Work Hard. Save Easy.
OregonSaves is a simple, convenient way
for workers in Oregon to save for retirement. It allows employees who don’t have a retirement savings
option at work to save part of their paycheck in their own, professionally managed
accounts that go with them from one job to the next. It always remains their money and their account.
most, Social Security payments won’t be enough when it comes time to retire. Many
people also have to retire sooner than they planned. Saving even a little now
can make a big difference later. Putting away $25 a week can add up to more
than $25,000 in 20 years, and in 30 years, it can be worth $39,000.
money for the future can also save you money now. The IRS offers a tax credit
called the Saver’s Credit to those who save.
Who it’s for
OregonSaves is for anyone 18 and older who doesn’t have a retirement savings option
at work. This includes:
Workers whose employer doesn’t offer a retirement savings
Workers who aren’t eligible for their employer’s plan,
such as part-time workers.
participate, you must also make less than the income limits set by the federal
government for Roth Individual Retirement Accounts, which are $133,000 for a
single tax filer and $196,000 for married tax filers in 2017.
How it works
is an easier way to save. It’s automatic but you always have the choice to opt
out or change how much you save and how you invest your money.
Select a topic below to learn more:
When it’s coming
employer doesn’t offer a retirement savings plan, you won’t need to anything to
enroll and start saving. Your employer will enroll you unless you opt out.
workers like the self-employed will have the ability to opt-in to the program.
pay period, your employer will save 5 percent of your paycheck in your account,
but you can choose to save more or less, starting as low as 1 percent.
at a future date, your contributions will automatically increase by 1 percent
per year until they reach 10 percent, unless you opt out of the increases.
will be made into a Roth Individual Retirement Account in your name. Savings
are made after tax. You can also choose to save through a traditional
Individual Retirement account if you wish, which would allow you to save
save up to $5,500 per year if you’re younger than 50 and $6,500 per year if
you’re 50 or older.
money will be managed on your behalf by professionals, with the goal of gaining
value over time.
money will be investment in an age-based fund based on when you plan to retire.
Age-based funds shift the amount of stocks, bonds, and other investments to help
increase earnings early on and then reduce risk as you approach retirement age.
investments carry risk, and OregonSaves will not offer any guarantee of
returns. If you want to limit your risk, you can choose a capital preservation
fund instead of an age-based fund. There will also be an investment growth
option for those who have a higher risk tolerance.
access your account at any time online or by phone.
account is portable and stays with you. If you move to another job that doesn’t
offer a retirement savings option, your new employer will make deductions into
the same account. If you work for more than one employer, they will all put
your money into the same account. And if you move to a job in another state or
start working for an employer that offers its own plan, you can keep your money
in your OregonSaves account, roll it over into something else, or even take
out your money.
take out your money at any time if you need to. There is no penalty for taking
out your money early, but doing so will have an impact on your retirement.
OregonSaves has a low fee of 1 percent of employee assets under management, similar to the fee for other large retirement plans, to help pay for management of your account and
investments. There is no employer fee.
are no fees for withdrawing contributions from a Roth IRA or making changes to your type of
investment or contribution amount.
OregonSaves will launch in July 2017 to
a small pilot group of businesses. It will then roll out in phases based on the
number of employees a business has, starting with businesses with 100 or more
employees in 2018. If you are interested in participating sooner than the
scheduled start date for your company, ask your employer to reach out to the
Oregon State Treasury. Employers can join before their scheduled date if they
A plan for Oregonians by Oregonians
OregonSaves is offered by the State of Oregon and overseen by a board of experts. It
was designed based on industry best-practices and with the input of state and
OregonSaves is not a pension plan. And it is not connected in any way to the Oregon
Public Employee Retirement Fund (PERS). OregonSaves is a way for workers in
Oregon to put away their own money for their retirement in their own accounts.