ORSB to Discuss Expanding OregonSaves

The Oregon Retirement Savings Board on Oct. 9 will consider the recently proposed changes to the rules for OregonSaves, the state-run retirement savings program for private-sector workers in the Beaver State.

The proposed rule changes were drafted with the assistance of a rulemaking advisory committee comprised of small business owners and owners of businesses the rules will affect. The proposed changes include:

  • expanding OregonSaves to allow individuals, such as the self-employed, to sign up and participate in the program;
  • adding a traditional IRA as an investment option, in addition to the Roth IRAs currently available;
  • providing that employers of various sizes are to register for OregonSaves by certain dates, unless the program administrator permits them to do so at another date;
  • stating that for the purposes of OregonSaves registration, employers shall base the determination of the number of employees on the Oregon Quarterly Tax Report (Form OQ) Number of Covered Workers for Unemployment Insurance submitted for the 4th quarter of 2016, with the following exceptions:

— an employer that first meets the definition of “employer” after Jan. 1, 2017 will use the number of employees submitted on the employer’s most recently filed Form OQ;

— an employer with no employees reported on Form OQ will have a registration date of May 15, 2020; and

— at the program administrator’s discretion, an employer with a valid business reason may use data from a more recent Form OQ;

  • setting a time limit of 30 days after the registration date or no more than 30 days after the start of new hires’ employment for the employer to submit required information about new employees; and
  • adding a statement that automatic enrollment will occur 30 days after an employer provides required information about an employee being added to the program.

The ORSB held a public on the proposed rules on Sept. 18 and accepted public comments on them through Sept. 21. The ORSB says that it expects to file the changed rules with Office of the Oregon Secretary of State shortly after the Oct. 9 meeting.

SSGA Reduces TDF Fees

The Oregon State Treasury also reports that in September, State Street Global Advisors reduced the fees of its underlying funds within the OregonSaves Target Retirement Funds from 13 basis points to 9 basis points, and reduced the fee of its underlying fund within the OregonSaves Growth Fund from 6 basis points to 2 basis points. And the Treasury says that if OregonSaves participants currently are invested in one of these funds, their total asset-based fees will be reduced accordingly.

The Treasury also reports that OregonSaves’ participants and assets have grown since Aug. 1:

Aug. 1, 2018 Oct. 1, 2018 Change, August-October
Employers Participating   1,029   1,237    +208
Employees Participating   36,343 41,680 +5,337
Assets   $5.5 million $7.7 million +$2.2 million

 

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