State treasurer's office outlines unclaimed-property push, Vermont Saves rollout and local investment program

Ashlyn Dorian, director of policy for the State Treasurer’s Office, told the House Commerce and Economic Development Committee on Feb. 4 that the office is seeking two budgeted positions for its unclaimed property program, is monitoring a new public retirement plan called Vermont Saves, and continues work on local investment loans and several other programs.

Dorian said the treasury handles traditional central banking functions, state debt management and retirement programs, and that the Unclaimed Property Division has stepped up outreach and returns. “In FY24 we paid back a record number of claims — over 19,000 claims totaling almost $6 million,” she said. She added that in the first half of FY25 the office processed more than 17,000 claims and that total unclaimed-property holdings are now “over $130 million.”

The nut graf: the treasurer’s presentation emphasized programs that affect households and local projects — unclaimed property reuniting Vermonters with small and large accounts, Vermont Saves as a new default workplace retirement option for employees without a plan, and a local investment program that lends state cash to in‑state projects at favorable rates.

On unclaimed property, Dorian described recent pilots to match state records with other state databases, returning money without requiring claim filings. The office partnered with the Secretary of State’s corporations division and the tax department to identify nonprofit and individual matches; the nonprofit pilot returned about $150,000. She said the unclaimed-property program is self-funded from a percentage of receipts and that the office will request two ongoing positions in the upcoming budget paid from special unclaimed-property funds rather than general funds.

Committee members asked how the program decides what portion moves to the general fund and how the program balances paying claims with administrative costs. Dorian said the office annually transfers a calculated percentage to the general fund to cover anticipated payouts and administration, and reiterated that individuals retain the right to claim property perpetually.

Dorian also reviewed retirement and pension operations. She said the retirement divisions manage the three large public pension systems for state employees, teachers and municipal employees, and that reforms enacted in Act 114 were expected to produce long‑term savings. “Both plans are on track to be fully funded by 2038,” she said, adding that recent investment returns have helped the systems’ funding status.

On Vermont Saves, the state’s new public retirement program for employees whose employers do not offer plans, Dorian said the program launched at the end of last year and already has enrollees. “The average savings rate for the employees that elect to stay in the program is over 4%,” she said, and the office plans proposed statutory language to raise the allowable automatic increments up to 8% while preserving a minimum 1% opt‑out level.

The treasurer’s local investment program — statutorily allowed to invest up to 10% of the state’s average daily cash balance, with an added 2.5% credit facility for climate resilience projects — now can use up to 12.5% for local projects. Dorian said the program makes loans rather than grants, evaluates proposals on investment priorities and financial merits, and weighs portfolio concentration when approving longer maturities. She said maturities in the portfolio vary by project type, from short bridge loans tied to FEMA reimbursements to housing loans with 20‑ to 30‑year amortizations.

Dorian highlighted Vermont ABLE, an accounts program for people with disabilities, noting about $12 million in assets and nearly 1,200 account holders. She described contribution limits and a lifetime cap that adjusts for inflation. She also gave a status update on a baby bonds pilot authorized by the legislature without funding and said the office is seeking philanthropic support plus administrative funds if the pilot proceeds.

Finally, Dorian said the treasurer’s office will seek a $1 million appropriation this year for a medical debt relief initiative, and she previewed a requested title change for an employee (in the BAA) from director of “Vermont Safe” to director of economic empowerment. She offered to supply committee members with lists of unclaimed property in their districts for town‑meeting outreach during National Unclaimed Property Month.

The presentation closed with committee introductions and scheduling; no formal motions or votes were taken on the matters Dorian described.