Montpelier, VT—Vermont Saves, a new retirement program administered by the Treasurer’s Office, is now open for enrollment, announced Treasurer Mike Pieciak. The program establishes a workplace retirement plan for Vermonters who are not currently offered a retirement plan through their employer.
Vermont Saves earned unanimous support from the Legislature and Governor Phil Scott in 2023. A successful pilot program has been up and running for several weeks.
“Vermont Saves will help working Vermonters save for their future and retire with dignity,” said Treasurer Pieciak. “People with access to a retirement plan through their employer are 15 times more likely to save, but nearly 100,000 Vermont workers—disproportionately women and BIPOC Vermonters—aren't offered a workplace retirement plan. At no cost to employers, Vermont Saves will help more Vermonters save for retirement and take pressure off our state budget over time.”
Pieciak continued, “I’m grateful to the Legislature and Governor Scott for their unanimous support of this initiative. I also commend Becky Wasserman, our Director of Economic Empowerment, and the rest of our team for launching this program ahead of schedule so Vermonters can start saving as soon as possible.”
Director of Economic Empowerment Becky Wasserman said, “We have been committed to launching the Vermont Saves program as quickly as possible so Vermonters who have historically not had access to retirement savings are now empowered to have a more financially secure future.”
Employers with 5 or more employees who do not currently offer their workers a retirement plan will be required to sign up for Vermont Saves by the end of February 2025. Their employees will automatically be enrolled in a Roth IRA account with flexible options to save at their own pace.
Employees can set their own contribution rate or use the program default, which is set at 5%. Each employee can choose from a menu of investment options or be enrolled by default in a target-date fund based on their age. Savers can always access any principal funds they put into their Vermont Saves account or opt out of the program at any time if they choose.
Eligible employers have already begun receiving information about enrollment by email or mail. Employers who already offer their workers a retirement plan, or who have fewer than five employees, are not required to enroll.
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. The partnership has helped Vermont Saves launch ahead of schedule and will reduce costs of the program.
Vestwell State Savings, LLC (“Vestwell”) will serve as the program administrator. “Vermont’s swift transition from pilot to full program launch is a testament to the efficiency and impact of partnership between states,” said Douglas Magnolia, Vestwell’s President. “We are proud to power Vermont’s auto-IRA program.”
Learn more about Vermont Saves here.
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