Treasury and counsel outline H.567: unclaimed property to bridge Vermont Saves, pension task force and VPIC oversight changes

Treasury officials and legislative counsel presented H.567 to the Ways & Means committee on Feb. 17, a multi‑section bill that combines changes to unclaimed‑property administration, retirement system enforcement and governance, and a new pension‑funding task force.

On unclaimed property and Vermont Saves: deputies described a proposal to raise the small‑dollar unclaimed‑property threshold from $100 to $150 for property more than 10 years old. Under the amendment discussed, up to $300,000 annually could be deposited into the Vermont Retirement Security Fund (the administrative account for Vermont Saves) during an initial transition period; remaining small‑dollar transfers would continue to flow to the Vermont Higher Education Endowment Trust Fund once the cap and timeline permit. The Joint Fiscal Office estimated that raising the threshold would bring in roughly $2,870,000 of additional unclaimed property in the initial sweep.

Chris Root of the Joint Fiscal Office summarized the fiscal analysis: "raising that threshold up would bring in about $2,870,000 of additional unclaimed property," but because the amendment caps annual transfers to $300,000, the bulk of that initial amount would be held and distributed over multiple years to smooth the transition. Treasury presenters said the change is intended as a temporary bridge while Vermont Saves grows toward fiscal self‑sufficiency, projected around FY2033.

Retirement and governance provisions: sections 6 and 7 add enforcement language to ensure employers make required retirement contributions and create a pension benefits and funding task force to study amortization and post‑2028 funding risks. Sections 8–20 transfer fiduciary oversight of teacher and state OPEB funds from the treasurer's office to the Vermont Pension Investment Commission (VPIC) to consolidate investment oversight as those funds have grown.

Fiscal and implementation notes: JFO and witnesses noted several operational points: the initial unclaimed‑property sweep could be large, so the bill includes a $300,000 smoothing cap; there is a sunset on the transfer so that funds revert to the higher‑education trust fund after the transition (the draft indicated repeal around late 2039/early 2040). The pension task force carries a $75,000 appropriation for actuarial work and is directed not to recommend changes to member benefits, contribution levels, or assumed rates.

Next steps: committee members asked for clarifying language on what counts as 'outstanding' debt for the school‑debt discussion and for technical edits to the unclaimed‑property distribution mechanics. The committee scheduled votes on technical amendments the next morning.