News Release

A coalition of organizations and companies opposed to HB 3436 issued the following statement today.

Salem, OR (June 24, 2013) – “The state of Oregon is poised to expend taxpayers’ dollars to study and then recommend the establishment of a costly state-run retirement program that duplicates private sector options, a coalition of business and insurance groups said.

“A bill pending on the House Floor, HB 3436, would commit precious resources to create a new state task force charged with recommending the creation of a government-run retirement program for private-sector workers. The legislation is both unnecessary and wasteful since Oregon already has a vibrant marketplace for retirement plans. And worst of all, it will not solve the state’s retirement challenge.

“A number of other states, including Washington, have carefully studied, and then rejected, government-run retirement plans for private employees. California is currently engaged in another study expected to cost up to $2 million. It makes no sense for Oregon to duplicate these efforts.

“Employers and employees in Oregon have numerous cost-effective private options to address retirement security concerns. Today, any employee may open and contribute to an IRA available from thousands of outlets in the state. If the employee is not eligible for an employer -sponsored plan or falls within the income limit, those contributions are fully tax deductible.

“The plan recommended under HB 3436 potentially exposes the state and Oregon employers to significant expenses and liabilities, including start-up and operating costs, fiduciary responsibilities and making up any shortfalls in guaranteed benefits.

“According to the U.S. Department of Labor’s Bureau of Labor Statistics, almost 80 percent of full-time workers have access to a retirement plan and more than 80 percent of these workers participate in those plans. Yet, many workers are approaching retirement unprepared. The obstacle to saving is not lack of access – it is job insecurity, the pressure to make ends meet and lack of awareness. The state of Oregon should not place itself in competition with the private sector, especially when there is no evidence that the private sector is not meeting the needs of Oregonians who choose to save.

“Our coalition stands ready to work with policymakers and consumer representatives on programs to educate workers about the availability of retirement savings plans and the importance of participating in these widely available plans.

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Coalition Members

American Council of Life Insurers (ACLI)
Associated Oregon Industries (AOI)
The Chamber of Commerce (Medford/Jackson Counties)
Farmers Insurance
Liberty Mutual Insurance Company
National Association of Insurance and Financial Advisors (NAIFA)
National Federation of Independent Business (NFIB)
Oregon Auto Dealers Association
Oregon Bankers Association
Oregon Farm Bureau
Oregon Financial Services Association
Oregon Home Builders Association
Oregon Metals Industry Council
Oregon Restaurant & Lodging Association
Oregon Seed Council
Oregon State Chamber of Commerce
Oregon Trucking Association
Portland Business Alliance (PBA)
Professional Insurance Agents of Oregon/Idaho
Safeco Insurance Company
Securities Industry and Financial Markets Association (SIFMA)
State Farm Insurance Company

CONTACT

Jack Dolan, 202-624-2418
John Mangan, 503-701-7503
Jack Dolan, 202-624-2418
John Mangan, 503-701-7503