§ 459. Normal and early retirement
(a) Normal retirement.
(1) Group A, Group D, Group F, and Group G members. Any Group A, Group D, Group F, or Group G member who has reached the member’s normal
retirement date may retire on a normal retirement allowance on the first day of any
month after the member’s separation from service by filing an application in the manner
outlined in subdivision (3) of this subsection.
(2) Group C members. Any Group C member who is an 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, 2000, and who has reached his or her normal retirement
date may retire on a normal retirement allowance, on the first day of any month after
the member may have separated from service, by filing an application in the manner
outlined in subdivision (3) of this subsection. Any Group C member in service shall
be retired on a normal retirement allowance on the first day of the calendar month
next following attainment of 57 years of age. Notwithstanding, it is provided that
any such member who is an official appointed for a term of years may remain in service
until the end of the member’s term of office or any extension thereto, resulting from
reappointment.
(3) Where application for a retirement allowance is required, the member shall apply in
writing to the Retirement Board not later than 90 days, or longer for cause shown,
after the date upon which the retirement allowance is to begin.
(4) [Repealed.]
(b) Normal retirement allowance.
(1) Upon normal retirement, a Group A member shall receive a normal retirement allowance
that shall be equal to 50 percent of the member’s average final compensation; provided,
however, that if the member has not completed 30 years of creditable service at retirement,
or, if earlier, the date of attainment of such age as may be applicable under the
provisions of subdivision (a)(4) of this section, the member’s allowance shall be
multiplied by the ratio that the number of the member’s years of creditable service
at retirement, or such earlier date, bears to 30.
(2)(A) Upon normal retirement, a Group C member shall receive a normal retirement allowance
that shall be equal to 50 percent of the member’s average final compensation; provided,
however, that if the member has not completed 20 years of creditable service at retirement,
or, if earlier, the date of attainment of such age as may be applicable under the
provisions of subdivision (a)(4) of this section, the member’s allowance shall be
multiplied by the ratio that the number of the member’s years of creditable service
at retirement, or such earlier date, bears to 20.
(B) For a Group C member, for each year of service that is completed on or after July
1, 2022 after attaining the later of 50 years of age or completing 20 years of service,
a member’s maximum normal retirement allowance shall increase by an amount equal to
one and one-half percent of the member’s average final compensation.
(3)(A) Group D members, upon normal retirement, shall receive a normal retirement allowance
equal to one and two-thirds percent of the member’s average final compensation times
the years of Group D membership service up to 12 years. Group D members shall receive
an additional retirement allowance according to years of service as a Supreme Court
Justice, a Superior judge, an Environmental judge, a District judge, or a Probate
judge, or any combination thereof, as follows:
(i) After 12 years of service, an additional retirement allowance of an amount that, together
with the normal service retirement allowance for the first 12 years, will make the
total equal to two-fifths of their average final compensation.
(ii) For each year of service in excess of 12 years, an amount equal to three and one-third
percent of their average final compensation shall be added to the retirement allowance
as computed in subdivision (i) of this subdivision (3)(A). However, at no time shall
the total retirement allowance exceed their salary at retirement. In addition to the
normal retirement allowance, such additional retirement allowance shall be treated
as the normal retirement allowance.
(B) The total retirement allowance for Group D members shall be as follows:
(i) For a Group D member who retires on or before June 30, 2022, the total retirement
allowance shall not exceed the member’s salary at retirement.
(ii) For a Group D member 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 total retirement allowance shall not exceed the member’s
salary at retirement.
(iii) For a Group D member who retires on or after July 1, 2022, and who does not meet the
requirements set forth in subdivision (i) or (ii) of this subdivision (3)(B), the
member’s total retirement allowance shall not exceed 80 percent of the member’s average
final compensation.
(C) [Repealed.]
(4) [Repealed.]
(5)(A) Until January 1, 1995, upon normal retirement, a Group F member shall receive a normal retirement allowance that shall be equal to 1¼ percent of his or her average final compensation times years of creditable service. On and after January 1, 1995, upon normal retirement, a Group F member shall receive a normal retirement allowance equal to 1¼ percent of the member’s average final compensation times years of membership service prior to January 1, 1991 plus a pension that when added to an annuity shall be equal to 1⅔ percent of the member’s average final compensation times years of membership service on and after January 1, 1991. The maximum retirement allowance shall be 50 percent of average final compensation.
(B) A Group F member first included in the membership of the system on or after July 1,
2008, upon normal retirement, shall receive a normal retirement allowance equal to
1⅔ percent of the member’s average final compensation times years of membership service.
The maximum retirement allowance shall be 60 percent of average final compensation.
(6)(A) Upon normal retirement pursuant to subdivisions 455(a)(13)(E)(i), (iii), (iv), and
(vi) of this chapter, a Group G member shall receive a normal retirement allowance
equal to two and one-half of a percent of the member’s average final compensation
times years of membership service in Group G. The maximum retirement allowance shall
be 50 percent of average final compensation.
(B) Upon normal retirement pursuant to subdivisions 455(a)(13)(E)(ii) and (v) of this
chapter, a Group G member shall receive a normal retirement allowance equal to two
and one-half of a percent of the member’s average final compensation times years of
membership service in Group G. The maximum retirement allowance shall be 60 percent
of average final compensation.
(c) Early retirement.
(1) Group A and Group D members. Any Group A or Group D member who has not reached his or her normal retirement date
but who has completed 30 years of creditable service or who has attained age 55 and
completed five years of such service may retire on an early retirement allowance.
(2) Group C members. Any Group C member who has not reached his or her normal retirement date but who has
attained age 50 and completed 20 years of creditable service may retire on an early
retirement allowance.
(3) Group F members. Any Group F member who has not attained age 62 but who has attained age 55 and has
completed five years, but less than 30 years, of creditable service may retire on
an early retirement allowance.
(4) Group G members. Any Group G member who has attained 55 years of age and has completed five years of
creditable service may retire on an early retirement allowance.
(d) Early retirement allowance.
(1) Upon early retirement, a Group A member, except facility employees in the Department
of Corrections, shall receive an early retirement allowance that shall be the actuarial
equivalent of the normal retirement allowance computed under subsection (b) of this
section, based on the average final compensation and years of creditable service at
the date of early retirement. However, if a Group A member has completed 30 years
of creditable service but has not reached normal retirement date, the early retirement
allowance shall be equal to the normal retirement allowance computed under subsection
(b) of this section. Group A members who have 20 years of service as facility employees
in the Department of Corrections shall receive an early retirement allowance that
shall be equal to the normal retirement allowance at age 55 without reduction.
(2)(A) Upon early retirement, a Group F member, except 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, and Woodside facility
employees, shall receive an early retirement allowance that shall be equal to the
normal retirement allowance reduced by one-half of one percent for each month the
member is under age 62 at the time of early retirement. Group F members who have 20
years of service as 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, or as Woodside facility employees, or as Vermont
State Hospital employees, or as employees of its successor in interest, who provide
direct patient care shall receive an early retirement allowance that shall be equal
to the normal retirement allowance at age 55 without reduction, provided the 20 years
of service occurred in one or more of the following capacities as an employee of the
Department of Corrections, Woodside facility, or the Vermont State Hospital, or its
successor in interest: facility employee, community service center employee, or court
and reparative service unit employee.
(B) Upon early retirement, a Group F member first included in the membership of the system
on or after July 1, 2008, except facility employees of the Department of Corrections
and Department of Corrections employees who provide direct security and treatment
services to offenders under supervision in the community, and Woodside facility employees,
shall receive an early retirement allowance that shall be equal to the normal retirement
allowance reduced by:
(i) one-eighth of one percent for each month the member is under age 65, provided the
member has accrued 35 years of service at the time of early retirement;
(ii) one-quarter of one percent for each month the member is under age 65, provided the
member has accrued 30 years of service but less than 35 years of service at the time
of early retirement;
(iii) one-third of one percent for each month the member is under age 65, provided the member
has accrued 25 years of service but less than 30 years of service at the time of early
retirement;
(iv) five-twelfths of one percent for each month the member is under age 65, provided the
member has accrued 20 years of service but less than 25 years of service at the time
of early retirement;
(v) five-ninths of one percent for each month the member is under age 65, provided the
member has accrued less than 20 years of service at the time of early retirement.
(3) Upon early retirement, a Group D member shall receive an early retirement allowance
that shall be equal to the normal retirement allowance reduced by one-quarter of one
percent for each month the member is under the member’s normal retirement date at
the time of early retirement.
(4)(A) Upon early retirement, a Group G member who was previously a Group F member first
included in the membership of the System on or before June 30, 2008, and who elected
to transfer into Group G pursuant to the terms set by the Board, shall receive an
early retirement allowance that shall be equal to the normal retirement allowance
reduced by the lesser of (i) one-half of one percent for each month equal to the difference
between the 240 months and the member’s months of creditable service, or (ii) an amount
that shall be the actuarial equivalent of the normal retirement allowance computed
under subsection (b) of this section.
(B) Upon early retirement, a Group G member who was previously a Group F member first
included in the membership of the System on or after July 1, 2008, and who elected
to transfer into Group G pursuant to the terms set by the Board, shall receive an
early retirement allowance that shall be equal to the normal retirement allowance
reduced by the lesser of five-ninths of one percent for each month equal to the difference
between the 240 months and the member’s months of creditable service; or
(C) Upon early retirement, all Group G members other than those specified in subdivision
(A) of this subdivision (d)(4) shall receive an early retirement allowance that shall
be equal to the normal retirement allowance reduced by an amount that shall be the
actuarial equivalent of the normal retirement allowance computed under subsection
(b) of this section.
(5) Notwithstanding subdivisions (1) and (2) of this subsection, an employee of the Department
of Fish and Wildlife assigned to law enforcement duties, an employee of the Military
Department assigned to airport firefighting duties, or a Group C member shall, upon
early retirement, receive an early retirement allowance that shall be equal to the
normal retirement allowance computed under subsection (b) of this section.
(6) Notwithstanding subdivisions (1) and (2) of this subsection, a State’s Attorney, the
Defender General, or sheriff who has completed 20 years of creditable service, of
which 15 years has been as a State’s Attorney, the Defender General, or sheriff, shall
receive an early retirement allowance equal to the normal retirement allowance, at
55 years of age, without reductions.
(e) Any member who retires before age 62 may, at any time prior to the date the first
payment on account of his or her retirement allowance becomes normally due, elect
to convert the retirement allowance otherwise payable after retirement into an increased
retirement allowance that is its actuarial equivalent and is of such amount that,
with his or her Social Security payment at age 62, the member will receive, so far
as possible, the same amount each year before and after such Social Security payment
commences.
(f) Beginning July 1, 1989, the normal retirement allowance for Group A members shall
be not less than the larger of $3,000.00 a year or 50 percent of his or her 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
March 1, 1998, the service retirement allowance shall be not less than the larger
of $4,200.00 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. Beginning September
1, 2006, the service retirement allowance shall be not less than the larger of $6,600.00
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 September
1, 2011, and on September 1 of every fifth year thereafter, the minimum service retirement
allowance shall be increased by $1,000.00. (Added 1971, No. 231 (Adj. Sess.), § 4; amended 1975, No. 196 (Adj. Sess.), § 16, eff. July 1, 1976, § 18, eff. March 27, 1976; 1977, No. 80, § 1; 1977, No. 153 (Adj. Sess.), §§ 4, 5, eff. March 28, 1978; 1981, No. 41, §§ 6-9; 1985, No. 156 (Adj. Sess.); 1987, No. 183 (Adj. Sess.), § 26a, eff. Jan. 1, 1989; 1989, No. 78, §§ 4, 6, 11; 1989, No. 169 (Adj. Sess.), §§ 13, 14; 1989, No. 277 (Adj. Sess.), §§ 17i-17l, eff. Jan. 1, 1991; 1991, No. 64, § 1, eff. June 18, 1991; 1991, No. 189 (Adj. Sess.), § 13, eff. May 19, 1992; 1997, No. 68 (Adj. Sess.), § 2, eff. March 1, 1998; 1997, No. 89 (Adj. Sess.), § 5; 1997, No. 152 (Adj. Sess.), § 8; 1999, No. 53, §§ 1, 2; 1999, No. 158 (Adj. Sess.), § 21; 2001, No. 57, § 2; 2001, No. 116 (Adj. Sess.), § 5a, eff. May 28, 2002; 2003, No. 115 (Adj. Sess.), § 2; 2005, No. 163 (Adj. Sess.), § 1; 2007, No. 47, § 14; 2007, No. 116 (Adj. Sess.), § 2; 2007, No. 146 (Adj. Sess.), § 1; 2011, No. 79 (Adj. Sess.), § 12, eff. April 4, 2012; 2013, No. 22, § 2; 2013, No. 49, § 1; 2015, No. 58, § E.203.3; 2021, No. 114 (Adj. Sess.), § 5, eff. July 1, 2022; 2023, No. 130 (Adj. Sess.), § 2, eff. July 1, 2024.)