ESSEX JUNCTION — Vermont State Treasurer Mike Pieciak attended Essex’s Rotary Club meeting Wednesday, July 5 to provide an update from the 2023 legislative session and introduce his office’s new retirement initiative, VT Saves (S.135).
“Tens of thousands of Vermont workers lack access to a workplace retirement plan, and many of these workers are not saving a penny for retirement,” Pieciak said. “At no cost to employers and no ongoing cost to taxpayers, VT Saves establishes a retirement savings plan for Vermonters who are not currently offered a retirement plan through their employer. It’s designed to make saving for retirement easy and automatic.”
VT Saves will automatically enroll employees without a workplace retirement plan into a Roth IRA account. Contributions to the account will be deducted automatically from workers’ paychecks, and employees can set their own contribution rate or opt out of the program at any time, with no penalty.
All funds deposited into VT Saves accounts are owned by the employees themselves, and employees can roll over the saved funds into other retirement accounts if they choose.
VT Saves will also position tens of thousands of Vermonters to receive a federal retirement saver’s credit. Starting in 2027, lower income earners enrolled in qualified retirement accounts can receive up to $2,000 annually in federal assistance. VT Saves will take effect in July 2025, positioning tens of thousands of Vermonters to secure these funds.
A recent study showed that over 40% of working-age Vermonters do not have access to a retirement plan through their employer.As Pieciak travels the state this summer, his office hopes to raise awareness about VT Saves, promote participation in the program, and encourage Vermonters to save for retirement.
After meeting with rotary club members in Essex Junction and South Burlington this week, Pieciak is scheduled to discuss VT Saves with rotary club members in Shelburne, Williston, and Richmond, before holding public meetings with state legislators in Dorset and Burlington.