Get answers to frequently asked questions.

Frequently asked questions for employers

Do employers have to facilitate this State program?

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.

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.

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.

Where can I find a copy of the program rules?

The OregonSaves program rules are posted here.

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).