Understanding the OregonSaves Program
The State of Oregon requires businesses that do not already offer a retirement plan provide access to one for their employees. To help employers comply with this requirement, Oregon created the OregonSaves program. OregonSaves provides a simple, no cost (to the employer) way to give employees access to retirement savings, including for small businesses and those that are self-employed.
Before diving into how OregonSaves works, it’s important to understand how it compares to more traditional retirement plans like a SIMPLE IRA or a 401(k). While all three help employees save for retirement, they are designed for very different purposes and types of businesses.
First and foremost, OregonSaves is a compliance solution. It ensures your business meets Oregon’s requirements without the administrative burden or expense of sponsoring a retirement plan. For businesses with high employee turnover, seasonal workers, or limited administrative capacity, OregonSaves can be a practical fit. There is no employer contribution, no plan setup cost, and very little ongoing maintenance required by the business.
However, OregonSaves is intentionally simple and that simplicity comes with tradeoffs. Employers cannot contribute or match employee savings, which limits their effectiveness as a tool for attracting and retaining employees. With a SIMPLE IRA or 401(k), employers can make matching or profit-sharing contributions, reinforcing the value they place on their workforce. Those plans also offer broader investment options and the opportunity to work with an advisor to provide guidance and education, something OregonSaves does not include.
In short, OregonSaves can be a solid starting point or baseline option, but it is not designed to replace a more customizable retirement plan for businesses that want to invest more intentionally in their employees.
How OregonSaves Works: A 50,000-Foot View
OregonSaves is overseen by the Oregon Retirement Savings Board and administered by Vestwell Government Savings, LLC. Employers must either register for the program or certify an exemption if they already offer a qualified retirement plan. While there is no cost to the employer, businesses that fail to register or certify may be subject to civil penalties.
Employees age 18 or older who have been employed for at least 60 days are eligible to participate, including part-time and seasonal workers. Employees are automatically enrolled after receiving notice but may opt out at any time. Even if no employees choose to participate, employers are still required to register or certify an exemption.
Most OregonSaves accounts are set up as Roth IRAs by default, meaning contributions are made with after-tax dollars. Employees may choose a Traditional IRA option if eligible. Contribution rates default to 5% of gross pay and automatically increase by 1% per year up to a maximum of 10%, unless the employee changes or opts out. Employees can adjust their contribution rate or stop contributions at any time.
Participants pay all program fees, including an annual account fee of approximately $15 and underlying investment and program administration fees that generally range between 0.42% and 0.49%, depending on the investment option selected. Contribution limits follow federal IRA rules, with a maximum contribution of $7,500 in 2026, or $8,500 for individuals age 50 or older. Importantly, the account belongs to the employee and remains with them even if they change jobs.
OregonSaves can make sense in certain situations, but it isn’t the right long-term solution for every business or employee. Understanding when it fits, and when other options may add more value, is where thoughtful guidance matters.
Information gathered on OregonSaves came directly from their website, oregonsaves.com.
If you’d like help evaluating OregonSaves alongside other retirement plan options, feel free to reach out. I’m happy to discuss the key differences and considerations for Oregon employers.
Next month we will dive into household budgeting.
