Office of the Revisor of Statutes
SF 2985
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 04/02/2025 09:46 a.m.
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A bill for an act
relating to retirement; requiring the commissioner of employment and economic
development to disclose information; making administrative and technical changes
to the Minnesota Secure Choice Retirement Program Act; amending Minnesota
Statutes 2024, sections 116J.401, by adding a subdivision; 187.03, subdivisions
5, 7, by adding a subdivision; 187.05, subdivisions 4, 6, by adding a subdivision;
187.07, subdivisions 1, 2, 3, 6; 187.08, subdivisions 3, 7; 187.11.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 116J.401, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Disclosure to Secure Choice board. new text end
new text begin
(a) Within 30 days of receiving a request
from the executive director or interim executive director of the Minnesota Secure Choice
retirement program, the commissioner must disclose to the executive director or interim
executive director, as applicable, information regarding employers engaged in a business,
industry, profession, trade, or other enterprise in the state, whether for profit or not for profit.
Information requested may include but is not limited to:
new text end
new text begin
(1) for each employer:
new text end
new text begin
(i) the employer's business name, federal employer identification number, mailing and
street addresses, and telephone number; and
new text end
new text begin
(ii) the names of one or more individuals who will serve as a point of contact for the
executive director or interim executive director and each individual's email address and
telephone number; and
new text end
new text begin
(2) any other information that the executive director or interim executive director has
determined is needed to provide notice to employers about the program or to monitor
compliance with and enforce the requirements of chapter 187.
new text end
new text begin
(b) The executive director or interim executive director must use information obtained
under this section for purposes consistent with this chapter and must maintain the privacy
of the information if required under chapter 13.
new text end
Sec. 2.
Minnesota Statutes 2024, section 187.03, subdivision 5, is amended to read:
Subd. 5.
Covered employee.
(a) "Covered employee" means a person who is employed
by a covered employer and who satisfies any other criteria established by the board.
(b) Covered employee does not include:
(1) a person who, on December 31 of the preceding calendar year, was younger than 18
years of age;
(2) a person covered under the federal Railway Labor Act, as amended, United States
Code, title 45, sections 151 et seq.;
(3) a person on whose behalf an employer makes contributions to a Taft-Hartley
multiemployer pension trust fund; deleted text begin or
deleted text end
(4) a person employed by the government of the United States, another country, the state
of Minnesota, another state, or any subdivision thereofdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(5) a person employed on a temporary or seasonal basis for a limited duration, which
the employer determines at the time the person is hired will not extend beyond 180 days.
new text end
new text begin
(c) A person described in paragraph (b), clause (5), may elect to have contributions
deducted from the person's paycheck for remittance to the program, but only if the employer
would otherwise be considered a covered employer.
new text end
Sec. 3.
Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision to
read:
new text begin Subd. 6a. new text end
new text begin Enrollment window. new text end
new text begin
"Enrollment window" means the period established by
the board, according to a phase-in schedule approved under Laws 2023, chapter 46, section
10, subdivision 1, paragraph (b), that is applicable to each covered employer and during
which the covered employer is first required to provide information to covered employees
and enroll covered employees who do not elect to opt out of the program.
new text end
Sec. 4.
Minnesota Statutes 2024, section 187.03, subdivision 7, is amended to read:
Subd. 7.
Executive director.
"Executive director" means the chief executive and
administrative head of the programnew text begin or, if an executive director has not been appointed,
executive director means the interim executive director, if one has been appointednew text end .
Sec. 5.
Minnesota Statutes 2024, section 187.05, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Certification by employers that are not covered employers. new text end
new text begin
(a) Any entity
or person may file a certification with the executive director on a form prescribed by the
executive director and provide documentation in support of the certification, as requested
by the executive director, stating that the entity or person is not a covered employer. The
certification must state that the entity or person is not a covered employer for one or more
of the following reasons:
new text end
new text begin
(1) the entity or person has not been engaged for at least 12 months in a business, industry,
profession, trade, or other enterprise in Minnesota, whether for profit or not for profit;
new text end
new text begin
(2) the entity or person does not employ five or more employees;
new text end
new text begin
(3) the entity or person sponsors or contributes to or, in the immediately preceding 12
months, sponsored or contributed to a retirement savings plan for its employees; or
new text end
new text begin
(4) the entity is a political subdivision of the state or federal government.
new text end
new text begin
(b) Within 30 days of receiving the certification, the executive director must accept the
certification or issue a determination that the entity or person is a covered employer and
subject to the requirements of section 187.07.
new text end
new text begin
(c) The entity or person may appeal the executive director's determination by filing an
appeal with the board of directors no later than 30 days after receipt of the determination.
new text end
Sec. 6.
Minnesota Statutes 2024, section 187.05, subdivision 4, is amended to read:
Subd. 4.
Contribution rate.
(a) The board deleted text begin must establish default, minimum, and
maximumdeleted text end new text begin may change the requirednew text end employee contribution rates and deleted text begin andeleted text end new text begin thenew text end escalation
schedule deleted text begin to automatically increase each covered employee's contribution rate annually until
the contribution rate is equal to the maximum contribution ratedeleted text end new text begin under section 187.07,
subdivision 1. The board must provide all covered employers with notice of a change in
employee contribution rates or the escalation schedule at least six months in advance of the
effective date of the changenew text end .
(b) A covered employee must have the right, annually or more frequently as determined
by the board, to change the contribution rate, opt out or elect not to contribute, or cease
contributions.
Sec. 7.
Minnesota Statutes 2024, section 187.05, subdivision 6, is amended to read:
Subd. 6.
Withdrawals and distributions.
The board must establish alternatives
permitting covered employees to take a withdrawal of all or a portion of the covered
employee's account while employed and one or more distributions following termination
of employment. new text begin By July 1, 2028, the board must include lifetime income options as
new text end distribution alternatives deleted text begin must include lifetime income optionsdeleted text end .
Sec. 8.
Minnesota Statutes 2024, section 187.07, subdivision 1, is amended to read:
Subdivision 1.
Requirement to enroll employees.
new text begin (a) new text end Each covered employer must
enroll its covered employees in the program and withhold payroll deduction contributions
from each covered employee's paychecknew text begin no later than 30 days after the covered employee's
first day of employmentnew text end , unless the covered employee has elected not to contribute.
new text begin
(b) Unless the board has approved a different rate or rates under section 187.05,
subdivision 4, or a covered employee has elected a different contribution rate or not to
contribute, the employee contribution rates and escalation schedule are:
new text end
new text begin
(1) five percent of pay for the covered employee's first year of participation;
new text end
new text begin
(2) six percent of pay for the covered employee's second year of participation;
new text end
new text begin
(3) seven percent of pay for the covered employee's third year of participation; and
new text end
new text begin
(4) eight percent of pay for the covered employee's fourth year of participation and each
year thereafter.
new text end
new text begin
(c) Paragraph (a) does not apply to a covered employer until the covered employer's
enrollment window has opened. No later than 30 days after the end of the enrollment window,
the covered employer must have enrolled all covered employees, except for any covered
employee who has elected not to contribute.
new text end
Sec. 9.
Minnesota Statutes 2024, section 187.07, subdivision 2, is amended to read:
Subd. 2.
Remitting contributions.
new text begin Notwithstanding section 181.06, new text end a covered employer
must deleted text begin timelydeleted text end remit new text begin payroll deduction new text end contributions deleted text begin as required by the boarddeleted text end new text begin withheld from
the paycheck of each covered employee to the program as soon as practicable after the
deduction is taken and no later than 30 days after the date of each paychecknew text end .
Sec. 10.
Minnesota Statutes 2024, section 187.07, subdivision 3, is amended to read:
Subd. 3.
Distribution of information.
new text begin (a) new text end Covered employers must provide information
prepared by the board to all covered employees regarding the program. The information
must be provided to each covered employee deleted text begin at least 30deleted text end new text begin no later than 14 new text end days deleted text begin prior to the
date of the first paycheck from which employee contributions could be deducted for
transmittal to the program, if the covered employee does not elect to opt out of the programdeleted text end new text begin
after the covered employee's first day of employmentnew text end .
new text begin
(b) Paragraph (a) does not apply to a covered employer until the covered employer's
enrollment window has opened. No later than 14 days before the date of the first paycheck
from which employee contributions could be deducted for transmittal to the program, the
covered employer must provide the information prepared by the board regarding the program
to all covered employees of the covered employer.
new text end
Sec. 11.
Minnesota Statutes 2024, section 187.07, subdivision 6, is amended to read:
Subd. 6.
Enforcement.
(a) new text begin As described under section 187.012,new text end The board deleted text begin maydeleted text end new text begin must
new text end imposenew text begin : (1)new text end statutory civil penalties against any covered employer that fails to comply with
deleted text begin subdivisionsdeleted text end new text begin subdivisionnew text end 1deleted text begin , 2, anddeleted text end new text begin or new text end 3new text begin ; and (2) statutory civil or criminal penalties against
any covered employer that fails to comply with subdivision 2new text end .
(b) At the request of the board, the attorney general shall enforce the penalties imposed
by the board against a covered employer. Proceeds of such penalties, after deducting
enforcement expenses, must be deposited in the Secure Choice administrative fund and are
appropriated to the program.
(c) The board must provide deleted text begin covered employers withdeleted text end written warnings new text begin to any covered
employer who fails to comply with subdivision 1 or 3 or both subdivisions 1 and 3 new text end for the
first deleted text begin yeardeleted text end new text begin two years new text end of noncompliance deleted text begin before assessingdeleted text end new text begin . If the covered employer has not
complied with subdivision 1 or 3 during the two-year period after the date on which the
covered employer was first required to comply with subdivision 1 or 3, as applicable, the
board must assessnew text end penalties.
Sec. 12.
Minnesota Statutes 2024, section 187.08, subdivision 3, is amended to read:
Subd. 3.
Membership terms.
(a) Board members serve for two-year terms, except deleted text begin fordeleted text end new text begin :
new text end
new text begin (1)new text end the executive directors of the Minnesota State Retirement System and the State Board
of Investmentdeleted text begin , whodeleted text end serve indefinitelynew text begin ; and
new text end
new text begin (2) the initial term of the member who is an executive or other professional with
substantial experience in retirement plan investments under subdivision 1, clause (3), item
(iii), and the member who is a human resources executive under subdivision 1, clause (4),
is three yearsnew text end .
(b) Board members' terms may be renewed, but no member may serve more than two
consecutive terms.
Sec. 13.
Minnesota Statutes 2024, section 187.08, subdivision 7, is amended to read:
Subd. 7.
Executive director; staff.
(a) The board must appoint an executive director,
determine the duties of the executive director, and set the compensation of the executive
director. The board may appoint an interim executive director to serve as executive director
during any period that the executive director position is vacant.
new text begin
(b) The executive director may participate in deliberations but must not vote on any
matter before the board. The executive director must not participate in deliberations on any
matter before the board that results or is likely to result in direct measurable economic gain
to the executive director or the executive director's family.
new text end
new text begin
(c) The executive director must file with the Campaign Finance and Public Disclosure
Board an economic interest statement in a manner as prescribed by section 10A.09,
subdivisions 5 and 6.
new text end
deleted text begin (b)deleted text end new text begin (d) new text end The board may hire staff as necessary to support the board and the executive
director deleted text begin or interim executive directordeleted text end in performing their duties or the board may authorize
the executive director deleted text begin or interim executive directordeleted text end to hire staff.
Sec. 14.
Minnesota Statutes 2024, section 187.11, is amended to read:
187.11 OTHER STATE AGENCIES TO PROVIDE ASSISTANCE.
(a) The board may enter into intergovernmental agreements with the commissioner of
revenue, the commissioner of labor and industry, new text begin the commissioner of employment and
economic development, new text end and any other state agency that the board deems necessary or
appropriate to provide outreach, technical assistance, or compliance services. An agency
that enters into an intergovernmental agreement with the board pursuant to this section must
collaborate and cooperate with the board to provide the outreach, technical assistance, or
compliance services under any such agreement.new text begin The board, executive director, and program
staff must maintain the privacy of data obtained under any intergovernmental agreement if
required under chapter 13.
new text end
(b) The commissioner of administration must provide office space in the Capitol complex
for the executive director and staff of the program.
Sec. 15. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 14 are effective the day following final enactment.
new text end