What is It?
OregonSaves is a new state-administered retirement program that starts on November 15, 2017. Put into law in 2015, the program is the first of its kind and was created to provide better access to retirement savings for all residents, with features like automatic enrollment and payroll deduction. Eligible employees can opt out if they don’t want to participate or have other options.
The Details
OregonSaves starts rolling out on November 15, 2017 and will be fully phased in by May 15, 2020. FAQs about the new law and requirements can be found on the OregonSaves website. The registration deadlines for employers are scheduled 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
Oregon will be notifying employers directly when they will be required to register or certify that they are exempt from the program. The notice will include instructions and due dates.
(Update on 6/26/17: Our team emailed OregonSaves about how to obtain the passcode required for certification and we received the following response: ‘The State will notify employers directly when they will be required to register or certify that they are exempt from the program. Notice will include instructions and due dates. You will receive your passcode 30 days prior to the deadline. The notices will be emailed to the email address for the company contact on file with the State of Oregon Employment Department. If the State does not have an email address on file, the notice will be sent by mail to the company’s address.’)
If you have questions about this new law, please reach out to us or visit the FAQs page on the OregonSaves website.
What does this mean for you?
Your next steps depend on whether you have a qualified retirement plan solution for your business. Every employer will be required to take one of three actions listed below.
Employers who offer a retirement plan to all employees
If you already have a retirement plan in place, you need to certify that it’s a qualified retirement plan to be exempt from OregonSaves. Certification involves a few simple questions and can be completed online in minutes.
Employers who offer a retirement plan to some, but not all employees
If you already have a retirement plan in place for some employees, you need to certify that it’s a qualified retirement plan to be exempt from OregonSaves. Certification involves a few simple questions and can be completed online in minutes.
Employers who do not offer a retirement plan
You will be required to register your business with OregonSaves. If you decide to offer a qualified retirement plan in the future, you can stop facilitating OregonSaves at that time.
Want to Provide a Retirement Plan?
Interested in providing your employees with a qualifying retirement plan? Xenium provides 401(k) retirement plan and administration as part of our payroll service. See this page for more information or contact us to get started.