in 2017]

276A.242 in 2017]

OREGON RETIREMENT SAVINGS PLAN

����� 178.200 Oregon Retirement Savings Board. (1) The Oregon Retirement Savings Board is established in the office of the State Treasurer. The board consists of seven members as follows:

����� (a) The State Treasurer or the designee of the State Treasurer.

����� (b) The following members appointed by the Governor:

����� (A) A representative of employers.

����� (B) A representative with experience in the field of investments.

����� (C) A representative of an association representing employees.

����� (D) A public member who is retired.

����� (c) A member of the Senate appointed by the President of the Senate to be a nonvoting advisory member of the board.

����� (d) A member of the House of Representatives appointed by the Speaker of the House of Representatives to be a nonvoting advisory member of the board.

����� (2) Members of the board appointed by the Governor must be confirmed by the Senate in the manner prescribed in ORS 171.562 and 171.565.

����� (3) The term of office of each member of the board appointed by the Governor is four years, but a member serves at the pleasure of the Governor. A member is eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the unexpired term.

����� (4) Each legislative member serves at the pleasure of the appointing authority and may serve as long as the member remains in the chamber of the Legislative Assembly from which the member was appointed.

����� (5) The State Treasurer or the designee appointed to the board under subsection (1) of this section shall serve as chairperson of the board.

����� (6) A majority of the voting members of the board constitutes a quorum for the transaction of business.

����� (7) A member of the board appointed by the Governor is entitled to compensation and expenses as provided in ORS 292.495. A legislative member shall receive compensation and expenses as provided in ORS 171.072.

����� (8) The office of the State Treasurer shall provide staff support to the board. [2015 c.557 �1]

����� 178.205 Powers and duties of Oregon Retirement Savings Board; rules. (1) The Oregon Retirement Savings Board shall develop a defined contribution retirement plan for persons employed for compensation in this state and conduct a market and legal analysis of the plan.

����� (2) The board shall have the following powers:

����� (a) To establish, implement and maintain the plan developed under this section.

����� (b) To adopt rules for the general administration of the plan as provided in ORS 178.215.

����� (c) To direct the investment of the funds contributed to accounts in the plan consistent with the investment restrictions established by the board. The investment restrictions must be consistent with the objectives of the plan, and the board shall exercise the judgment and care then prevailing that persons of prudence, discretion and intelligence exercise in the management of their own affairs with due regard to the probable income and level of risk from certain types of investments of money, in accordance with the policies established by the board.

����� (d) To collect application, account or administrative fees to defray the costs of administering the plan.

����� (e) To make and enter into contracts, agreements or arrangements, and to retain, employ and contract for any of the following considered necessary or desirable, for carrying out the purposes set forth in ORS 178.200 to 178.260:

����� (A) Services of private and public financial institutions, depositories, consultants, investment advisers, investment administrators and third-party plan administrators.

����� (B) Research, technical and other services.

����� (C) Services of other state agencies to assist the board in its duties.

����� (f) To evaluate the need for, and procure as needed, pooled private insurance of the plan.

����� (g) To develop and implement an outreach plan to gain input and disseminate information regarding the plan and retirement savings in general.

����� (h) To request that the Commissioner of the Bureau of Labor and Industries investigate an employer under ORS 178.255 to determine the employer�s compliance with the requirements of the defined contribution retirement plan developed under this section, if, after three attempts, using different means of communication when available, to bring the employer into compliance, the board has reasonable grounds to believe that the employer remains in violation of the requirements of the plan.

����� (i) To enter into agreements with other states to provide services to the other states related to retirement savings plans administered by the other states and similar to the plan developed under this section. [2015 c.557 �2; 2019 c.149 �6; 2019 c.512 �1]

����� 178.210 Requirements for Oregon Retirement Savings Plan. (1) The plan developed and established by the Oregon Retirement Savings Board under ORS 178.205 must:

����� (a) Allow eligible individuals employed for compensation in this state to contribute to an account established under the plan through payroll deduction.

����� (b) Require an employer to offer its employees the opportunity to contribute to the plan through payroll deductions unless the employer offers a qualified retirement plan, including but not limited to a plan qualified under section 401(a), section 401(k), section 403(a), section 403(b), section 408(k), section 408(p) or section 457(b) of the Internal Revenue Code.

����� (c) Provide for automatic enrollment of employees and allow employees to opt out of the plan.

����� (d) Have a default contribution rate set by the board by rule.

����� (e) Offer default escalation of contribution levels that can be increased or decreased within the limits allowed by the Internal Revenue Code.

����� (f) Provide for contributions to the plan to be deposited directly with the investment administrator for the plan.

����� (g) Whenever possible, use existing employer and public infrastructure to facilitate contributions to the plan, recordkeeping and outreach.

����� (h) Require no employer contributions to employee accounts.

����� (i) Require the maintenance of separate records and accounting for each plan account.

����� (j) Provide for reports on the status of plan accounts to be provided to plan participants at least annually.

����� (k) Allow for account owners to maintain an account regardless of place of employment and to roll over funds into other retirement accounts.

����� (L) Pool accounts established under the plan for investment.

����� (m) Be professionally managed.

����� (n) Provide that the State of Oregon and employers that participate in the plan have no proprietary interest in the contributions to or earnings on amounts contributed to accounts established under the plan.

����� (o) Provide that the investment administrator for the plan is the trustee of all contributions and earnings on amounts contributed to accounts established under the plan.

����� (p) Not impose any duties under the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.) on employers.

����� (q) Keep administration fees in the plan low.

����� (r) Allow the use of private sector partnerships to administer and invest the contributions to the plan under the supervision and guidance of the board.

����� (s) Allow employers to establish an alternative retirement plan for some or all employees.

����� (2) The plan, the board, each board member and the State of Oregon may not guarantee any rate of return or any interest rate on any contribution. The plan, the board, each board member and the State of Oregon may not be liable for any loss incurred by any person as a result of participating in the plan. [2015 c.557 �3]

����� 178.215 Rules for Oregon Retirement Savings Plan. The Oregon Retirement Savings Board shall adopt rules that:

����� (1) Establish the process for voluntary enrollment in the plan developed under ORS 178.205, including procedures for automatic enrollment of employees and for employees to opt out of the plan.

����� (2) Establish the process for participants to make the default contributions to plan accounts and to adjust the contribution levels.

����� (3) Establish the process for employers to withhold employee contributions to plan accounts from employees� wages and send the contributions to the investment administrator for the plan.

����� (4) Establish the process for allowing employees to opt out of enrollment in the plan.

����� (5) Establish the process for participants to make nonpayroll contributions to plan accounts.

����� (6) Set minimum, maximum and default contribution levels in accordance with limits established by the Internal Revenue Code.

����� (7) Establish the process for withdrawals from plan accounts.

����� (8) Establish the process and requirements for an employer to obtain an exemption from offering the plan if the employer offers a qualified retirement plan, including but not limited to a plan qualified under section 401(a), section 401(k), section 403(a), section 403(b), section 408(k), section 408(p) or section 457(b) of the Internal Revenue Code.

����� (9) Mandate the contents and frequency of required disclosures to employees, employers and other plan participants. These disclosures must include, but need not be limited to:

����� (a) The benefits and risks associated with making contributions to the plan;

����� (b) Instructions for making contributions to the plan;

����� (c) How to opt out of the plan;

����� (d) How to participate in the plan with a level of contributions other than the default rate;

����� (e) The process for withdrawal of retirement savings;

����� (f) How to obtain additional information about the plan;

����� (g) That employees seeking financial advice should contact financial advisers, that participating employers are not in a position to provide financial advice and that participating employers are not liable for decisions employees make pursuant to ORS 178.200 to 178.260;

����� (h) That the plan is not an employer-sponsored retirement plan;

����� (i) That the plan accounts and rate of return are not guaranteed by the state; and

����� (j) That employees may file a complaint under ORS 178.250 to report an employer�s failure to offer an opportunity to contribute to the plan developed under ORS