An act relating to unclaimed property, State retirement systems, and capital debt
Sponsored By: Matthew J Birong (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 8 benefits, 1 costs, 1 mixed.
Union presidents can buy retirement credit
Beginning July 1, 2026, eligible union presidents can buy retirement credit for years spent fully released from their employer duties. This covers teachers’ retirement Groups A and C and municipal retirement Groups A, B, and C. They must lead the exclusive bargaining organization, lack service credit for those years, and elect before receiving retirement payments. The organization initiates and pays for the purchase; payment must reach the System by June 30 for each year purchased. Teachers’ purchases use the required regular-interest calculation, while municipal purchases use an actuary’s calculation that avoids added System costs.
Families get simpler inherited property claims
Beginning July 1, 2026, the simpler distribution limit for a deceased owner’s unclaimed property rises from $5,000 to under $10,000. For a closed estate, payment may follow the court’s distribution order. Without an open estate or a court distribution order, payment may go to the surviving spouse or next of kin.
Simpler claims for small unclaimed amounts
Beginning July 1, 2026, Vermont may skip claim forms for property worth less than $1,000; the old limit was $250. The claimant must be the reported apparent owner, and the Administrator must reasonably believe the claimant is entitled to payment. For jointly owned property, the claim-based payment limit rises from $250 to $1,000, including amounts exactly at $1,000. Before one year of website listing, the Administrator may pay proportional shares to owners who file claims. After at least one year, payment may go to the first claimant who owns a share.
Insurance reports must identify unclaimed owners
Beginning July 1, 2026, holders must provide more details when reporting unclaimed insurance or annuity money. Reports must identify the insured person, annuitant, or other apparent owner by name and last-known address. They must also include beneficiary information and any explanation-of-benefit numbers. This covers life, medical, and endowment insurance policies and annuity contracts.
Conflict rules govern public retirement officials
Beginning July 1, 2026, Retirement Board trustees and employees are covered by rules on investment interests, personal use, loan guarantees, and vendor gifts. Commission members and employees leave that Board-related rule but face separate Commission restrictions. Those restrictions bar direct personal investment profits, personal use except authorized current and necessary payments, and signing or guaranteeing Commission-related loans. The Treasurer’s conduct rules now need Retirement Board approval, rather than approval from both the Board and Commission.
Public retirement investments get yearly reviews
Beginning July 1, 2026, Vermont’s Pension Investment Commission must study each plan’s investment mix annually. Studies are due within 180 days after each fiscal year ends. They review expected returns and risks over five, 10, and 20 years, plus the remaining statutory pension-debt repayment period. The Commission must submit and publish each study within 10 days after completion.
Retiree benefit trust keeps unused money
Beginning July 1, 2026, unused State Employees’ Postemployment Benefits Trust Fund money carries forward into the next fiscal year. Interest earned also stays in the Fund. These rules keep resources available for retiree postemployment benefits without setting new individual payment amounts.
Small abandoned amounts support higher education
Beginning July 1, 2026, Vermont directs specified deductions from small abandoned-property amounts to its Higher Education Endowment Trust Fund. The property must have been worth $150 or less when received and held by the Administrator for over 10 years. Annual deposits under this rule cannot exceed $300,000. Together, transfers to the higher education and Retirement Security funds cannot exceed $300,000 a year. This supports the endowment rather than creating a household payment.
Employers face penalties for late pensions
Beginning July 1, 2026, employers face a penalty when retirement-system installments are not received within 30 days after the Board’s due date. The penalty is 1% of the amount due for each month, calculated from the original due date. The Retirement Board may waive some or all of it for good cause. Overdue payments and penalties may be collected in court or deducted from other State payments to the employer.
Public retirement funds gain safeguards, share costs
Beginning July 1, 2026, Vermont’s Pension Investment Commission holds and invests three public retirement systems’ and two postemployment-benefit funds’ assets. It must follow prudent-investor rules, choose securities depositories, and may hire safekeeping firms; each plan pays its safekeeping costs. Agreements must preserve State audit access, except for securities loaned under authorized lending agreements. Securities loans require cash or U.S. government-backed collateral worth at least 100% of the securities’ market value; cash-collateral investments need Commission approval. The Commission may also charge plans and municipalities authorized to invest retirement funds through it proportional operating costs, including Treasurer support.
Sponsors & Cosponsors
Sponsor
Matthew J Birong
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
House message: Governor approved bill on June 15, 2026
5/29/2026HouseSigned by Governor on June 15, 2026
5/29/2026HouseDelivered to Governor on June 9, 2026
5/29/2026HouseSenate Message: Passed in concurrence
5/27/2026SenateRules suspended & messaged to House forthwith, on motion of Senator Baruth
5/27/2026SenateRead 3rd time & passed in concurrence
5/27/2026SenateRules suspended & bill placed on all remaining stages of passage, on motion of Senator Baruth
5/27/2026Senate3rd reading ordered
5/27/2026SenateSenator Hardy requested & granted leave to withdraw Committee on Finance proposal of amendment
5/27/2026SenateReported favorably by Senator Perchlik for Committee on Appropriations
5/27/2026SenateReported favorably by Senator Hardy for Committee on Finance with proposal of amendment
5/27/2026SenateReported favorably by Senator White for Committee on Government Operations
5/27/2026SenateRead 2nd time
5/27/2026SenateFavorable report by Committee on Appropriations
5/27/2026SenateFavorable report with proposal of amendment by Committee on Finance
5/27/2026SenateFavorable report by Committee on Government Operations
5/27/2026SenateNew Business/Second Reading
5/27/2026SenateFavorable report by Committee on Appropriations
5/26/2026SenateFavorable report with proposal of amendment by Committee on Finance
5/26/2026SenateFavorable report by Committee on Government Operations
5/26/2026SenateSecond Reading
5/26/2026SenateEntered on Notice Calendar
5/26/2026SenateReferred to Committee on Appropriations per Senate Rule 31
5/8/2026SenateFavorable report with proposal of amendment by Committee on Finance
5/8/2026SenateFavorable report by Committee on Government Operations
5/8/2026Senate
Bill Text
As Enacted (ACT 131)Opens in a new window
6/18/2026
As Passed by Both Chambers
6/3/2026
As Passed by Both Chambers (Unofficial)
6/3/2026
As Passed by the House
4/1/2026
As Passed by the House (Unofficial)
4/1/2026
As Introduced
1/5/2026
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