Death before retirement
If a Group C member dies before retirement after reaching age 55 with five years of service, or with 10 years of service while in service, a nominated beneficiary (the spouse, or a dependent) receives the Option 5 (100% survivor) allowance as if the member had retired on the date of death. It is based on the disability or early retirement allowance, whichever is greater, even if early-retirement requirements were not met. The beneficiary may instead take the accumulated contributions or an Option 2 conversion. Otherwise accumulated contributions go to the named beneficiary or the estate.
Group C #2 handout, p. 3, Survivor Benefits (Death In Service); Group C #1 handout, p. 3; 16 V.S.A. § 1941(b)(1)(B), (b)(2); 16 V.S.A. § 1940(b)(1); 2025 valuation, p. 60, Exhibit H; Treasurer, Pension Group Plan Comparison (Mar. 16, 2021), p. 5 (Death-in-Service Benefit)Children
In addition, if the member was in service (or on approved leave) with at least one year of service, or died in an accident in service, each dependent child under 18 (under 23 if a dependent student; any age if incapacitated before 18) gets a pension of 10% of AFC, at least $50 a month, for up to three children. No one receiving this children's pension may also get the beneficiary allowance.
Group C #2 handout, p. 4, Children's Benefit; Group C #1 handout, p. 4; 16 V.S.A. § 1940(b)(2); 16 V.S.A. § 1941(b)(2)Disability retirement
With five or more years of creditable service, and service as a teacher in Vermont during the five years before separation, a member the Medical Board certifies as permanently incapacitated for ordinary service may retire on disability. The allowance is the normal benefit accrued to the disability date, unreduced, and at least 25% of AFC. Notice is due within 90 days after separation. Benefits can be reduced if the retiree's earnings exceed the gap between the allowance and AFC (adjusted for inflation), and the Board can require periodic exams before normal retirement date.
Group C #2 handout, pp. 1, 3, Disability Retirement; Group C #1 handout, pp. 1, 3; 16 V.S.A. § 1938(a)-(g); 16 V.S.A. § 1938a; 2025 valuation, p. 59, Exhibit HGroup A
Group A: age 60 or 30 years, or 10 years (under 30) and in service at death.
16 V.S.A. § 1941(b)(1)(A); 2025 valuation, p. 60, Exhibit HAfter you retire, what your survivor gets depends on your option. See Payment options.
What the sources say
- If you die while a member, before retiring, with 10 years of service, or at 55 or older with 5 years, your designated dependent beneficiary gets a monthly benefit. It is figured as if you had retired that day and chosen Option 5 (100% survivorship). The beneficiary can take a refund of contributions instead.Group C #2 handout, p. 3, Survivor Benefits; Group C #1 handout, p. 3; 16 V.S.A. § 1941(b)
- If you die in service (or on approved leave) with at least 1 year of service, or in an accident, each dependent child also gets 10% of your AFC, at least $50 a month, for up to three children under 18 (under 23 if a full-time, unmarried, dependent student).Group C #2 handout, p. 4, Children's Benefit; 16 V.S.A. § 1940(b)(2)
- Otherwise, your contributions with interest go in a lump sum to your designated beneficiary or your estate.Group C #2 handout, p. 4; 16 V.S.A. § 1940(b)(1)
- After you retire, what your survivor gets depends on the option you chose.Group C #2 handout, p. 4; 16 V.S.A. § 1941(a)
- With 5 years of service, including service as a Vermont teacher in the 5 years before you leave, you can apply for disability retirement. Notice is due within 90 days after you leave. It pays your accrued benefit with no age reduction, and at least 25% of AFC. The Medical Review Board and the Board of Trustees decide.Group C #2 handout, pp. 1, 3, Disability Retirement; 16 V.S.A. § 1938
The death-in-service benefit starts from the greater of the disability or early-retirement pension and is paid as Option 5, one of the payment options. If you leave teaching instead, see refund or keep your account. The amounts start from the benefit formula.
Questions
What does my family get if I die before retiring?
If you had 10 years of service, or were 55 with 5 years, your designated dependent beneficiary gets a monthly benefit figured as if you had retired that day under Option 5 (100% survivorship). Otherwise your contributions with interest are paid in a lump sum.
Are there benefits for children?
Yes. If you die in service with at least 1 year of service, each dependent child (up to 3) gets 10% of your average final compensation, at least $50 a month.
What happens after I retire?
It depends on the payment option you chose. Option 1 stops at your death; Option 2 refunds any contributions not yet paid back; Options 3, 4 and 5 continue 50%, 75% or 100% to your beneficiary.
Source: VSTRS Eligibility for Retirement: Group C #2 handout (Office of the State Treasurer), undated (PDF of Sept. 21, 2012), with 16 V.S.A. chapter 55 as of the 2026 session, pp. 1, 3, 4; Group C #1 handout pp. 1, 3, 4; 2025 valuation pp. 59, 60; 16 V.S.A. §§ 1938, 1938a, 1940, 1941. Last reviewed .