On Oct. 10, Treasurer Mike Pieciak announced the successful launch of the Vermont Saves program’s pilot phase. Vermont Saves was unanimously approved by the Vermont Legislature and signed into law by Governor Scott in 2023.
The program establishes a workplace retirement plan for Vermonters who are not offered a plan through their employer. Seven businesses are participating in the pilot before the program opens to all eligible employers in December 2024.
“Vermont Saves will help tens of thousands of Vermont workers achieve economic security and retire with dignity,” said Treasurer Pieciak. “Individuals with access to a retirement plan through their employer are 15 times more likely to save for retirement. Vermont Saves will address this gap, establishing a retirement plan for workers who have historically been left out. Our office is working hard to launch the program ahead of schedule, so Vermonters can start saving as soon as possible.”
“For the past year, we’ve been working to implement the Vermont Saves program, and the launch of the pilot is a significant milestone in this process,” said Becky Wasserman, the Office’s Director of Economic Empowerment. “Pilot participants will have the opportunity to provide us with feedback, ensuring the program is working smoothly before opening for enrollment in December. Vermont Saves is providing a real opportunity to address Vermont’s retirement gap, and we are now one step closer to making that a reality.”
Vermont Saves is designed to make saving for retirement easy and automatic. Vermont employers with five or more employees who do not currently offer a workplace retirement plan will be required to sign up for the program. Their employees will then be enrolled in a Roth IRA.
Employees can set their contribution rate or use the program default (5%). Employees can also opt out of the program if they choose. Each employee can choose from a menu of investment options or default enrollment in a target-date fund based on their age.
Similar programs are already operational in several states, with over $1.6 billion in assets and participants averaging about $2,000 per year in savings. Earlier this year, Treasurer Pieciak announced a partnership with the Colorado SecureSavings Program to join the Partnership for a Dignified Retirement, an interstate consortium including Delaware and Maine. With other states’ experience to rely on and more assets and accounts under management, the consortium will reduce costs and enable Vermont Saves to launch ahead of schedule.
“At no cost to employers, Vermont Saves will make a big impact at a minimal price tag, improving Vermonters’ lives and taking pressure off our state budget over time. I encourage all eligible Vermonters to participate when the program takes effect in December 2024,” said Treasurer Pieciak.
For more information, visit vtsaves.vermont.gov.
