03-002 Code Vt. R. 03-030-002-X

Current through August, 2024

Section 03 030 002 - REGULATION 2000-1, SURVIVING DEPENDENT BENEFICIARIES

Section 1 Purpose

This Regulation is intended to implement the surviving dependent beneficiaries provisions of Title 16, Chapter 55, Section 1941(b)(2).

Section 2 Authority

This Regulation is promulgated pursuant to Title 16, Chapter 55, Section 1942(f).

Section 3 Definitions

(1) "Approved educational program" means a secondary educational institution, an accredited post-secondary educational institution or a home study program allowed pursuant to Title 16 § 166b.

(2) "Board of Trustees" means the Board of Trustees of the Vermont State Teachers' Retirement System.

(3) "Child" means:

a. A member's natural child who could inherit the member's personal property as his or her natural child under Vermont's inheritance laws;

b. A member's legally adopted child; or

c. A member's equitably adopted child.

(4) "Dependent" means:

a. A member's child who is less than eighteen years of age at the time of the member's death;

b. A member's stepchild who is less than eighteen years of age and lived in the same household as the member and relied on support from the member at the time of the member's death;

c. A member's child who is less than twenty-three years of age if such child is regularly enrolled in an approved educational program;

d. A member's stepchild who is less than twenty-three years of age if such child is regularly enrolled in an approved educational program and lived in the same household as the member and relied on support from the member at the time of the member's death;

e. A member's child of any age who at the time of the member's death was

1. disabled,

2. incapable of self-support,.

3. reliant on the member for support,

4. unmarried, and

5. not a party to a civil union;

f. A member's stepchild of any age who at the time of the member's death was

1. living in the same household as the member,

2. disabled,

3. incapable of self-support,

4. reliant on the member for support,

5. unmarried, and

6. not a party to a civil union;

g. A member's parent or grandparent if such person relied on the member for support at the time of the member's death;

h. A member's grandchild, brother or sister of less than eighteen years of age if such person relied on the member for support at the time of the member's death; or

i. A member's grandchild, brother or sister of any age who at the time of the member's death was

1. disabled,

2. incapable of self-support,

3. reliant on the member for support,

4. unmarried, and

5. not a party to a civil union.

(5) "Disabled" means the inability to do any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve months. A disabled person must have a severe impairment that makes the person unable to do work previously performed by that person or any other substantial gainful activity that exists in Vermont's economy.

(6) "Living in the same household" means that a child or stepchild was ordinarily residing in the same home as a member for at least twelve months prior to that member's death and that member exercised parental control and authority over that child or stepchild.

(7) "Ordinary living costs" means food, shelter, routine medical care, and other ordinary and customary items needed for maintenance of a person.

(8) "Self-support" means income available to a person that provides for his or her ordinary living costs.

(9) "Support" means a member contributed his or her own cash, goods or services for the ordinary living costs of another person for at least twelve months prior to the member's death. Contributions by a member must have been made regularly and have provided for at least one half of the other person's ordinary living costs. Occasional gifts or donations for a special purpose are not considered to be support. Any other income available to such other person must amount to one half or less of that person's ordinary living costs.

Section 4 Eligibility of Nominated Beneficiaries

A. The Board of Trustees shall determine whether a person nominated as a beneficiary is a dependent as defined in § 3.of this regulation and eligible to receive a retirement allowance as provided in Title 16, Chapter 55, Section 1941.

B. In cases where status as a dependent is in doubt, the Board of Trustees, acting through the State Treasurer's Retirement Office, may require that a nominated beneficiary submit proof of the nominee's status as a dependent of the deceased member. If, after receiving the requested proofs, the Retirement Office is unable to determine the status of the nominee as a dependent, then the Board of Trustees shall, at its next regularly scheduled meeting, consider and vote upon the dependent status of the nominee. The Board of Trustees' decision shall be mailed to the nominee within five days of its vote. If the requested proofs are not received by the State Treasurer's Retirement Office within 180 days of mailing of the request, then the nominated beneficiary shall be denied status as a dependent. All other denials of dependent status may only be made by vote of the Board of Trustees.

C. A nominated beneficiary whose status as a dependent is denied may appeal the Board of Trustees' decision within ninety days of the mailing of the decision. The nominated beneficiary must submit to the Board of Trustees additional proofs of his or her dependent status in support of the appeal. The Board of Trustees shall consider the appeal at its next regularly scheduled meeting after receipt of the additional proofs and vote upon the dependent status of the nominated beneficiary. The Board of Trustees' decision shall be mailed to the nominee within five days of its vote. The vote of the Board of Trustees in response to an appeal shall be final.

Section 5 Continuing Eligibility of Surviving Dependent Beneficiaries

A. A surviving beneficiary shall be deemed to be no longer dependent and his or her retirement allowance shall cease under the following circumstances:

1. A child, stepchild, grandchild, brother or sister reaches eighteen years of age and is not regularly attending an approved educational program;

2. A child or stepchild who is between the ages of eighteen and twenty-three and ceases regular attendance at or graduates from an approved educational program;

3. A child or stepchild reaches twenty-three years of age;

4. A child, stepchild, grandchild, brother or sister who was disabled at the time of the member's death marries, becomes a party to a civil union or is no longer disabled and incapable of self-support; or

5. A parent or grandparent has available regular income, other than the retirement allowance, that provides for his or her self-support and such income is reasonably expected to continue for at least thirty-six months.

B. The Board of Trustees, acting through the State Treasurer's Retirement Office, may require submission of proof of a surviving beneficiary's continuing status as a dependent. Payment of the surviving beneficiary's allowance shall cease at the time the State Treasurer's Retirement Office requests submission of proof of continuing status as a dependent. The beneficiary's allowance may only be reinstated upon submission of sufficient proof of continuing dependent status or by vote of the Board of Trustees after consideration of the dependent's dependent status.

C. If, after receiving the requested proofs, the Retirement Office is unable to determine the continuing status of the surviving beneficiary as a dependent, then the Board of Trustees shall, at its next regularly scheduled meeting, consider and vote upon the dependent status of the surviving beneficiary. The Board of Trustees' decision shall be mailed to the beneficiary within five days of its vote. If the requested proofs are not received by the State Treasurer's Retirement Office within 180 days of mailing of its request, then the beneficiary shall be denied status as a dependent. All other denials of dependent status may only be made by vote of the Board of Trustees.

D. A surviving beneficiary whose continued status as a dependent is denied may appeal the Board of Trustees' decision within ninety days of mailing of its decision. The beneficiary must submit to the Board of Trustees additional proofs of his or her dependent status in support of the appeal. The Board of Trustees shall consider the appeal at its next regularly scheduled meeting after receipt of the additional proofs and vote upon the dependent status of the beneficiary. The Board of Trustees' decision shall be mailed to the beneficiary within five days of its vote. The vote of the Board of Trustees in response to an appeal shall be final.Statutory Authority: 16 V.S.A. § 1941

03-002 Code Vt. R. 03-030-002-X

Effective Date: October 9, 2000 (Secretary of State Rule Log #00-54)