Bill > H0448

This bill proposes several amendments to the Vermont State Employees' Retirement System, focusing on expanding and modifying benefits for state employees. It expands the definition of Group G members to include additional classified employees from various state departments and agencies. The bill modifies the normal retirement allowance for Group G members, changing the calculation method and setting the maximum retirement allowance at 50 percent of average final compensation for some members and 1.5 percent for others. It also allows members to earn creditable service for temporary or seasonal state employment and provides expanded options for military service credit, including crediting service for specific military conflicts without requiring additional contributions. The bill introduces a new provision establishing a contractual right for retirement system members, which prevents future amendments from diminishing their existing benefits. Additionally, the bill adjusts contribution rates for Group G members, setting a uniform rate of 8.93 to 9.93 percent of compensation starting in fiscal year 2026, replacing the previous quartile-based contribution system. The bill includes a requirement for the State Treasurer to study the fiscal impacts of the military service credit changes and is set to take effect on July 1, 2025, with some provisions starting July 1, 2026.

Government Affairs

https://legislature.vermont.gov/bill/status/2026/H.448