2005 Vermont Code - § 495. — Transfer of memberships

§ 495. Transfer of memberships

(a) The words "retirement system" as used in this section shall mean and include the following:

(1) Vermont state retirement system as established by subchapter 1 of this chapter, and including employees of certain political subdivisions under the provisions of subchapter 2 of this chapter;

(2) State teachers' retirement system of Vermont as established by chapter 55 of Title 16; and

(3) Municipal employees' retirement system as established by chapter 125 of Title 24.

(b) Any person who is a member of a retirement system as defined in subsection (a) of this section may transfer his membership to another retirement system, as defined in subsection (a) of this section, within one year after acceptance of office or employment which makes it possible or mandatory for him to participate in such other retirement system if such acceptance of office or employment would make it impossible for him to continue as a contributing member of the retirement system of which he has been a member.

(c) Any such person desiring so to transfer his membership shall notify the board of trustees of the retirement system of which he is a member and the board of trustees of the retirement system to which he wishes to transfer of such intention and shall request a transfer of the total amount of the accumulated contributions standing to his credit in the annuity savings fund, or other corresponding fund, of the system of which he is a member from said system to the retirement system to which he wishes to transfer his membership and shall request the deposit of such accumulated contributions in the annuity savings fund, or other corresponding fund thereof. The amount to be transferred shall equal five percent of the member's compensation for each year of creditable service, plus any amount of contributions made by the member, if any. Upon transfer of membership and funds in accordance with the provisions of this section he shall receive credit in the system to which he has transferred for all accrued benefit rights based on service rendered prior to such transfer for which he was entitled to credit in the system from which he transferred.

(d) Upon becoming a member of the retirement system to which he has transferred, such person shall thereafter be eligible for such benefits or annuities as are provided by law in such retirement system, including the credits for previous service in the retirement system from which he has transferred as provided in subsection (e) hereof, provided, however, that if he retires on a retirement allowance in the system to which he transferred within five years after said transfer, the benefits or annuities payable with respect to the service credit in the system from which he transferred shall not be greater than those which would have been payable with respect to such service had he remained in said system.

(e) The board of trustees of the Vermont state retirement system, the state teachers' retirement system of Vermont and the municipal employees' retirement system are severally authorized to make such rules and regulations as may be necessary to carry out the provisions of this section.

(f) Such provisions of subchapter 1 of this chapter, chapter 55 of Title 16 and chapter 125 of Title 24 as are inconsistent with the provisions hereof are hereby repealed to the extent of such inconsistency.

(g) If any provision of this section, or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this section, nor provisions or applications of the statutes to which this section is in addition which can be given effect without the invalid provision or application, and to this end the provisions of this section are declared to be severable. (Added 1971, No. 231 (Adj. Sess.), § 4; amended 1981, No. 41, § 21.)