Employee Benefits

Oregon Creates Landmark State Retirement Plan

By

Paycom Legal

| Mar 23, 2017

Oregon Creates Landmark State Retirement Plan

This year, the state of Oregon will launch a landmark, statewide retirement program: OregonSaves. This program requires private employers to automatically enroll employees in retirement accounts. The goal is to benefit almost 1 million Oregonians who currently lack access to employer-sponsored retirement programs.

OregonSaves has been in the works for the last few years and will officially kick off in July 2017 with a volunteer pilot phase. Full program implementation is scheduled to begin in November 2017, starting with employers who have 100 or more employees.

What This Means for Oregon Employers

Employers that do not offer retirement plans are required to inform employees about the program and automatically enroll them. Additionally, they will have to:

  • Provide employee data to the state to allow the state to set up accounts for the employee.
  • Setup payroll deductions for employees participating in OregonSaves.
  • Track employee decisions as to contribution levels or to opt out.

Employers who already provide retirement options do not have to offer OregonSaves. Those employers will complete a simple certification process.

What’s Next?

Oregon is the first state to offer a program of this nature. California and Illinois likely will launch similar programs by 2019. It is important to note, however, that there are currently bills pending in the federal legislature to overturn rules that make it easier for states to create such plans. If these bills pass, state programs could be stalled. Oregon does plan to move forward with its retirement plan regardless of how the legislature acts, so employers should be prepared. Paycom’s Benefits Administration Suite can help employers accurately track the data they will be required to transmit to OregonSaves.