Oregon
On July 13th, 2015, Governor Kate Brown signed the Oregon Retirement Security Act into law, which implemented a statewide retirement savings program for all private-sector employees in the state not currently enrolled in a retirement plan to electively participate in a state-facilitated automatic enrollment individual retirement account (IRA) program.
Legislative Summary:
Oregon House Bill 2960 was introduced in February 2015, and passed both the House and Senate in June 2015. The program was implemented in July of 2017.
Program Description:
The OregonSaves program is administered by the Oregon Retirement Savings Board, to provide a state-facilitated payroll-deduction individual retirement savings plan for private sector employees who do not have access to employer-sponsored retirement savings plans.
Affected Employers:
All employers, regardless of number of employees, who do not currently offer a qualified retirement plan.
General Requirement:
Automatic enroll employees at 5% deferral with annual increases of 1% (up to a maximum of 10%) of the enrollee’s wages. Every affected employer must register and choose to opt-in or claim exemption.
Launch Status:
June 16, 2017
Full Implementation:
March 1, 2023
Compliance Deadline:
| Deadline | AFFECTED EMPLOYERS |
|---|---|
| November 15, 2019 | Employers with 5+ employees |
| March 1, 2023 | Employers with 3+ employees |
| July 31, 2023 | Employers with 1+ employees, or employers that utilizes a Professional Employer Organization (PEO) or Leasing Agency |
Non-Compliance Penalties:
$100 per employee, up to $5,000, every year
Employer Costs:
None
Employee Costs:
$18 annual account fee + 0.25% on account assets
Investments:
The program offers a suite of 12 target date funds (TDFs), as the default investment option, and additional investment options – including a capital preservation, money market and growth funds.