Representative Connor Casey introduced H.584 in committee, saying the bill "would amend Vermont's income tax code so that pension income and survivor benefits, received by public safety professionals are excluded from taxable income." The proposal would apply retroactively to tax years beginning on or after Jan. 1, 2026.
Casey told the panel the change is aimed at addressing recruitment and retention problems for police, firefighters and emergency medical technicians. "We've been struggling with recruitment and retention, and that's because it's a really hard gig," he said, noting the physical and family toll of public-safety work and pointing to precedents such as last session's military pension exclusion.
Committee members pressed for details the bill does not yet supply. Representative Paige said the military exemption differs in some respects from public-safety service: "Military lifestyle, I think, is a lot different than law enforcement or firefighting." Another lawmaker noted there is no fiscal note on the bill yet, and the committee discussed trade-offs, with one member observing that reducing revenue through exemptions "leaves less money to give to salaries of public safety workers." Casey acknowledged he had not provided detailed cost estimates during the introduction.
Members also asked technical and scope questions. One legislator asked whether the bill's language would interact with federal deductions or credits referenced in the draft (the transcript phrase about cultivation/testing/processing appears garbled and Casey said he had not worked through that detail). Another legislator asked whether pensions earned in other states would be exempt if a retiree moved to Vermont; Casey said he had been focusing on Vermont pension systems and had not fully considered portability of out-of-state pensions.
The hearing ended without a vote; Casey said he wanted to begin the conversation and return with more detailed information. No formal motion, amendment or vote occurred during the session; committee members requested a fiscal note and technical clarification before further action.