With the 2017 legislative session under way, AARP Vermont and the Office of State Treasurer are encouraging legislators to establish a state-managed retirement plan for about 104,000 workers whose employers do not offer such a plan.
Under the proposed legislation, these employees—who make up 45 percent of the state’s private-sector workforce—would be able to save for retirement through regular payroll deductions. Workers could opt out, and employers could match some or all of the workers’ contributions but would not be required to do so.
About 90 percent of U.S. households participating in a workplace retirement plan report that payroll deductions make it easier to save. Few households eligible to contribute to an individual retirement account outside of their jobs regularly do so.