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SF2985 (Legislative Session 94 (2025-2026))

Minnesota Secure Choice Retirement Program Act administrative and technical changes provisions and commissioner of employment and economic development requirement to disclose information provision

Related bill: HF2942

AI Generated Summary

Purpose of the Bill

The bill aims to modify the Minnesota Secure Choice Retirement Program, focusing on improving the administrative processes and technical aspects of the program. It mandates the sharing of specific employer information to facilitate program management and compliance.

Main Provisions

  • Disclosure Requirements: The commissioner of employment and economic development must supply the Minnesota Secure Choice board with employer information upon request to ensure proper notification and compliance enforcement regarding the program.

  • Covered Employees and Employers: Clarifies the definition of a covered employee and specifies exclusions (e.g., under 18, certain federal or government employees). Also includes details about employers who may self-certify that they are not covered by the program.

  • Enrollment Changes: Introduces an "enrollment window" for employers to provide information to employees and handle enrollment processes. Employers are required to enroll employees and deduct contributions from wages unless employees opt out.

  • Contribution Rates: Establishes default contribution rates beginning at five percent and incrementally increasing annually to eight percent. Employees have the option to change, opt out, or cease contributions.

  • Penalties and Compliance: Employers failing to comply with program enrollment and contribution remitting may face civil or criminal penalties after two years of initial noncompliance warnings.

  • Board Responsibilities: Describes the roles of the program's executive director and board, emphasizing privacy and conflict of interest stipulations. The board is tasked with providing suitable withdrawal and distribution options for program participants, including lifetime income options by 2028.

Significant Changes to Existing Law

  • Expands the Secure Choice board's access to employer information to facilitate program management.
  • Provides clearer definitions and roles within the retirement program structure.
  • Modifies enrollment and contribution processes, enhancing the flexibility for both employers and employees.
  • Enhances compliance mechanisms through formal penalties administered by the board and enforced, if necessary, by the attorney general.

Relevant Terms

  • Minnesota Secure Choice Retirement Program
  • Covered employer/employee
  • Contribution rates
  • Enrollment window
  • Compliance and penalties
  • Executive director and board duties

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2025SenateFloorActionIntroduction and first reading
March 26, 2025SenateFloorActionReferred toJudiciary and Public Safety
March 31, 2025SenateFloorActionComm report: To pass as amended and re-refer toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subdivision addressing disclosure responsibilities to the Secure Choice program."
      ],
      "removed": [],
      "summary": "This section is amended to add new subdivision requiring disclosure of information to the Secure Choice board.",
      "modified": []
    },
    "citation": "116J.401",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Clarification on categories of employees considered under the term 'covered employee'."
      ],
      "removed": [],
      "summary": "This section defines who qualifies as a covered employee under the Secure Choice program.",
      "modified": [
        "Excludes certain employees from the definition of 'covered employee'."
      ]
    },
    "citation": "187.03",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [
        "New stipulations for enrollment based on window schedules."
      ],
      "removed": [],
      "summary": "This section establishes requirements for covered employers to enroll employees.",
      "modified": [
        "Adjusted contribution rate schedule for employee participation."
      ]
    },
    "citation": "187.07",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "New initial term for specific new board members."
      ],
      "removed": [],
      "summary": "This section outlines the membership terms of the board members.",
      "modified": [
        "Clarifies term renewals and maximum terms for board members."
      ]
    },
    "citation": "187.08",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the federal Railway Labor Act defining exclusions.",
      "modified": [
        "Excludes those covered under the federal Railway Labor Act from covered employees."
      ]
    },
    "citation": "45 U.S.C. sections 151 et seq.",
    "subdivision": ""
  }
]

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