One-time election, irrevocable choice, tight timeline for municipal HR to get records right
Vermont just expanded a retirement tier for police, and municipal HR teams have a clock ticking.
Governor Phil Scott signed H.519 into law on May 11, 2026, expanding Group G of the Vermont State Employees' Retirement System to cover sheriffs, qualifying deputy sheriffs, and municipal law enforcement officers. The act takes effect on July 1, 2026.
For HR leaders inside Vermont municipalities that take part in the state retirement system, the law creates a tight window to identify who is eligible, run a one-time election, and update benefits records. The choices made during that window are locked in for the rest of each officer's career.
Under H.519, a municipal law enforcement officer qualifies for Group G if they work for a municipal employer that participates in the Vermont Employees' Retirement System, hold a Level II or Level III law enforcement officer certification from the Vermont Criminal Justice Council, and perform law enforcement duties as the primary function of the job.
The administrative timeline is short. By September 1, 2026, the Office of the State Treasurer, working with participating municipalities, must put together a list of positions that are newly eligible for Group G. Eligible officers then have a one-time option to transfer on or before December 1, 2026. Officers first employed on or after December 1, 2026 but before January 1, 2027 have to elect within 30 days of their start date. The election is irrevocable. For those who transfer, participation begins on January 1, 2027.
Past service is preserved but not converted. Service accrued before the transfer stays valued under the plan where it was earned, with applicable provisions and penalties applied. In practice, that means HR and payroll teams will need to keep split-tier service records for officers who switch.
Group G normal retirement ages depend on hire date and prior membership in the system. The law spells out tiered options, including retirement at age 55 with 20 years of creditable service, at age 65 with five years, and for some categories, the attainment of 87 points combining age and years of service.
The law also adds an ongoing reporting duty. A municipal employer with a law enforcement officer in the state retirement system has to notify the Office of the State Treasurer of any change in that officer's Group G eligibility within 30 days.
One point worth flagging for affected officers: the law states that nothing in the relevant section extends postretirement health or other insurance benefits to Group G municipal law enforcement officers who work for a participating municipal employer. The retirement-tier change does not come with a health-benefits change.
The underlying statute applies a similar framework to sheriffs and qualifying deputy sheriffs, with an election window that closed on or before December 31, 2024 and system eligibility running from January 1, 2025.
For municipal HR, the to-do list is short but unforgiving on dates. Confirm which officers hold current Level II or Level III certification. Confirm their primary-function status. Coordinate with the State Treasurer's office on the eligibility list before September 2026. Run a clean, well-documented election process before December 1, 2026. And build the records infrastructure to track split-tier service from January 2027 onward.
The bill was sponsored by Representative Lawrence Satcowitz of Randolph and passed both chambers of the Vermont General Assembly before reaching the Governor's desk earlier this month.
