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Lawmakers press treasurer on notification, opt‑out clarity for Vermont Saves payroll‑deduction IRA
Summary
Representatives and the State Treasurer discussed the new Vermont Saves opt‑out Roth IRA payroll program: employers’ notice practices, the program administrator’s email domain and the need for clearer opt‑out language. Treasurer’s office said multiple communications are sent and that Vestwell is program administrator.
The committee heard a detailed walkthrough of Vermont Saves — the state’s new automatic‑enrollment payroll Roth IRA for workers whose employers do not offer retirement plans — and lawmakers pressed state officials about how employees are notified and how to ensure enrollment remains effectively voluntary.
Representative Donahue opened the item by describing concerns from constituents and employers who said the program’s initial notice could be confusing. Donahue said an employer reported that none of its employees opened the email notice and that some workers only realized contributions had started when they received their first paychecks. "If the initial orientation comes from noreply@someday.com, some people will delete it as spam," Donahue said.
State Treasurer Becky Wasserman replied that the office and the program administrator (Vestwell) have pushed changes to the communications. Wasserman said three separate communications are sent to enrolled workers: an initial notice from the administrator, a payroll‑deduction notice on pay stubs, and an account statement from the Roth IRA custodian. She also said the program uses employer contact information on file (unemployment insurance records or employer-supplied lists) and that employers can, within legal limits, inform employees about the program.
Key points from testimony and committee questions
- Opt‑out mechanics and notice: Representative Donahue and others urged clearer, prominent language on the initial notice (for example, a front‑page statement that the default is automatic payroll deduction unless the employee opts out). Wasserman said the administrator will change email domains to Vestwell’s domain (vestwell.com) and that the treasurer’s office has posted notices on its site clarifying the legitimate sender. - Required identity verification: Donahue noted the initial account-setup flow asks for a Social Security number to confirm identity. Wasserman said the request is part of account creation and identity confirmation for the Roth IRA custodian. - Participation metrics: Wasserman said the program has registered roughly 1,000 employers and about 1,500 funded accounts shortly after launch, with continuing outreach planned through industry associations and employer groups.
What committee members asked
Senators and representatives repeatedly raised two concerns: first, that many employees may not open or properly read an initial email and thus miss a passive default; and second, that opt-out must be made prominent and actionable so the program remains truly voluntary. Members urged the treasurer’s office to continue to improve the initial notice to make opt‑out mechanics explicit, to highlight the legitimate sender and to coordinate with employers where permissible.
Treasurer’s office response and next steps
Wasserman told the committee the office has already engaged the program administrator about email domains and message formatting and will continue to refine employer and public outreach. She said the program includes a variety of investment options — including a capital-preservation option and target-date funds — and that account statements and IRA disclosures will reach savers after accounts are funded.
Ending
Committee members asked staff to follow up on whether employers can provide pre‑enrollment notices that clearly call out opt‑out mechanics and to obtain updated registration and account metrics from the treasurer’s office.
