State-Sponsored Retirement Program in Vermont

Vermont has implemented the VT Saves program, a state-sponsored retirement savings program for construction workers.

Vermont Saves

Mandatory Participation: Businesses that meet the following criteria must participate in this program.

• Employer Size: The business must have 5 or more employees.
• Lack of Employer-Sponsored Plan: The business must not offer a qualified retirement plan (like a 401(k) or 403(b)).

If your business meets these criteria, you are required to enroll your eligible employees in the VT Saves program.

Employee Eligibility: Eligible employees are those who:

• Work at least 30 hours per week for at least 12 weeks per year.
• Earn at least $2,500 per year from the employer.

Employer Responsibilities: As an employer, you are responsible for:

• Registering your business with the Vermont Saves program.
• Enrolling eligible employees in the program.
• Withholding employee contributions from payroll.
• Remitting employee contributions to the program.
• Providing information to employees about the program.

Failure to comply with these requirements may result in penalties.

Deadlines

Starting in December 2024, businesses with five or more employees will be required to participate in VT Saves, unless they already offer a qualified retirement plan. Eligible employees will be automatically enrolled in the program unless they opt out. 

This information has been referenced from the following sites:1,2