Purpose of the Bill

This bill aims to make improvements to the Minnesota Secure Choice Retirement Program, a state-operated retirement savings initiative. The changes include administrative and technical updates to ensure more efficient operation and compliance.

Main Provisions

• Employer Information Disclosure: Requires the commissioner of employment and economic development to share information about Minnesota employers with the program's executive director. This includes business names, addresses, and contact details for compliance and notification purposes.

• Covered Employee Definition: Refines the definition of who qualifies as a covered employee. It excludes individuals under 18, certain government workers, those in specific pension plans, and temporary workers unless these workers opt-in voluntarily.

• Enrollment and Contribution Guidelines: Outlines specific timelines and responsibilities for employers to enroll employees in the program and manage payroll deduction contributions. Establishes an increasing contribution rate for employees over their first four years of participation.

• Employer Certification: Allows entities that believe they are not covered employers to file a certification. They must provide documentation, and the program can contest this designation if it disagrees.

• Compliance and Enforcement: Details procedures for non-compliance penalties, including warnings followed by civil penalties after repeated non-compliance. Encourages enforcement through collaboration with the attorney general.

• Program Withdrawal and Distribution Options: Provides covered employees with options to withdraw funds while employed and establishes a timeline for offering lifetime income distribution options.

• Information Dissemination: Requires covered employers to provide program information to employees prior to deduction of contributions.

Significant Changes to Existing Law

• The bill modifies several components of the Minnesota Secure Choice Retirement Program, adjusting aspects from employee coverage and contribution schedules to enforcement protocols.

• It extends the enforcement capabilities of the board, requiring statutory penalties for employers that fail to comply with program guidelines.

• Establishes new roles for state agencies in supporting the program, particularly in offering outreach and compliance services.

Relevant Terms

Minnesota Secure Choice Retirement Program, covered employer, covered employee, contribution rate, compliance, payroll deduction, enrollment, retirement savings plan, enforcement penalties.