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BILL AS INTRODUCED 2007-2008

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H.324

Introduced by   Representative Jewett of Ripton

Referred to Committee on

Date:

Subject:  Education; teachers; retirement; early retirement

Statement of purpose:  This bill proposes to allow a member of the state teachers’ retirement system of Vermont who has a minimum of 20 years of creditable service to elect to purchase up to 10 years of additional service credit.

AN ACT RELATING TO THE PURCHASE OF UP TO TEN YEARS OF ADDITIONAL SERVICE CREDIT BY TEACHERS

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

Sec. 1.  16 V.S.A. § 1937(i) is amended to read:

(i)  When a member has a minimum of 25 20 years of creditable service, he or she may elect to purchase up to five 10 years of additional service credit.  A member who makes an election under this subsection 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 purchased.  If through a negotiated agreement or binding contract, a school district or supervisory union is required to purchase the whole or part of the additional years of service credit necessary to enable the member to take normal retirement, the school district or supervisory union may deposit a single contribution into the annuity savings fund or make the contribution in four equal annual payments on dates established by the state treasurer.  If a school district or supervisory union elects to make the contribution in four equal annual payments it shall, in addition, pay interest at the actuarially assumed interest rate at the time of each annual payment.  Any payment not received within 30 days of the date it is due shall be considered delinquent, and the delinquent payment and interest may be recovered by action in a court of competent jurisdiction against the school district or supervisory union liable therefor or may be deducted by the state treasurer from any other monies payable to such school district or supervisory union by the state or any department or agency thereof.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us