Legislative Summary:

Act 69 was initially introduced March 21, 2017, passed the Senate March 31,2017, and was ratified by the House of Representatives on May 18, 2017, then was signed into law by the Governor June 21, 2017 and was later amended by Act 72 in 2019. Now in 2023, the new bill S. 135 passed through the House and Senate and was ratified on May 11, 2023 and Governor Scott signed it into law June 1, 2023.

Program Description:

Vermont’s VTSaves Auto IRA program replaced the previous MEP program. The new VTSaves is a state-sponsored Roth IRA program that employs an automatic 5% contribution rate of an employee’s salary/ wages, with a 1% annual increase capped at 8%.

Affected Employers:

Vermont employers, including non-profits, with 5 or more employees, will be required to register for the state-run program or sponsor their own qualified private retirement plan.

General Requirement:


Launch Status:

July 1, 2025

Full Implementation:

July 1, 2026

Compliance Deadline:

July 1, 2025 Employers with 25 employees or more
January 1, 2026 Employers with 15 – 24 employees
July 1, 2026 Employers with 5 – 14 employees

Non-Compliance Penalties:


Employer Costs:

No cost to employers who do not currently offer a retirement savings plan.

Employee Costs:

$30 annual fee and percentage of plan balance.



Program Website:

VT Saves