2023 Vermont Statutes › Title 16 - Education › Chapter 55 - State Teachers' Retirement System of Vermont › § 1940. Termination of service; death; refund; pension

§ 1940. Termination of service; death; refund; pension
(a)(1) Upon the withdrawal of a member from service prior to retirement, the amount of the member’s accumulated contributions, less not more than one-third of the regular interest credited thereon as determined by the Board, will be returnable to the member. In lieu of the return of contributions:
(A) a member who has attained the age of 57 and completed at least five years of creditable service or completed 25 years of creditable service as of June 30, 2010, may allow his or her contributions to remain in the System and receive a retirement allowance, commencing as early as age 55;
(B) a member who has not attained the age of 57 or completed 25 years of creditable service as of June 30, 2010 but who has five or more years of creditable service may allow his or her contributions to remain in the System and receive a retirement allowance commencing as early as age 55 or when the combination of the member’s age and years of creditable service totals 90, whichever comes first.
(2) In either instance set forth in subdivisions (1)(A) and (B) of this subsection, the retirement allowance shall consist of the annuity provided by his or her accumulated contributions with interest to the date on which the allowance commences, and a pension equal to a service retirement pension computed on the basis of the member’s compensation and creditable service to his or her date of withdrawal from service.
(b)(1) Upon the death of a Group A or Group C member before retirement the member’s accumulated contributions will be payable to such primary beneficiary, primary and secondary beneficiaries, or joint beneficiaries, if any, as the member has nominated by written designation 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 where 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, then to the next of kin according to 14 V.S.A. § 314.
(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 leave of absence granted subject to Board rules 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 under Board rules, a pension equal to ten 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 18 years of age, or, if a dependent student, under 23 years of age, not exceeding a total of three. However, if a surviving child of any age was mentally or physically incapacitated for substantial gainful employment before attaining 18 years of age, the pension will be payable for the duration of the child’s incapacity.
(3) 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. (Amended 1959, No. 226, § 1; 1963, No. 110, § 3, eff. May 28, 1963; 1966, No. 45 (Sp. Sess.), eff. July 1, 1965; 1967, No. 316 (Adj. Sess.), § 1, eff. March 22, 1968; 1973, No. 141 (Adj. Sess.), § 5; 1981, No. 41, §§ 28, 39(2); 1989, No. 169 (Adj. Sess.), § 5; 1999, No. 158 (Adj. Sess.), § 11; 2007, No. 13, § 28; 2009, No. 74 (Adj. Sess.), § 4; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2013, No. 22, § 12; 2015, No. 18, § 6; 2015, No. 23, § 37; 2017, No. 165 (Adj. Sess.), § 13; 2019, No. 131 (Adj. Sess.), § 83.)