Childcare workers in Oregon will be getting a boost to their retirement after the Oregon Retirement Savings Board announced it would allocate $5 million from the American Rescue Plan Act (ARPA) to fund their savings.
The money will be disbursed by Oregon’s Department of Early Learning and Care (DELC) to fund OregonSaves retirement accounts for more than 900 childcare workers, announced Oregon Retirement Savings Board and State Treasurer Tobias Read on Monday.
“We are proud to have played a key role in bringing this retirement benefit to Oregon’s critical childcare service providers, ensuring a strong start on their path to retirement security,” said Oregon State Treasurer Tobias Read in a release on the announcement. “This strategic investment in the financial future of childcare workers reflects Oregon’s commitment to fostering economic security for all of its residents, a commitment shared by Oregon State Treasury and OregonSaves.”
OregonSaves, who offers individual retirement accounts (IRAs) to Oregon workers without a workplace retirement plan and self-employed individuals, opened its benefits to childcare workers in the fall of 2023.
The state-sponsored retirement plan allowed childcare workers to set up an account by December 2023 and receive an equal share of the $5 million of ARPA funds split between eligible certified family childcare providers, OregonSaves stated in their release. Those who enrolled prior to the deadline received an initial $4 million, which ultimately provided $4,400 for each retirement account.
According to the release, OregonSaves was chosen as the preferred program provider by a joint labor-management committee for its “commitment to the financial security of workers across the state.” Funding was secured after negotiations were made by the American Federation of State, County and Municipal Employees (AFSCME) union and their Child Care Providers Together (CCPT) group.
The growing number of childcare workers will join the 124,000 participants who have put away $251 million in contributions with OregonSaves.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
