Vermont Statutes Title 16 Sec. 1949
Terms Used In Vermont Statutes Title 16 Sec. 1949
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit as provided by the System. See
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Group C member: any person who is first included in the membership of the System on or after July 1, 1990, any person who was a Group B member on June 30, 1990 who was in service on that date, and any person who was a Group B member on June 30, 1990 who was absent from service on that date who returns to service on or after July 1, 1990. See
- Member: shall mean any person included in the System pursuant to section 1933 of this chapter. See
- Month: shall mean a calendar month and "year" shall mean a calendar year and be equivalent to the expression "year of our Lord. See
- Retirement: shall mean withdrawal from active service with a retirement allowance granted under the provisions of this chapter. See
- Service: shall mean all service as a teacher for which compensation is received. See
§ 1949. Postretirement adjustments to retirement allowances
(a) Postretirement adjustments to retirement allowance. On January 1 of each year, the retirement allowance of each beneficiary of the System who is in receipt of a retirement allowance for at least a one-year period as of December 31 in the previous year, and who meets the eligibility criteria set forth in this section, shall be adjusted by the amount described in subsection (d) of this section. In no event shall a beneficiary receive a negative adjustment to the beneficiary’s retirement allowance.
(b) Calculation of net percentage increase. Each year, a determination shall be made of any increase or decrease, to the nearest one-tenth of a percent, in the Consumer Price Index for the month ending on June 30 of that year to the average of the Consumer Price Index for the month ending on June 30 of the previous year.
(1) Consumer Price Index; maximum and minimum amounts. Any increase or decrease in the Consumer Price Index shall be subject to adjustment so as to remain within the following maximum and minimum amounts:
(A) For Group A members and Group C members who are eligible for normal retirement or unreduced early retirement, or who are vested deferred, on or before June 30, 2022, the maximum amount of any increase or decrease utilized to determine the net percentage increase shall be five percent.
(B) For Group C members who are eligible for retirement and leave active service on or after July 1, 2022, the maximum amount of any increase or decrease utilized to determine the net percentage increase shall be four percent.
(2) Consumer Price Index; decreases. In the event of a decrease of the Consumer Price Index as of June 30 for the preceding year, there shall be no adjustment to the retirement allowance of a beneficiary for the subsequent year beginning on January 1; provided, however, that:
(A) such decrease shall be applied as an offset against the first subsequent year’s increase of the Consumer Price Index up to the full amount of such increase; and
(B) to the extent that such decrease is greater than such subsequent year’s increase, such decrease shall be offset in the same manner against two or more years of such increases, for up to but not exceeding five subsequent years of such increases, until fully offset.
(3) Consumer Price Index; increases. Subject to the maximum and minimum amounts set forth in subdivision (1) of this subsection, in the event of an increase in the Consumer Price Index, and provided there remains an increase following the application of any offset as in subdivision (2) of this subsection, that amount shall be identified as the net percentage increase and used to determine the members’ postretirement adjustment as set forth in subsection (d) of this section.
(c) Eligibility for postretirement adjustment. In order for a beneficiary to receive a postretirement adjustment allowance, the beneficiary must meet the following eligibility requirements:
(1) for any Group A or Group C member eligible for retirement, or who is vested deferred, on or before June 30, 2022, the member must be in receipt of a retirement allowance for at least 12 months prior to the January 1 effective date of any postretirement adjustment; and
(2) for any Group C member who is eligible for retirement and leaves active service on or after July 1, 2022, the member must be in receipt of a retirement allowance for at least 24 months prior to the January 1 effective date of any postretirement adjustment.
(d) Amount of postretirement adjustment. The postretirement adjustment for each member who meets the eligibility criteria set forth in subsection (c) shall be as follows:
(1) the full amount of the net percentage increase calculated pursuant to subsection (b) of this section for all Group A members; and
(2) one-half of the net percentage increase for all Group C members.
(e) As used in this section, “Consumer Price Index” shall mean the Northeast Region Consumer Price Index for all urban consumers, designated as “CPI-U,” in the northeast region, as published by the U.S. Department of Labor, Bureau of Labor Statistics. (Added 1971, No. 233 (Adj. Sess.), § 1; amended 1981, No. 41, § 35; 1989, No. 169 (Adj. Sess.), § 8; 1991, No. 64, § 8, eff. June 18, 1991; 1991, No. 247 (Adj. Sess.), § 5; 1999, No. 158 (Adj. Sess.), § 13; 2009, No. 74 (Adj. Sess.), § 7; 2009, No. 139 (Adj. Sess.), §§ 6a, 6b, 7, 13; 2011, No. 63, § H.2; 2015, No. 114 (Adj. Sess.), § 7; 2019, No. 131 (Adj. Sess.), § 88; 2021, No. 114 (Adj. Sess.), § 23, eff. May 9, 2022; 2021, No. 173 (Adj. Sess.), § 2, eff. July 1, 2022.)