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An act relating to miscellaneous amendments to Vermont’s public retirement systems.

     The Senate proposes to the House to amend the bill in Sec. 3, 3 V.S.A. § 495, by striking out subsection (d) in its entirety and inserting in lieu thereof a new subsection (d) to read as follows:

(d)  Upon becoming a member of the retirement system to which he or she has transferred, such person shall thereafter be eligible for such benefits or annuities as are provided by law in such retirement system, including the credits for previous service in the retirement system from which the person has transferred as provided in subsection (e) of this section.  The average final compensation used to calculate the benefit payable at retirement shall be determined by using the earnable compensation which affords the highest consecutive years of earnings under either the system from which or to which he or she transferred, provided, however, that if he or she retires on a retirement allowance in the system to which he or she transferred within five years after said transfer, the benefits or annuities payable with respect to the service credit in the system from which he or she transferred shall not be greater than those which would have been payable with respect to such service had he or she remained in said system.  Except for the determination of the average final compensation as set forth in this subsection, the benefits for a member who transferred from one retirement system to another shall be calculated as follows:

(1)  a member who transfers after July 1, 2007 and before June 30, 2008 shall have the option to have the service from the first system calculated according to the provisions of either the first or the second system at the time of retirement;

(2)  a member who transfers on or before June 30, 2007 or on or after July 1, 2008 shall have his or her benefits calculated according to the provisions of the system or systems under which the benefits were accrued;

(3)  when benefits calculated according to the provisions of two or more retirement systems are combined under this subsection, they may exceed the maximum percentage of average final compensation established for each plan.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont