§ 490.
286 words·~1 min read·
/vt/title-3/chapter-16/490A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 490. Default; paid up deferred annuity
The agreement of any employer to contribute on account of its employees shall be irrevocable, but should any employer for any reason become financially unable to make the contributions on account of its employees as provided in this subchapter, then that employer shall be deemed to be in default. All members of the Vermont State Retirement System who were employed by an employer at the time of default shall then be entitled to discontinue membership in the Retirement System and to a refund of their previous contributions upon demand made within 90 days thereafter.
As of a date 90 days following the date of the default, the actuary of the Vermont State Retirement System shall determine by actuarial valuation the amount of the reserve held on account of each remaining active member and beneficiary of the employer and shall credit to each member and beneficiary the amount of the reserve so held. The reserve so credited, together with the amount of the accumulated contributions of each active member, shall be used to provide for the member a paid up deferred annuity beginning at age 65, and the reserve of each beneficiary shall be used in providing part of the member’s existing pension as the reserve so held will provide, which pension, together with the member’s annuity, shall thereafter be payable to the member.
The rights and privileges of both active members and beneficiaries of the employer shall then terminate, except as to payment of the deferred annuities so provided and the annuities and pensions, or parts thereof, provided for the beneficiaries. (Added 1971, No. 231 (Adj. Sess.), § 4; amended 2025, No. 18, § 10, eff. May 13, 2025.)