S.135 establishes the Green Mountain Secure Retirement Plan, a voluntary Multiple Employer Plan (MEP). Social Security payments may be insufficient, especially when depended upon as a sole source of income. There are also questions on the viability or efficacy of Social Security in the future.
About 45% of working Vermonters have no employer-provided pension plan. Nearly half do not have an IRA or other private plan. S.135 proposes a portable, voluntary, simple and affordable way to supplement Social Security income in the retirement years. The plan will be funded by employees, but employers may offer to contribute as a benefit. All employees will be auto enrolled in the program, with the option of withdrawing their enrollment.
The details of the plan will be worked out by the Public Retirement Plan Study Committee. They are charged with developing specific recommendations on the design, creation, and implementation time line of the MEP. They will report their findings to the General Assembly on or before January 15, 2018.