SF2985

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