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H.887

Introduced by   Committee on Government Operations

Date:

Subject:  Executive branch; state employees; retirement; defined contribution; group D

Statement of purpose:  This bill proposes to allow state employees who are appointed to a position which is eligible for participation in the group D plan of the Vermont state retirement system to revoke their participation in the defined contribution retirement plan.

AN ACT RELATING TO GROUP D PARTICIPATION IN THE STATE EMPLOYEES’ DEFINED CONTRIBUTION PLAN

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

Sec. 1.  3 V.S.A. § 500(d) is amended to read:

(d)  Election to participate in the defined contribution retirement plan is irrevocable, unless:

(1)  the employee becomes a classified employee and elects to transfer his or her membership and the full actuarial value of the accrued benefit calculated on a cost neutral basis to the Vermont state retirement system; or

(2)  the employee is appointed to a position that is eligible for membership in the group D plan.  Within 60 days of appointment, the employee may choose to participate in the group D plan and cease participation in the defined contribution plan.  Upon an election to participate in the group D plan, the state treasurer shall apply the funds accumulated in the employee’s defined contribution account toward purchasing retirement credit in the group D plan by first applying the funds toward purchasing any group D eligible credit earned from the date of the judicial appointment and then applying the funds toward purchasing credit in the retirement group plan or plans for which the employee would have formerly been eligible.

Sec. 2.  TRANSITIONAL PROVISIONS

An employee who was a member of the defined contribution plan and who was appointed to a group D eligible position after becoming a member of the defined contribution plan may, within 60 days of the effective date of this act, elect to become a member of the group D plan.  The state treasurer shall apply the funds accumulated in the employee’s defined contribution account toward purchasing retirement credit in the group D plan by first applying the funds toward purchasing any group D eligible credit earned from the date of the judicial appointment and then applying the funds toward purchasing credit in the retirement group plan or plans for which the employee would have formerly been eligible.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us