More than 900 child care workers participating in Oregon's state-run retirement savings program have seen — or will soon see — a big boost to their savings accounts, thanks to a $5 million infusion secured under the American Rescue Plan Act by the American Federation of State, County and Municipal Employees union and its Child Care Together group.
The initial round of funds totaling $4 million has already been dispersed to 904 child care workers, providing each with approximately $4,400 that was deposited directly into their OregonSaves retirement accounts. The final distribution of funds is anticipated to reach 100 additional child care workers in March, State Treasurer Tobias Read and the Oregon Retirement Savings Board announced in a news release Feb. 12.
The funds were distributed by Oregon's Department of Early Learning and Care, which licenses child care service providers, to the program administrator for OregonSaves.
"We are proud to have played a key role in bringing this retirement benefit to Oregon's critical child care service providers, ensuring a strong start on their path to retirement security," Read said in a news release.
The AFSCME union spearheaded the initial negotiations that led to securing the ARPA funding for its members. It subsequently chose OregonSaves as the most qualified retirement plan in the open market, an OregonSaves spokeswoman said.
"Providing retirement security is a crucial step toward making this a more sustainable career option for Oregon's dedicated child care providers," said Joe Baessler, executive director, Oregon AFSCME, in the news release.
More than 124,000 workers participate in OregonSaves, of which approximately 1,000 are child care workers. The program has amassed $251 million in retirement savings.
