OregonSaves, the first of the state-run IRA programs for private sector workers, is getting ready to take things up another notch.
Specifically, the contribution rates for OregonSaves participants will, beginning Jan. 1, automatically increase 1% on the first day of each year, until they reach 10% of gross pay. The automatic increase only applies to participants who have been contributing for six months or more and who are currently contributing less than 10% – and participants may opt out – or back in – to automatic contribution increases at any time through the program’s website or by phone. The program’s default contribution rate is 5%, while the average savings rate in the program is currently 5.17%.
Additionally, on Nov. 15, OregonSaves sent notices about the upcoming Dec. 15, 2018, registration deadline to employers in Wave 3 that had yet to register or claim exemption from the program. The program notes that 703 employers from Wave 3 have registered to facilitate the program to date. OregonSaves notes that they have two field reps available to assist employers in-person and who can do presentations for employees. Additional information on the field team is available at https://employer.oregonsaves.com/home/resources/field-team.html.
As of Nov. 30, 1,760 employers have registered to facilitate OregonSaves for their employees. A total of 47,701 employees (73% of those eligible) have enrolled in the program. On average, employees continue to contribute about $100 per month, and assets in the program now exceed $9.8 million. This represents continued growth; an earlier report put savings at $8.8 million at the start of the month.