1. OREGON STATE TREASURYOREGON STATE TREASURY
Senate Interim Committee on Business and Transportation
December 13, 2016
Oregon
Retirement
Savings Plan
A NEW, EASY WAY FOR OREGONIANS TO START SAVING, COMING SOON

2. OREGON STATE TREASURY
$3,000
$12,000
31 percent
Average savings per
household
Average household
savings, nearing
retirement age
A generational crisis
Non-retirees who
report that they have
saved nothing, and
have no pension
Sources: Federal Reserve, 2013; National Institute on Retirement Savings
Americans are healthier
and living longer
Source: CDC/National Center for Health Statistics
Life expectancy in
194062.9
Life expectancy in
201378.8
50
55
60
65
70
75
80
85
But we’re not saving enough
for retirement

3. OREGON STATE TREASURY
Oregon is a pioneer
• The 2015 Legislature created the
Oregon Retirement Savings Plan
to improve access and outcomes
• Oregon is on track to be the first to
launch a state-based plan
• Beneficial for everyone: workers
and families, employers,
taxpayers, and communities

4. OREGON STATE TREASURY
What is it? A simple and convenient way to save
• A state-sponsored plan that shares many key features of
401(k) and other IRA plans but does not compete with them
• Standard options: Roth IRA, target date fund, 5% contribution
rate, 1% automatic escalation
Features 401(k) IRA ORSP
Governed by experts  
Available at work  
Contributions through payroll deduction  
Automatic enrollment  
Automatic escalation  
Professionally managed  
Employer matching contribution 
Portable from one employer to the next  

5. OREGON STATE TREASURY
Who’s it for?
Don’t have a retirement plan at work?
• The Oregon Retirement Savings Plan is for Oregonians 18 years
and older who have reported income and who have no savings
option at work.
• Estimates:
600,000 Employer offers no plan
200,000 Employer offers a plan, not included
200,000 Self employed (opt-in)
Source: Boston College Center for Retirement Research, Market Research Report: Oregon Retirement Savings Plan, July 2016

6. OREGON STATE TREASURY
Why are we working hard to listen to employers?
Most employers in Oregon affected
• The plan will be for the 66% of all employers in Oregon that do
not offer a retirement plan
• It is for businesses owners as well as their employees
• Initially, it is not for public sector employers or employers who
offer a plan to all of their employees
• Employers have no fiduciary responsibility
• The plan will be phased in by the number of employees
businesses have, starting with larger employers, on a “join by”
date
Source: Boston College Center for Retirement Research, Market Research Report: Oregon Retirement Savings Plan, July 2016

7. OREGON STATE TREASURY
How will it work?
Employers automatically deduct
a portion of worker pay (unless
workers have opted out)
Savings are invested in a low-fee
“Roth IRA” account that belongs
to the worker, with the goal to
grow in value over time.
A private sector plan
administrator communicates
directly with the worker about
options and performance
1 2
3 Workers can take their savings
with them wherever they go and
now have access to money for
retirement
4

8. OREGON STATE TREASURY
What do I need to do?
Employers
• When notified, certify that you
have a plan or register for the
ORSP
• Pass along information about
the plan to employees
• Provide employee data to the
ORSP
• Collect opt-out decisions
• Keep records to show
compliance
• Handle payroll deductions
Employees
• You do not need to do anything
to enroll and start saving
• You can make choices about:
• Saving more or less
• Choosing a different type of
investment
• Opting out

9. OREGON STATE TREASURY
The plan is financially feasible and legal
Experts engaged for financial and legal
analysis
• Forecast to break even in 4-5 years
• Forecast to become net positive in 7-8 years
• Under stress scenarios the plan’s break even and payback
periods extend, but the plan does not fail financially
• Based on anticipated design the Plan will meet DOL and Internal
Revenue requirements, and will be a non-ERISA plan

10. OREGON STATE TREASURY
Preparing for a conservative phased-in launch
Outreach and Engagement (all stages)
Improving awareness for employers, workers, and stakeholders
Plan manager selection (late 2016)
Private sector firm identified to handle collections and records
Rulemaking (late 2016)
Soliciting public and expert opinion
Branding (early 2017)
The right retail name for the program will be critical
Pilot launch! (July 2017)
Small group of volunteer employers join and help test plan
Phased implementation (Starting 2018)
Plan will phase in slowly to ensure roll out success

11. OREGON STATE TREASURY
Financial Literacy in Oregon
A key goal of the retirement savings plan is to
help Oregonians be more financially confident
• Robust resources already exist in Oregon, and can be better
utilized by building more connections
• Communication to retirement savers will be a powerful
opportunity to help Oregonians learn
• A working group has assembled recommendations, which are
supported by the governor
• In addition to outreach directly to savers, recommendations
suggest improving curriculum for financial education through both
K-12 and adult programming

12. OREGON STATE TREASURY
Helping all Oregonians
More Oregonians will save. That’s good for all
of us.
• A new statewide culture of saving.
• Retirement security is vital for everybody, including families,
employers, communities, and taxpayers.
• The cost of inadequate savings is extreme for taxpayers and
strains our social services system.
• Retirees are consumers, and play a substantial role in Oregon’s
economy

13. OREGON STATE TREASURY
Thank you.
Questions?
www.oregon.gov/retire
Lisa Massena, director
Oregon Retirement Savings Plan
RetirementSavings@ost.state.or.us