Get answers to frequently asked questions

Frequently asked questions for employers

Can employers cancel their employer-sponsored retirement plans and offer this instead?

Oregon's program isn't intended to replace employer-sponsored retirement plans, which have many important benefits. For example, 401(k) plans have higher employee contribution limits and allow for employer matching contributions, unlike OregonSaves.

Why did OregonSaves transition away from their former service provider?

In conversations initiated by our former service provider, the state and Ascensus were not able to reach terms agreeable to both parties on proposed changes to the OregonSaves program structure. OregonSaves was designed to serve those most in need of building financial security and it is essential that our program structure serves that purpose for our savers.

Our partnership with Vestwell State Savings, LLC, dba Sumday Administration, will best serve the needs of Oregon businesses and our savers, providing a more streamlined online experience and the ability to innovate in the future. The change in program managers also comes with a solid technology partner in Sumday’s parent company, Vestwell. With Vestwell, participating employers will benefit from significant payroll integration capabilities, a simplified onboarding process, and a more intuitive employer platform.

We are confident we can move forward with a program that continues to provide an excellent user experience for savers and employers alike. The success of state-based retirement programs is paramount and we want Ascensus, their partner states, and all parties involved in this industry to thrive.

Do other states have programs like this?

Yes, similar programs are up and running in other states, including California, Connecticut, and Illinois. And many other states are about to launch state-sponsored retirement savings programs or are in the process of passing legislation to support them, including Colorado and New Mexico, among others.

Does this program replace 401(k)s?

No, this program is not meant to replace or compete with 401(k) or other qualified retirement plans. It is meant to help employers that don't have the time, money, or resources to offer a 401(k) plan.

Do employers have to facilitate OregonSaves?

Yes, any business with employees in Oregon must facilitate the state’s program for its employees, unless it already offers a qualified, employer-sponsored retirement plan.

What is considered to be a qualified, employer-sponsored retirement plan?

An employer-sponsored 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.

Can facilitating OregonSaves help my business?

Not every employer has the resources to provide a qualified, employer-sponsored retirement plan. OregonSaves provides a way for those employers to offer a workplace savings option that helps employees to reach their financial goals. Employers that already facilitate this program tell us that it’s a manageable way to provide retirement savings, while helping to attract and retain good employees. The program doesn't charge employers a fee and we try to limit the employer's role as much as we can.

Are there any fees for employers to participate?

No, there are no employer fees, and OregonSaves does not allow employer contributions. The employer's role is limited to simply facilitating the program for employees.

Is there a penalty for businesses that fail to facilitate OregonSaves as required by law?

Any business with employees in Oregon that does not offer an employer-sponsored retirement plan is required to facilitate OregonSaves for its employees. We’ve designed the process to be simple and straightforward. The State will provide assistance to help employers meet deadlines and requirements. Employers that are out of compliance may be subject to enforcement action, including penalties and fines.