year used to calculate average 9
final compensation that exceeds 120 percent of average compensable hours, 10
except for compensable hours resulting from mandatory overtime, shall be 11
excluded from that year when calculating average final compensation. 12
* * * 13
(11) “Member” means any employee included in the membership of the 14
Retirement System under section 457 of this title. 15
* * * 16
(F) “Group G member” means: 17
(i) the following employees who are first employed in the 18
positions listed in this subdivision (F)(i) on or after July 1, 2023, or who are 19
members of the System as of June 30, 2022 and make an irrevocable election 20
to prospectively join Group G on or before June 30, 2023, pursuant to the 21

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VT LEG #380858 v.1
terms set by the Board: facility employees of the Department of Corrections, as 1
Department of Corrections employees who provide direct security and 2
treatment services to offenders under supervision in the community, employees 3
of a facility for justice-involved youth, and employees of the Vermont 4
Psychiatric Care Hospital or its successor in interest, who provide direct 5
patient care, and classified employees of the public safety answering points, 6
the Family Services Division of the Department for Children and Families, the 7
Vermont Veterans’ Home, and the Department of State’s Attorneys and 8
Sheriffs; and 9
* * * 10
Sec. 2. 3 V.S.A. § 458 is amended to read: 11
§ 458. CREDITABLE SERVICE; MILITARY SERVICE 12
(a) With respect to service rendered prior to the date of membership, each 13
employee who, pursuant to subsection 457(a) of this title, became a member of 14
the retirement system shall have included as prior service hereunder all service 15
credited to him or her the employee as creditable service under the terms of 16
one or both of the predecessor systems, provided his or her the employee’s 17
membership continues unbroken until his or her the employee’s retirement. 18
* * * 19

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VT LEG #380858 v.1
(j) Credit shall also be granted for any member who, prior to becoming a 1
member of the System, was employed in a temporary or seasonal position for 2
the State as defined in section 331 of this title. 3
Sec. 3. 3 V.S.A. § 459 is amended to read: 4
§ 459. NORMAL AND EARLY RETIREMENT 5
* * * 6
(b) Normal retirement allowance. 7
* * * 8
(2)(A) Upon normal retirement, a Group C member shall receive a 9
normal retirement allowance that shall be equal to 50 percent of the member’s 10
average final compensation; provided, however, that if the member has not 11
completed 20 years of creditable service at retirement, or, if earlier, the date of 12
attainment of such age as may be applicable under the provisions of 13
subdivision (a)(4) of this section, the member’s allowance shall be multiplied 14
by the ratio that the number of the member’s years of creditable service at 15
retirement, or such earlier date, bears to 20. 16
(B) For a Group C member, for each year of service that is completed 17
on or after July 1, 2022 after attaining the later of 50 years of age or 18
completing 20 years of service, a member’s maximum normal retirement 19
allowance shall increase by an amount equal to one and one-half percent of the 20
member’s average final compensation. 21

BILL