§ 479. Group insurance
(a)(1) As provided under section 631 of this title, a member who is insured by the respective group insurance plans immediately preceding
the member’s effective date of retirement shall be entitled to continuation of group
insurance as follows:
(A)(i) coverage in the group medical benefit plan provided by the State of Vermont for active
State employees; or
(ii) for a Group F and Group G plan member first included in the membership of the system
on or after July 1, 2008, coverage in the group medical benefit plan offered by the
State of Vermont for active State employees and pursuant to the following, provided:
(I) a member who has completed five years and less than 10 years of creditable service
at the member’s retirement shall pay the full cost of the premium;
(II) a member who has completed 10 years and less than 15 years of creditable service at
the member’s retirement shall pay 60 percent of the cost of the premium;
(III) a member who has completed 15 years and less than 20 years of creditable service at
the member’s retirement shall pay 40 percent of the cost of the premium;
(IV) a member who has completed 20 years or more of creditable service at the member’s
retirement shall pay 20 percent of the cost of the premium; and
(B) members who have completed 20 years of creditable service at their effective date
of retirement shall be entitled to the continuation of life insurance in the amount
of $10,000.00.
(2) Notwithstanding any provision of subdivision (1)(A)(i) or (ii) of this subsection
to the contrary, a member may be offered health coverage other than coverage in the
group medical benefit plan provided by the State of Vermont for active State employees
if the following conditions are met:
(A) the alternative health coverage is substantially equivalent to the coverage offered
through the group medical benefit plan provided by the State of Vermont for active
State employees; and
(B) the alternative health coverage is mutually agreeable to:
(i) the State;
(ii) each employee organization that has been certified to represent one or more bargaining
units pursuant to chapters 27 and 28 of this title; and
(iii) the Vermont Retired State Employees’ Association.
(b) As of July 1, 2007, members of the Group C plan who separate from service prior to
being eligible for retirement benefits under this chapter, who have at least 20 years
of creditable service, and who participated in the group medical benefit plan at the
time of separation from service shall have a one-time option at the time retirement
benefits commence to participate in the group medical benefit plan provided by the
State of Vermont for active State employees or any alternative health coverage provided
pursuant to subdivision (a)(2) of this section. Premiums for the plan shall be prorated
between the retired member and the Retirement System pursuant to section 631 of this title.
(c) Premiums for coverage of retired members of the Group C plan and their dependents
in the group medical benefit plan or any alternative health coverage provided pursuant
to subdivision (a)(2) of this section shall be prorated on the same basis as is provided
for active employees by the current collective bargaining agreement for the nonmanagement
unit. The amounts designated as the State’s share of premium for the medical benefit
plan and the total premium for group life insurance provided under subdivision (a)(2)
of this section shall be paid by the Fund as an operating expense in accordance with
subsection 473(d) of this title.
(d) After January 1, 2007, the State Treasurer may offer and administer a dental benefit
plan for retired members, beneficiaries, eligible dependents, and eligible retirees
of special affiliated groups and the dependents of members of those groups who are
eligible for coverage in the State Employee Group Medical Benefit Plan or any alternative
health coverage provided pursuant to subdivision (a)(2) of this section. The Plan
shall be separate and apart from any dental benefit plan offered to Vermont State
employees. The original plan of benefits, and any changes thereto, shall be determined
by the State Treasurer with due consideration of recommendations from the Retired
Employees’ Committee on Insurance established in section 636 of this title.
(1) For purposes of dental benefits, “retired members” shall include retired employees
of the State who are receiving a retirement allowance from the Vermont State Retirement
System. In addition, “retired members” shall include retired employees who are receiving
a retirement allowance based upon their employment with the Vermont State Employees’
Association, the Vermont State Employees’ Credit Union, and the Vermont Council on
the Arts, as long as they were covered under a group dental plan as active employees
on their retirement date, and:
(A) they have at least 20 years’ service with that employer; or
(B) have attained 62 years of age, and have at least 15 years’ service with that employer.
(2) One hundred percent of the premiums for providing dental benefit coverage to retired
members, beneficiaries, and eligible dependents shall be paid in full by retired members
and beneficiaries and shall be deducted from each member’s retirement allowance each
month. Nothing in this subdivision creates a legal obligation on the part of the State
to pay any portion of the premiums required to provide dental benefit coverage to
retired members, dependents, beneficiaries, or other eligible participants.
(3) Dependent eligibility shall be determined in the manner applied to determinations
for coverage in the State Employee Medical Benefit Plan or any alternative health
coverage provided pursuant to subdivision (a)(2) of this section.
(4) [Repealed.]
(e) As of January 1, 2007, and thereafter, upon retirement, members entitled to prorated
group medical benefit plan premium payments from the Retirement System under the terms
of this section shall have a one-time option to reduce the percentage of premium payments
from the Retirement System during the member’s life, with the provision that the Fund
shall continue making an equal percentage of premium payments after the member’s death
for the life of the dependent beneficiary nominated by the member under section 468 of this title, should such dependent beneficiary survive the member. The Retirement Board, after
consultation with its actuary, shall establish reduced premium payment percentages
that are as cost neutral to the Fund as possible.
(f) [Repealed.]
(g) A member of the Group F or Group G plan who is first included in the membership of
the System on or after July 1, 2008, who separates from service prior to being eligible
for retirement benefits under this chapter, who has at least 20 years of creditable
service, and who participated in the group medical benefit plan at the time of separation
from service shall have a one-time option at the time retirement benefits commence
to reinstate the same level of coverage, in the group medical benefit plan provided
by the State of Vermont for active State employees or any alternative health coverage
provided pursuant to subdivision (a)(2) of this section, that existed at the date
of separation from service. Premiums for the plan shall be prorated between the retired
member and the Retirement System pursuant to subsection (a) of this section.
(h) For purposes of entitlement to medical benefits in retirement, former county court
employees hired by the counties to court positions on or before June 30, 2008 who
became State employees on February 1, 2011 pursuant to 2010 Acts and Resolves No.
154 shall be deemed to have been first included in membership of the system on or
before June 30, 2008. (Added 1981, No. 249 (Adj. Sess.), § 30b, eff. July 4, 1982; amended 2003, No. 156 (Adj. Sess.), § 13; 2005, No. 163 (Adj. Sess.), § 3; 2005, No. 165 (Adj. Sess.), § 2; 2007, No. 12, § 2; 2007, No. 13, § 15a; 2007, No. 116 (Adj. Sess.), § 6; 2011, No. 1, § 1, eff. Feb. 2, 2011; 2013, No. 22, § 5; 2015, No. 18, § 4; 2017, No. 165 (Adj. Sess.), § 6; 2021, No. 114 (Adj. Sess.), § 13, eff. July 1, 2022; 2023, No. 78, § E.108, eff. July 1, 2023.)