Oregonians are not saving enough for retirement. OregonSaves is a state-sponsored retirement plan for employers that that do not offer an employer-sponsored retirement plan for their employees.

This program is ideal for employers who wish to encourage employees to save for retirement, but do not currently sponsor a retirement plan. Since there are no employer fees involved in OregonSaves, the biggest commitment is designating time to initiate and complete the enrollment process. Overall, OregonSaves aims to lower the barrier of entry for employees and at the same time provide employers the opportunity to help champion their employee’s financial well-being.

The plan highlights

OregonSaves is designed to combine features of employer plans with Roth Individual Retirement Accounts (IRA’s).

What It is

• Employee contribution and participation is voluntary.

• Self-employed individuals are also eligible for participation.

• The standard contribution rate is 5% of employees’ gross pay. These dollars are contributed directly from payroll into to a Roth IRA. Note that the 5% savings rate may be adjusted up or down and savers can also elect to make contributions through a bank account or a check.

• Employees first $1,000 will automatically be invested in the OregonSaves Capital Preservation Fund.

• Savings over $1,000 will automatically be invested in an OregonSaves Target Retirement Fund.

• There are three investment choices available through OregonSaves: Capital Preservation Fund, Target Retirement Funds, and a Growth Fund.

What It Isn’t

• Employee annual contributions are limited to $6,000 (or $7,000 for those 50 years and older). This program is not meant to replace or compete with employer-sponsored 401(k) plans.

• No employer contributions are permitted.

The Administration Considerations

One effective way to combat a saving deficit is to automate savings through payroll. Employers are responsible for syncing payroll with OregonSaves. Once the setup is complete, the ongoing maintenance includes updating employee lists and submitting employee saving elections.

Enroll Your Employees Today

If you think your employees would benefit from participation, then visit the OregonSaves website or consult our team with questions you may have.

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Don’t worry, they look like they’re six feet apart

In these days I am reminded on a regular basis of the challenge we’re facing and the mountain we are all being asked (or expected) to climb. Whether we’ve been practicing the right skills or not seems to be a bit of a pointless question at this exact moment as the time is now. Right now, it’s go time. But what does that even mean?

Lifting up our employees

As the person charged with Human Resources for our “under 25 employees” small company, I’ve asked more self-reflective questions than any person might if not for living smack dab in the middle of a global pandemic. I’ve been inspired by all the heroic first responders. I’ve wondered what to start, stop and do more of. I’ve leaned on the many agencies churning out updated work/job-related information relating to this current crisis. Agencies like the Department of Labor (DOL), Wage and Hour Division (WHD), the Bureau of Labor and Industry (BOLI-OR) and the Internal Revenue Service (IRS). Our vendors and providers are also working tirelessly to keep us connected, plugged in and functioning. So instead of resharing information that is coming directly from these various sources that have helped my firm,  I wanted to share three specific insights I’m learning as I seek outside my usual “Resources” to help buoy up myself and my “Humans.”

1. What were your daily routines?

As I experience the ups-and-downs of it all I’ve been more intently drawing upon what I’ve practiced in pre-pandemic times. These practices include both spiritual and physical exercises. I’ve encouraged my team to do the same. It’s daily, it’s sometimes hard, but it’s good and it’s a good starting point. I’ll share a bit from my experience today. I listened to a morning message and was reminded of courage. I’ve certainly been seeing and hearing about it in the news. Great feats of courage revealing the true human virtue that it is. This morning I decided to stop and spend a few minutes pondering courage. And even thinking on the word brought me inspiration which lead to new motivation for the day. Author Melanie Greenburg, PH. D gives some great highlights and quote’s around courage. If interested, check out her article, “The Six Attributes of Courage,” where she presents several elements of courage and a courage building exercise.

2. W.I.N

Next, I thought I’d share what I learned from a recent webinar I listened to. The webinar, titled “Mental Skills for the COVID crisis” caught my eye on my Instagram story feed so I signed up to listen and learn! One of the things I learned (and a great takeaway) was from the pratice’s co-founder Dr. Jonatan Fader, who shared the acronym WIN: What’s Important Now. I loved this for several reasons: it’s short, I can remember it, and it’s totally applicable right now. I wasted no time in sharing WIN with my team and continue to draw on it daily for both inspiration and focus. If you’ve got time or need a break from what’s in front of you check out the full webinar at Mental Skills for the COVID crisis.

3. FIND inspiration from the Least Expected places

And lastly, a simple story of personal inspiration. This week is the start of spring term for my 2 college kids. They are both home, both in creative majors requiring studio’s and currently sharing what we now call ‘dorm room north.’ At about 6:30am I heard the coffee pot brewing and then the sound of a sewing machine getting warmed up. It was my son’s industrial sewing class. No Zoom meeting offered and with little direction he proceeded to make something from nothing. Trying to keep our sense of humor I looked over and mentioned what a great job he did to hear him say with a note of wit “welcome to my forte.”  And then came 2pm and my daughter’s painting class. While we don’t have an easel or a separate studio, other than the front entry that also doubles as a workout area, she began mixing her colors as if she were crafting a new recipe. I’ve seen (and felt) their disappointment, discouragement and then coming to terms with the fact that their art classes would be at-home in makeshift locations.  They have pressed on past their current limitations, not without gratitude, but certainly with a level of grit and courage. As I looked up at each of them over my morning coffee, I took inspiration to also push past my fears today and get started.

So my question to you is what’s in front of you today that might inspire you in some new way? Keep watch for that daily inspiration, especially aware of the usual and mundane. You may find yourself inspired by regular life as much as you’ve been inspired by the most courageous on the front lines. And as my 81 year old mom says – take what helps and leave the rest and take heart.

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@haroldrmendoza

This week the Senate unanimously passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a massive stimulus bill targeting the economic turmoil caused by the coronavirus pandemic. The 883-page bill aims to help Americans through these financially trying times. While as of this writing the CARES Act had yet to pass the House, all indicators point to the bill passing and being signed by the president.  

Specific to 401(k) plans, the CARES Act includes provisions around hardship distributions, 401(k) loans, and RMDs (Required Minimum Distributions) for 2020. Additionally, the Families First Coronavirus Response Act (FFCRA) was also passed and expands paid-leave coverage to employees affected by coronavirus. We are working closely with our ERISA consultation team and industry partners to determine the specifics of how plan sponsors should adapt administrative practices to accommodate these special 2020 provisions.  

 Hardship Withdrawals  

• The 10% early withdrawal penalty has been waived for distributions up to $100,000. Eligible participants under the age of 59 ½ may be able to request a distribution due to financial distress related to coronavirus through the end of 2020.  

• It is left to the plan sponsor’s discretion to determine that the request is for a qualifying coronavirus-related reason (such as adverse financial consequences due to being quarantined, furloughed, having work hours reduced, or not being able to work due to childcare coverage).  

• The taxes due on the withdrawal amount may be paid out over a three-year period.  

• Participants have the option to repay the distribution amount back into their 401(k) accounts within three years. 

 401(k) Loans 

• Participants with a new or existing 401(k) loan can delay any repayments due in 2020 for one year. 

• This covers loans due in full in 2020 – the CARES Act allows the repayment to be delayed for one year from the original due date. (Participants who terminate employment in 2020 will thus have additional time to repay their loan prior to it being considered a deemed distribution.)  

• The maximum loan amount has been increased to the lesser of $100,000 or the maximum account balance available.  

• The same risks regarding 401(k) loans still exist.  

Required Minimum Distributions 

• Retired participants and owners 70 ½ and older may waive 2020 required distributions from their 401(k) and other retirement savings accounts such as an IRA. 

• Individuals may find this beneficial as the 2020 RMD is calculated on account balances as of December 31, 2019 but due to recent market declines, a retiree could be withdrawing from an already reduced account balance.  

• Participants should speak with their financial advisor or tax consultant in determining whether to waive their 2020 RMD.  

 FFCRA 

• The DOL issued guidelines this week on the new Families First Coronavirus Response Act (FFCRA) which expands paid leave for specific reasons related to COVID-19.  

• Some employers may be exempt, such as those with fewer than fifty employees, but in general, employees must be provided with up to ten weeks of paid leave for specific coronavirus-related reasons.  

• Additional guidelines for employers can be found here.   

 Your Human Investing 401(k) Team is here to be a resource for you and your employees. We will be sure to share additional updates and guidance as they are provided. Please don’t hesitate to reach out to us with any questions in the meantime!  

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