Vermont VSERS Retirement Calculator
Estimate your Vermont State Employees' Retirement System pension as a Group F member. Pick whether you joined before or after July 1, 2008, and see the monthly benefit, when it's unreduced, and what retiring early costs.
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The Group F formula
Annual Benefit = 1 2/3% x AFC x years of service
capped at 50% of AFC (joined before July 1, 2008) or 60% (joined on or after)
The Group F formula, in 3 V.S.A. § 459, is a flat 1 2/3% for every year. There's no step-up after 20 years. Members who joined before July 1, 2008 get 1.25% for any service before Jan. 1, 1991 and hit the 50% cap at 30 years. Members who joined on or after July 1, 2008, called Group F*, have a 60% cap, reached at 36 years.
On a $68,000 AFC, 25 years is worth $28,333 a year. 30 years is $34,000. A Group F* member who keeps going to 36 years gets $40,800. The Treasurer's seminar materials round the rate to 1.67%, so their examples run a few dollars higher.
When you can retire unreduced
Group F, joined before July 1, 2008: at 62, or with 30 years of service at any age.
Group F*, joined on or after July 1, 2008: at 65 with 5 years, or under the Rule of 87, once age plus years of service reaches 87. A member who started at 27 gets there at 57 with 30 years. The Treasurer's example: 54 years old with 33 years of service is 87 points, unreduced.
Early retirement
Both groups can retire early from 55 with 5 years of service. Group F loses 1/2% for each month under 62, so 6% a year: retiring at 58 costs 24%.
Group F* reductions run from 65 and depend on service at retirement:
- 35 or more years: 1/8% a month (1.5% a year)
- 30 to 34 years: 1/4% a month (3% a year)
- 25 to 29 years: 1/3% a month (4% a year)
- 20 to 24 years: 5/12% a month (5% a year)
- Under 20 years: 5/9% a month (6.67% a year)
A Group F* member leaving at 60 with 22 years loses 25%. On a $68,000 AFC that turns $24,933 into $18,700 a year.
The COLA
Every Jan. 1, 3 V.S.A. § 470 raises the whole benefit by the change in the Northeast CPI-U from June to June. If you were first eligible for normal retirement by June 30, 2022, the increase is at least 1% and at most 5%, and starts after 12 months of benefits. If you're first eligible on or after July 1, 2022, it's capped at 4%, has no 1% floor, and starts after 24 months. Early retirees don't get a COLA until they reach normal retirement age. There's no dollar cap on the part of the benefit it applies to.
Average final compensation
AFC is the average of your highest 3 consecutive fiscal years (July to June), or your last 36 months if that's higher. For Group F, unused annual leave paid out at retirement doesn't count.
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Frequently asked questions
How is a VSERS Group F pension calculated?
1 2/3% of average final compensation for each year of service. Members who joined before July 1, 2008 get 1.25% for any service before Jan. 1, 1991 and are capped at 50% of AFC. Members who joined on or after July 1, 2008 (Group F*) are capped at 60%. There's no higher rate after 20 years. A member with 30 years and a $68,000 AFC gets 50% of AFC, $34,000 a year.
What is the Rule of 87?
Group F* members, hired on or after July 1, 2008, can retire unreduced once their age plus years of service adds up to 87, or at 65 with 5 years. A member who started at 27 reaches 87 points at 57 with 30 years.
When can Group F members hired before July 2008 retire?
Unreduced at 62, or at any age with 30 years of service. Early retirement starts at 55 with 5 years, reduced 1/2% for each month under 62, which is 6% a year.
How much is the early retirement reduction for Group F*?
It depends on your service. For each month under 65: 1/8% with 35+ years, 1/4% with 30-34, 1/3% with 25-29, 5/12% with 20-24, and 5/9% with fewer than 20. Retiring at 60 with 22 years costs 25%. With 18 years it costs 33.3%.
Does VSERS pay a COLA?
Yes, every Jan. 1, on the whole benefit, based on the Northeast CPI-U. Members first eligible for normal retirement by June 30, 2022 get between 1% and 5%, starting after 12 months of benefits. Members first eligible on or after July 1, 2022 get up to 4%, starting after 24 months. Early retirees get no COLA until normal retirement age.
What is average final compensation?
The average of your highest 3 consecutive fiscal years, or your last 36 months if higher. For Group F, unused annual leave payoffs aren't included.