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Vermont introduces new retirement program: What you need to know – VTDigger

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Vermont introduces new retirement program: What you need to know – VTDigger


The Vermont Saves website. Photo illustration by Natalie Williams/VTDigger

The Vermont Treasurer’s Office announced Wednesday that a program aimed at expanding retirement account options for small employers is now open for enrollment. 

Vermont Saves is a retirement savings program that operates like an employer-sponsored individual retirement account with automatic payroll contributions similar to a 401(k).

State Treasurer Mike Pieciak said an estimated 80,000 to 100,000 Vermont workers don’t have access to a retirement account through their employer. The program, created by law in 2023, is intended to expand access to workplace-based retirement accounts, especially for small employers.

Organizations with at least five employees that do not already offer retirement options must enroll in Vermont Saves by February, according to a press release from the Treasurer’s Office. The program also allows other Vermonters, such as self-employed workers, to sign up independent of a workplace. 

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“Research shows that you’re 15 times more likely to save for retirement if you have a workplace-based retirement plan,” Pieciak said in an interview. “Even though it might seem like, to some, a relatively small financial barrier or knowledge barrier to go to a bank and get a Roth IRA, it’s enough of a barrier that it keeps a tremendous amount of people out of the retirement savings systems that we have in this country.”

There are some eligibility requirements: Participants must be 18 years of age or older and have at least 500 hours of taxable wages from a Vermont employer. Participants who enroll separately from their employer must also provide bank account information, according to David Kunin, a spokesperson for the Treasurer’s Office.

Asked if those requirements might exclude certain Vermonters, such as undocumented workers, Pieciak said there may be some workers without retirement accounts who remain ineligible. But, he said, the “vast majority are people that simply work for a small nonprofit or small business that can’t afford to offer a workplace retirement program,” typically because of the administrative costs. 

Vermont has joined Colorado, Delaware and Maine in creating an interstate consortium called the Partnership for a Dignified Retirement to save on administrative costs, according to the press release. 

Here are a few things to know about the program. More details are available on the frequently asked questions section of its website.

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How would this program differ from other types of retirement accounts? 

Conventional employer-based retirement programs, such as 401(k) accounts, allow employees to automatically move a percentage of their pre- or post-tax income into an investment account, which could include stocks, bonds or other investment options, according to the U.S. Internal Revenue Service. Employers can also choose to contribute to the account. 

By contrast, a Roth IRA allows a person to contribute post-tax income to an account separate from their employer, operated by a bank or other financial institution. Those have lower contribution limits than 401(k) accounts, according to the IRS. 

Pieciak said the Vermont Saves accounts are essentially Roth IRAs, except they allow for automatic payroll deductions on post-tax income. 

Vermonters might also choose to enroll in the Vermont Saves program because of the low fees compared to other IRA providers, or because they have more trust in a state-based system, according to Becky Wasserman, director of economic empowerment at the Treasurer’s Office. 

How does the program work through employers?

The Vermont Saves program is free for employers, according to the program’s website. They must register their organization and coordinate how to send contributions through their payroll provider. 

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The program defaults to an automatic deduction of 5% of wages for first-time enrollees, rising to 8% over the course of several years, Wasserman said. However, employees can choose to deduct a higher or lower percentage of their income, up to the federally mandated IRA contribution limits. 

Pieciak said those defaults were picked to “balance” how much someone needs to save to have a sustainable income in retirement with “having money today to put food on the table.” He acknowledged that participants in Vermont Saves are likely to be lower wage earners than the Vermont average. 

“It’s an amount that will have an impact on them and their future retirement, but it’s hopefully not an amount that they can’t live without in terms of their daily life in the here and now,” he said. 

If someone leaves their employer, the Vermont Saves account remains with them like a bank-based IRA would, Pieciak said. They can also take their original contribution amounts out of the account before retirement, but any investment returns would be taxed.

What are the investment options? 

Vestwell State Savings, a nationwide savings platform, is the program’s administrator, but the investments themselves are managed by two companies: State Street and BlackRock. 

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The program offers four types of investments: a capital preservation fund, a bond index, an international equity fund and a “target retirement date” fund, which automatically adjusts the mix of investments based on when someone plans to retire. 

Most IRA accounts offer more granular control over investments, but Pieciak said the state wanted to avoid making people “paralyzed” by having too many options. “It sort of becomes complex and hard for someone to make the decision about what’s most appropriate to them,” he said. 





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White out: Vermont’s tallest peak buried under record-breaking powder – VTDigger

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White out: Vermont’s tallest peak buried under record-breaking powder – VTDigger


A snowy scene on Mt. Mansfield, the state’s highest peak. Photo by Molly Walsh/CNS

More than 5 feet of snow currently blanket Vermont’s tallest peak — the deepest powder in recorded history for Mount Mansfield on this date.

The Mount Mansfield snow stake hit 63 inches Thursday, said Burlington-based National Weather Service meteorologist Adrianna Kremer, more than 3 feet deeper than the average 22-inch depth expected this time of year. As of Tuesday, the snow depth at the stake was 61 inches, falling 2 inches due to compaction, Kremer added. 

“We do have such a good snow pack early in the season,” Kremer said. “But, as always, there’s a lot of variability as the season goes on.”

Vermont has seen significant snowfall so far this winter, with over 3 feet recorded in November in some areas of the northern Green Mountains, Kremer said. 

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With 192 inches of overall snowfall Tuesday, Jay Peak has been graced with the most snow of any ski mountain in the U.S. so far this season, surpassing West Coast ski resorts in powder.

Northern Vermont ski resorts Smuggler’s Notch and Stowe are also keeping pace, with overall snowfall hitting 116 inches and 108 inches, respectively, as of Tuesday.

But warmer temperatures this Thursday will spur some snow melt. While that may bring modest river rise, Kremer said the service does not expect flooding, as the increase in temperature is predicted to be short-lived and this year’s powdery snow is less dense with liquid. 

Hazardous travel conditions could arrive Friday, though, Kremer warned, as the snap back to colder temperatures brings the potential for a flash freeze and bursts of snow. 





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Visitors spent over $1B in Chittenden County in record VT tourism year

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Visitors spent over B in Chittenden County in record VT tourism year


Vermont’s tourism industry set new records in 2024, with 16 million visitors spending $4.2 billion, according to a community announcement.

The increase in both visitation and spending marks a modest rise from 2023, according to a study by Tourism Economics.

Visitor spending accounted for 9% of Vermont’s gross domestic product, significantly higher than the 2023 national state average of 3%. The tourism sector directly supports 31,780 jobs, or 10% of the state’s workforce, compared to the national average of 4.6%.

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Direct spending by visitors in 2024 included $1.5 billion for lodging, $876 million for food and beverages, $680 million in retail, $678 million for transportation and $462 million for recreation and entertainment. The spending generated $293.5 million in state and local taxes, equivalent to $1,089 per Vermont household.

“As we think about economic impact, it is important to recognize that visitors to Vermont are essentially temporary taxpayers, bringing in outside money that helps to make Vermont more affordable for all of us,” said Department of Tourism and Marketing Commissioner Heather Pelham. “Every guest who buys a meal, stays the night, or heads to the mountain is supporting our businesses, sustaining jobs for Vermonters and funding the essential services that keep our communities strong.”

When considering the broader economic impact, including supply chain purchases and employee spending, the ripple effects of visitor spending amounted to $7 billion in economic activity in 2024.

The report also provided county-specific data, showing increased spending in every county. Chittenden County accounted for the highest share of visitor spending at 24.5%, at well over $1 billion. Lamoille, Rutland and Windsor counties each represented more than 10% of statewide visitor spending.

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In Caledonia County, direct spending from visitors reached $109 million, a 7.7% increase from 2023.

“During the 2024 total solar eclipse, the positive impact of tourism on a rural community like St. Johnsbury was clear,” said Gillian Sewake, director of Discover St. Johnsbury. “An estimated 23,000 people came to our town alone. It was wonderful to feel that vibrancy in our downtown, with visitors filling sidewalks, enjoying the attractions that we know and love, and helping businesses break revenue records.”

In Bennington County, tourism generated almost $300 million in direct spending in 2024.

“Tourism is one of our region’s most powerful economic drivers, supporting nearly 13% of our workforce,” said John Burnham, executive director of the Manchester Business Association. “But its value reaches far beyond jobs. Visitor spending strengthens our economy, sustains small businesses, and helps fund the local services and amenities we all rely on, from restaurants and trails to cultural attractions and community events. Tourism also inspires us to preserve our historic character and adds a vibrancy that enriches everyday life. Simply put, the visitor economy helps keep our region the welcoming, thriving place we’re proud to call home.”

The 2024 economic impact report comes at a time when resident support of tourism is strong. In the University of Vermont Center for Rural Studies 2025 Vermonter Poll, 85% of residents agreed with the statement “Tourism is important to my local economy,” and 78% agreed with the statement “Increased tourism would have a beneficial impact on my local community.”

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To read “Economic Impact of Visitors in Vermont 2024,” learn more about the report’s methodology, and the additional indirect and induced effects of visitor spending, visit the Vermont Department of Tourism and Marketing Tourism Research webpage, accd.vermont.gov/tourism/research.

This story was created by reporter Beth McDermott, bmcdermott1@usatodayco.com, with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at cm.usatoday.com/ethical-conduct.



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Obstacles for Vermont refugees is focus at roundtable

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Obstacles for Vermont refugees is focus at roundtable


BENNINGTON — Sitting in a circle at the Bennington County Multicultural Community Center, Jack Rossiter-Munley shared the story of two families with whom he had worked.

The families had immigrated from South Sudan to Bennington, which was designated as a refugee site in October 2022. Since then, about 205 refugees have immigrated to the town. But the lives that they had hoped for in the United States haven’t necessarily come to fruition.

“These are folks who needed more orientation to work in the United States, but also the line is moving, and so you’re no longer on the line,” said Rossiter-Munley, the director of the Bennington County Multicultural Community Center. “Because their actual work here was unstable, they decided, ‘we’re just going to try to find work somewhere else.’”

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Some of the family members moved to the Midwest, where they hoped to find a larger South Sudanese community and more support from their relatives. Those still in Bennington are looking to follow, he said.

Rossiter-Munley and about a dozen other people were gathered on Dec. 5 at BCMCC for a roundtable on Employment Support for New Americans, part of Gov. Phil Scott’s “Capital for a Day” initiative. That day, Scott and several of his cabinet members stationed themselves around Bennington County, holding meetings and hosting conversations with local leaders as they heard how to better support Bennington County.

The roundtable came at an especially pressing time for local immigrants. On Dec. 2, the U.S. Citizenship and Immigration services under President Trump announced that it would pause its review of applications for green cards, asylum and citizenship following the shooting of two National Guard officers deployed in Washington, D.C. The pause applies to 19 countries — including Afghanistan and the Republic of Congo — from where many new Americans in Bennington emigrate.

People also come to Bennington from Venezuela, South Sudan and Iraq as part of the resettlement programs, Rossiter-Munley said. At the following Monday’s Select Board meeting, he read a statement on behalf of Afghan women in Bennington, condemning the violence in Washington, D.C. and asking for the community’s understanding. And at the roundtable, he was clear about the legal implications for those already living in Bennington: “nothing has changed.”

Kendal Smith, commissioner of the Department of Labor, was in attendance at the Dec. 5 meeting and represented Vermont. She sought to understand how the state could better support immigrants and refugees in Bennington County.

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The biggest challenges Smith identified were language access support, transportation and licensing attainment, she said.

Translation is an area that gets highlighted the most in Bennington because the town is “uniquely deficient” in providing such community support, Rossiter-Munley said. Bennington county was almost 95 percent white, according to the latest census data.

Smith said that the Department of Labor is exploring funding the purchase of more translation devices to help overcome language barriers at work. The state currently contracts with Propio, an AI-based interpretation service. BCMCC uses Boostlingo to translate their speech into languages like Swahili and Dinka.

Another difficulty in Bennington is access to transportation to work. Wendy Morris, the Department of Labor’s regional manager, said that even commutes between Bennington and Manchester can pose serious challenges for new Americans.

“We help them get a job — let’s say we could do that, and we get them to Manchester,” she said. “We do the interview with them. How do we get them there every single day?”

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The Department of Labor will explore “creative ways” to fund and provide driver’s licenses to immigrants and refugees, said Rowan Hawthorne, the policy and legislative affairs director at the Commissioner’s office. The Department will also work with the Office of Professional Regulation to “overcome licensing transfer barriers.”

Nearly every member of the roundtable stressed that immigrants and refugees in Bennington faced difficulties finding jobs that suited their training — for example, as pharmacists or engineers — and often were met with employers who were skeptical about hiring them.

All of it means that volunteers and leaders working with refugees are stretched thin.

“I can’t say enough how everybody in this room is doing more than their job,” said Sean-Marie Oller, director of the Tutorial Center, a Bennington nonprofit that provides adult education and literacy classes.

Still, Rossiter-Munley tries to be optimistic. He cited a study that showed refugee resettlement provided a net benefit of $123.8 billion to local, state and federal economies. And he’s encouraged by the state Department of Labor’s openness to growth.

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“When we are sitting down to meet with employers, or offering support or working alongside the Department of Labor, the more of that knowledge can become just part of the day-to-day work of a how a local department … functions,” he said.

“This is part of how we work, and it’s not a special one-time project.”



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