Recent changes to the proposed rules for the Oregon Retirement Savings Plan — which has since been renamed OregonSaves — were fueled by comments the Oregon State Treasury received that sought clarifications and additional information on what employers’ responsibilities will be once the plan is in place.
The most extensive modifications and clarifications to the proposed rules concerned the dates by which employers must register with the plan or file a certificate of exemption, the rules concerning employees’ change of elections and the distribution of information about OregonSaves.
Registration Dates
The comments the Treasury received resulted in the addition of much more extensive information concerning the dates by which an employer must register with OregonSaves. The proposed rules had said that on or before the registration date, each employer shall register with the plan or file a certificate of exemption, and that the registration date for each employer shall be phased in not later than April 30, 2017.
After receiving comments on this stipulation, the Treasury expanded the registration dates. The dates now proposed graduate the amount of time available to employers based on the size of their workforce, with the amount of time before registration is required increasing as workforce size decreases. The dates proposed now are as follows:
Another of the changes based on comments says that a participating employer that lacks access to the Internet may register with OregonSaves by alternate means established by the OregonSaves administrator, but no earlier than 30 days in advance of its required registration date.
Changing Elections
Based on comments on the first draft of the proposed rules, the Treasury added a Roth IRA as an additional option among those in which employees may choose to have their funds invested, and the contributions to the Roth IRA will be made after taxes are imposed on the income.
The comments also prompted the Treasury to change the rules’ provisions regarding timing of employees’ elections. The first draft would have allowed participating employees to change their elections at any time, but the revised proposed rules say that participating employees can make a change only after enrollment. Further, the Treasury added language allowing employers to limit the processing of contribution election changes to one per month.
Distribution of Materials About OregonSaves
The proposed rules say that at least 60 days before the initial enrollment date, OregonSaves will provide a set of informational materials about OregonSaves to a participating employer. OregonSaves will then provide the materials to the participating employer by supplying the internet location from which it may download the materials, or, if the employer requests it, will provide the materials in hard copy. Participating employers must provide employees with these materials at least 30 days before the initial enrollment date.
The comments resulted in the Treasury adding one more directive to what informational materials must include: They also must include a statement that the plan provides a Roth IRA and that employees with income higher than the Roth IRA limits should opt out of OregonSaves.
The Treasury also added language stating that employers are to provide the materials to new employees within 30 days to their hiring.
And the revised proposed rules expand the ways participating employers may provide the informational materials. They now may do so either directly or by supplying employees with the web address where they may access the information. The revised rules also say that employers must provide employees with information from OregonSaves about how employees who do not have Internet access may obtain the information.
On Jan. 13, 2017, the Oregon State Treasury filed revised proposed administrative rules for OregonSaves with the Oregon Secretary of State. The original version of the rules had been filed on Oct. 25, 2016. The Treasury intends to finalize the rules on March 14.
The most extensive modifications and clarifications to the proposed rules concerned the dates by which employers must register with the plan or file a certificate of exemption, the rules concerning employees’ change of elections and the distribution of information about OregonSaves.
Registration Dates
The comments the Treasury received resulted in the addition of much more extensive information concerning the dates by which an employer must register with OregonSaves. The proposed rules had said that on or before the registration date, each employer shall register with the plan or file a certificate of exemption, and that the registration date for each employer shall be phased in not later than April 30, 2017.
After receiving comments on this stipulation, the Treasury expanded the registration dates. The dates now proposed graduate the amount of time available to employers based on the size of their workforce, with the amount of time before registration is required increasing as workforce size decreases. The dates proposed now are as follows:
- employer with 100 or more employees: Nov. 15, 2017
- employer with at least 10 but no more than 99 employees: May 15, 2018
- employer with at least five but no more than nine employees: Nov. 15, 2018
- employer with four or fewer employees: May 15, 2019
Another of the changes based on comments says that a participating employer that lacks access to the Internet may register with OregonSaves by alternate means established by the OregonSaves administrator, but no earlier than 30 days in advance of its required registration date.
Changing Elections
Based on comments on the first draft of the proposed rules, the Treasury added a Roth IRA as an additional option among those in which employees may choose to have their funds invested, and the contributions to the Roth IRA will be made after taxes are imposed on the income.
The comments also prompted the Treasury to change the rules’ provisions regarding timing of employees’ elections. The first draft would have allowed participating employees to change their elections at any time, but the revised proposed rules say that participating employees can make a change only after enrollment. Further, the Treasury added language allowing employers to limit the processing of contribution election changes to one per month.
Distribution of Materials About OregonSaves
The proposed rules say that at least 60 days before the initial enrollment date, OregonSaves will provide a set of informational materials about OregonSaves to a participating employer. OregonSaves will then provide the materials to the participating employer by supplying the internet location from which it may download the materials, or, if the employer requests it, will provide the materials in hard copy. Participating employers must provide employees with these materials at least 30 days before the initial enrollment date.
The comments resulted in the Treasury adding one more directive to what informational materials must include: They also must include a statement that the plan provides a Roth IRA and that employees with income higher than the Roth IRA limits should opt out of OregonSaves.
The Treasury also added language stating that employers are to provide the materials to new employees within 30 days to their hiring.
And the revised proposed rules expand the ways participating employers may provide the informational materials. They now may do so either directly or by supplying employees with the web address where they may access the information. The revised rules also say that employers must provide employees with information from OregonSaves about how employees who do not have Internet access may obtain the information.
On Jan. 13, 2017, the Oregon State Treasury filed revised proposed administrative rules for OregonSaves with the Oregon Secretary of State. The original version of the rules had been filed on Oct. 25, 2016. The Treasury intends to finalize the rules on March 14.
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