Passed in 2015, the OregonSaves program, a state-run retirement plan for private-sector workers is set to go live in July.
The program requires employers in the state that do not already offer a retirement savings plan to employees to automatically enroll them in the OregonSaves program at 5% of pay. Employees are able to opt out or choose a different savings rate. Employers are not required to make contributions.
Employee deferrals will be increased 1% annually up to 10% of pay. Employers are required to nothing except remit employee information and deferrals to the program.
According to the OregonSaves website, 1 million employees in the state, more than half the work force, are without an option to save for retirement through an employer-sponsored plan.
Just as there have been media reports that California will continue with its state-run retirement plan for private-sector workers despite the Trump administration taking away exemption from ERISA, Oregon Treasurer Tobias Read issued a statement saying the administration’s action “will not halt our commitment to working Oregonians.”
The program will roll out July 1 for large employers that have volunteered to participate, and the rollout will continue in phases. This is similar to the implementation of the California Secure Choice program.