24
Vermont Employees Retirement System
Excerpts from a Pamphlet Published
by the State of Vermont.
To
E m ployees
V erm ont :
the
of
the
S t a t e
At the 1943 session of the Legisla
ture, provision was made for the estab
lishment of a jointly contributory re
tirement system for the benefit of em
ployees of the State of Vermont. This
system became effective April 1, 1944.
It offers a plan whereby the state joins
with you in making adequate provision
for your old age and for protection in
the event of disability. It is believed
that the system should prove a source
of great satisfaction to you in the pro
tection which it offers to you and to
your dependents.
creditable service is less than 33 years,
his benefit will be proportionately less.
If his service is greater than 3 3 years,
his benefit will be greater. In determin
ing creditable service the first three
years of service are omitted and the
maximum credit that will be allowed,
taking into account both membership
service and prior service, is 3 3 years.
Precisely, the retirement allowance is
made up of an annuity provided by
the member’s own accumulated contri
butions, and a pension provided by the
state’s contributions, as follows:
1. Each member will have a certain per
centage of his salary deducted for his' an
nuity. The amount deducted will be credit
ed to his own savings account in the retire
ment system. Interest will be credited regu
larly to his savings. If he retires on a service
retirement allowance, his total savings will
be used to provide an annuity for him. The
contribution rates are computed to provide
that on the average the member’s savings
will provide an annunity of 1 / 1 40 of his
average final compensation for each year of
service as a member.
2. The State will also contribute a certain
percentage of each member’s salary which
will be used to provide a pension. The
amount of pension will be exactly l / l 4 0 of
the member’s average final compensation for
each year of membership service not in ex
cess of 3 5 years.
3. In addition, in the case of a member
with credit for service rendered prior to
the establishment of the system on April 1,
1944, the retirement allowance will include
an additional pension on account of prior
service equal to 1 /70 of the member’s av
erage final compensation for each year of
prior service for which he receives credit.
Service Retirement Allowance
Any member who has attained age
65 may retire on his own application.
Retirement will be compulsory at age
70, except that during the five year
period following the date of establish
ment of the system any member may
remain in service beyond age 70 by ex
tension or successive one year exten
sions granted by the Retirement Board.
Elected and appointed officials may re
main in service after age 70 to complete
their terms of office. No member has
to prove disability or financial depend
ence in order to retire at age 65 or at
an older age, and no one has the dis
cretionary power to hold up the grant
ing of the member’s retirement allow
ance.
On retirement the member is entitled
to an allowance in the average case
Disability Retirement Allowances
equal to 1/70 of the average annual
compensation received by him during
If a member who has not reached age
the last 10 years of service, multiplied 65 becomes permanently unable to
by the number of his years of creditable work after he has had 13 or more years
service. For example, if a member has of creditable service, he may be retired,
3 5 years of creditable service upon re regardless of age, on a disability allow
tirement at age 65 he may expect a ance payable for the remainder of his
retirement allowance of about one half life, or until he is able to return to
his average final compensation. If his work.