3 V.S.A. § 465
2021 Vermont Statutes|Title 3 - Executive|Chapter 16 - Vermont Employees' Retirement System|§ 465. Termination of service; ordinary death benefit

§ 465. Termination of service; ordinary death benefit|(a) Upon the withdrawal of a member from service prior to retirement for reasons other than death, the amount of his or her accumulated contributions will be returnable to him or her. In lieu of such return of contributions, any member who has completed five years of creditable service may allow his or her contributions to remain in the System and receive a deferred vested retirement allowance, commencing no earlier than the early retirement date, which shall be equal to:  (1) An early or normal retirement allowance based on his or her average final compensation at his or her date of termination of service and the number of years of creditable service he or she would have completed had he or she remained in service to his or her normal retirement date, multiplied by (2) The ratio that the number of his or her years of creditable service at termination of service bears to the number of years of such service he or she would have completed had he or she remained in service to his or her normal retirement date, with early retirement reductions, if applicable.   (b)(1) Upon the death of a member in service who has not reached his or her normal retirement date and who has not completed 10 years of creditable service, as a result of causes other than those specified in section 464 of this title, the member's accumulated contributions shall be paid to such person as he or she shall have designated for such purpose in a writing duly acknowledged and filed with the Board. In the absence of a written designation of beneficiary or in the event the designated beneficiary is deceased, the return of accumulated contributions with interest payable as a result of the death of the member prior to retirement shall be payable as follows:   (A) In the case of an open estate, to the administrator or executor. (B) In the case of a closed estate and the deceased member's account is valued at less than $1,000.00, in accordance with the Probate Division of the Superior Court decree of distribution. (C) In the absence of an open estate or Probate Division of the Superior Court decree of distribution, and the deceased member's account is valued at less than $1,000.00 to the surviving spouse of the deceased owner, or, if there is no surviving spouse, to the next of kin according to 14 V.S.A. § 551. (D) In all other cases, a probate estate shall be opened by the claimant or other interested party in order to determine the appropriate distribution of the proceeds of the deceased member's account. When an estate is opened solely to distribute the proceeds of a deceased member's account under this section, the Probate Division of the Superior Court may waive any filing fees.  (2) In addition, if any member was in service at the date of the member's death or on approved leave of absence for professional study and had completed one or more years of creditable service, or if the member's death was the result of an accident while in service or on leave of absence, a pension equal to 10 percent of the member's average final compensation, but not less than $50.00 per month, will be payable on account of each of the member's dependent children under the age of 18, or, if a dependent student, under the age of 23, not exceeding a total of three. However, if a surviving child of any age was mentally or physically incapacitated to the extent that the child is impeded from substantial gainful employment before attaining age 18, the pension will be payable for the duration of the child's incapacity.   (c) If a Group A, Group D, or Group F member dies in service after becoming eligible for early retirement or after completing 10 years of creditable service, a retirement allowance will be payable to the member's designated dependent beneficiary during his or her life. If the designated dependent beneficiary so elects, however, the return of the member's accumulated contributions shall be made in lieu thereof.(d) If a Group C member dies in service after reaching his or her normal retirement date or after completing 10 years of creditable service, a retirement allowance will be payable to the member's dependent spouse during her or his life, or if there be no dependent spouse, or if the dependent spouse dies before the youngest child of the deceased member has attained age 18, age 23 in the case of a dependent student, then to the member's child or children under said age until the youngest of such children attains such age, divided in such manner as the Retirement Board in its discretion shall determine provided that the total annual payments to all such children shall not exceed the retirement allowance which would have been payable to the dependent spouse. If a member leaves no dependent spouse or child under such age upon his or her death, then a retirement allowance may be payable at the discretion of the Retirement Board to his or her dependent parent or parents provided that the total allowance payable shall not exceed the retirement allowance which would have been payable to the dependent spouse. In the case of the payment of a retirement allowance under this section to a child of a deceased Group C member who is a dependent student, the retirement allowance shall continue while such child remains a dependent student until he or she attains age 23.(e) Unless the designated dependent beneficiary elects to receive payment of a deceased member's accumulated contributions as provided under subsection (c) of this section, the retirement allowance payable to the designated dependent beneficiary of a deceased Group A, Group D, or Group F member under this section shall be equal to the retirement allowance that would have been payable had the member elected option 3 and retired on the member's date of death. In the case of a member who has not attained the normal retirement date as of his or her date of death, the retirement allowance shall be computed on the basis of a disability retirement allowance or an early retirement allowance, whichever provides the greater benefit to the dependent beneficiary. If the deceased member has no eligible dependent beneficiary, the member's accumulated contributions shall be payable in accordance with the provisions of subsection (b) of this section.(f) The retirement allowance payable under this section to a dependent spouse of a Group C member who dies prior to normal retirement date shall be an allowance which will, when added to his or her survivor's insurance benefit, be equal to 70 percent of the retirement allowance which would have been payable to the deceased member had he or she retired on a normal or early retirement allowance, as the case may be, but without actuarial equivalent modification, on the date of the member's death plus ten percent of his or her average final compensation for each dependent child of the deceased member, not in excess of three, who has not attained age 18 or, if a dependent student, has not attained age 23. Where, pursuant to this section, a retirement allowance is payable to a child or parent eligible for a survivor's insurance benefit, the allowance payable under this subsection shall be inclusive of such person's survivor's insurance benefit.(g) The provisions of subsections (c), (d), (e), and (f), and subdivision (b)(1) of this section shall not apply if benefits are payable under section 464 of this title. The provisions of subdivision (b)(2) of this section shall not apply if the benefits are paid under subsection 464(d) of this title.(h) The provisions of subsections (e) and (g) of this section shall be retroactive to November 5, 1969 only for the account of George R. Dearborn, deceased.(i) Any reduced retirement allowance payable during the life of the retired member, with a provision that it shall continue after his or her death for the life of the member's beneficiary, shall be determined as actuarial equivalents of the retirement allowance under subdivision (a)(1) of this section. Any member who elects to receive such a retirement allowance may elect to receive a benefit further reduced actuarially as prescribed by the Board with the added provision that, should the retired member survive his or her nominated beneficiary, the retirement allowance which would have been payable under subdivision (a)(1) shall be paid to the retired member during the remainder of his or her lifetime. If a member does not make an election as to the form of his or her retirement allowance, he or she shall receive his or her retirement allowance under the provisions of subdivision (a)(1).(j) The survivors of a member who dies after December 31, 2006 while performing qualified military service shall be entitled to any additional benefits, other than benefit accruals related to the period of qualified military service, that would have been provided under the Plan had the member resumed employment and then terminated employment on account of death. (Added 1971, No. 231 (Adj. Sess.), § 4; amended 1975, No. 196 (Adj. Sess.), § 17; 1981, No. 41, §§ 13, 14; 1985, No. 160 (Adj. Sess.), § 2; 1989, No. 78, § 14; 1989, No. 277 (Adj. Sess.), § 17p, eff. Jan. 1, 1991; 1993, No. 33, § 1; 1997, No. 89 (Adj. Sess.), § 8; 1999, No. 53, § 3; 1999, No. 158 (Adj. Sess.), § 7; 2003, No. 122 (Adj. Sess.), §§ 297b, 297c; 2007, No. 13, § 6; 2007, No. 137 (Adj. Sess.), § 2; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2013, No. 22, § 3; 2015, No. 18, § 1; 2015, No. 114 (Adj. Sess.), § 2.)