OREGON STATE TREASURYOREGON STATE TREASURY

October 2017Program UpdateLisa Massena, OregonSaves Executive Director - on behalf of Oregon State Treasury

A new, easy way for Oregonians to save

OREGON STATE TREASURY

As many as 1 million Oregonians do not have the option to save for retirement at work1

Why OregonSaves?

Social Security likely won’t be enough2

15 times more likely to save if the option is available through work3

1 Center for Retirement Research at Boston College, Oregon Market Research Report, July 20162 Social Security Administration, Fast Facts & Figures about Social Security, 20153 AARP Access to Workplace Retirement Plans by Race and Ethnicity Fact Sheet

OREGON STATE TREASURY

Who is OregonSaves for?

EmployeeEmployer

• Doesn’t offer an employer-sponsored retirement plan

Register company Upload employees Send payroll contributions

• 18 years or older• Reported income

Portable Roth IRA Automatic enrollment Choice (opting out or back in,

savings rate, investments)

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HOW IT WORKS

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Standard savings rate:5% - escalating by 1% a year – to 10%

Standard investment path:First $1,000 to Capital PreservationSaving over $1,000 to a Target Retirement Fund – based on your age

Account type:Roth IRA

Automatic enrollment.Save more, or less, or opt out.

Change investments. Change jobs.Your money is always yours.

OREGON STATE TREASURY

Investment Options

Capital Preservation Fund

Suite of TargetRetirement Funds

Growth Fund

Administrative fees netted from returns dailyApproximately $1 for every $100 on an annual basis

OREGON STATE TREASURY

A simple flow – direct to savers’ accounts

Employers automatically deduct a portion of worker pay (unless workers have opted out) and remit it to the program.

Savings are invested in a Roth IRA that belongs to the worker, with the potential for long-term growth in value over time.

The plan administrator communicates with the worker about program options and investment performance.

Workers can take their Roth IRA with them from job to job and have access to their retirement contributions if needed.

Distributions from your OregonSaves Roth IRA account will be subject to taxation in accordance with applicable federal tax rules.

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HOW’S IT GOING?

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OregonSaves Pilot – Early Adopters

Pilot 1: May - Present• 11 employers• 158 employees

121 enrolled 37 opted out

• $30,000 contributed to date• $70 average contribution amount• 4.7% average contribution rate

Pilot 2: August - Present• 36 employers • 2,000 employees

Businesses range from 2 employees to 500

• 30 days to decide to participate• Payroll deductions start in

September

The Goal: work hand-in-hand with employers and employees to ensure the program works as well as possible for everyone prior to roll out.

MERIT NWSalem

Statehood MediaBend

Umpqua HomesRoseburg

S & S SheetmetalWhite City

St. Vincent de Paul Society Eugene

OREGON STATE TREASURY

OregonSaves Pilots – Feedback

“Overall, it’s been a smooth, user-friendly process to get the accounts established and the supplemental materials have been helpful in introducing the program to our employees.”

-Sarah, Square Deal LumberSpringfield

“I don’t know why everybody isn’t doing this.”-Cassy, Amani CenterSt. Helens

“OregonSaves’ technical support is excellent.”-Bridget, B’s PreschoolPortland

“Well, that was pretty painless.”-Judy, Traffic DetectionCanby

Feedback helps identify improvements and enhancements to make ahead of Wave 1.

OREGON STATE TREASURY

Employer Registration Timeline

OREGON STATE TREASURY

Thank you.Questions?www.oregonsaves.com

Treasurer Tobias ReadLisa Massena, directorJoel Metlen, outreach and engagementOregonSavesRetirementSavings@ost.state.or.us