Act No. 43 Page 1 of 1
2023
This act summary is provided for the convenience of the public and members of the General Assembly. It
is intended to provide a general summary of the act and may not be exhaustive. It has been prepared by the
staff of the Office of Legislative Counsel without input from members of the General Assembly. It is not
intended to aid in the interpretation of legislation or to serve as a source of legislative intent.
Act No. 43 (S. 135). An act relating to the establishment of VT Saves
Subjects: Retirement; State Treasurer; VT Saves Program
This act establishes the VT Saves Program, administered by the Office of the State
Treasurer, for the purpose of increasing financial security for Vermonters by providing
access to an IRA for Vermont employees of companies that do not currently offer a
retirement savings program. The Program requires that certain employers enroll
employees in the Program to contribute to an IRA but permits employees to opt out. The
type of IRA for the Program is set as a Roth IRA but the Treasurer is authorized to add an
option for a traditional IRA. The act sets the initial contribution from an employee at five
percent but provides that the employee may change this to a higher or lower amount. An
employer is prohibited from making contributions under the Program. The Treasurer is
authorized to charge a fee of not more than $30.00 per participant per calendar year to
defray program administration costs.
This act also establishes the Vermont Retirement Security Fund, to be administered by
the State Treasurer, to consist of monies transferred, appropriated, or paid or granted to
the Program. It also sets up a penalty structure for employers who fail to enroll covered
employees by certain dates but allows the Treasurer to adopt a rule on establishing a
waiver to the penalties. Under the act, the Treasurer is required to submit an annual
report to the Governor and the Legislature on or before January 15 each year detailing the
activities, operations, receipts, and expenditures of the Program.
The act directs the Treasurer to phase in implementation of the Program based on an
employer’s number of employees beginning July 1, 2025. All employers must offer the
Program by July 1, 2026.
Effective Date July 1, 2023
VT LEG #370865 v.2