House committee hears broad stakeholder support for treasurer�s bill H.567, flags staffing and technical fixes

MONTPELIER, Vt. — On Thursday morning the House Government Operations & Military Affairs Committee continued review of H.567, a miscellaneous treasurers bill that combines provisions on unclaimed property, state retirement systems and capital debt. Witnesses from sheriffs, state troopers, the Vermont State Employees Association, the Vermont NEA and the treasurers office told the committee they broadly support the bills language while urging specific safeguards, staffing and budget clarifications.

Stakeholder testimony centered on three practical concerns: ensuring compliance and equity in sheriff retirement contributions, staffing and resources to manage growing retiree health and other liabilities, and a technical amendment to the Capital Debt Affordability Advisory Committee (CDAC) statute. "We don't believe [the retirement language] would have any negative impact on our members," said Josh Hanford, who reviewed provisions affecting retirement-system members. Representatives of the Vermont Sheriffs Association asked for statutory and administrative safeguards so local employees are not punished if an employer falls out of compliance; the group said one sheriff had been flagged by the retirement division and was later brought into compliance after department engagement.

Law-enforcement groups and state employee unions said they support creation of a small task force in the bill to study funding policy as the systems approach full funding. "We are certainly in favor of creating this task force," said Dan Trottier, president of the Vermont Troopers Association. Tim Duggan, director of the Vermont Retirement Systems in the treasurers office, told the committee the three retirement boards back the bill and the retirement-division position it contains. Duggan also described a board-level request for an additional VPIC position to address growing work around other post-employment benefits (OPEB); he estimated that VPIC position would cost about $130,000 ("don't quote me on that") and said the retirement-division position in the bill is roughly $140,000 fully loaded. Duggan said the retirement boards are also requesting a $75,000 appropriation to retain actuaries to model funding scenarios for the task force.

Union leaders framed the legislation as a step toward long-term pension sustainability. "We are strongly in support of this legislation," said Steve Howard, executive director of the Vermont State Employees Association, who warned that keeping pensions on a sustainable path is important for recruitment and retention amid state staffing shortages. The Vermont NEAs representative noted that two-thirds of VEMERS participants are school employees and voiced support for a provision allowing employee-organization presidents to purchase service credit in an actuarially neutral manner, paid for by the individual.

Nick Kramer, chief operating officer in the Agency of Administration, limited his testimony to section 23 of the bill, which would make technical changes to the CDAC statute. Kramer said the advisory committee and the administration favor broader, credit-rating-aligned metrics instead of a narrow accounting measure and recommended the statute be amended to reflect the committees final recommendations.

Committee members asked clarifying questions about the size and funding source for the new positions and about how noncompliance by employers is detected and remedied; witnesses said the retirement division flagged a compliance lapse in one county and staff worked with that sheriff to restore contributions. There was no formal vote Thursday; the committee chair said his hope is to move the bill out of committee soon and noted staff will continue conversations about the additional position request. The committee will return at 11 a.m. for a brief review of H.541.

Reporting in the hearing relied on testimony from agency and stakeholder representatives present at the committee: Josh Hanford; Jennifer Harlow, sheriff of Orange County and president of the Vermont Sheriffs Association board; Dan Trottier; Mike O'Neil; Steve Howard; Con Robinson (Vermont NEA); Tim Duggan; and Nick Kramer. The committee did not take a floor vote on H.567 during the Jan. 9 session.