An act relating to unclaimed property, State retirement systems, and capital debt

A new subsection 7(h) appropriates $75,000 from the General Fund in fiscal year 2027 to the Office of the State Treasurer for Task Force administration costs, including per diem compensation, expense reimbursement, and advisory services.

The threshold for writing off abandoned property held by the unclaimed property Administrator was raised from $100 to $150 (property valued at $150 or less more than 10 years after receipt).

The value threshold for simplified delivery of unclaimed property to a claimant without full verification was raised from $250 to $1,000 under section 1553(b)(3).

The value threshold for distributing unclaimed property of deceased owners directly to a surviving spouse or next of kin (without opening a probate estate) was raised from $5,000 to $10,000 under section 1557(a)(2) and (a)(3).

The value threshold for distributing unclaimed property co-owned by multiple claimants was raised from $250 to $1,000 under section 1557(b).

The threshold for unclaimed property that may be paid into the Retirement Security Fund or Higher Education Endowment Trust Fund was raised from $100 to $150 (property valued at $150 or less, held more than 10 years).

The threshold for the Administrator to waive the formal claim form and pay property directly to a person was raised from $250 to $1,000.

The threshold for delivering unclaimed property of deceased owners (in closed estates or without an open estate) was raised from $5,000 to $10,000.

The threshold for distributing unclaimed property with multiple claimants was raised from $250 to $1,000.

The House version required a mandatory split of small unclaimed property proceeds: up to $300,000 per year to the Retirement Security Fund with the remainder going to the Higher Education Endowment Trust Fund. The enacted version gives the Administrator sole discretion to deposit funds into either fund, subject to a combined annual cap of $300,000.

A $75,000 appropriation from the General Fund in fiscal year 2027 for Task Force administration costs (per diem, expenses, and advisory services) was removed from the enacted version.

A new subsection (n) to 3 V.S.A. section 471 requires the Retirement Board to annually review the actuary's recommended State contribution amount and submit a funding recommendation to the Governor and legislative committees by November 1 of each year, with an exemption from the standard report expiration provision.

The provision making the State Treasurer the custodian of retirement system assets (3 V.S.A. section 472(c)) was repealed, consistent with the transfer of investment and fiduciary authority to the Vermont Pension Investment Commission.

The provision assigning administration of the State Employees' Postemployment Benefits Trust Fund to the State Treasurer (3 V.S.A. section 479a(c)) was repealed, transferring that responsibility to the Commission.

The definition of 'Plans' in the Vermont Pension Investment Commission chapter was expanded to explicitly include the State Employees' Postemployment Benefits Trust Fund, and the Commission's expense-collection authority was broadened to cover costs associated with all Plans including postemployment benefits funds.

The allocation of unclaimed property write-off funds changed from a discretionary split between the Vermont Retirement Security Fund and the Vermont Higher Education Endowment Trust Fund (with a combined $300,000 cap) to a prioritized structure where up to $300,000 goes first to the Retirement Security Fund and any remaining funds go to the Higher Education Endowment Trust Fund.

A new appropriation of $75,000 from the General Fund in fiscal year 2027 was added to the Office of the State Treasurer for costs associated with administering the Pension and Benefits Funding Task Force, including per diem compensation, expense reimbursement, and advisory services.

The threshold for writing off abandoned property held more than 10 years increased from $100.00 to $150.00, meaning slightly higher-value items can now be written off rather than retained indefinitely.

The value threshold for distributing unclaimed property of deceased owners without requiring a probate estate (to surviving spouse or next of kin) increased from $5,000.00 to $10,000.00, reducing the need for formal probate proceedings for moderate-value estates.

The value threshold for distributing unclaimed property owned by multiple claimants (where proportionate shares or first-claimant rules apply) increased from $250.00 to $1,000.00.

The value threshold below which the Administrator may waive formal claim verification and pay property directly to a person increased from $250.00 to $1,000.00, simplifying the claims process for more small-value properties.

Minor corrections throughout: capitalization of 'fund' to 'Fund' in retirement system references, a typo fix changing 'section sections 472 and 479a' to 'sections 472 and 479a' in the definition of Plans, and addition of introductory bill information (sponsor, committee referral, subject, statement of purpose).

The threshold for writing off unclaimed property after 10 years increased from $100 to $150, meaning slightly more small-value abandoned property can be permanently written off rather than held indefinitely.

The threshold for direct payment of unclaimed property without a formal claim process increased from $250 to $1,000, allowing the Administrator to pay small claims more quickly with less paperwork.

The threshold for distributing unclaimed property of deceased owners through closed estates or to surviving spouses/next of kin without opening a probate estate increased from $5,000 to $10,000 in two separate provisions.

The threshold for delivering jointly owned unclaimed property to claimants without full probate proceedings increased from $250 to $1,000.

The allocation of unclaimed property write-off funds changed from a sequential process (first to the Vermont Retirement Security Fund up to $300,000, then remainder to the Higher Education Endowment Trust Fund) to one where the Administrator has sole discretion to deposit into either fund, subject to a combined annual cap of $300,000.

A $75,000 appropriation from the General Fund in fiscal year 2027 for administration of the Pension and Benefits Funding Task Force was removed from the bill as passed by the House.

The State Retirement Board is now required to annually review the actuary's recommended State contribution amount and submit a recommendation to the Governor and relevant legislative committees by November 1 of each year, with an explicit exemption from the general report expiration rule in 2 V.S.A. section 20(d).

The definition of 'Plans' in 3 V.S.A. section 521 was expanded to explicitly enumerate the specific statutory sections creating each plan (sections 472 and 479a of title 3, sections 1943 and 1944b of title 16, and section 5063 of title 24), adding the Municipal Employees' Retirement System to the list.