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BILL AS PASSED BY HOUSE 2007-2008

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H.403

AN ACT RELATING TO POSTRETIREMENT COST OF LIVING ADJUSTMENTS FOR STATE EMPLOYEES

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

Sec. 1.  3 V.S.A. § 470(b) is amended to read:

(b)  For group F members, as of June 30 in each year, commencing January 1, 1991, a determination shall be made of the increase or decrease, to the nearest one-tenth of a percent of the Consumer Price Index for the preceding fiscal year.  The retirement allowance of each beneficiary in receipt of an allowance for at least one year on the next following December 31st shall be increased or decreased, as the case may be, by an amount equal to one-half of the percentage increase or decrease equal percentage.  The increase or decrease shall commence on the January 1st immediately following such December 31st.  The adjustment shall apply to group F members receiving an early retirement allowance only in the year following attainment of age 62, provided the member has received benefits for at least 12 months as of December 31 of the year preceding any January adjustment.  The maximum adjustment of any retirement allowance resulting from any such determination shall be five percent and the minimum shall be one percent, and no retirement allowance shall be reduced below the amount payable to the beneficiary without regard to the provisions of this section.

Sec. 2.  3 V.S.A. § 473(b)(2) is amended to read:

(2)  Contributions 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 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 6.65 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.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us