The Oregon Retirement Savings Board (ORSB) now may partner with other states in providing services similar to those offered by OregonSaves, the Beaver State’s state-run auto-IRA program for private-sector employees whose employers do not offer a retirement plan.
Senate Bill (SB) 166, signed into law June 27, Gov. Kate Brown (D), grants the Oregon Retirement Savings Board (ORSB) the authority to enter into agreements with other states to provide services to the other states related to retirement savings plans those states administer that are similar to OregonSaves. The law took effect immediately.
The ORSB contracts with Ascensus to provide TPA services to OregonSaves. Under the new law, the program’s third-party program manager may provide services to other states. While the services provided by the third-party program manager may vary based on the needs of a state, they can include investment management, account management, record keeping, custody, website and materials and development, and reporting. The third-party program manager would receive compensation from the assets under management from the contracting state.
The Oregon legislature’s Joint Committee on Ways and Means says in a staff summary that by enabling other states to adopt aspects of OregonSaves, the measure could increase assets in the OregonSaves program, create economies of scale and reduce the cost per participant over time.
Sixteen days earlier, Brown signed into law SB 165, a measure that requires all employers in Oregon to indicate whether they offer a qualified retirement plan and are thus exempt from offering employees enrollment in OregonSaves. It also allows the Department of Revenue to provide information on employer responses to the State Treasurer. The new law will take effect 91 days after the legislature adjourns.
