House Education hears testimony on extending Act 173 that lets retired educators return as interim staff while receiving pensions

House Education met March 14 to take testimony on proposed language in a miscellaneous education bill that would extend Act 173, the COVID-era provision allowing a beneficiary of the Vermont State Teachers Retirement System to resume service as an interim educator while continuing to receive a retirement allowance.

The proposal would extend the program’s sunset and modify a current limitation that restricts a beneficiary to serving in a different interim position each renewal period. The debate centered on whether the provision is a narrowly targeted emergency tool that should be renewed or a change that could create long-term pension and administrative risks.

Treasury official Tim Duggan, director of the Vermont Retirement Systems in the state treasurer’s office, told the committee the program has seen very limited uptake and flagged structural concerns. "Our system is not designed to have someone be both an active member and a retiree at the same time," Duggan said, and he noted the retirement board voted unanimously to oppose an extension as drafted. He provided system figures: the retirement system serves about 10,000 active members and about 10,000 retirees, with an average monthly benefit around $2,000.…