Bill Text: OR HB3436 | 2013 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to retirement investments; and declaring an emergency.

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Passed) 2013-08-01 - Chapter 714, (2013 Laws): Effective date August 1, 2013. [HB3436 Detail]

Download: Oregon-2013-HB3436-Engrossed.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3768

                           A-Engrossed

                         House Bill 3436
                  Ordered by the House April 24
            Including House Amendments dated April 24

Sponsored by Representative BAILEY, Senator BEYER;
  Representatives BARTON, CLEM, READ, VEGA PEDERSON

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

  Creates Oregon Retirement Savings Investment Board. Directs
board to develop recommendations for establishing Oregon Secure
Retirement Plan for individuals and employees in private sector
and report to interim committee of Legislative Assembly on
recommendations.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to retirement investments; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) The Oregon Retirement Savings Investment
Board is established. 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) Two representatives of employers.
  (B) Two members who have experience in the financial industry
or in pension plans.
  (C) Two public members.
  (2) The term of office of a member of the board is three 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.
  (3) The Governor shall select one of the members of the board
as chairperson.
  (4) A majority of the members of the board constitutes a quorum
for the transaction of business.
  (5) Members of the board are entitled to compensation and
expenses as provided in ORS 292.495.
  (6) The board may accept gifts, grants or contributions from
any source for the purposes of carrying out the duties of the
board.
  (7) The Legislative Administration Committee shall provide
staff support to the board.
  (8) All agencies, departments and officers of this state are
directed to assist the board in the performance of its functions
and to furnish such information and advice as the members of the
board consider necessary to perform their functions. + }
  SECTION 2.  { + (1) For purposes of the reports required by
section 3 of this 2013 Act, the Oregon Retirement Savings
Investment Board shall develop recommendations for establishing
an Oregon Secure Retirement Plan to offer retirement investment
plans to employees in the private sector who have no retirement
option through an employer. In developing the plan, the board
shall consider including the following features:
  (a) Pooled individual retirement accounts.
  (b) Using best business practices to expand participation in
retirement savings and build enrollment to a level at which
market efficiencies can lower costs to participants.
  (c) Enabling employees to contribute to individual retirement
accounts through payroll deduction.
  (d) Making the plan's individual retirement accounts accessible
on a voluntary basis to all private sector employees and
individuals.
  (e) Providing for the plan to be administered by the Oregon
Retirement Savings Investment Board, which may contract with one
or more appropriate third party contractors, including but not
limited to the Oregon Investment Council, for administration or
investment management services.
  (f) Providing options for individual retirement accounts or
individual retirement annuities under section 408(a) or 408(b) of
the Internal Revenue Code.
  (g) Providing for the plan to accept rollover contributions
from a participant in the plan or from an eligible retirement
plan from which the participant is entitled to an eligible
rollover contribution.
  (2) The plan may not:
  (a) Include any guarantee by the State of Oregon or cause the
State of Oregon to incur any liability or obligation for payment
of savings or benefits earned by plan participants.
  (b) Impose any financial obligation or liability on private
sector employers whose employees participate in the plan with
regard to investment or investment performance of the plan. + }
  SECTION 3.  { + (1) On or before December 1, 2013, the Oregon
Retirement Savings Investment Board shall report to an
appropriate interim committee of the Legislative Assembly. The
report must include:
  (a) A description of the board's progress in developing
recommendations with regard to the Oregon Secure Retirement Plan.
  (b) An analysis, based on available legal advice, of how the
plan will comply with federal law, including the Employee
Retirement Income Security Act of 1974, and how the plan would be
treated under existing state and federal tax law.
  (c) An analysis of whether any adjustments are needed to the
plan or to state or federal law to facilitate compliance with the
law.
  (d) A review of similar plans in other states.
  (e) A review of available information relating to retirement
investment products and services, including but not limited to
retirement plans, retirement accounts and annuities. The
information must include all expenses paid directly or indirectly
by retirement planning product participants, including but not
limited to penalties for early withdrawals, declining or fixed
withdrawal charges, surrender or deposit charges, management fees
and annual fees.
  (f) A discussion of the governance of the board.
  (g) A review of best industry practices and recommendations for
representation of plan participants on the board.
  (2) On or before September 1, 2014, the board shall report to
an appropriate interim committee of the Legislative Assembly. The
report must include recommendations for establishing the Oregon

Secure Retirement Plan as described in section 2 of this 2013
Act, including:
  (a) Compliance and enforcement measures.
  (b) Minimum or maximum investment levels.
  (c) Enrollment procedures.
  (d) Appropriate types of investment vehicles.
  (e) Whether to insure or reinsure the invested funds against
losses or poor returns.
  (f) Procedures for account owners to withdraw funds from their
accounts.
  (g) Whether to contract with a private provider to assist with
administration of the plan.
  (h) Recommendations for necessary legislation to implement the
plan.
  (i) Any proposed rules the board considers necessary for the
administration of the plan.
  (3) The board may work with, contract with and enter into
agreements with private sector entities to develop its
recommendations under this section. + }
  SECTION 4. { +  Notwithstanding the term of office specified by
section 1 of this 2013 Act, of the members first appointed to the
Oregon Retirement Savings Investment Board:
  (1) Two shall serve for a term ending January 1, 2014.
  (2) Two shall serve for a term ending January 1, 2015.
  (3) Three shall serve for a term ending January 1, 2016. + }
  SECTION 5.  { + Sections 3 and 4 of this 2013 Act are repealed
on January 2, 2017. + }
  SECTION 6.  { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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