How Secure Choice Works with David Bell of the Oregon State Treasury
National and state-level offices have recognized the reality of a retirement crisis among older American workers.
Secure Choice employer-based programs involve the state offering a savings program for any employee who works for an employer that does not offer a retirement savings plan. A few states, like Oregon (2017), have begun to implement such programs. Oregon even mandates it for employers who do not offer another retirement plan option. Employers facilitate but do not have to pay for these IRA plans. Oregon’s plan is an opt-out program for the employees.
Oregon Saves accounts are starting to see an increase in retirement contributions by employees. These are Roth Individual Retirement Accounts (IRAs).
Many states are beginning to consider these types of programs, even if each state may vary how they set them up. Oregon even offers this program to one-member LLCs.
- The poor state of retirement preparation among older American workers
- 15 times greater likelihood of saving for retirement with employer-based programs
- Auto-enrollment/Opt-out offered at savings
- The flexibility of the Roth IRA
- Inclusion of a safety net built into the program
