A new state-sponsored retirement plan for private-sector workers in Oregon has cleared a key federal hurdle.
The U.S. Department of Labor finalized rules Thursday that allow Oregon's plan to debut next July.
The plan will allow workers without employer-sponsored retirement accounts to enroll in one created by the state. The Oregon Department of Treasury estimates that about half of all Oregon workers currently don't have access to such a plan. It would work much like a 401k, with money deducted from a worker's paycheck.
The new rule from the Obama administration clarifies that state-sponsored retirement plans are allowed under federal law. The announcement clears the way for Oregon and seven other states to launch their plans.
Oregon's version was narrowly approved last year by state lawmakers.
James Sinks, a spokesman for the Oregon Department of Treasury, said initially the Oregon Retirement Savings Plan will be offered to employees at a handful of Oregon companies and then ramp up from there.
Many private-sector companies already offer employees the option to contribute money to a retirement account, but Sinks said up to a million Oregon workers currently don't have that option.
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