Vermont approves voluntary private-sector retirement plan
By: Hazel Bradford
Published: May 22, 2017 - Pensions & Investments
Vermont became the latest state to create a retirement savings plan for
private-sector employees, with passage of legislation creating a voluntary
multiple employer plan for employers with fewer than 50 employees and not
currently offering a retirement plan.
Gov. Phil Scott is expected to sign the bill.
Vermont Treasurer Beth Pearce said in a statement that the legislation's
passage on May 19 gwill allow the state to make substantive steps toward
implementing a voluntary retirement program for Vermonters who currently lack
access to employer-sponsored retirement plansh and will strengthen the state's
economy. Ms. Pearce said the bipartisan bill was the culmination of three years
of study by her office and the Public Retirement Study Committee, which
recommended the voluntary Green Mountain Secure Retirement Plan, with the goal
of implementation by January 2019.
The committee estimated that 45% of working Vermonters do not have access to
a retirement savings plan at work. The new plan would also be open to the
self-employed. Employers that chose to participate will have employees
automatically enrolled but allow for them to opt out. Funding will come from
employees, but employers may be able to make voluntary contributions in the
future.
Original Story Link: http://www.pionline.com/article/20170522/ONLINE/170529985/vermont-approves-voluntary-private-sector-retirement-plan