SF2984

Purpose of the Bill

The bill aims to create penalties for noncompliance with the Minnesota Secure Choice Retirement Program. This program is designed to encourage employers to offer retirement savings options to their employees.

Main Provisions

• Penalties for Noncompliance: Employers who fail to enroll their employees in the retirement program or fail to distribute required information will face financial penalties. The penalties increase annually:

  • $100 per employee after two years,
  • $200 on the third anniversary,
  • $300 on the fourth anniversary,
  • $500 per year after the fourth anniversary.

• Double Penalties for Multiple Failures: If an employer fails both to enroll employees and to distribute information, the penalties will be doubled.

• Specific Compliance Deadlines: Employers must comply within certain timelines (e.g., within 30 days of hiring for enrollment and payroll deduction procedures).

• Notice and Waiver: Before penalizing an employer, the board must notify them. Employers have 30 days to address the violation or request a waiver due to extenuating circumstances.

• Criminal Penalties for Non-Remittance: Employers failing to remit payroll deductions for retirement contributions within ten days after demand are subject to misdemeanor charges.

• Civil Actions: Employees or the attorney general may file a civil lawsuit against employers who violate the program’s requirements. Offending employers may owe compensatory damages, as well as court and attorney fees.

Significant Changes

This bill introduces a structured penalty system for employers who do not comply with providing access to retirement saving opportunities as outlined in the existing Minnesota Secure Choice Retirement Program. It establishes criminal consequences for intentional non-compliance and provides mechanisms for civil actions to be taken against violators.

Relevant Terms

• Minnesota Secure Choice Retirement Program
• Penalties
• Noncompliance
• Payroll deductions
• Employers
• Retirement savings
• Misdemeanor
• Civil action