Budget & Taxes (Pensions)

H 567 updates Vermont's unclaimed property rules, requiring holders to report property valued at $50+ with owner details and increasing the threshold for property sent to the Retirement Security Fund from $100 to $150 after 10 years. It adds a 1% monthly penalty for employers missing retirement contribution deadlines (30 days past due) and creates a Pension and Benefits Funding Task Force. The bill transitions oversight of post-employment benefits for state employees and teachers to the Vermont Pension Investment Commission and raises the claim threshold for unclaimed property from $250 to $1,000 for certain cases. These changes primarily affect employers contributing to retirement systems, individuals claiming unclaimed funds, and the state retirement systems themselves.

This bill (H.584) amends Vermont's tax code to exclude income from public safety pensions and survivor benefits from state income taxation. It directly affects Vermont police officers, firefighters, and emergency medical technicians (EMTs), as well as their survivors, by removing this income from taxable earnings. The key mechanism adds a specific exclusion to Vermont's definition of "taxable income" under 32 V.S.A. § 5811(21)(B)(vii), ensuring these benefits are not included in the calculation of state income tax. The change takes effect retroactively for taxable years beginning January 1, 2026.