2023 Vermont Statutes › Title 16 - Education › Chapter 55 - State Teachers' Retirement System of Vermont › § 1937. Service retirement

§ 1937. Service retirement
(a) Upon written application to the Board not later than 90 days, or longer for good cause shown, after the date upon which the retirement allowance is to begin:
(1) any Group A member may retire on a service retirement allowance on the first day of the calendar month next following the member’s separation from service, provided that the member shall have attained age 60, and following completion of five years of creditable service for those members hired on or after July 1, 2004, or have completed 30 years of creditable service at the date of the member’s retirement;
(2) any Group C member, having attained the age of 57 or completed 25 years of creditable service as of June 30, 2010, may retire on a service retirement allowance on the first day of the calendar month next following the member’s separation from service, provided that such member shall have attained age 62, and following completion of five years of creditable service for those members who are hired on or after July 1, 2004, or have completed 30 years of creditable service at the date of the member’s retirement; and
(3) any Group C member not having attained the age of 57 or completed 25 years of creditable service as of June 30, 2010, may retire on a service retirement allowance on the first day of the calendar month next following the member’s separation from service, provided that the member shall have completed five years of creditable service and either has attained the age of 65 or has at least 90 years of combined age and years of creditable service at the date of the member’s retirement.
(b)(1) Upon service retirement, a Group A member shall receive a service retirement allowance that shall consist of:
(A) an annuity, which shall be the actuarial equivalent of the member’s accumulated contributions at the time of retirement except as subdivisions 1937(b)(4) and 1944(b)(2) of this title increase the annuity; and
(B) a pension, which shall be equal to one-120th of the member’s average final compensation multiplied by the number of years of the member’s membership service.
(2) Beginning on July 1, 1989, the service retirement allowance shall be not less than the larger of $4,550.00 a year or 50 percent of the member’s average final compensation for any member or beneficiary who has completed 30 years or more of creditable service, nor less than a proportionate amount thereof for any member or beneficiary who has completed less than 30 years of creditable service. Beginning on March 1, 1998, the service retirement allowance shall be not less than the larger of $6,600.00 a year or 50 percent of the member’s average final compensation for any member or beneficiary who has completed 30 years or more of creditable service, nor less than a proportionate amount thereof for any member or beneficiary who has completed at least five years, but less than 30 years, of creditable service. For this purpose, any annuity derived from the member’s contributions transferred from the existing system under subsection 1934(c) of this title and from additional contributions made under subdivisions 1944(b)(5) and (6) of this title shall not be included as part of the retirement allowance. Beginning on September 1, 2006, the service retirement allowance shall be not less than the larger of $9,000.00 per year or 50 percent of the member’s average final compensation for any member or beneficiary who has completed 30 years or more of creditable service nor less than a proportionate amount thereof for any member or beneficiary who has completed at least five years but less than 30 years of creditable service. Beginning on September 1, 2011, and on September 1 of every fifth year thereafter, the minimum service retirement allowance shall be increased by $1,000.00.
(3), (4) [Repealed.]
(c) Upon service retirement, a Group C member shall receive a service retirement allowance as follows:
(1) for a member having attained the age of 57 or completed 25 years of creditable service as of June 30, 2010, the sum of:
(A) 1-1/4 percent of the member’s average final compensation multiplied by years of creditable service prior to July 1, 1990;
(B) 1-2/3 percent of the member’s average final compensation multiplied by years of creditable service on and after July 1, 1990 through June 30, 2010, to a maximum of 50 percent of average final compensation; and
(C) 1-2/3 percent of the member’s average final compensation multiplied by years of creditable service, 2 of which shall be membership service, on or after July 1, 2010, to a maximum of 53.34 percent of average final compensation;
(2) for a member having neither attained the age of 57 nor completed 25 years of creditable service as of July 1, 2010, the sum of:
(A) 1-1/4 percent of the member’s average final compensation multiplied by years of creditable service prior to July 1, 1990;
(B) 1-2/3 percent of the member’s average final compensation multiplied by the member’s years of creditable service between July 1, 1990 and June 30, 2010; and
(C) 1-2/3 percent of the member’s average final compensation times the member’s creditable service on or after July 1, 2010 until attainment of 20 years of creditable service, and two percent of the member’s average final compensation multiplied by the member’s years of creditable service in excess of 20 years, to a maximum of 60 percent of average final compensation.
(d) Upon written application to the Board, any Group A member who has not attained age 60 but who has attained age 55 may retire on an early retirement allowance on the first day of the calendar month next following the filing of the application or the member’s separation from service, whichever date is later, provided that the applicant has notified the superintendent of schools in writing 30 calendar days prior to the effective date of the application.
(e) Upon early retirement a Group A member shall receive an early retirement allowance, which shall be the actuarial equivalent of:
(1) a normal retirement allowance payable at normal retirement date, based on the member’s average final compensation at early retirement and the number of years of creditable service the member would have completed had the member remained in service to the member’s normal retirement date; multiplied by
(2) the ratio that the number of the member’s years of creditable service at early retirement bear to the number of years of such service the member would have completed had the member remained in service to the member’s normal retirement date.
(f) Upon written application to the Board:
(1) any Group C member who has attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010, has not attained the age of 62 but has attained the age of 55 and completed between five and 30 years of creditable service may retire on an early retirement allowance on the first day of the calendar month next following the filing of the application or the member’s separation from service, whichever date is later;
(2) any Group C member who has not attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010, and neither has attained the age of 65 nor has at least 90 years of combined age and years of creditable service, but who has attained age 55 and completed five years of creditable service, may retire on an early retirement allowance on the first day of the calendar month next following the filing of the application or the member’s separation from service, whichever date is later.
(g) Upon early retirement, a Group C member:
(1) who has attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010 shall receive an early retirement allowance equal to the service retirement allowance reduced by one-half of one percent for each month the member is under age 62 at the time of early retirement;
(2) who has not attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010, and neither has attained the age of 65 nor has at least 90 years of combined age and years of creditable service, shall receive an early retirement allowance, which shall be the actuarial equivalent of the normal retirement allowance computed under subsection (c) of this section, based on the average final compensation and years of creditable service at the date of early retirement.
(h) Any member who retires prior to age 62 may, at any time prior to the date the first payment on account of the member’s retirement allowance normally becomes due, elect to convert the retirement allowance otherwise payable to the member after retirement into a reduced retirement allowance that is its actuarial equivalent and is of such amount that, with the member’s primary insurance amount under Title II of the Social Security Act, the member will receive, so far as possible, the same amount each year before and after such primary insurance amount commences.
(i) When a member has a minimum of 25 years of creditable service, he or she may elect to purchase up to five years of additional service credit. A member who has attained the age of 57 and completed at least 25 years of creditable service as of June 30, 2010 and makes an election under this subsection shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds percent of the member’s average final compensation multiplied by the number of years purchased. A member who has not attained the age of 57 or completed at least 25 years of creditable service as of June 30, 2010 and makes an election under this subsection shall deposit in the Pension Fund by a single contribution an amount computed at regular interest to be sufficient to provide at normal retirement an annuity equal to one and two-thirds percent of the member’s average final compensation for each year up to 20 years of service and two percent of the member’s average final compensation for each year thereafter. 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 Pension 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 after 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. (Amended 1959, No. 72, §§ 1, 2, eff. April 1, 1959; 1961, No. 85, § 1; 1963, No. 182, § 1; 1967, No. 172, § 1; 1969, No. 72; 1971, No. 201 (Adj. Sess.), §§ 1, 3; 1973, No. 5; 1973, No. 141 (Adj. Sess.), § 2; 1977, No. 38; 1981, No. 41, § 25; 1989, No. 78, § 5; 1989, No. 169 (Adj. Sess.), § 4; 1993, No. 33, § 2; 1997, No. 68 (Adj. Sess.), § 1, eff. March 1, 1998; 1999, No. 158 (Adj. Sess.), §§ 3, 8; 2003, No. 122 (Adj. Sess.), § 297e; 2005, No. 163 (Adj. Sess.), § 6; 2007, No. 13, § 27; 2009, No. 74 (Adj. Sess.), § 3; 2009, No. 139 (Adj. Sess.), § 5; 2017, No. 165 (Adj. Sess.), § 11.)