§ 455. Definitions
(a) As used in this subchapter:
(1) “Accumulated contributions” shall mean the sum of all the amounts deducted from the
compensation of a member together with any amount transferred to the account of the
member established pursuant to this system from the respective account of said member
under one or both of the predecessor systems, with interest thereon, as provided in
section 473 of this title.
(2) “Actuarial equivalent” shall mean a benefit of equal value under the actuarial assumptions
last adopted by the Retirement Board under subsection 472a(h) of this title.
(3) “Annuity” shall mean annual payments for life derived from the accumulated contributions
of a member.
(4) “Average final compensation” shall mean:
(A) For a Group A, Group F, or Group G member, the average annual earnable compensation
of a member during the three consecutive fiscal years beginning July 1 and ending
June 30 of creditable service affording the highest average, or during all of the
years of creditable service if fewer than three years. If the member’s highest three
years of earnable compensation are the three years prior to separation of service
and the member separates prior to the end of a fiscal year, average final compensation
shall be determined by adding:
(i) The actual earnable compensation earned in the fiscal year of separation through the
date of separation and the service credit to correspond with the last pay date.
(ii) The earnable compensation and service credit earned in the preceding two fiscal years.
(iii) The remaining service credit that is needed to complete the three full years, which
shall be factored from the fiscal year preceding the two fiscal years described in
subdivision (ii) of this subdivision (A). The earnable compensation associated with
this remaining service credit shall be calculated by multiplying the annual earnable
compensation reported by the remaining service credit that is needed.
(B) For a Group C member, the average annual earnable compensation of a member during
the two consecutive fiscal years beginning July 1 and ending June 30 of creditable
service affording the highest such average, or during all of the years in the member’s
creditable service if fewer than two years. If the member’s highest two years of earnable
compensation are the two years prior to separation of service and the member separates
prior to the end of a fiscal year, average final compensation shall be determined
by adding:
(i) The actual earnable compensation earned in the fiscal year of separation through the
date of separation and the service credit to correspond with the last pay date.
(ii) The earnable compensation and service credit earned in the preceding fiscal year.
(iii) The remaining service credit that is needed to complete the two full years, which
shall be factored from the fiscal year preceding the fiscal year described in subdivision
(ii) of this subdivision (B). The earnable compensation associated with this remaining
service credit shall be calculated by multiplying the annual earnable compensation
reported by the remaining service credit that is needed.
(C) For purposes of determining average final compensation for Group A or Group C members,
a member who has accumulated unused sick leave at retirement shall be deemed to have
worked the full normal working time for the member’s position for 50 percent of such
leave, at the member’s full rate of compensation in effect at the date of the member’s
retirement. For purposes of determining average final compensation for Group F or
Group G members, unused annual or sick leave, termination bonuses, and any other compensation
for service not actually performed shall be excluded. The average final compensation
for a State’s Attorney and the Defender General shall be determined by the State’s
Attorney’s or the Defender General’s highest annual compensation earned during the
member’s creditable service.
(D) For purposes of determining average final compensation for a member who has accrued
service in more than one group plan within the System, the highest consecutive years
of earnings shall be based on the formulas set forth in subdivision (A) or (B) of
this subdivision (4) using the earnable compensation received while a member of the
System.
(E) For Group A, C, F, or G members who retire on or after July 1, 2012, an increase in
compensable hours in any year used to calculate average final compensation that exceeds
120 percent of average compensable hours shall be excluded from that year when calculating
average final compensation.
(F) For a Group D member:
(i) Who retires on or before June 30, 2022, the member’s final salary.
(ii) Who retires on or after July 1, 2022, but who, on or before June 30, 2022, has five
years or more of service as a Supreme Court Justice, a Superior judge, an Environmental
judge, a District judge, or a Probate judge, or any combination thereof, and has attained
57 years of age or older, or is a Group D member on or before June 30, 2022 and has
15 years or more of creditable service, the member’s final salary.
(iii) Who retires on or after July 1, 2022 and who does not meet the requirements set forth
in subdivisions (i) and (ii) of this subdivision (F), the average annual earnable
compensation of a member during the two consecutive fiscal years beginning on July
1 and ending on June 30 of creditable service affording the highest such average,
or during all of the years in the member’s creditable service if fewer than two years.
If the member separates prior to the end of a fiscal year, average final compensation
shall be determined by adding:
(I) The actual earnable compensation earned in the fiscal year of separation through the
date of separation and the service credit to correspond with the last pay date.
(II) The earnable compensation and service credit earned in the preceding fiscal year.
(III) The remaining service credit that is needed to complete the two full years, which
shall be factored from the fiscal year preceding the fiscal year described in subdivision
(II) of this subdivision (F)(iii). The earnable compensation associated with this
remaining service credit shall be calculated by multiplying the annual earnable compensation
reported by the remaining service credit that is needed.
(5) “Beneficiary” shall mean any person in receipt of a pension, an annuity, a retirement
allowance, or other benefit as provided by this subchapter.
(6) “Creditable service” shall mean service for which credit is allowed under section 458 of this title, plus service transferred under section 495 of this title.
(7) “Department” shall mean any department, institution, or agency of this State government.
(8) “Earnable compensation” shall mean the full rate of compensation that would be payable
to an employee if the employee worked the full normal working time for the employee’s
position. In cases where compensation includes maintenance, the Retirement Board
shall fix the value of that part of the compensation not paid in money.
(9) “Employee” shall mean:
(A) Any regular officer or employee of the Vermont Historical Society or a department
other than a person included under subdivision (B) of this subdivision (9), who is
employed for not less than 40 calendar weeks in a year. “Employee” includes deputy
State’s Attorneys, victim advocates employed by a State’s Attorney pursuant to 13 V.S.A. § 5306, secretaries employed by a State’s Attorney pursuant to 32 V.S.A. § 1185, and other positions created within the State’s Attorneys’ offices that meet the
eligibility requirements for membership in the Retirement System.
(B) Any regular officer or employee of the Department of Public Safety assigned to police
and law enforcement duties, including the Commissioner of Public Safety appointed
before July 1, 2001; but, irrespective of the member’s classification, shall not include
any member of the General Assembly as such, any person who is covered by the Vermont
Teachers’ Retirement System, any person engaged under retainer or special agreement
or Group C beneficiary employed by the Department of Public Safety for not more than
208 hours per year, or any person whose principal source of income is other than State
employment. In all cases of doubt, the Retirement Board shall determine whether any
person is an employee as defined in this subchapter. Also included under this subdivision
(B) are employees of the Department of Liquor and Lottery who exercise law enforcement
powers, employees of the Department of Fish and Wildlife assigned to law enforcement
duties, motor vehicle inspectors, full-time deputy sheriffs compensated by the State
of Vermont whose primary function is transports, full-time members of the Capitol
Police force, investigators employed by the Criminal Division of the Office of the
Attorney General, Department of State’s Attorneys, Department of Health, or Office
of the Secretary of State, who have attained Level III law enforcement officer certification
from the Vermont Criminal Justice Council, who are required to perform law enforcement
duties as the primary function of their employment, and who may be subject to mandatory
retirement permissible under 29 U.S.C. § 623(j), who are first included in membership of the system on or after July 1, 2000. Also
included under this subdivision (B) are full-time firefighters employed by the State
of Vermont and the Defender General.
(10) “Medical Board” shall mean the board of physicians provided for in section 471 of this title.
(11) “Member” means any employee included in the membership of the Retirement System under
section 457 of this title.
(A) “Group A members” means employees classified under subdivision (9)(A) of this subsection
(a).
(B) [Repealed.]
(C) “Group C members” means employees classified under subdivision (9)(B) of this subsection
(a) who become members as of the date of establishment, any person who is first included
in the membership of the System on or after July 1, 1998, any person who was a Group
B member on June 30, 1998, who was in service on that date, and any person who was
a Group B member on June 30, 1998, who was absent from service on that date who returns
to service on or after July 1, 1998.
(D) “Group D members” means Justices of the Supreme Court, Superior judges, district judges,
environmental judges, and probate judges.
(E) “Group F member” means any person who is first included in the membership of the System
on or after January 1, 1991, any person who was a Group E member on December 31, 1990,
who was in service on that date, and any person who was a Group E member on December
31, 1990, who was absent from service on that date who returns to service on or after
January 1, 1991.
(F) “Group G member” means:
(i) the following employees who are first employed in the positions listed in this subdivision
(F)(i) on or after July 1, 2023, or who are members of the System as of June 30, 2022
and make an irrevocable election to prospectively join Group G on or before June 30,
2023, pursuant to the terms set by the Board: facility employees of the Department
of Corrections, as Department of Corrections employees who provide direct security
and treatment services to offenders under supervision in the community, employees
of a facility for justice-involved youth, and employees of the Vermont Psychiatric
Care Hospital or its successor in interest, who provide direct patient care; and
(ii) the following employees who are first employed in the positions listed in this subdivision
(F)(ii) or first included in the membership of the System on or after January 1, 2025,
or who are members of the System as of December 31, 2024 and make an irrevocable election
to join Group G on or before December 31, 2024, pursuant to the terms set by the Board:
(I) all sheriffs; and
(II) deputy sheriffs who:
(aa) are employed by county sheriff’s departments that participate in the Vermont Employees’
Retirement System;
(bb) have attained Level II or Level III law enforcement officer certification from the
Vermont Criminal Justice Council;
(cc) are required to perform law enforcement duties as the primary function of their employment;
and
(dd) are not full-time deputy sheriffs compensated by the State of Vermont whose primary
function is transports as defined in 24 V.S.A. § 290(b) and eligible for Group C pursuant to subdivision (9)(B) of this subsection (a).
(12) “Membership service” means service rendered while a member of the Retirement System.
(13) “Normal retirement date” means:
(A) with respect to a Group A member, the first day of the calendar month next following
(i) attainment of 65 years of age, and following completion of five years of creditable
service for those members hired on or after July 1, 2004, or (ii) attainment of age
62 and completion of 20 years of creditable service, whichever is earlier;
(B) with respect to a Group C member, the first day of the calendar month next following
attainment of 55 years of age, and following completion of five years of creditable
service for those members hired on or after July 1, 2004, or completion of 30 years
of service, whichever is earlier;
(C) with respect to a Group D member:
(i) for those members first appointed or elected on or before June 30, 2022, the first
day of the calendar month next following attainment of 62 years of age and completion
of five years of creditable service; or
(ii) for those members first appointed or elected on or after July 1, 2022, the first day
of the calendar month next following attainment of 65 years of age and completion
of five years of creditable service; and
(D) with respect to a Group F member, the first day of the calendar month next following
attainment of 62 years of age, and following completion of five years of creditable
service for those members hired on or after July 1, 2004, or completion of 30 years
of creditable service, whichever is earlier; and with respect to a Group F member
first included in the membership of the system on or after July 1, 2008, the first
day of the calendar month next following attainment of 65 years of age and following
completion of five years of creditable service, or attainment of 87 points reflecting
a combination of the age of the member and number of years of service, whichever is
earlier.
(E) with respect to a Group G member:
(i) for facility employees of the Department of Corrections, Department of Corrections
employees who provide direct security and treatment services to offenders under supervision
in the community, employees of a facility for justice-involved youth, or employees
of the Vermont Psychiatric Care Hospital or its predecessor or successor in interest,
who provide direct patient care, who were first included in the membership of the
System on or before June 30, 2008, who were employed as of June 30, 2022, and who
made an irrevocable election to prospectively join Group G on or before July 1, 2023,
pursuant to the terms set by the Board, the first day of the calendar month next following
the earlier of:
(I) 62 years of age and following completion of five years of creditable service;
(II) completion of 30 years of creditable service; or
(III) 55 years of age and following completion of 20 years of creditable service;
(ii) for facility employees of the Department of Corrections, Department of Corrections
employees who provide direct security and treatment services to offenders under supervision
in the community, as employees of a facility for justice-involved youth, or employees
of the Vermont Psychiatric Care Hospital or its predecessor or successor in interest,
who provide direct patient care, who were first included in the membership of the
System on or after July 1, 2008, who were employed as of June 30, 2022, and who made
an irrevocable election to prospectively join Group G on or before July 1, 2023, pursuant
to the terms set by the Board, the first day of the calendar month next following
the earlier of:
(I) 65 years of age and following completion of five years of creditable service;
(II) attainment of 87 points reflecting a combination of the age of the member and number
of years of service; or
(III) 55 years of age and following completion of 20 years of creditable service;
(iii) for facility employees of the Department of Corrections, Department of Corrections
employees who provide direct security and treatment services to offenders under supervision
in the community, employees of a facility for justice-involved youth, or employees
of the Vermont Psychiatric Care Hospital or its predecessor or successor in interest,
who provide direct patient care, who first become a Group G member on or after July
1, 2023, the first day of the calendar month next following the earlier of:
(I) attainment of 55 years of age and following completion of 20 years of creditable service;
or
(II) 65 years of age and following completion of five years of creditable service;
(iv) for all sheriffs and those deputy sheriffs who meet the requirements pursuant to subdivision
(11)(F)(ii) of this subsection (a), who were first included in the membership of the
System on or before June 30, 2008, who were employed as of December 31, 2024, and
who made an irrevocable election to prospectively join Group G on or before January
1, 2025, pursuant to the terms set by the Board, the first day of the calendar month
next following the earlier of:
(I) 62 years of age and following completion of five years of creditable service;
(II) completion of 30 years of creditable service; or
(III) 55 years of age and following completion of 20 years of creditable service;
(v) for all sheriffs and those deputy sheriffs who meet the requirements pursuant to subdivision
(11)(F)(ii) of this subsection (a), who were first included in the membership of the
System on or after July 1, 2008, who were employed as of December 31, 2024, and who
made an irrevocable election to prospectively join Group G on or before January 1,
2025, pursuant to the terms set by the Board, the first day of the calendar month
next following the earlier of:
(I) 65 years of age and following completion of five years of creditable service;
(II) attainment of 87 points reflecting a combination of the age of the member and number
of years of service; or
(III) 55 years of age and following completion of 20 years of creditable service; or
(vi) for all sheriffs and those deputy sheriffs who meet the requirements pursuant to subdivision
(11)(F)(ii) of this subsection (a), who first become a Group G member after January
1, 2025, the first day of the calendar month next following the earlier of:
(I) attainment of 55 years of age and following completion of 20 years of creditable service;
or
(II) 65 years of age and following completion of five years of creditable service.
(14) “Pension” shall mean annual payments for life derived from contributions by the State.
(15) “Predecessor system” shall mean, where applicable, the Vermont Employees’ Retirement
System and the Vermont State Police and Motor Vehicle Inspectors’ Retirement System,
either one of them, or a combination thereof.
(16) “Prior service” shall mean service rendered prior to the date of membership in the
Retirement System for which credit was given under the terms of one or both of the
predecessor systems as set forth in section 458 of this title.
(17) “Regular interest” shall mean interest at such rate or rates as may be set from time
to time by the Retirement Board in accordance with subsection 472(b) of this title.
(18) “Retirement allowance” or “maximum allowance” shall mean the sum of the annuity and
the pension. All retirement allowances shall be payable in equal monthly installments
except that when the retirement allowance is less than $20.00 per month it shall be
payable on such basis as the Board may direct.
(19) “Retirement Board” or “Board” shall mean the board provided for in section 471 of this title to administer the Retirement System.
(20) “Retirement System” shall mean the Vermont State Retirement System as defined in section 456 of this title.
(21) “Service” shall mean service as an employee for which compensation is paid by the
State.
(22) “Social Security benefit” shall mean the amount of the member’s primary insurance
benefit or disability insurance benefit under Title II of the Social Security Act
and such other benefit or benefits as may be payable on the member’s account under
said title, computed on the basis of such act as in effect at the time of retirement
and limited to the portion of such benefit or benefits that is attributable to service
for which the member receives credit under section 458 of this title, to which a member or other person on his or her account is or would upon proper
application be entitled, irrespective of earnings the member or members may be receiving
in excess of any limit on earnings for full entitlement to such benefit or benefits.
(23) “Survivor’s insurance benefit” shall mean the amount paid or payable under Title II
of the Social Security Act, computed on the basis of such act as in effect at the
time of the member’s death and limited to the portion of such amount that is attributable
to service for which he or she receives credit under section 458 of this title, to any person or persons on account of the death of a member, even though such amount
or any part thereof is not actually received by such person because of his or her
failure to make proper application therefor, or because of his or her receipt of earnings
that would make him or her ineligible for such benefit.
(24) “Commission” shall mean the Vermont Pension Investment Commission.
(25) “Fund” or “Vermont State Retirement Fund” shall mean the fund created by section 473 of this title, which shall contain the assets of the Retirement System and from which shall be
paid the benefits due to beneficiaries and the expenses of the Retirement System.
(26) “Average compensable hours” shall mean average annual compensable hours for a period
of five full years immediately preceding the years used to determine average final
compensation for any member who terminates his or her position after July 1, 2002.
If a member’s compensable hours in any year used to calculate average final compensation
exceeds 120 percent of average compensable hours, the compensation for hours worked
in excess of 120 percent shall be excluded from average final compensation for that
particular year. Average compensable hours form the benchmark to preclude abuses by
implementing a 20-percent limit on increases in compensable hours in any year used
to calculate average final compensation.
(27) “Compensable hours” shall mean all hours worked during a fiscal year and shall include
the following types of paid time: regular hours worked, overtime hours worked, and
paid leave.
(28) “Successor in interest” means the mental health hospital owned and operated by the
State that provides acute inpatient care and replaces the Vermont State Hospital.
(b) [Repealed.] (Added 1971, No. 231 (Adj. Sess.), § 4; amended 1973, No. 37, § 1; 1977, No. 153 (Adj. Sess.), § 1; 1977, No. 222 (Adj. Sess.), § 3, eff. July 2, 1978; 1981, No. 41, §§ 1-3; 1987, No. 121, § 14; 1989, No. 78, §§ 1, 3, 10; 1989, No. 277 (Adj. Sess.), §§ 17d-17f, eff. Jan. 1, 1991; 1997, No. 68 (Adj. Sess.), § 3, eff. March 1, 1998; 1997, No. 89 (Adj. Sess.), § 2; 1999, No. 158 (Adj. Sess.), § 22; 2001, No. 57, § 1; 2001, No. 116 (Adj. Sess.), § 5, eff. May 28, 2002; 2003, No. 66, § 302a, eff. July 1, 2004; 2003, No. 115 (Adj. Sess.), § 1; 2003, No. 122 (Adj. Sess.), § 297; 2005, No. 50, § 3; 2005, No. 165 (Adj. Sess.), § 1; 2007, No. 13, § 1; 2007, No. 47, § 13; 2007, No. 116 (Adj. Sess.), § 1; 2007, No. 137 (Adj. Sess.), § 1; 2007, No. 146 (Adj. Sess.), § 3; 2009, No. 139 (Adj. Sess.), §§ 1, 2, 13(a); 2011, No. 79 (Adj. Sess.), § 11, eff. April 4, 2012; 2013, No. 22, § 1; 2013, No. 115 (Adj. Sess.), § 1; 2013, No. 141 (Adj. Sess.), § 12, eff. July 1, 2015; 2015, No. 58, § E.203.2; 2015, No. 97 (Adj. Sess.), § 3; 2017, No. 81, § 1, eff. June 15, 2017; 2017, No. 165 (Adj. Sess.), § 1; 2019, No. 73, § 19; 2019, No. 131 (Adj. Sess.), § 1; 2021, No. 114 (Adj. Sess.), § 2, eff. July 1, 2022; 2023, No. 3, § 96, eff. March 20, 2023; 2023, No. 130 (Adj. Sess.), § 1, eff. July 1, 2024.)