Vt. leaders say pension reforms paying off

MONTPELIER, Vt. (WCAX) – Sweeping reforms to Vermont’s public retirement funds are starting to pay off.

Lawmakers in 2022 passed pension reform legislation to begin dealing with the state’s $3 billion unfunded liability in teacher and state employee retirement funds.

Vermont Treasurer Mike Pieciak on Tuesday said those reforms are working and that the state has successfully diversified where it invests its retirement funds. They say Vermont’s pensions are on track to be fully funded by 2038.

But he also expressed concerns that the state’s aging demographics and ongoing workforce crisis could still affect its ability to meet those obligations.

“If we don’t have a strong enough economy to bring in the revenues that we need for the state of Vermont to pay for all of these things — including the annual contributions — because we don’t have a sizeable workforce, that’s a real issue,” he said.

Officials say it’s difficult to predict what the economy will look like in a decade but they believe the recent reforms will help Vermont cover its commitments to its employees