2005 Vermont Code - § 1934. — Members of prior Vermont teachers\' retirement system

§ 1934. Members of prior Vermont teachers' retirement system

(a) After July 1, 1947, no new member shall be added to the membership of the Vermont teachers' retirement system, hereinafter referred to as the existing system, as provided for by chapter 193 of the Vermont Statutes, Revision of 1947.

(b) Any member of the existing system in service or on an approved leave of absence on July 1, 1947, shall become a member of this system as provided in subsection (b) of section 1933 of this title, unless he files an election not to be included in the membership as therein prescribed. If he becomes a member of this system within one year after July 1, 1947, the service certified on his prior service certificate as provided in subsection (b) of section 1936 of this title, shall be not less than the service as a teacher with which he was credited as a member of the existing system on July 1, 1947. Service rendered outside the state in the capacity of a teacher as herein defined for which the member had received credit in the existing system shall be allowed as creditable service under this system.

(c) At the time a member of the existing system becomes a member of this system, the retirement board of the existing system shall transfer to this system the amount standing to the member's credit in the existing system, consisting of the member's contributions and state contributions credited to his account, together with all interest credited on such amounts, and thereupon the teacher's membership in the existing system shall terminate and he shall have no further interest therein. The amount derived from the teacher's contributions with interest credits shall, when transferred to this system, be credited to his individual account in the annuity savings fund as accumulated contributions except that they shall be used at the time of retirement to provide an additional annuity computed on the basis of such mortality table and rate of interest as would have been applicable had such member retired under the provisions of the existing system. The amount derived from state contributions with interest credit shall, when transferred to this system, be credited to the pension accumulation fund. Anything in this chapter to the contrary notwithstanding, if the teacher was a member of the existing system from June 30, 1931 until becoming a member of this system, any contributions returned under section 1940 of this title shall consist not only of contributions made under this chapter with interest allowed thereon, but in addition thereto shall include the amount of the member's own contributions together with the state contributions transferred from the existing system to this system, without interest credit. Any excess of the total amount payable over and above the amount standing to the individual credit of the member in the annuity savings fund of this system shall be charged to the pension accumulation fund.

(d) All retirement allowances to teachers retired under the existing system in force on July 1, 1947 shall be paid thereafter from the pension accumulation fund created by this chapter, and the part of any retirement allowance then in force which is provided from the state's contributions shall be not less than the pension which would have been payable had the provisions of this chapter been in force at the time of retirement.

(e) Within ninety days subsequent to July 1, 1947, the retirement board of the existing system shall transfer to the pension accumulation fund created by the chapter cash and securities standing to the credit of the existing system having a value equal to the amount by which the total assets of the existing system then exceed the sum of the amounts standing to the credit of individual members of the existing system as of the date of such transfer and the amount credited to the reserve fund of the existing system not exceeding $1,000.00. The residue of any appropriation made for the payment of pensions under the existing system, except the amount estimated to be necessary on account of any teacher in active service remaining in the existing system, to comply with subdivision III of section 4254 of the Vermont Statutes, Revision of 1947, shall be transferred and credited to the pension accumulation fund created by this chapter.

(f) If at any time subsequent to January 1, 1949 a majority of the membership of the existing retirement system as constituted on June 30, 1947 have become members of this system and there remain less than ten teachers in active service who are members of the existing retirement system, any cash and securities remaining to the credit of the existing system shall be transferred to the pension accumulation fund of this system as of a date, within ninety days thereafter, to be set by the retirement board of the existing system. After the date of such transfer the powers and duties of the retirement board of the existing system in respect to the membership, both active and retired, of such system shall vest in the board of trustees of this system. The contributions payable by such members shall be continued and paid into the pension accumulation fund of this system and the benefits payable or which become payable shall be paid from said fund, all in accordance with chapter 193 of the Vermont Statutes, Revision of 1947, relating to the Vermont teachers' retirement system and the regulations of the teachers' retirement board as each existed on June 30, 1948. The contributions of the state shall be adjusted to include any liabilities added to this system over and above the amount of assets so transferred. Upon the date of transfer of such assets, the existing system, except in the manner herein provided, shall be discontinued.