Member Directory    
  

News: OregonSaves mandate to Employers

  • Share:
July 13, 2017
NEWS: OregonSaves mandate to Employers

The Oregon State Treasury is launching a new program called OregonSaves that may impact your business, clients, and members. OregonSaves is a simple and convenient way for workers to save for retirement. It allows them to save a part of each paycheck through payroll deductions facilitated by their employer and invest their savings in professionally-managed investment options in a Roth individual retirement account. The account is also portable, allowing them to take it with them from job to job.
 
Any business with employees that does not sponsor a qualified retirement plan* will need to register to facilitate OregonSaves for its employees. The registration process is designed to be simple in order to limit any burden on employers. Employers can choose to offer their own retirement plans to some or all of their employees instead of participating in the program.
 
The program is scheduled to roll out in phases, and the State will let employers know when their phase will begin. The deadlines for employers to register to facilitate are as follows:
 
  • An employer employing 100 or more employees: November 15, 2017
  • An employer employing 50 to 99 employees: May 15, 2018
  • An employer employing 20 to 49 employees: December 15, 2018
  • An employer employing 10 to 19 employees: May 15, 2019
  • An employer employing 5 to 9 employees: November 15, 2019
  • An employer employing 4 or fewer employees: May 15, 2020
 
The State will send a notice about the program to employers approximately six months before their registration deadline. The State will send another notice to employers one month before the deadline with instructions about how to register. Employers will have until the applicable deadline above to complete the registration process.
 
For more information, including answers to frequently asked questions, visit www.oregonsaves.com or call (844) 661-1256.
 
*A qualified retirement plan includes a plan qualified under Internal Revenue Code sections 401(a) (including a 401(k) plan), qualified annuity plan under section 403(a), tax-sheltered annuity plan under section 403(b), Simplified Employee Pension plan under section 408(k), a SIMPLE IRA plan under section 408(p) or governmental deferred compensation plan under section 457(b). It does not include payroll deduction IRAs.
 
OregonSaves is overseen by the Oregon Retirement Savings Board. Ascensus College Savings Recordkeeping Services, LLC (“ACRS”) is the program administrator. ACRS and its affiliates are responsible for day-to-day program operations. Participants saving through OregonSaves beneficially own and have control over their Roth IRAs, as provided in the program offering set out at saver.oregonsaves.com.
 
OregonSaves' Portfolios offer investment options selected by the Oregon Retirement Savings Board. For more information on OregonSaves' Portfolios go to saver.oregonsaves.com. Account balances in OregonSaves will vary with market conditions and are not guaranteed or insured by the Oregon Retirement Savings Board, the State of Oregon, the Federal Deposit Insurance Corporation (FDIC) or any other organization.
 
OregonSaves is a completely voluntary retirement program and investing in a Roth IRA will not be appropriate for all individuals. Employer facilitation of OregonSaves should not be considered an endorsement or recommendation by your employer of OregonSaves or Roth IRA investments. Roth IRAs are not exclusive to OregonSaves and can be obtained outside of the program and contributed to outside of payroll deduction. Contributing to an OregonSaves Roth IRA through payroll deduction offers some tax benefits and consequences. You should consult your tax or financial advisor if you have any tax or financial related questions.
 
Contact:
Chamber General Email
chamberinfo@oregoncity.org, (503) 656-1619