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HF2942 (Legislative Session 94 (2025-2026))

Commissioner of employment and economic development required to disclose information, and administrative and technical changes made to the Minnesota Secure Choice Retirement Program Act.

Related bill: SF2985

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to make administrative and technical amendments to the Minnesota Secure Choice Retirement Program Act. It aims to enhance the program's functionality by redefining terms, responsibilities, and processes related to the management and participation in the program.

Main Provisions

  • Disclosure Requirement: The bill mandates the commissioner of employment and economic development to share information about employers with the executive director of the Minnesota Secure Choice program.
  • Definition Updates: Updates the definitions of "covered employees" and "covered employers," and clarifies who falls under these categories.
  • Employer Contributions: Employers must enroll covered employees and manage payroll deductions for retirement contributions.
  • Enrollment Window: Introduces the concept of an “enrollment window” for when employers must begin offering the program to employees.
  • Contribution Rates: Establishes default, minimum, and maximum contribution rates with an automatic escalation schedule.
  • Withdrawals and Distributions: Provides guidelines for withdrawals and distributions from retirement accounts, including lifetime income options available by 2028.
  • Compliance and Enforcement: Details the responsibilities of the board in enforcing compliance, including the imposition of penalties for noncompliance.

Significant Changes

  • Information Sharing: Allows for the sharing of employer information with the Secure Choice program to facilitate the program's operations.
  • Employee and Employer Definitions: Refines criteria to determine who is a "covered employee" and which entities are "covered employers".
  • Appeals Process: Employers can file an appeal if designated incorrectly as a "covered employer."
  • Board Authority: Strengthens the board’s authority to enforce compliance and issue penalties for violations of procedural requirements.
  • Collaboration with Other Agencies: Permits the program to enter into agreements with other state agencies for support services.

Relevant Terms

  • Minnesota Secure Choice Retirement Program
  • Disclosure
  • Covered employee
  • Contribution rate
  • Enrollment window
  • Lifetime income options
  • Compliance and enforcement
  • Civil penalties
  • Intergovernmental agreements

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Definition of 'covered employee' excludes certain temporary or seasonal employees."
      ],
      "removed": [],
      "summary": "This bill revises definitions related to covered employees in the context of retirement contributions under section 187.03, subdivision 5.",
      "modified": []
    },
    "citation": "187.03",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends the contribution rate rules for employees under section 187.05, subdivision 4.",
      "modified": [
        "Determines escalation schedule for employee contribution rates."
      ]
    },
    "citation": "187.05",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [
        "Requirement for lifetime income options for distributions."
      ],
      "removed": [],
      "summary": "This changes the rules for withdrawals and distribution options under section 187.05, subdivision 6.",
      "modified": []
    },
    "citation": "187.05",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies enrollment requirements for covered employees under section 187.07, subdivision 1.",
      "modified": [
        "Specifies contribution rates and escalation schedule for new employee enrollments."
      ]
    },
    "citation": "187.07",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced concerning remittance of payroll deduction contributions, cross-referenced in conjunction with section 187.07, subdivision 2.",
      "modified": []
    },
    "citation": "181.06",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Describes membership terms for board members under section 187.08, subdivision 3.",
      "modified": [
        "Specifies term limits and initial member term duration."
      ]
    },
    "citation": "187.08",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Discusses intergovernmental collaboration for program assistance under section 187.11.",
      "modified": [
        "Details agency cooperation requirements for technical assistance and compliance."
      ]
    },
    "citation": "187.11",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mandates executive director's compliance with economic interest statement submission requirements under section 10A.09, subdivisions 5 and 6.",
      "modified": []
    },
    "citation": "10A.09",
    "subdivision": "subdivisions 5 and 6"
  }
]

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