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Updated: December 8, 2023
OregonSaves was created to provide easy access to a retirement plan for the more than one million Oregon workers without access to one through their employer. The plan was also designed to create a low-cost way for employers to offer retirement benefits to their employees and to self-employed individuals.
Launched as a pilot program in 2017, OregonSaves became the nation’s first state-mandated retirement savings program. Designed for Oregonians that did not have access to a workplace-based retirement plan, OregonSaves quickly became the model retirement program for numerous states. Today, nearly 118,000 Oregon workers are enrolled in OregonSaves, with the program now available to businesses with a minimum of one employee.
OregonSaves automatically enrolls employees in the program. Workers have the option to opt-out of participating within 30 days of being added to the program. Upon setup, a default amount of 5% is withheld from an employee’s pay, and workers have the option to change the withheld amount at any time after being enrolled.
Anyone 18 years of age or older who is currently employed in Oregon and has earned income is eligible to participate in OregonSaves. This includes the following:
Once an employee starts actively participating in OregonSaves, the retirement account is theirs. This means that the employee can change jobs or even more out of state and continue to contribute to the account if they desire.
The retirement account offered by OregonSaves is a Roth Individual Retirement Account or Roth IRA. Program participants are required to meet eligibility requirements for opening a Roth IRA, which include:
If an employee does not meet Roth IRA requirements or wishes to contribute more, they have the option to set up their account as a traditional IRA, which does not have an annual earnings limit.
All Oregon businesses are legally mandated to register their business online with OregonSaves. The registration process requires you to complete the following:
When the above information is complete, you will receive an Onboarding Complete message. Once onboarding is complete, you’ll have access to the Employer Dashboard, where you can manage current employees, add new employees, and manage and submit employee contributions.
Any employer who currently offers one of the following qualified, employer-sponsored retirement plans is not required to participate in OregonSaves:
If your business is exempt, you’ll have to certify your exemption online — the exemption certificate is valid for three years. This is completed by entering a unique access code provided by the State of Oregon and your employer identification number on the OregonSaves website. During the exemption process, you are required to indicate the reason for the exemption.
Since Oregon businesses merely serve as program facilitators, there are no assessed program fees. In addition, Oregon employers are prohibited from contributing any employer-matching funds to an employee’s savings plan.
Employees that participate in OregonSaves are required to pay an ongoing fee that equates to $.50 for every $100 saved. There is also an administrative fee of $4 that is assessed each quarter. However, there are no fees for withdrawals unless the withdrawal is before ythe employee reaches the age of 59 1/2.
OregonSaves program participants can opt out of the program at any time by completing the opt-out form available from the OregonSaves website. If employees choose to opt out within the first 30 days after enrollment, no payroll deductions will be made and the account won’t be activated.
In Oregon, any business with employees that does not currently offer an employer-sponsored retirement plan is required to register their business with OregonSaves. If a business opts not to register with OregonSaves, the business can be fined up to $100 per affected employee, with a maximum fine of $5,000 assessed annually.
For more information on OregonSaves, check out the following resources:
Both employers and their employees can benefit from participation in OregonSaves. Employees can start their retirement savings early to be better prepared for retirement while businesses can attract the best workers by having a retirement plan in place. ‘
When did OregonSaves start?
In 2017, OregonSaves was launched as a pilot program, becoming the nation’s first state-mandated retirement savings program.
OregonSaves is a state-mandated program designed for employers that don’t have a workplace retirement program. The program has no employer fees and no fiduciary responsibility.
Only employees can contribute to OregonSaves.