2005 Vermont Code - § 1940. — Termination of service; death; refund; pension

§ 1940. Termination of service; death; refund; pension

(a) Upon the withdrawal of a member from service prior to retirement, the amount of the member's accumulated contributions, less not more than one-third of the regular interest credited thereon as determined by the board, will be returnable to the member. In lieu of the return of contributions, a member who completes five or more years of creditable service may allow his or her contributions to remain in the system and receive a retirement allowance, commencing at age 60, consisting of the annuity provided by his or her accumulated contributions with interest to the date on which the allowance commences, and a pension equal to a service retirement pension computed on the basis of the member's compensation and creditable service to his or her date of withdrawal from service.

(b) Upon the death of a group A or group C member before retirement the member's accumulated contributions will be payable to such primary beneficiary, primary and secondary beneficiaries, or joint beneficiaries, if any, as the member has nominated by written designation duly acknowledged and filed with the board, otherwise to the member's estate. In addition, if any member was in service at the date of the member's death or on leave of absence granted subject to board regulations relating thereto and had completed one or more years of creditable service, or if the member's death was the result of an accident while in service or on leave of absence under board rules, a pension equal to ten percent of the member's average final compensation, but not less than $50.00 per month, will be payable on account of each of the member's dependent children under the age of eighteen, or, if a dependent student, under the age of twenty-three, not exceeding a total of three. However, if a surviving child of any age was mentally or physically incapacitated for substantial gainful employment before attaining age eighteen, the pension will be payable for the duration of the child's incapacity. (Amended 1959, No. 226, § 1; 1963, No. 110, § 3, eff. May 28, 1963; 1966, No. 45 (Sp. Sess.), eff. July 1, 1965; 1967, No. 316 (Adj. Sess.), § 1, eff. March 22, 1968; 1973, No. 141 (Adj. Sess.), § 5; 1981, No. 41, §§ 28, 39(2); 1989, No. 169 (Adj. Sess.), § 5; 1999, No. 158 (Adj. Sess.), § 11.)