Get answers to frequently asked questions

Frequently asked questions for employers

What is a Target Retirement Fund?

A Target Retirement Fund is designed to help manage investment risk and is based on two factors: an investor’s current age and estimated retirement date. This type of fund is comprised of a mix of investments—stocks, bonds, and cash equivalents—that evolve over time to focus on growth for younger investors and to help preserve savings closer to retirement age.

Are employers responsible for telling employees when contributions will auto escalate?

No, leave that to us. OregonSaves will notify participating employees about auto-escalation prior to any increase.

Can employers match employee contributions?

No, OregonSaves does not allow employer contributions. As an employer, your role is limited to facilitating the program for your employees.

Can the State use money from this program to pay for other programs?

No. Employee contributions go directly to their own personal OregonSaves IRA account. Accounts are not accessible to the State for other purposes and are not tied to any other retirement plans offered by the State, including Public Employees Retirement System (PERS).

Why does the program include an auto escalation of contributions?

OregonSaves aims to improve access to retirement savings accounts for workers and also improve outcomes when it comes time to retire. A savings rate of 5 percent is a good place to start, but employees may need to save more than 5 percent over time to achieve financial security in retirement. Research shows that people are far more likely to save more if their retirement plan includes automatic increases.

Do I need to report contributions on my employees’ W2s?

No. The OregonSaves program is structured as a payroll deduction IRA and not as a traditional retirement plan that needs to be reported on your employees’ W2s. The IRA trustee for the OregonSaves program will file “Form 5498, IRA Contributions Information” with the IRS (as needed for your employees) and will send your employees a copy for their records no later than May 31.

What is the auto escalation feature?

Auto escalation is a standard feature of the OregonSaves program. An employee’s contribution amount will increase by 1 percent on January 1 of each year until a maximum of 10 percent is reached. Employees can opt out of auto escalation at any time.