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H.238

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

The Senate proposes to the House to amend the bill as follows:

First:  In Sec. 1, 3 V.S.A. § 459(f), by striking out “July 1, 2005” and inserting in lieu thereof September 1, 2006

Second:  In Sec. 1, 16 V.S.A. § 1937(b)(4), by striking out “July 1, 2005” and inserting in lieu thereof September 1, 2006

Third:  By adding Secs. 3 - 6 as follows:

Sec. 3.  3 V.S.A. § 477a(a) is amended to read:

(a)  Any member who has rendered 15 years of creditable service and who has, prior to becoming a member of the system, served a minimum of one full year of full-time service in the military or one full year of full-time service as a member of the Cadet Nurse Corps in World War II, the Peace Corps, or VISTA for which the member has derived no military pension benefits, may elect to have included in the member’s creditable service all or any part of the member’s military, Cadet Nurse Corps, Peace Corps, or VISTA service not exceeding five years.  Any member who so elects shall deposit in the annuity savings fund by a single contribution the amount or amounts determined by the system’s actuary to be cost neutral to the system.  Notwithstanding the provisions of this subsection, any member shall, upon application, be granted up to three years of credit for military service during the periods June 25, 1950 through January 31, 1955, February 28, 1961 through August 4, 1964 if service was performed in what is now the Republic of Vietnam, and August 5, 1964 through May 7, 1975 and shall not be required to make a contribution, provided the member has rendered 15 years of creditable service and, prior to becoming a member, served a minimum of one full year of full-time service in the military for which he or she has derived no military pension benefits.  The provisions of this subsection shall also be available to state employees who are not members of the classified system and who elect to participate in the defined contribution retirement plan under chapter 16A of this title.  Notwithstanding the foregoing, in the event of a conflict between the provisions of this subsection and the provisions of 10 U.S.C. § 12736 concerning the counting of the same full-time military service toward both military and state pensions, the provisions of the United States Code shall control.

Sec. 4.  MILITARY SERVICE CREDIT; ONE-TIME MILITARY STIPEND

A beneficiary of the Vermont state retirement system who retired prior to July 1, 2006 and who, prior to retirement, would have been otherwise eligible for credit for military service in what is now the Republic of Vietnam between February 28, 1961 through August 4, 1964, may apply to the retirement board for a one-time military stipend by December 31, 2006.  Upon a determination that the beneficiary was eligible prior to retirement for a grant of military service credit for service under this section, the beneficiary shall be entitled to a stipend of $500.00 for each year served, up to a maximum of  $1,500.00.  The stipend shall be pro-rated for partial years of service.

Sec. 5.  16 V.S.A. § 1944(b)(8) is amended to read:

(8)  Any group A or group C member who has rendered 15 years of creditable teaching service and who has, prior to becoming a member of the system, served a minimum of one full year of full-time service in the military, one full year of full-time service as a member of the Cadet Nurse Corps in World War II, the Peace Corps, or VISTA for which the member has derived no military or other pension benefits, may elect to have included in the member’s creditable service all or any part of the member’s military or Cadet Nurse Corps or Peace Corps or VISTA service not exceeding five years.  Any group A member who elects credit under this subdivision shall deposit in the annuity savings fund by a single contribution an amount computed at regular interest to be sufficient to provide at age 60 an annuity equal to one-one hundred and twentieth of the member’s average final compensation multiplied by the number of years of he service rendered for which the member elects to receive credit.  Any group A member who elects credit for service in the Cadet Nurse Corps under this subdivision and any group C member who elects credit under this subdivision shall deposit in the annuity savings 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 of the service for which the member elects to receive credit.  Notwithstanding the provisions of this subdivision, any group C member who was a group B member and any group A member shall, upon application, be granted up to three years of credit for military service during the periods June 25, 1950 through January 31, 1955, February 28, 1961 through August 4, 1964 if service was performed while in what is now the Republic of Vietnam, and August 5, 1964 through May 7, 1975 and shall not be required to make a contribution, provided the member has rendered 15 years of creditable teaching service and prior to becoming a member served a minimum of one full year of full-time service in the military for which he or she has derived no military pension benefits.  Notwithstanding the foregoing, in the event of a conflict between the provisions of this subsection and the provisions of 10 U.S.C. § 12736 concerning the counting of the same full-time military service toward both military and state pensions, the provisions of the United States Code shall control.

Sec. 6.  MILITARY SERVICE CREDIT; ONE-TIME MILITARY STIPEND

A beneficiary of the state teachers’ retirement system of Vermont who retired prior to July 1, 2006 and who, prior to retirement, would have been otherwise eligible for credit for military service in what is now the Republic of Vietnam between February 28, 1961 through August 4, 1964, may apply to the retirement board for a one-time military stipend by December 31, 2006.  Upon a determination that the beneficiary was eligible prior to retirement for a grant of military service credit for service under, the beneficiary shall be entitled to a stipend of $500.00 for each year served, up to a maximum of $1,500.00.  The stipend shall be pro-rated for partial years of service.

 



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us