Vermont Saves retirement program launches early; treasurer’s office reports initial employer and employee sign-ups

Treasurer’s staff told the Senate Economic Development, Housing & General Affairs Committee that Vermont Saves launched earlier than planned and is currently in open enrollment. Becky Washington, director of financial empowerment at the treasurer’s office, said the program began enrollment in December and is open through the end of February.

“We’ve identified 72,100 employers,” Washington said in her update, and the office reported that roughly 1,000 employees are already in some onboarding or participation status. The treasurer’s office said employers are required to notify employees about the program and that some employers have informed the office they are exempt because they already offer a retirement plan.

Program description: Vermont Saves is a publicly run retirement system designed to extend access to retirement saving to employees whose workplaces lack an employer-sponsored plan. The office described the program as automatic-enrollment at no cost to the employer; employees may affirmatively opt out. Officials said the program targets workers who are less likely to have access to retirement – including younger workers, women, BIPOC and lower-wage earners.

Early demographics and next steps: the treasurer’s office reported early participation skewed toward younger workers, including employees under 30 who do not have other retirement coverage. The office said it will continue outreach to employers and expects enrollment numbers to increase as additional notifications are sent and open enrollment continues through February.

Ending: the committee thanked the treasurer’s office for the update and said it expects monthly participation data from the program vendor going forward.