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Retirement Savings Bill Heads To Governor's Desk

<p>The Oregon Capitol Building in Salem.&nbsp;</p>
Alan Sylvestre

The Oregon Capitol Building in Salem. 

SALEM, Ore. (AP) — The Oregon Legislature has approved a bill automatically enrolling Oregonians in a retirement plan if their employer doesn't already offer one.

The bill passed Tuesday with support only from Democrats, who say people are much more likely to save for retirement if they're automatically enrolled.

Democrats say their bill will ensure people are prepared for retirement after a lifetime of work.

Republicans were opposed, saying it imposes new costs on businesses and potentially exposes them to lawsuits.

The bill creates a state-run retirement plan fed by automatic deductions from paychecks. Workers will be automatically enrolled but can opt out or choose their own savings rate.

The bill heads next to Democratic Gov. Kate Brown.

Copyright 2015 Oregon Public Broadcasting

AP