Vermont Saves Reaches 10 Million Dollars in Worker Deposits
State Treasurer Mike Pieciak shared data during a recent state visit revealing that Vermont Saves—a state retirement initiative created to assist employees lacking job-based retirement plans—has helped Vermont workers accumulate upwards of $10 million.
Nearly 8,500 workers are now actively saving through the initiative, alongside close to 3,000 enrolled employers statewide. A year prior, total savings sat at approximately $3.5 million, reflecting growth since statewide enrollment launched in December 2024 following an initial pilot program in October 2024.
Targeting enterprises that lack a pre-existing qualifying retirement plan, the initiative is broadly mandatory for companies operational for a minimum of two years that have at least two workers. Eligible employees are automatically enrolled but can choose to opt out or change their contributions.
Small Business Impacts at the Essex Experience
During National Retirement Security Week, State Treasurer Pieciak toured businesses at the Essex Experience to hear directly from owners about their experience with Vermont Saves.
At Magic Mann Cannabis Dispensary, about 70% of the company’s 32 employees participate in Vermont Saves. Meredith Mann, CEO of the dispensary, noted that offering additional benefits matters, particularly in the cannabis industry, where businesses face unique financial and regulatory challenges, while giving young locals an incentive to stay or come back to the state.
Chris Line, co-owner of the Vermont Cider Lab, stated that the program has helped introduce retirement savings to younger employees, including college students and seasonal workers. Line emphasized that the automatic mechanism forces people to look into it, even if they ultimately choose to alter or stop contributions.
Job changes leave American retirement savers vulnerable
Parallel studies published nationally show that frequent job changes leave American retirement savers structurally vulnerable. Research published by Empower indicates that one out of every three Americans may encounter “retirement drift,” which occurs when workplace savings vehicles like 401(k) accounts are left behind after workers separate from or lose their positions. That figure rises to 50% for Gen Z workers and 45% for Millennials.
Compounding the problem, separate research from PensionBee and the Employee Benefit Research Institute indicates that billions of dollars sit in “automatic rollover” Individual Retirement Accounts. These accounts are created when a worker leaves and the employer removes their 401(k) from its workplace retirement plan. According to that research, 68% of automatic rollover IRAs have declined in value after one year.
When Vermont Saves begins and who must register?
When was Vermont Saves signed into law?
Vermont Saves was signed into law in 2023, paving the way for an initial pilot program in October 2024 and full statewide enrollment in December 2024.
Which Vermont businesses are required to register?
Registration is generally mandated for commercial entities that have been in business for a minimum of two years, maintain a staff of at least two employees, and fail to provide an existing qualifying retirement plan.
What happens to small 401(k) balances left behind when leaving a job?
Employers could create rollover accounts without a worker’s consent for balances under a threshold that was later raised to $7,000, where research shows that 68% of automatic rollover IRAs have declined in value after one year.
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