§ 495. Transfer of memberships
(a) The words “retirement system” as used in this section shall mean and include the following:
(1) Vermont State Retirement System as established by subchapter 1 of this chapter, and
including employees of certain political subdivisions under the provisions of subchapter
2 of this chapter;
(2) State Teachers’ Retirement System of Vermont as established by 16 V.S.A. chapter 55; and
(3) Municipal Employees’ Retirement System as established by 24 V.S.A. chapter 125.
(b) Any person who is a member of a Retirement System as defined in subsection (a) of
this section may transfer his or her membership to another Retirement System, as defined
in subsection (a) of this section, within one year after acceptance of office or employment
that makes it possible or mandatory for him or her to participate in such other Retirement
System if such acceptance of office or employment would make it impossible for him
or her to continue as a contributing member of the Retirement System of which he or
she has been a member.
(c) Any such person desiring so to transfer membership shall notify the board of trustees
of the retirement system of which the person is a member and the board of trustees
of the retirement system to which the person wishes to transfer of such intention
and shall request a transfer of the total amount of the accumulated contributions
standing to his or her credit in the fund of the system of which he or she is a member
from said system to the retirement system to which he or she wishes to transfer his
or her membership and shall request the deposit of such accumulated contributions
in the fund of the system he or she intends to join. The amount to be transferred
shall be the member’s compensation multiplied by the actual fiscal year employer contribution
rate that was in effect for each year of creditable service being transferred, plus
any amount of contributions made by the member, if any. Upon transfer of membership
and funds in accordance with the provisions of this section he or she shall receive
credit in the system to which he or she has transferred for all accrued benefit rights
based on service rendered prior to such transfer for which he or she was entitled
to credit in the system from which he or she transferred.
(d) Upon becoming a member of the retirement system to which he or she has transferred,
such person shall thereafter be eligible for such benefits or annuities as are provided
by law in such retirement system, including the credits for previous service in the
retirement system from which the person has transferred as provided in subsection
(e) of this section. The average final compensation used to calculate the benefit
payable at retirement shall be determined by using the earnable compensation that
affords the highest consecutive years of earnings under either the system from which
or to which he or she transferred. Except for the determination of the average final
compensation as set forth in this subsection, the benefits for a member who transferred
from one retirement system to another shall be calculated as follows:
(1) a member who transfers after July 1, 2007, and before June 30, 2008, shall have the
option to have the service from the first system calculated according to the provisions
of either the first or the second system at the time of retirement;
(2) a member who transfers on or before June 30, 2007, or on or after July 1, 2008, shall
have his or her benefits calculated according to the provisions of the system or systems
under which the benefits were accrued;
(3) when benefits calculated according to the provisions of two or more retirement systems
are combined under this subsection, they may exceed the maximum percentage of average
final compensation established for each plan.
(e) The Board of Trustees of the Vermont State Retirement System, the State Teachers’
Retirement System of Vermont and the Municipal Employees’ Retirement System are severally
authorized to adopt rules as may be necessary to carry out the provisions of this
section.
(f) Such provisions of subchapter 1 of this chapter, 16 V.S.A. chapter 55, and 24 V.S.A. chapter 125 as are inconsistent with the provisions hereof are hereby repealed to the extent
of such inconsistency.
(g) If any provision of this section, or the application thereof to any person or circumstance,
is held invalid, such invalidity shall not affect other provisions or applications
of this section, nor provisions or applications of the statutes to which this section
is in addition that can be given effect without the invalid provision or application,
and to this end the provisions of this section are declared to be severable. (Added 1971, No. 231 (Adj. Sess.), § 4; amended 1981, No. 41, § 21; 2007, No. 13, § 20; 2007, No. 137 (Adj. Sess.), § 3; 2025, No. 18, § 10, eff. May 13, 2025.)