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H.238

Introduced by   Committee on Government Operations

Date:

Subject:  Executive branch; state employees; retired state employees; education; teachers; retired teachers; minimum service retirement allowance  

Statement of purpose:  This bill proposes to increase the minimum service retirement allowance for state employees and teachers who have served or taught for 30 consecutive years.

AN ACT RELATING TO MINIMUM SERVICE RETIREMENT ALLOWANCE FOR STATE EMPLOYEES AND TEACHERS

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  3 V.S.A. § 459(f) is amended to read:

(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 July 1, 2005, the service retirement allowance shall be not less than the larger of $6,200.00 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.

Sec. 2.  16 V.S.A. § 1937(b)(4) is amended to read:

(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 section subsection 1934(c) of this title and from additional contributions made under section subdivisions 1944(b)(5) and (6) of this title shall not be included as part of the retirement allowance.  Beginning July 1, 2005, the service retirement allowance shall be not less than the larger of $8,600.00 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.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us