About 975 businesses have signed up for a new state-run program intended to make it easier for Vermont companies to offer retirement plans for their employees. Those companies collectively employ about 10,000 workers, according to state Treasurer Mike Pieciak. He was the driving force behind the 2023 bill that created the program, called Vermont Saves. It’s based on similar programs in other states. Companies with five or more workers that don’t already offer a retirement plan are required to sign up. When they do, their employees are automatically enrolled in a Roth IRA, a type of after-tax investment account. Workers can set their own contribution rate, use the default of 5 percent, or they can opt out. The money is automatically withdrawn from their paycheck and put into the account. Pieciak is trying to get the word out about the program. More than 3,500 companies contacted by the Treasurer’s Office did not respond by the March 1 deadline. Under the statute establishing Vermont Saves, employers who don’t comply can eventually face fines. But Pieciak said his office is focused on outreach to make sure eligible employers are aware of the requirement, and then helping them enroll. [content-2] “Vermonters will see hundreds of thousands of dollars of savings in a particular year, and that will grow to hundreds of millions over time,” he said of paycheck deduction plans. “We’ll now have more financially secure individuals who are retiring, and that’s a big benefit to our economy.” Pieciak started looking into Vermont Saves in 2022, before his inauguration as treasurer, drawn to its goal of making savings easy and automatic. The legislature appropriated $750,000 for the measure to pay for administrative costs, including hiring a program director. [content-3] Pieciak said research shows people are 15 percent more likely to save for retirement if their employer offers a retirement savings program. But nearly half of working-age Vermonters don’t have access to an employer-sponsored savings plan. Julie Garwood, director of the Children’s School in South Burlington, is one of those who signed up. Over the winter, she detailed the program to her five employees in newsletters and staff meetings. Three — including Garwood, who already has a Roth IRA — opted out; another three have enrolled, she said. She added that her younger employees in particular seemed excited at the opportunity. “They knew they should be saving for retirement but hadn’t taken the… ...read more read less