Legislative attendees press pension-tax relief as a tool to retain military retirees and Guard members

During questions after the Vermont National Guard briefing, legislators and audience members urged consideration of state tax relief on military pensions as a means to retain retirees and attract prior-service personnel. Multiple speakers said retirees routinely consult state pension-tax treatment when choosing where to live after service and that more favorable tax treatment in neighboring states has led some former Guard members to relocate.

An attendee described visiting military installations and said the first thing retirees review is the list of states where military pensions are not taxed; a legislator said anecdotal reports indicate some Guard members have moved to Tennessee and other states with friendlier tax treatment. One speaker said bills to exempt military pensions exist in relevant committees but reported little appetite for immediate action.

Major Jim Webb and other participants responded that exempting military pensions could help recruitment and workforce development, and Webb suggested a comparative economic analysis to weigh up‑front fiscal costs against potential long‑term gains from additional residents, employment and federal payroll dollars flowing into Vermont communities.

No formal vote or commitment to a specific bill was taken during the briefing. Participants urged faster legislative attention and broader outreach to evaluate the fiscal trade-offs and potential workforce benefits of tax-exemption proposals.