H 656

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1H.656
2 Introduced by Representative Howard of Rutland City
3 Referred to Committee on
4 Date:
5 Subject: Legislature; General Assembly; salaries and fees; supplemental
6compensation; health insurance benefits; Defined Contribution
7Retirement Plan
8 Statement of purpose of bill as introduced: This bill proposes to provide
9 supplemental compensation during the legislative session to members of the
10 General Assembly whose median monthly household income is less than the
11 member earned prior to the member’s service in the General Assembly. This
12 bill also proposes to make members eligible to participate in the State
13 employees’ health benefit plan on the same terms and at the same cost as
14 employees of the Executive Branch. This bill also proposes to make members
15 of the General Assembly eligible to participate in the State’s Defined
16 Contribution Retirement Plan with a match.
17    An act relating to supplemental compensation, health insurance, and
18    retirement benefits for members of the General Assembly
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1 It is hereby enacted by the General Assembly of the State of Vermont:
2 Sec. 1. 32 V.S.A. § 1051 is amended to read:
3 § 1051. SPEAKER OF THE HOUSE AND PRESIDENT PRO TEMPORE
4OF THE SENATE; COMPENSATION AND EXPENSE
5REIMBURSEMENT
6***
7    (b) If the Speaker of the House substantiates that the Speaker’s total
8 household income for any month during the legislative session is less than the
9 Speaker’s median monthly income prior to serving in the General Assembly,
10 then the Speaker is entitled to receive a supplemental payment from the
11 General Assembly in the following month if the shortfall is attributable to the
12 Speaker’s service in the General Assembly. The amount of the supplemental
13 payment under this section shall be the difference between the Speaker’s actual
14 total household income for the applicable month and the Speaker’s median
15 monthly income prior to serving in the General Assembly.
16    (c) If the President Pro Tempore of the Senate substantiates that the
17 President’s total household income for any month during the legislative session
18 is less than the President’s median monthly income prior to serving in the
19 General Assembly, then the President is entitled to receive a supplemental
20 payment from the General Assembly in the following month if the shortfall is
21 attributable to the President’s service in the General Assembly. The amount of
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1 the supplemental payment under this section shall be the difference between
2 the President’s actual total household income for the applicable month and the
3 President’s median monthly income prior to serving in the General Assembly.
4 Sec. 2. 32 V.S.A. § 1052 is amended to read:
5 § 1052. MEMBERS OF THE GENERAL ASSEMBLY; COMPENSATION
6AND EXPENSE REIMBURSEMENT
7    (a)(1) Each member of the General Assembly, other than the Speaker of the
8 House and the President Pro Tempore of the Senate, is entitled to a weekly
9 salary of $589.00 for the 2005 Biennial Session and thereafter, provided that,
10 beginning on January 1, 2007, the weekly compensation shall be adjusted
11 annually thereafter by the cost of living adjustment negotiated for State
12 employees under the most recent collective bargaining agreement, except that,
13 beginning on July 1, 2021, and annually thereafter on January 1, the weekly
14 compensation shall be adjusted consistent with the compensation increases
15 provided to other constitutional officers. The salary of members shall be paid
16 in biweekly installments.
17***
18(3) If a member substantiates that the member’s total household income
19 for any month during the legislative session is less than the member’s median
20 monthly income prior to serving in the General Assembly, then the member is
21 entitled to receive a supplemental payment from the General Assembly in the
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1 following month if the shortfall is attributable to the member’s service in the
2 General Assembly. The amount of the supplemental payment under this
3 section shall be the difference between the member’s actual total household
4 income for the applicable month and the member’s median monthly income
5 prior to serving in the General Assembly.
6***
7 Sec. 3. 3 V.S.A. § 631 is amended to read:
8 § 631. GROUP INSURANCE FOR STATE EMPLOYEES; SALARY
9DEDUCTIONS FOR INSURANCE, SAVINGS PLANS, AND
10CREDIT UNIONS
11    (a)(1) The Secretary of Administration may contract on behalf of the State
12 with any insurance company or nonprofit association doing business in this
13 State to secure the benefits of franchise or group insurance. The terms of
14 coverage under the policy shall be determined under section 904 of this title,
15 but it may include:
16(A) life, disability, health, and accident insurance and benefits for
17 any class or classes of State employees; and
18(B) hospital, surgical, and medical benefits for any class or classes of
19 State employees or for those employees and any class or classes of their
20 dependents.
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1(2)(A)(i) As used in this section, the term “employees” includes any
2 class or classes of elected or appointed officials, State’s Attorneys, sheriffs,
3 employees of State’s Attorneys’ offices whose compensation is administered
4 through the State of Vermont payroll system, except contractual and temporary
5 employees, and deputy sheriffs paid by the State of Vermont pursuant to 24
6 V.S.A. § 290(b). The term “employees” shall does not include members of the
7 General Assembly as such, any person rendering service on a retainer or fee
8 basis, members of boards or commissions, or persons other than employees of
9 the Vermont Historical Society, the Vermont Film Corporation, the Vermont
10 State Employees’ Credit Union, Vermont State Employees’ Association, and
11 the Vermont Council on the Arts, whose compensation for service is not paid
12 from the State Treasury, or any elected or appointed official unless the except
13 as specifically provided pursuant to this subdivision (a)(2)(A)(i). The term
14 “employees” includes employees of the Vermont Historical Society, the
15 Vermont State Employees’ Credit Union, the Vermont State Employees’
16 Association, the Vermont Council on the Arts, and any elected or appointed
17 official who is actively engaged in and devoting substantially full-time to the
18 conduct of the business of the official’s public office. The term “employees”
19 also includes members of the General Assembly as set forth in subdivision (iv)
20 of this subdivision (a)(2)(A).
21***
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1(iv) For purposes of group hospital-surgical-medical expense
2 insurance, the term “employees” includes members of the General Assembly.
3(B)(i) The premiums for extending insurance coverage to employees
4 shall be paid in full by the Vermont Historical Society, the Vermont Film
5 Corporation, the Vermont State Employees’ Association, the Vermont State
6 Employees’ Credit Union, the Vermont Council on the Arts, or their respective
7 retirees. Nothing herein creates a legal obligation on the part of the State of
8 Vermont to pay any portion of the premiums required to extend insurance
9 coverage to this group of employees.
10(ii) Members of the General Assembly shall be required to pay the
11 same portion of the premium for group hospital-surgical-medical expense
12 insurance as is required of employees of the Executive Branch.
13***
14 Sec. 4. 3 V.S.A. § 500 is amended to read:
15 § 500. DEFINED CONTRIBUTION RETIREMENT PLAN
16    (a) The State Treasurer shall offer a retirement plan for State employees
17 who are not members of the classified system and for members of the General
18 Assembly. The Plan shall qualify as a defined contribution plan under the U.S.
19 Internal Revenue Code, as amended. Participation in such plan shall be in lieu
20 of the retirement plans established under chapter 16 of this title.
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1    (b)(1) Employees who are not members of the classified system who are
2 first employed by the State on and after January 1, 1999, and would otherwise
3 be members of Group A, B, C, D, F, or G of the Vermont State Retirement
4 System shall be eligible to participate in the Defined Contribution Retirement
5 Plan.
6(2) Members of the General Assembly who are elected or appointed to
7 serve in the General Assembly for the 2027–2028 biennium and after shall be
8 eligible to participate in the Defined Contribution Retirement Plan.
9    (c) Employees and members of the General Assembly who elect to
10 participate in the Defined Contribution Retirement Plan shall contribute at the
11 rate of 2.85 percent of the employee’s or member’s compensation for each
12 payroll period. The State shall contribute to each employee’s or member’s
13 account at the rate of seven percent of the employee’s or member’s
14 compensation for each payroll period. Employees and members may make
15 additional after-tax contributions to the plan, provided that total annual
16 contributions by an employee and employer or member and by the State in any
17 calendar year shall not exceed the maximum permitted for such plans under the
18 U.S. Internal Revenue Code.
19    (d) Election to participate in the Defined Contribution Retirement Plan is
20 irrevocable, unless one of the following applies:
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1(1) the The employee or member becomes a classified employee and
2 elects to transfer his or her the employee’s or member’s membership and the
3 full actuarial value of the accrued benefit calculated on a cost neutral basis to
4 the Vermont State Retirement System; or.
5(2) the The employee or member is appointed to a position that is
6 eligible for membership in the Group D plan. Within 60 days of after
7 appointment, the employee or member may choose to participate in the Group
8 D plan and cease participation in the defined contribution plan Defined
9 Contribution Retirement Plan. Upon an election to participate in the Group D
10 plan, the State Treasurer shall apply the funds accumulated in the employee’s
11 or member’s defined contribution account toward purchasing retirement credit
12 in the Group D plan by first applying the funds toward purchasing any Group
13 D eligible credit earned from the date of the judicial appointment and then
14 applying the funds toward purchasing credit in the retirement group plan or
15 plans for which the employee or member would have formerly been eligible.
16    (e) An employee or member who elects to participate in the Defined
17 Contribution Retirement Plan shall become vested in the Plan after completion
18 of one year and 11 months of creditable service as a State employee or service
19 as a member of the General Assembly.
20    (f) An employee or member who has elected to participate in the defined
21 contribution plan Defined Contribution Retirement Plan and, after having
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1 accrued a minimum of five years of service, becomes disabled as determined
2 by the Social Security Administration or by a State-purchased disability
3 insurance policy while currently employed by the State or serving as a member
4 of the General Assembly, shall be entitled to continue the same health and
5 dental benefits that are available to members of the Vermont State Retirement
6 System who qualify for disability retirement benefits.
7    (g) Upon retirement, employees and members who elect to participate in
8 the Defined Contribution Retirement Plan shall be entitled to the same life,
9 dental, and health insurance benefits available to members of the Vermont
10 State Retirement System.
11    (h) The State Treasurer shall certify to the Governor or Governor-Elect a
12 statement of the percentage of the payroll of all participating employees and
13 members sufficient to fund all operating expenses of the defined contribution
14 retirement plan Defined Contribution Retirement Plan and all contributions of
15 the State that will become due and payable during the next biennium.
16 Contributions by the State shall be charged to the departmental appropriation
17 from which the employees’ and members’ salaries are paid and shall be
18 included in each departmental budgetary request.
19    (i) The Plan shall be administered by the State Treasurer who shall adopt
20 rules necessary to implement and administer the provisions of this chapter.
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1 Sec. 5. EFFECTIVE DATES
2   (a) This section and Sec. 4 (3 V.S.A. § 500) shall take effect on passage.
3   (b) All other sections shall take effect on January 1, 2027.
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