House Appropriations reviews H.567: small‑dollar unclaimed property, VPIC oversight shift and a pension task force

The House Appropriations Committee on Feb. 25 heard extended testimony on H.567, a 36‑page bill that would change how the state handles unclaimed property, create a pension funding task force and shift fiduciary oversight of certain retiree health obligations to the Vermont Pension Investment Commission (VPIC).

Cameron Wood, attorney with the Office of Legislative Council, walked members through the bill section by section and said the early sections make technical amendments to unclaimed‑property statutes and would let the treasurer’s office request "an explanation of benefit numbers" when insurers or similar entities remit large amounts without detail. Wood said the bill also raises several thresholds to speed claims processing: it would raise the simplified "fast claims" threshold from $250 to $1,000 and increase a closed‑estate distribution threshold from $5,000 to $10,000 so the treasurer can distribute small estate sums without reopening probate.

A significant policy change in the Ways and Means amendment would redirect small‑dollar unclaimed property that is more than 10 years old and valued under a raised threshold (from $100 to $150 in the amendment) to the Vermont Saves administrative fund, subject to an annual limit of $300,000; the treasurer would retain discretion to place some of that money in the Vermont Higher Education Endowment Trust Fund. Wood said the diversion would be temporary and includes a sunset: the change would revert on Jan. 1, 2040. The committee was told the amendment passed the House Ways and Means Committee, 11–0.

The bill would also create a Pension and Benefits Funding Task Force to examine funding methodologies and long‑term sustainability for the Vermont State Retirement System and the State Teachers Retirement System. The task force is barred from recommending changes to member benefits, contribution levels or assumed rates of return; the bill includes a $75,000 appropriation for actuarial work and advisory services and anticipates six meetings.

Several sections (8–20) relocate statutory language that governs the administrative and fiduciary responsibilities for other post‑employment benefit (OPEB) funds from the state treasurer’s chapter into VPIC’s chapter. Wood said much of that change is a transfer of where the existing duties live in statute rather than wholesale changes to standards or conduct, and Joint Fiscal Office staff flagged that VPIC will likely need additional staff capacity as tasks and some contracts move from the treasurer’s office.

Chris Root of the Joint Fiscal Office presented the fiscal note and projections, saying program revenues from Vermont Saves are expected to grow and that the program could be self‑sustaining by roughly 2033. Root also noted a scrivener error in some hard copies of the fiscal note and confirmed the version on the committee’s website reflects the intended $300,000 annual cap language.

Deputy Treasurer David Sher answered committee questions about fraud and workload in the unclaimed‑property division. Sher said staff recently intercepted a suspected fraudulent inquiry for a sum north of $20,000 and described a surge in claims processed in recent years: roughly 18,500 claims totaling about $3.8 million in FY23 versus about 31,500 claims totaling about $9.45 million in FY25. He said the division currently has a small staff (about four people) and that some compliance and anti‑fraud work is limited by capacity. Sher also noted the RBK contract that supports OPEB work is roughly $26,000 per quarter and that some contract work will need to be reworked as fiduciary duties migrate to VPIC.

Committee members asked for follow‑up on several drafting points, the rationale for the 2040 sunset and whether the treasurer is the appropriate official to hold discretion over the small‑dollar redirection. The committee did not take a vote on H.567 during the session and paused to review minor drafting corrections and the fiscal information before returning for further consideration.

What happens next: the bill’s language and Ways and Means amendment remain under review; committee members asked the treasurer’s office and Joint Fiscal Office to provide additional detail on implementation questions and staffing impacts before a future vote.