In a unanimous vote, the Vermont Senate passed VT Saves, a program championed by state treasurer Mike Pieciak and Senate Democrats, and designed to create greater retirement security for all Vermonters.
In Vermont, 45% of employers do not offer retirement benefits. For small businesses with 20 employees or less, 55% do not offer retirement benefits. However, at employers that do offer a retirement plan, over 70% of employees participate.
VT Saves would automatically enroll employees into a Roth IRA at businesses not already offering a retirement savings program. This would come at no cost to businesses and with the option for employees to opt out or adjust their contribution rate.
“This program has the potential, over time, to be financially transformative for thousands of Vermonters who have thus far been left behind in their opportunity to save for retirement,” said Treasurer Pieciak. “I’m grateful for the broad, bipartisan support this important bill has received in the Senate, and particularly for the leadership of Chair Ram Hinsdale and the Economic Development Committee.”
“I think the Vermont Saves program is great and I appreciate the Treasurer taking this initiative,” said Senator Wendy Harrison of the Economic Development Committee. “With fewer and fewer workers covered by pensions, and many not even by a 401(k), it’s critical that Vermonters prepare for their retirement and for financial emergencies. I like that VT Saves is designed to be convenient and portable.”
The bill, S.135, will now move to the House for consideration. For more info visit: legislature.vermont.gov/bill/status/2024/S.135.