House advances H585 with pension opt-in for sheriffs and a 30% cut if certification is permanently revoked

The House considered H585, a bill to amend the pension system for sheriffs and certain deputy sheriffs, and adopted committee amendments that would allow eligible sheriffs and deputy sheriffs to opt into Group G of the Vermont State Employees Retirement System.

Representative McCarthy, presenting for the Government Operations and Military Affairs Committee, said the change is actuarially neutral and that the Joint Fiscal Office’s fiscal note shows a negligible fiscal impact. Group G — the retirement group that allows retirement after 20 years of service — would be extended to eligible sheriffs and certain deputy sheriffs; those hired or taking office after January 1, 2025, would be automatically placed in Group G, while current employees may take an irrevocable election window to opt in.

The bill also includes a statutory change in Section 5 that reduces a sheriff’s compensation by 30% if the Vermont Criminal Justice Council permanently revokes that sheriff’s law-enforcement certification for cause. McCarthy said the committee considered larger reductions but settled on 30% because larger reductions may raise constitutional issues. He clarified that the reduction applies only in the event of a permanent revocation for cause and not to a person elected without prior certification who never held certification.

Ways and Means and Appropriations committee speakers reported no revenue or significant fiscal impact and recommended the amendment; the House adopted the committee recommendation and ordered third reading.

Representative McCarthy noted the committee heard testimony from the Vermont Sheriffs Association, the retirement system director, legislative counsel and other stakeholders. A member queried how the new penalty would be applied to currently serving sheriffs, and the presenter confirmed payroll adjustments would be applied beginning July 1, 2024, for pay periods after that date.

What happens next: The House ordered third reading for H585 after adopting committee amendments; the bill will return to the calendar for third reading procedures.