|
Hello Friends,
Nearly two decades ago Oregon
formed a Retirement Task Force to try and anticipate the consequences of the
aging Baby Boomer population. At the
time, concerns about the long-term solvency of Social Security fueled that
worry, but now we can add the loss of employer-sponsored pension plans, loss of
home equity, wage stagnation and a low overall savings rate to the
mixture. The result is a retirement
security crisis in the State of Oregon.
In order to try to deal with this crisis, the House passed HB 2960A last week, which creates a
pathway for Oregonians to access a portable retirement savings account.
Traditionally, one of the best ways
to create a retirement account was through the payroll deduction provided by
the employer. In recent years, this
benefit has been eliminated for a host of reasons, including the burdens of
administering a plan and the cost, especially for small business. Presently, only 29% of Oregonians have a 401K
account. One in six Oregonians age 45-65
have less than $5,000 in retirement savings, and women, people of color, and
employees of small businesses are more likely to be left out of the loop when
it comes to a secure retirement. So how do we go about providing an easy,
effective, portable savings account for everyone who wants one?
HB 2960A establishes the Oregon
Retirement Savings Board made up of investors, employers, workers and retirees
within the Office of the State Treasurer.
It will be their task to create a savings plan that will meet the needs
of a senior population that is expected to double in the next 20 years. Current rates of seniors living in poverty is
a wake-up call warning us that we need to do things differently, and if we
don’t, the strain on public services will become unmanageable.
Under HB 2960A, employers will be
required to offer access to an employee retirement savings plan to those who do
not already have one, and to facilitate this through a payroll deduction. The employer will not need to contribute
anything and the employee is free to opt out at any time after enrollment. Ease of access is crucial, especially for
part-time employees who may not qualify for any other investment plan. And small businesses, who are less likely to
offer a plan because of limited resources, will be relieved of complicated
investment decisions.
Between now and December, 2016, the
Oregon Retirement Savings Board is tasked with developing an investment plan
that will be available for implementation by June, 2017. Clearly, one of the factors of success in
this effort will be outreach to all Oregonians to impress upon them the
importance of saving for retirement.
This needs to begin in our schools and continue through channels
available in the workforce. I really
feel that HB 2960A is a great first step and I was happy to be able to support
it.
Yours truly,
Representative Brad Witt
House District 31
 |
|
Join me this Friday! Share your ideas, concerns and thoughts about the 2015 Legislative Session.
Friday June 19
4:00 - 6:00pm
Black Bear Coffee & Pub
831 Bridge St. Vernonia, OR
|
 Thank you St Helens Kiwanis!
The local Kiwanis club helps our neighbors with food baskets, gives books to children and keeps our community clean and welcoming through service projects. They also host some of the most fun community events!
This Saturday is the community parade.
Hope to see you there!
|
email: Rep.BradWitt@state.or.us I phone: 503-986-1431
address: 900 Court St NE, H-374, Salem, OR, 97301
website: http://www.oregonlegislature.gov/witt
| 
