|ACT OF THE GENERAL ASSEMBLY||2007-2008|
NO. 12. AN ACT RELATING TO RECAPTURE OF HEALTH INSURANCE BENEFITS BY GROUP C MEMBERS OF THE VERMONT STATE RETIREMENT SYSTEM.
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 3 V.S.A. § 473(b)(2) is amended to read:
shall be made on and after the date of establishment at the rate of five
percent of compensation except at a rate of
6.18 6.88 percent of
compensation for each group C member unless such the member was a
group C member on June 30, 1998 in which case contributions shall be at the
rate of six percent of compensation for each such group C member who has
elected not to have his or her compensation from the state be subject to
Social Security withholding or at the rate of five percent of compensation if such
the member elected to have compensation from the state subject to Social
Security withholding and at the rate of 3.25 percent of compensation for each
group F member. In determining the amount earnable by a member in a payroll
period, the retirement board may consider the annual or other periodic rate of
earnable compensation payable to such member on the first day of the payroll
period as continuing throughout such payroll period, and it may omit deduction
from compensation for any period less than a full payroll period if an employee
was not a member on the first day of the payroll period, and to facilitate the
making of deductions it may modify the deduction required of any member by such
an amount as, on an annual basis, shall not exceed one-tenth of one percent of
the annual earnable compensation upon the basis of which such deduction is to
be made. Each of the amounts shall be deducted until the member retires or
otherwise withdraws from service, and when deducted shall be paid into the
annuity savings fund, and shall be credited to the individual account of the
member from whose compensation the deduction was made.
Sec. 1a. 3 V.S.A. § 477a(d) is amended to read:
(d) Any member may elect to have included in the member's creditable service all or any part of the member's service as a permanent state employee for which the member received no credit. 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. Any group F member may elect to increase his or her retirement allowance for years of service as a group E member prior to January 1, 1991, for 1-1/4 percent of average final compensation to 1-2/3 percent of average final compensation. A member making an election 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 service for which the member elects to increase his or her retirement allowance. Any group F member who is actively employed on June 30, 2007, and who was a member of the group B plan prior to June 30, 1998, may elect to convert some or all of his or her group B service to group C service. A member making an election to convert shall deposit in the fund by a single contribution an amount computed by the actuary to pay for the additional liability incurred by the increase in benefits between the group B and the group C plan multiplied by the number of years of service which the member elects to convert.
Sec. 2. 3 V.S.A. § 479 is amended to read:
§ 479. GROUP INSURANCE
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(b) As of July 1, 2007, members of the group C plan who separate from service prior to being eligible for retirement benefits under this chapter, who have at least 20 years of creditable service, and who participated in the group medical benefit plan at the time of separation from service shall have a one‑time option at the time retirement benefits commence to participate in the group medical benefit plan provided by the state of Vermont for active state employees. Premiums for the plan shall be prorated between the retired member and the retirement system pursuant to section 631 of this title.
(c) Premiums for coverage of retired members of the group C plan and their dependents in the group medical benefit plan shall be prorated on the same basis as is provided for active employees by the current collective bargaining agreement for the nonmanagement unit. The amounts designated as the state’s share of premium for the medical benefit plan and the total premium for group life insurance provided under subdivision (a)(2) of this section shall be paid by the fund as an operating expense in accordance with subsection 473(d) of this title.
January 1, 2007, the state treasurer may offer and administer a dental benefit
plan for retired members, beneficiaries, eligible dependents, and eligible
retirees of special affiliated groups and the dependents of members of those
groups who are eligible for coverage in the state employee group medical
benefit plan. The plan shall be separate and apart from any dental benefit
plan offered to Vermont state employees. The original plan of benefits, and
any changes thereto, shall be determined by the state treasurer with due
consideration of recommendations from the retired employees’ committee on
insurance established in section 636 of this title.
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(d)(e) As of
January 1, 2007 and thereafter, upon retirement, members entitled to prorated
group medical benefit plan premium payments from the retirement system under
the terms of this section shall have a one-time option to reduce the percentage
of premium payments from the retirement system during the member’s life, with
the provision that the fund shall continue making an equal percentage of
premium payments after the member’s death for the life of the dependent
beneficiary nominated by the member under section 468 of this title, should
such dependent beneficiary survive the member. The retirement board, after
consultation with its actuary, shall establish reduced premium payment
percentages that are as cost neutral to the fund as possible.
Approved: May 1, 2007
The Vermont General Assembly
115 State Street