Act No. 114 Page 1 of 2
2022
This act summary is provided for the convenience of the public and members of the General
Assembly. It is intended to provide a general summary of the act and may not be
exhaustive. It has been prepared by the staff of the Office of Legislative Counsel without
input from members of the General Assembly. It is not intended to aid in the interpretation
of legislation or to serve as a source of legislative intent.
Act No. 114 (S.286). Executive; education; Vermont State Employees’ Retirement
System; Vermont Teachers’ Retirement System; pensions
An act relating to amending various public pension and other
postemployment benefits
This act makes various amendments to public pension benefits and other
postemployment benefits, including:
• For the Vermont State Employees’ Retirement System (VSERS):
o Beginning in FY 2023, increasing the contribution rates of
active employees.
o Modifying the cost-of-living-adjustment (COLA) formula.
o Adding a Group G plan that includes facility employees of the
Department of Corrections, Department of Corrections
employees who provide direct security and treatment services
to offenders under the supervision in the community,
employees of a facility for justice-involved youth, and
Vermont State Hospital employees or employees of its
successor.
o Increasing the normal retirement age and adding a longevity
incentive for Group C members.
o Increasing the normal retirement age and the retirement
allowance formula for certain Group D members.
o Modifying the cost-of-living adjustment structure.
o In FY 2022, making a one-time payment of $75 million in
general funds towards the unfunded liability using 50 percent
of the $150 million reserved in general funds in the FY 2021
Budget.
o Beginning in FY 2024, annually funding an additional payment
to the actuarially determined employer contribution (ADEC)
that grows to $15 million in FY 2026 and remains at that level
until the fund reaches 90 percent funded.
o Amending the General Fund year-end surplus construct to
reallocate 25 percent to the unfunded liability.
o Creating a schedule to prefund other postemployment benefits
(OPEB).
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Act No. 114 Page 2 of 2
2022
• For the Teachers’ Retirement System:
o In FY 2023 and FY 2024, increasing the contribution rates for
all active members according to a rate calculated by income
bracket and in FY 2025 and annually thereafter, implementing
a marginal rate schedule.
o Requiring the Secretary of Digital Services and the State
Treasurer to report back on the implementation of a marginal
contribution rate schedule for active members beginning in FY
2025.
o Modifying the COLA formula, including the creation of a
postretirement adjustment account to receive 25 percent from
the General Fund end-of-year surplus, which may be used for
COLA increases as approved by the General Assembly upon
recommendation by the Board, after the System is 80 percent
funded and the account has sufficient assets to pay for the
increase.
o In FY 2022, making a one-time payment of $75 million in
general funds towards the unfunded liability using 50 percent
of the $150 million reserved in general funds in the FY 2021
Budget, plus an additional $50 million in general funds towards
the unfunded liability.
o Beginning in FY 2024, annually funding an additional payment
to the ADEC that grows to $15 million in FY 2026 and remains
at that level until the fund reaches 90 percent funded.
o In FY 2023, unreserving $13.3 million of Education Fund to
begin prefunding other postemployment benefits by making a
one-time appropriation into the Retired Teachers’ Health and
Medical Benefits Fund.
o Creating a prefunding schedule that charges the OPEB normal
cost to the Education Fund.
Multiple effective dates, beginning on May 9, 2022
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Statutes affected:
As Introduced: 3-455, 3-459, 3-470, 3-473, 3-479a, 3-523, 3-471, 16-1942, 16-1944, 16-1949, 16-1944b, 16-4025, 24-5062, 32-308c
As Passed By the Senate -- Official: 3-455, 3-459, 3-470, 3-473, 3-479a, 3-523, 3-471, 16-1942, 16-1944, 16-1949, 16-1944b, 16-4025, 24-5062, 32-308c, 3-459a
As Passed By the Senate -- Unofficial: 3-455, 3-459, 3-459a, 3-470, 3-473, 3-479a, 3-523, 3-471, 16-1942, 16-1944, 16-1949, 16-1944b, 16-4025, 24-5062, 32-308c
As Passed by Both House and Senate -- Official: 3-455, 3-459, 3-470, 3-473, 3-479a, 3-523, 3-471, 16-1942, 16-1944, 16-1949, 16-1944b, 16-4025, 24-5062, 32-308c, 3-459a
As Passed by Both House and Senate -- Unofficial: 3-455, 3-457, 3-458, 3-459, 3-459a, 3-460, 3-464, 3-465, 3-470, 3-473, 3-477a, 3-479, 3-479a, 3-523, 3-471, 16-1942, 16-1944, 16-1949, 16-1944b, 16-4025, 24-5062, 32-308c
As Enacted: 3-455, 3-457, 3-458, 3-459, 3-459a, 3-460, 3-464, 3-465, 3-470, 3-473, 3-477a, 3-479, 3-479a, 3-523, 3-471, 16-1942, 16-1944, 16-1949, 16-1944b, 16-4025, 24-5062, 32-308c