A plan that would allow all Oregon residents to establish retirement savings accounts has made it through Oregon’s House.
The Portland Business Journal reports that the Oregon House voted 32-26 in favor of creating the Oregon Retirement Savings Board.
“The board, which would be chaired by Oregon’s Treasurer, would ‘develop (a) defined contribution retirement plan for people employed in Oregon,’ the paper reports, citing a House Business and Labor Committee staff summary.
The measure would apply to those without such plans in place already, it adds.
“House Republicans blasted the measure, which they estimate would cost about $1 million to implement. Republicans also said the defined contribution plan would hamper small businesses, particularly because the governing board ‘will have the assumed authority to establish and levy penalties upon businesses that cannot afford to comply with the mandate.’”
Democrats counter that employers won’t be required to contribute and that employees will be able to opt out, the Journal notes.
“People in Oregon aren’t saving enough for retirement because they aren’t making enough money,” said House Republican Leader Mike McLane, a Powell Butte Republican, in a release.
“Just weeks after Democrats proposed a bill to keep the kicker, today, they stand to propose another mandate, another forced choice, which says that the government knows best when it comes to your money. We want to be able to raise the income of Oregonians because we have a government that partners with our communities and businesses, not against them.”
The paper concludes Oregon Treasurer Ted Wheeler disagreed with the notion that small businesses would face big hits from the bill.
“The Retirement Security Bill provides an attractive option to small business owners who would like to offer their employees a retirement plan, but cannot because of cost and administrative hassle,” Wheeler said in a statement.
See Also:
- OregonSaves Passes $200 Million Retirement Savings Mark
- Oregon Settles Lawsuit with State Retirement Plan Challenger
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
