Treasurer outlines pension gains, Vermont Saves metrics and seeks funding for outreach and staffing

State Treasurer Pichak presented an overview of the treasurer’s office budget to the House Appropriations Committee on Jan. 28, describing progress on pension funded ratios, health-care cost pressures for OPEB, and program initiatives including Vermont Saves and a proposed pharmacy discount card.

Pensions and OPEB: The Treasurer said pension funded ratios have improved since reforms and that the office lowered certain actuarial assumptions to more conservative levels. He described ongoing work to manage actuarial assumptions and noted that continuing to make up-front payments reduces long-term taxpayer costs. On OPEB, the Treasurer said costs are rising and described the retirement division’s procurement: a Medicare Advantage vendor, HealthSpring, offered a renewal that represented a 16.8% increase versus another plan’s 50% renewal estimate, which helped reduce near-term budget pressure.

Vermont Saves program: The Treasurer summarized the state’s auto-IRA program, saying "we have about 5,400 funded accounts" and that "collectively, those 5,400 people have put aside, over 5,000,000 in retirement savings." He told the committee that 55% of savers are under 40 and that projected growth could reach roughly 20,000–25,000 accounts within five to seven years. Because the program launched with a one-time $750,000 appropriation that will be exhausted, the Treasurer proposed a temporary funding mechanism through omnibus legislation to cover a gap he estimated at about $700,000 over six years, drawing on Higher Education Trust Fund transfers as a bridge until the program becomes self-sustaining.

Unclaimed property and staffing: The Treasurer said unclaimed property claims rose from about 18,000 to roughly 31,000 and requested two positions to handle increased volume and improve fraud-prevention audits; he noted more capacity could increase recoveries and general fund transfers.

Pharmacy discount card (H.577): Pichak described H.577, a no-cost pharmacy discount card program used in other states that yields savings on generics and brand-name drugs. Citing Connecticut experience, he said an average user saved about $200 per month. The Treasurer asked for a $50,000 one-time outreach appropriation to promote enrollment in Vermont.

Pension task force request: The Treasurer proposed forming a stakeholder task force to analyze amortization and funding pathways as pension systems near full funding, requesting $75,000 for actuarial work to model scenarios and options.

What’s next: Committee members asked clarifying questions (including reporting requirements and rate-change notices); the Treasurer’s office agreed to provide additional slides and data on request.

Sources: Testimony and slide materials provided to the House Appropriations Committee on Jan. 28.