H 519

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2026
No. 95. An act relating to Vermont State Employees’ Retirement System
Group G membership.
                                     (H.519)
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 3 V.S.A. § 455 is amended to read:
§ 455. DEFINITIONS
   (a) As used in this subchapter:
                                       ***
      (11) “Member” means any employee included in the membership of the
Retirement System under section 457 of this title.
                                       ***
         (F) “Group G member” means:
            (i) the following employees who are first employed in the
positions listed in this subdivision (F)(i) on or after July 1, 2023, or who are
members of the System as of June 30, 2022 2023, and make an irrevocable
election to prospectively join Group G on or before June 30, 2023, pursuant to
the terms set by the Board: 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, employees of a facility for justice-involved youth, and employees
of the Vermont Psychiatric Care Hospital or its successor in interest, who
provide direct patient care; and
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            (ii) the following employees who are first employed in the
positions listed in this subdivision (F)(ii) or first included in the membership of
the System on or after January 1, 2025, or who are members of the System as
of December 31, 2024, and make an irrevocable election to join Group G on or
before December 31, 2024, pursuant to the terms set by the Board:
               (I) all sheriffs; and
               (II) deputy sheriffs who:
                  (aa) are employed by county sheriff’s departments that
participate in the Vermont Employees’ Retirement System;
                  (bb) have attained Level II or Level III law enforcement
officer certification from the Vermont Criminal Justice Council;
                  (cc) are required to perform law enforcement duties as the
primary function of their employment; and
                  (dd) are not full-time deputy sheriffs compensated by the
State of Vermont whose primary function is transports as defined in 24 V.S.A.
§ 290(b) and eligible for Group C pursuant to subdivision (9)(B) of this
subsection (a); and
            (iii) the following employees who are first employed in the
positions listed in this subdivision (F)(iii) or first included in the membership
of the System on or after January 1, 2027, or who are members of the System
as of December 31, 2026, and make an irrevocable election to join Group G on
or before December 31, 2026, pursuant to the terms set by the Board and who:
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               (I) are employed by a municipal employer that participates in
the Vermont Employees’ Retirement System;
               (II) have attained Level II or Level III law enforcement officer
certification from the Vermont Criminal Justice Council; and
               (III) are required to perform law enforcement duties as the
primary function of their employment.
                                      ***
      (13) “Normal retirement date” means:
                                      ***
         (E) with respect to a Group G member:
            (i) for 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, employees
of a facility for justice-involved youth, or employees of the Vermont
Psychiatric Care Hospital or its predecessor or successor in interest, who
provide direct patient care, who were first included in the membership of the
System on or before June 30, 2008, who were employed as of June 30, 2022
2023, and who made an irrevocable election to prospectively join Group G on
or before July 1, 2023, pursuant to the terms set by the Board, the first day of
the calendar month next following the earlier of:
               (I) 62 years of age and following completion of five years of
creditable service;
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               (II) completion of 30 years of creditable service; or
               (III) 55 years of age and following completion of 20 years of
creditable service;
            (ii) for 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, as
employees of a facility for justice-involved youth, or employees of the
Vermont Psychiatric Care Hospital or its predecessor or successor in interest,
who provide direct patient care, who were first included in the membership of
the System on or after July 1, 2008, who were employed as of June 30, 2022
2023, and who made an irrevocable election to prospectively join Group G on
or before July 1, 2023, pursuant to the terms set by the Board, the first day of
the calendar month next following the earlier of:
               (I) 65 years of age and following completion of five years of
creditable service;
               (II) attainment of 87 points reflecting a combination of the age
of the member and number of years of service; or
               (III) 55 years of age and following completion of 20 years of
creditable service;
            (iii) for 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, employees
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of a facility for justice-involved youth, or employees of the Vermont
Psychiatric Care Hospital or its predecessor or successor in interest, who
provide direct patient care, who first become a Group G member on or after
July 1, 2023, the first day of the calendar month next following the earlier of:
               (I) attainment of 55 years of age and following completion of
20 years of creditable service; or
               (II) 65 years of age and following completion of five years of
creditable service;
            (iv) for all sheriffs and those deputy sheriffs who meet the
requirements pursuant to subdivision (11)(F)(ii) of this subsection (a), who
were first included in the membership of the System on or before June 30,
2008, who were employed as of December 31, 2024, and who made an
irrevocable election to prospectively join Group G on or before January 1,
2025, pursuant to the terms set by the Board, the first day of the calendar
month next following the earlier of:
               (I) 62 years of age and following completion of five years of
creditable service;
               (II) completion of 30 years of creditable service; or
               (III) 55 years of age and following completion of 20 years of
creditable service;
            (v) for all sheriffs and those deputy sheriffs who meet the
requirements pursuant to subdivision (11)(F)(ii) of this subsection (a), who
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were first included in the membership of the System on or after July 1, 2008,
who were employed as of December 31, 2024, and who made an irrevocable
election to prospectively join Group G on or before January 1, 2025, pursuant
to the terms set by the Board, the first day of the calendar month next
following the earlier of:
               (I) 65 years of age and following completion of five years of
creditable service;
               (II) attainment of 87 points reflecting a combination of the age
of the member and number of years of service; or
               (III) 55 years of age and following completion of 20 years of
creditable service; or
            (vi) for all sheriffs and those deputy sheriffs who meet the
requirements pursuant to subdivision (11)(F)(ii) of this subsection (a), who
first become a Group G member on or after January 1, 2025, the first day of
the calendar month next following the earlier of:
               (I) attainment of 55 years of age and following completion of
20 years of creditable service; or
               (II) 65 years of age and following completion of five years of
creditable service;
            (vii) for all municipal law enforcement officers who meet the
requirements pursuant to subdivision (11)(F)(iii) of this subsection (a), who
were first included in the membership of the System on or before June 30,
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2008, who were employed as of December 31, 2026, and who made an
irrevocable election to prospectively join Group G on or before January 1,
2027, pursuant to the terms set by the Board, the first day of the calendar
month next following the earlier of:
               (I) 62 years of age and following completion of five years of
creditable service;
               (II) completion of 30 years of creditable service; or
               (III) 55 years of age and following completion of 20 years of
creditable service;
            (viii) for all municipal law enforcement officers who meet the
requirements pursuant to subdivision (11)(F)(iii) of this subsection (a), who
were first included in the membership of the System on or after July 1, 2008,
who were employed as of December 31, 2026, and who made an irrevocable
election to prospectively join Group G on or before January 1, 2027, pursuant
to the terms set by the Board, the first day of the calendar month next
following the earlier of:
               (I) 65 years of age and following completion of five years of
creditable service;
               (II) attainment of 87 points reflecting a combination of the age
of the member and number of years of service; or
               (III) 55 years of age and following completion of 20 years of
creditable service; or
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             (ix) for all municipal law enforcement officers who meet the
requirements pursuant to subdivision (11)(F)(iii) of this subsection (a) who
first become a Group G member on or after January 1, 2027, the first day of
the calendar month next following the earlier of:
                (I) attainment of 55 years of age and following completion of
20 years of creditable service; or
                (II) 65 years of age and following completion of five years of
creditable service.
                                        ***
Sec. 2. 3 V.S.A. § 459 is amended to read:
§ 459. NORMAL AND EARLY RETIREMENT
                                        ***
   (b) Normal retirement allowance.
                                        ***
      (6)(A) Upon normal retirement pursuant to subdivisions
455(a)(13)(E)(i), (iii), (iv), and (vi), (vii), and (ix) 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), and (viii) of this chapter, a Group G member shall
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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.
                                       ***
Sec. 3. 3 V.S.A. § 489 is amended to read:
§ 489. BENEFITS
   Persons who become members of the Vermont State Retirement System
under this subchapter and on behalf of whom contributions are paid as
provided in this subchapter shall be entitled to benefits under the Vermont
State Retirement System as though they were employees of the State of
Vermont. These employees shall be considered “Group F members” as
defined in subdivision 455(a)(11)(E) of this title, except that:
      (1) elected municipal employees shall not be subject to mandatory
retirement requirements; and
      (2) sheriffs and those deputy sheriffs who meet the requirements
pursuant to subdivision 455(a)(11)(F)(ii) of this chapter shall be considered
members of Group G; and
      (3) municipal law enforcement officers who meet the requirements
pursuant to subdivision 455(a)(11)(F)(iii) of this chapter shall be considered
members of Group G.
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Sec. 4. ONE-TIME IRREVOCABLE ELECTION FOR MUNICIPAL LAW
         ENFORCEMENT OFFICERS
   (a) Subject to the restrictions set forth in subdivision (b)(1) of this section,
on or before September 1, 2026, the Office of the State Treasurer, in
consultation with participating eligible municipalities, shall establish a list of
positions newly eligible for Group G of the Vermont Employees’ Retirement
System, which shall be limited to municipal law enforcement officers who:
      (1) are employed by a municipal employer that participates in the
Vermont Employees’ Retirement System;
      (2) have a Level II or Level III law enforcement officer certification
from the Vermont Criminal Justice Council; and
      (3) are required to perform law enforcement duties as the primary
function of their employment.
   (b)(1) A municipal law enforcement officer who qualifies for Group G
Membership pursuant to this act and that has a current Level II or Level III law
enforcement officer certification from the Vermont Criminal Justice Council
shall have a one-time option to transfer to Group G on or before December 1,
2026. Municipal law enforcement officers without a current Level II or Level
III law enforcement officer certification from the Vermont Criminal Justice
Council shall not be eligible to transfer to Group G membership. For a
municipal law enforcement officer who qualifies for Group G membership
who is first employed on or after December 1, 2026, but before January 1,
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2027, election to join Group G under this section shall be made as soon as
possible but shall be within 30 days following the employee’s date of hire.
      (2) Election to join the Group G plan under this section shall be
irrevocable.
   (c) The effective date of participation in a new group plan for those
employees covered under this section and who elect to transfer to Group G
shall be January 1, 2027. All past service accrued through the date of transfer
shall be calculated based upon the plan in which it was accrued, with all
provisions and penalties, if applicable, applied.
   (d) A municipal employer employing a law enforcement officer
participating in the Vermont Employees’ Retirement System shall notify the
Office of the State Treasurer of changes in a law enforcement officer’s
eligibility for Group G within 30 days after the change in eligibility pursuant to
subdivision 455(a)(11)(F)(iii) of this title.
   (e) Nothing in this section shall be read to extend postretirement health or
other insurance benefits to Group G municipal law enforcement officers who
work for a municipal employer that participates in the Vermont Employees’
Retirement System.
Sec. 5. EFFECTIVE DATE
   This act shall take effect on July 1, 2026.
Date Governor signed bill: May 11, 2026
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