"There is no reason for the State of Oregon to enter into competition with Oregon financial services companies who employ thousands of workers in the state and already provide these services, at no direct cost to the state," SIFMA lobbyist Elise Brown said in written testimony.

This week in Washington, D.C., U.S. Sen. Orin Hatch planned to introduce his pension plan bill that would do the opposite of the Oregon proposal — giving states the option to turn over state worker pension plans to private insurance companies. Although the bills offer different approaches, it seems the motivation comes from the same place: A growing concern on the impact of paltry retirement savings.

The Department of Labor estimates that 36 percent of private-sector workers don't have access to an employer-sponsored retirement plan. The Oregon retirement plan aims to offer a simple way for employees to start saving for retirement, without entering a complicated arrangement with a financial services provider. 

California was the first state to pass legislation creating a state retirement plan. Connecticut approved a task force to examine the question, while Illinois and Massachusetts have passed narrowly defined state sponsored retirement plans for specific types of workers.