Code of Vermont Rules › Agency 03 - OFFICE OF THE STATE TREASURER › Sub-Agency 030 - STATE TEACHER'S RETIREMENT SYSTEM › Chapter 001 - ALLOWABLE ANNUAL EARNINGS FOR RETIRED TEACHERS › Section 03 030 001 - ALLOWABLE ANNUAL EARNINGS FOR RETIRED TEACHERS

Current through June, 2024
INFORMATION BULLETIN # 2 STATE TEACHERS' RETIREMENT SYSTEM
GROUP A
REGULAR SERVICE RETIREMENT refers to voluntary retirement from service as a teacher in Vermont on attainment of age 60, or in advance of age 60 on completion of 30 or more years of creditable service.
SPECIAL SERVICE (EARLY) RETIREMENT refers to voluntary retirement from service as a teacher in Vermont on attainment of age 55, regardless of years of creditable service, provided the applicant has notified the superintendent of schools in writing 30 calendar days prior to the effective date of the application.
GROUP B
REGULAR SERVICE RETIREMENT refers to voluntary retirement from service as a teacher in Vermont on attainment of age 62.
SPECIAL SERVICE (EARLY) RETIREMENT refers to voluntary retirement from service as a teacher in Vermont on attainment of age 55 and completion of 10 or more years of creditable service, provided the applicant has notified the superintendent of schools in writing 30 calendar days prior to the effective date of the application.
1.   APPLICATION
To apply for a retirement benefit, a member must file with the Teachers' Retirement Office the official Form 11 APPLICATION FOR SERVICE RETIREMENT BENEFITS. Any inquiries concerning benefits and requests for Form 11 Application should be addressed to:
Mrs. Constance D. Graves, Assistant Executive Secretary
State Teachers' Retirement System
133 State Street, Montpelier, Vermont 05602
2.   DATE EFFECTIVE
Retirement benefit-payment will be effective with the first day of the month following filing of the member's application, or termination of his teaching service, whichever date is later, provided that he has attained retirement age.
If his teaching service has terminated when a member attains retirement age, his benefit-payments will be effective the first of the month following filing of his Form 11 Retirement Application.
3.   PAYMENT DATES
Retirement benefits are paid monthly at the end of each month, representing the amount due for the month then ending; for example, if your retirement is effective July 1, the first benefit-payment will be sent on July 31 in payment of the benefit due for the month of July 1-31. Thereafter, your benefit-payments will be sent regularly at the end of each month for as long as you live, unless you return to full-time active teaching service.
4.   PAYMENT PLANS
Five payment plans for Group A members and four plans for Group B members are available for election at the time of his retirement: The Maximum Payment providing the largest possible benefit-payment as computed under the Standard Formula, with all payments ceasing at the member's death; OR one of the Option Payments which provide reduced benefit-payments to the member and further payments are governed by the member's age at retirement.
The Teachers' Retirement Office is glad to furnish each member, at his request, with a report providing estimates of his benefit-payments on retirement at a certain date, giving information concerning all plans if the member will furnish the name and date of birth of his proposed beneficiary. We urge members to consider carefully the payment plans available for their election at retirement; these are summarized as follows:
(a)   OPTION 1 (Maximum, with payments ceasing at member's death)
Provides the largest possible benefit-payment to the member for his lifetime, representing the full amount payable on the basis of his membership record. Under this Maximum Payment, all benefit-payments cease at the member's death, except for payment to his beneficiary of the proportionate balance due for the month in which the member's death occurred. The beneficiary designated by the member at retirement may be changed subsequently, if the member so wishes.
(b)   OPTION 2 (Guaranteed return of member's accumulated contributions) (Not applicable Group B members)
Provides a reduced payment to the member for his lifetime with guarantee of the return of the balance of his accumulated contributions, in the event of his death before receiving annuity payments equal to the amount of his accumulated contributions at retirement. At the member's death, monthly benefit-payments are discontinued and his beneficiary receives a cash lump sum payment representing the difference between the member's accumulated contributions at retirement and annuity payments received by the member from the date of his retirement to date of his death. The beneficiary designated by the member at retirement may be changed subsequently, if the member so wishes.
(c)   OPTION 3 (50 % Survivorship Payments to member's beneficiary)
Provides a reduced payment to the member for his lifetime with 50% survivorship benefit-payments (one-half the amount of the member's benefit-payment) continued after the member's death to the beneficiary designated by the member at the time of his retirement, payable for the lifetime of the beneficiary. The beneficiary designated by the member at retirement cannot subsequently be changed if beneficiary dies during the lifetime of the retired member.
OPTION 3-A (50% Survivorship with modification; see * Page 3)
(d)   OPTION 4 (75% Survivorship Payments to member's beneficiary)
Provides a reduced payment to the member for his lifetime, with 75% Survivorship benefit-payment (three-fourths the amount of the member's benefit payment) continued after the member's death to the beneficiary designated by the member at retirement, payable for the lifetime of the beneficiary. The beneficiary designated by the member at retirement cannot be changed if beneficiary dies during the lifetime of the retired member.
OPTION 4-A (75% Survivorship with modification; see below) *
(e)   OPTION 5 (100% Survivorship Payments to member's beneficiary)
Provides a reduced payment to the member for his lifetime, with 100% Survivorship benefit-payments (the same amount as the member's benefit payment) continued after the member's death to the beneficiary designated by the member at retirement, payable for the lifetime of the beneficiary. The beneficiary designated by the member at retirement cannot subsequently be changed if beneficiary dies during the lifetime of the retired member.
OPTION 5-A (100% Survivorship with modification; see below) *
* OPTIONS 3-A, 4-A, and 5-A
A modification of survivorship options to provide 50%, 75%, and 100% continuation of benefits to surviving beneficiary; but with the provision that if the beneficiary pre-deceases the member, the benefits to the member shall increase to the amount of the retirement allowance which would have been payable under Option 1. If the beneficiary pre-deceases the member, all benefit payments cease upon the member's death.
LEVEL INCOME PLAN (for members who retire before age 62)
Provides, insofar as possible, the same amount each year before and after age 62 when you would apply for Social Security benefit payable on your earnings record. You elect to convert your retirement allowance normally payable into an actuarially adjusted allowance which, combined with the Social Security benefit you will receive at age 62, will provide approximately the same income before and after age 62. The retirement system pays you a higher amount to age 62, then the amount is reduced to offset the benefit it is estimated you will receive from Social Security. YOU must obtain and send to our office official Social Security Benefit estimate for calculation of allowance under this plan.