OREGON RETIREMENT PLAN STATE MANDATE: HELP BUSINESS OWNERS BENEFIT

  • OregonSaves is a state-mandated retirement plan, meaning that certain employers must either enroll their employees in the program or sponsor a qualifying plan of their own through the private market. Eligible businesses that fail to comply may be penalized.

    Those who haven’t yet adopted an employer-based plan have two choices:

    • ▾
      Contact your Regional Plan Consultant
      • This field is for validation purposes and should be left unchanged.

What You Should Know

    • ▾
      Deadlines:

      All phased deadlines for existing employers have already passed (final deadline was July 31, 2023).

      Deadlines for New Businesses

      • If you start a business in Oregon:
        • January 1 – March 31: Register by July 31 of the same year
        • After March 31: Register by July 31 of the following year
          Example: If you start your business on September 15, 2024, your deadline is July 31, 2025.
    • ▾
      Requirements:
      • All Oregon employers with at least one employee who do not offer a qualified retirement plan (e.g., 401(k), 403(b), SIMPLE IRA, SEP IRA) must participate.
      • Employers that already offer a qualified plan must certify exemption online.

      • Employer Responsibilities

        1. Register or Certify Exemption
          • Use your EIN and OregonSaves Access Code to register.
          • If exempt, certify online (valid for 3 years).
        2. Automatic Enrollment
          • Employees are auto-enrolled after 30 days unless they opt out.
          • Applies to full-time, part-time, and seasonal employees (60+ days).
        3. Payroll Deductions
          • Default contribution: 5% of gross pay, with 1% annual auto-increase up to 10%.
          • Employers must:
            • Deduct contributions each payroll cycle
            • Remit funds to OregonSaves
            • Maintain employee records (new hires, terminations, rate changes).
        4. Employee Communication
          • Provide program materials and inform employees about opt-out rights and contribution options.
          • OregonSaves handles most employee communication after enrollment.
        5. No Employer Contributions or Fees
          • Employers do not contribute to accounts and have no fiduciary responsibility.
          • No setup or administrative fees for employers.
    • ▾
      Penalties for Non-Compliance:

      Employers that do not register or facilitate OregonSaves (and do not offer a qualified retirement plan) are subject to:

      • $100 per eligible employee, up to a maximum of $5,000 per calendar year.
      • Noncompliance is considered an unlawful practice under Oregon law, and cases are referred to the Oregon Bureau of Labor and Industries for enforcement. help.oregonsaves.com

      You can help your clients avoid these fines and offer a retirement plan that will:

      • Comply with the Oregon mandate
      • Reduce taxes
      • Control costs
      • Attract and retain top talent
      • Maximize business value
      • Enable them to work with their preferred business partners

OregonSaves OR Customized Plan?

OregonSaves is a basic, one-size-fits-all retirement savings program for businesses that do not wish to sponsor a plan for their own employees. Yet there are many businesses that would be better served with a plan from TRA that’s customized to their needs.

OregonSaves Custom 401(k) from TRA
Pre- and Post-Tax Deferrals Roth IRA w/ auto after-tax payroll deduction Pre-tax or Roth elective deferral contributions
Contributions 5% default contribution limit (flexible), includes auto-increase of 1% annually, up to 10% Lesser of 100% of compensation or $24,500
Catch-Up Contributions Determined by Roth IRA contribution limits $8,000 annually for those age 50 and older
Employer Match Not permitted Available
Income Limit Determined by Roth IRA contribution limits No income limits
Investment Choices
  • Target Retirement Date Option
  • Target Retirement Date Options (2020-2070)
  • Money Market Option
  • S&P 500® Index Option
 Can provide a wide variety from top asset managers
Automated Payroll Integration Manual via website Available
Customizable for businesses Not customizable Yes – for example, Safe Harbor, SIMPLE, Profit-Sharing & Cash Balance
Tax Credit No, since there are no start-up costs for employers Yes – 100% of the expenses paid up to the greater of $500 or the lesser of $250 for each non-HCE’s. A maximum tax credit of $5,000 per year would be available for 3 years.

TRA Plans to Consider

For Oregon businesses who want to sponsor a retirement plan, some plans to consider include:

• 401(k)
• Safe Harbor 401(k)
• Cross Tested Profit-Sharing Allocation
• 401(k) plus Cash Balance Plan

Other alternatives to OregonSaves include SIMPLE 401(k) Plans, Group 401(k) Plans (MEPs, PEPs and Aggregation Programs), and 403(b) Plans (for non-profits).

COMPARE PLANS

Working closely with you, TRA will create a customized plan that meets your client’s business. We partner with top recordkeepers and investment managers around the country and deliver exceptional client service. We also offer 3(16) Plan Administration Relief Services (PARS) to relieve business owners of day-to-day plan administration responsibilities and manage their fiduciary risk.

Complete the form below and one of TRA’s Regional Plan Consultants will be in contact with you.

  • This field is for validation purposes and should be left unchanged.

Pattern

Consider TRA's 3(16) Fiduciary Services & Plan Administration

To alleviate the day-to-day administrative burdens of yours or your clients retirement plans.
PLAN NOW