Oregon Treasurer Ted Wheeler’s office said in a statement that “[u]nder the plan, businesses will not be exposed to fiduciary liability, the state will not guarantee returns, and the state will not be liable for investment losses. The plan, funded through account fees, will be self-sustaining and cannot be raided by the Legislature.”

Read: Support grows for public pension plan for all

While employers are required to offer the plan, employees will not be required to participate—though they would be automatically enrolled and would have to opt out. Contributions would be collected by payroll deduction at the workplace and accounts would be portable, so that when employees switch jobs they could take their retirement savings with them.

Wheeler’s office said in a statement that about half of private-sector employees in Oregon do not have access to an employer-sponsored retirement plan. In addition, according to a report from the Oregon Retirement Savings Task Force, half the state’s workers have less than $20,000 in retirement savings and a fourth have less than $1,000.

Despite support for the retirement plan from numerous groups, Republicans have been fiercely opposed to the bill, claiming that it will cost about $1 million to implement and will cause problems for small businesses.

Democrats have pointed out that employers don’t have to contribute to the plan, while Wheeler said in a statement, “Far from being a burden on small businesses, the Retirement Security Bill provides an attractive option to small business owners who would like to offer their employees a retirement plan, but cannot because of cost and administrative hassle.”

In addition, according to research from the Northwest Economic Research Center at the University of Portland, it’s estimated that more than 400,000 Oregon workers could participate in the new plan. Should they earn returns on a par with those received by current retirees, the research notes, their combined income from the plan would exceed $2 billion annually.