Oregon Treasury Proposal Puts 401(k) Plans at Risk
The Oregon State Treasury has put forth a proposal in support of its state-run plan for private-sector workers who don’t have a plan at work — that could affect private-sector 401(k) plans.
is intended to implement recent changes in state law that will require Oregon employers that don’t otherwise offer a qualified plan to automatically enroll their employees in the Oregon Retirement Savings Plan. However, the proposal contains what could be a significant problem for many employers who already have a plan in place.
Specifically, if workers are not eligible to participate in the existing plan within 90 days of hire, employers would be required to enroll them in the OregonSaves state-run plan. And to make matters worse, it appears the proposal would also require enrollment of employees eligible to participate in a 401(k) unless that plan covers at least some workers with less than 90 days of service.
In its current form, the proposal could wind up encouraging employers to migrate ALL their workers into the state program that does not provide employer contributions, resulting in a less secure retirement for rank and file workers.
The Oregon State Treasury is accepting written comments on these rules until the close of business on Feb. 22, 2017. If you work with Oregon plans or employers, you should express your concerns about this proposal to:
Kim Olson, Rules Coordinator
Oregon State Treasury
350 Winter Street NE, Suite 100
Salem, OR firstname.lastname@example.org
Additionally, if you are in the area, you should also attend the Oregon State Treasury Public Hearing to register your opposition to these rules in person next Wednesday:
ORSP Rulemaking Hearing
Wednesday, Feb. 15, 2017, 10:00-11:00 a.m.
Oregon State Treasury —Tigard Office
16290 SW Upper Boones Ferry Road, Mt. Hood Board Room, Tigard, ORAndrew Remo is the American Retirement Association’s Director of Legislative Affairs.