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www.ortrucking.orgIssue 1 | 2017
SAVINGS
OREGON RETIREMENT SAVINGS PLAN
Notice to All
Oregon Employers!
By Bob Ekblad, Chief Operating Officer, Premier Community Bank
I
f you haven’t already heard,
House Bill 2960
passed back in 2015 called for Oregon to become the
first to create a state sponsored retirement savings plan for
all
employees, 18 years and older, that do
not have access to employer sponsored retirement plans such as 401(k)s. It is called the Oregon
Retirement Savings Plan (ORSP) and its roll out begins
July 2017
. The State’s objective is to have this be a
simple, flexible, and easy to understand program for employees while also being easy for employers and
the state to administer. Here are some of the particulars:
FOR EMPLOYEES
`
`
Enrollment is automatic, unless the
employee opts-out.
`
`
The savings rate is 5% of wages,
unless employee chooses a
different level.
`
`
Format of the investment is like a
Roth IRA, funded with after-tax
dollars that grow tax free and
qualified withdrawals are tax free.
`
`
Unless participants choose
otherwise, money will be invested
in age-based funds with risk profiles
that evolve over time, based on their
years to retirement.
`
`
Private sector plan administrators
are to communicate directly with
the worker about options and
performance.
FOR EMPLOYERS
`
`
When notified by the state, either certify that
the company has a retirement plan for all
employees or else register for participation
in the Oregon Retirement Savings Plan
(ORSP) which is mandatory.
`
`
Participation in the ORSP will be phased in
with larger employers first, beginning in
July 2017.
`
`
When participating in the ORSP, employers
must notify all employees of their eligibility
using standard materials, accept and retain
employee decision information regarding
participation levels or opt-outs, and process
participating employee payroll deductions
and remittances.
`
`
They do not have any fiduciary responsibility
for funds management (this is done by the
state appointed plan administrator) nor are
employers allowed to make contributions or
match employee contributions; hence they
have no financial obligations or direct expenses.
Retirement programs for all employees will be new for many Oregon businesses and certainly
there are many more details than those outlined above; however for more information go to
www.oregon.gov/retire.
About Bob Ekblad, CPA
Bob Ekblad, CPA, is the chief operating officer of Premier Community Bank. He began his banking career
in 1985, and has also spent four years in public accounting serving the auditing, tax and consulting needs
of a variety of Northwest community banks. Bob graduated with a bachelor’s degree in finance from the
University of Oregon and continued his education, earning a post-baccalaureate degree in accounting and a
master’s degree in business administration from Portland State University.