Rebecca Wossingham, Director of Economic Empowerment at the Office of the State Treasurer, told the Legislative Committee on Administrative Rules on Oct. 31 that Rule 24 P 29 implements the Vermont Saves auto-IRA program the legislature created in 2023. The rule defines employer registration, payroll-deduction mechanics, account-opening and -closing procedures, contribution defaults and investment-option standards and includes an exemption process for employers that are not required to register.

Wossingham said the program launched a pilot in October with seven employers and the full program is scheduled to begin in December. "We launched the pilot of the program in October, to seven businesses, and the full program launch will be in December," she said. She described a hybrid fee structure: a fixed-dollar administrative fee of $26 per account per year (split $22 to the program administrator and $4 to the state) and an average annualized asset-based fee of about 0.32 percent for investment expenses.

Committee members pressed staff on implementation details and enforcement. Wossingham said the program used Department of Labor data to identify employers with five or more employees who do not already offer a qualified workplace retirement plan and that the agency will send multiple notices during the registration period and allow employers an easy online exemption process. She also described employee protections: enrollment is automatic but participation is voluntary and employees have a 30-day decision period after their employer enrolls them to opt out or to select different contribution or investment choices.

On enforcement Wossingham summarized statutory penalties and the agency’s compliance approach: "There are penalties in the law that say if it's prior to Oct. 1, 2025, we are allowed to have a penalty of $10 per employee; [then] it fully increases, for the following year" and may rise to higher amounts in later years. She added the agency’s primary goal is outreach and voluntary compliance rather than imposing fines.

A committee motion to approve Rule 24 P 29 with the Treasurer’s proposed modifications (memorandum dated Oct. 28, 2024) passed by voice vote. The committee did not record a roll-call tally in the transcript.

The committee asked that agency materials submitted with the final rule remain clear to employers and employees, particularly on the exemption process and the employee opt-out period. The agency indicated it will continue outreach during the pilot period and into the full launch.