The Oregon House of Representatives today passed HB 3436B in a 33-25 vote. The bill, chief sponsored by Representative Jules Bailey of Portland and Senator Lee Beyer of Eugene—and supported by Governor John Kitzhaber and Treasurer Ted Wheeler creates a task force to study and recommend a solution that will enable all working Oregonians to save for retirement. The bill now heads to the Senate.
“This bill could not come at a more important time,” said Representative Jules Bailey, citing the National Institute for Retirement Security’s recent study showing that nearly half of working families have no retirement savings. “If we don’t put retirement back in reach for working Oregonians, our families, communities and state economy will suffer.”
Oregon’s senior population is projected to double in the next 20 years. Nearly half of Oregonians do not have access to employer-sponsored retirement plans, and less than one-third of all small businesses currently offer retirement benefits.
Why does it matter so much to Oregon women?
Because women retire poorer than men and motherhood is a leading predictor of poverty in old age. Here are some key facts:
- On average, women earn over half a million dollars less than men in their lifetimes, and — due to longer life expectancies — that amount gets stretched over an extra 5–10 years in retirement. A loss of earnings on par with men and a longer life expectancy mean too many women retire into poverty.
- In Oregon, over 40% of retired women are living at below 200% of the poverty level.
- Women’s total retirement assets, both in and out of the workplace, average less than 70% of a man’s comparable savings.
- 59% of African American women and 58% of Latina women (age 65 and older) receive more than half their income from Social Security.
- 57% of all retired people are women.
Small business support
Last week, the national Main Street Alliance and the American Small Business Council released a scientific poll of small business owners showing that 70% of them see lack of retirement security as a threat to business and the economy. Further, 60% either currently offer or are interested in offering a retirement plan to their employees.
“For small business owners, addressing the retirement security crisis in America is not only about achieving the American Dream for ourselves – it’s also central to the success of our businesses and the overall economy,” said Mark Kellenbeck, owner of BrainJoy, LLC in Medford, Oregon and executive team co-chair of the Main Street Alliance of Oregon. “When workers know that their retirement is more secure, they can be more productive on the job, and more confident in their own spending, which spurs economic growth. Isn’t that something we all want?”
What does the bill do?
HB 3436B creates the Oregon Retirement Savings Investment Task Force, which includes representatives from employers, the financial services industry, the public and the State Treasurer. The task force is charged with developing recommendations for an Oregon Secure Retirement Plan—which would be available to all working Oregonians on a voluntary basis—for enactment by the 2015 Legislature. The bill requires that the plan developed by the task force does not incur liability for the state and is portable and accessible to all Oregon workers.