SF 4797

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/26/2026 09:14 a.m.

A bill for an act
relating to retirement; modifying certain provisions of the Minnesota Secure Choice
retirement program; amending Minnesota Statutes 2024, sections 187.03, by adding
subdivisions; 187.05, subdivision 1, by adding a subdivision; 187.06, subdivision
3; 187.07, by adding a subdivision; 187.08, subdivisions 1, 2, 6, 8; Minnesota
Statutes 2025 Supplement, sections 187.03, subdivisions 5, 6a; 187.05, subdivisions
1a, 4; 187.07, subdivision 1; 187.08, subdivision 3; 187.11; 187.12, subdivision
1; proposing coding for new law in Minnesota Statutes, chapter 187; repealing
Minnesota Statutes 2025 Supplement, section 187.07, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Annual report. new text end

new text begin "Annual report" means a report on the following:
new text end

new text begin (1) financial performance of the program and the agency;
new text end

new text begin (2) program expenses, including costs attributable to the use of outside consultants,
independent contractors, and other persons who are not state employees;
new text end

new text begin (3) program outcomes;
new text end

new text begin (4) progress toward savings goals established by the board;
new text end

new text begin (5) statistics on the number of participating employees, participating employers, and
covered employees who have opted out of participation;
new text end

new text begin (6) estimated impact of the program on social safety net programs; and
new text end

new text begin (7) penalties, violations, and disciplinary actions for enforcement.
new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, 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 new text begin or described in section 187.05, subdivision 7, new text end 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;

(4) a person employed by the government of the United States, another country, the state
of Minnesota, another state, or any subdivision thereof; or

(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.

(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.

Sec. 3.

Minnesota Statutes 2025 Supplement, section 187.03, subdivision 6a, is amended
to read:

Subd. 6a.

Enrollment window.

"Enrollment window" means new text begin :
new text end

new text begin (1) new text end 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 deleted text begin provide
information to covered employees and deleted text end enroll covered employees deleted text begin who do not elect to opt
out of the program. deleted text end new text begin ;
new text end

new text begin (2) the 21-day period beginning with a covered employee's first day of employment with
a covered employer during which the covered employer is required to enroll the covered
employee; or
new text end

new text begin (3) the 21-day period beginning on January 1 after the calendar year during which an
employer first becomes a covered employer.
new text end

Sec. 4.

Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision to
read:

new text begin Subd. 15. new text end

new text begin Waiting period. new text end

new text begin "Waiting period" means the 30-day period that begins on
the first day of the applicable enrollment period.
new text end

Sec. 5.

Minnesota Statutes 2024, section 187.05, subdivision 1, is amended to read:

Subdivision 1.

Program established.

(a) The board must operate deleted text begin an employee deleted text end new text begin a new text end
retirement savings program whereby new text begin contributions are made by new text end employee payroll deduction
deleted text begin contributions are transmitted deleted text end new text begin or, if a covered employee is not employed by a covered
employer, by direct payment new text end on an after-tax or pretax basis deleted text begin by covered employers deleted text end to
individual retirement accounts established under the program.

(b) The board must establish procedures for opening a Roth IRA, a traditional IRA, or
both a Roth IRA and a traditional IRA for each covered employee whose covered employer
transmits employee payroll deduction contributions deleted text begin under deleted text end new text begin or, if a covered employee is not
employed by a covered employer, transmits payment to new text end the program.

(c) Contributions must be made on an after-tax (Roth) basis, unless the covered employee
elects to contribute on a pretax basis.

Sec. 6.

Minnesota Statutes 2025 Supplement, section 187.05, subdivision 1a, is amended
to read:

Subd. 1a.

Certification by employers that are not covered employers.

(a) Any entity
or person may file new text begin through the program web portal or, with the consent of the executive
director, by mail or email, new text end a certification deleted text begin 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, deleted text end 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:

(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;

(2) the entity or person does not employ five or more employees;

(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

(4) the entity is a political subdivision of the state or federal government.

(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.

(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 begin (d) If necessary to determine compliance with program requirements, the executive
director may request that an entity or person provide documentation in support of a
certification filed under paragraph (a). If the entity or person does not provide supporting
documentation within 30 days of the request or the documentation is inadequate, the executive
director may reject the certification and require the entity or person to enroll its employees
in the program.
new text end

Sec. 7.

Minnesota Statutes 2025 Supplement, section 187.05, subdivision 4, is amended
to read:

Subd. 4.

Contribution rate.

(a) The board may change the required employee
contribution rates and the escalation schedule under section 187.07, subdivision 1.

new text begin (b) new text end The board must provide all covered employers new text begin and covered employees new text end 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 change.

deleted text begin (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.
deleted text end

Sec. 8.

Minnesota Statutes 2024, section 187.05, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Covered employee right to begin contributing, change the contribution
rate, or not contribute. new text end

new text begin A covered employee must have the right, annually or more
frequently as determined by the board, to:
new text end

new text begin (1) begin making contributions to the program by payroll deduction or, if not employed
by a covered employer, by payment to the program;
new text end

new text begin (2) change the percentage of compensation being contributed to the program by payroll
deduction;
new text end

new text begin (3) elect not to contribute; or
new text end

new text begin (4) cease contributions.
new text end

Sec. 9.

Minnesota Statutes 2024, section 187.06, subdivision 3, is amended to read:

Subd. 3.

Individual accounts established.

The trustee or custodian, as applicable, must
maintain an account for new text begin each covered employee who has made or is making new text end employee
payroll deduction contributions deleted text begin with respect to each covered employee deleted text end new text begin or, if the covered
employee is not employed by a covered employer, has made or is making payments to the
program until all assets in the account are distributed new text end . deleted text begin Interest and deleted text end new text begin Investment new text end earnings on
the amount in the account are credited to the account new text begin , new text end and new text begin investment new text end losses new text begin and
administrative fees new text end are deducted new text begin from the account new text end .

Sec. 10.

Minnesota Statutes 2025 Supplement, section 187.07, subdivision 1, is amended
to read:

Subdivision 1.

Requirement to enroll employees new text begin and begin payroll deduction
contributions new text end .

(a) deleted text begin Each deleted text end new text begin A new text end covered employer must enroll its covered employees in the
program deleted text begin and withhold deleted text end new text begin during the applicable enrollment window.
new text end

new text begin (b) The covered employer must begin withholding new text end payroll deduction contributions from
new text begin the first paycheck of new text end each covered deleted text begin employee's paycheck no later than 30 days after the
covered employee's first day of employment deleted text end new text begin employee after the end of the covered employee's
waiting period new text end , unless the covered employee has elected not to contribute.

deleted 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:
deleted text end

deleted text begin (1) five percent of pay for the covered employee's first year of participation;
deleted text end

deleted text begin (2) six percent of pay for the covered employee's second year of participation;
deleted text end

deleted text begin (3) seven percent of pay for the covered employee's third year of participation; and
deleted text end

deleted text begin (4) eight percent of pay for the covered employee's fourth year of participation and each
year thereafter.
deleted text end

(c) Paragraph (a) does not apply to a covered employer until the covered employer's
enrollment window has opened. deleted text begin No later than 30 days after deleted text end new text begin By new text end the end of the enrollment
window, the covered employer must have enrolled all covered employees deleted text begin , except for any
covered employee who has elected not to contribute deleted text end .

deleted text begin (d) The executive director must communicate annually by email or otherwise in writing
to each covered employee:
deleted text end

deleted text begin (1) the annual limit on employee contributions to a traditional IRA and a Roth IRA in
effect under section 408 and 408A, respectively, of the Internal Revenue Code; and
deleted text end

deleted text begin (2) notice that it is the responsibility of the covered employee to reduce the covered
employee's contribution rate from the rate under paragraph (b) as necessary to stay within
the limit under section 408 or section 408A of the Internal Revenue Code that is applicable
to the covered employee and the type of IRA to which the contributions are being credited.
deleted text end

Sec. 11.

Minnesota Statutes 2024, section 187.07, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Default contribution rate and escalation schedule. new text end

new text begin 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

Sec. 12.

Minnesota Statutes 2024, section 187.08, subdivision 1, is amended to read:

Subdivision 1.

Membership.

The policy-making function of the program is vested in a
board of directors consisting of seven members as follows:

(1) the executive director of the Minnesota State Retirement System or the executive
director's designee;

(2) the executive director of the State Board of Investment or the executive director's
designee;

(3) three members new text begin with relevant experience new text end chosen by the Legislative Commission on
Pensions and Retirement deleted text begin , one from each of the following experience categories: deleted text end new text begin ;
new text end

deleted text begin (i) executive or operations manager with substantial experience in record keeping 401(k)
plans;
deleted text end

deleted text begin (ii) executive or operations manager with substantial experience in individual retirement
accounts; and
deleted text end

deleted text begin (iii) executive or other professional with substantial experience in retirement plan
investments;
deleted text end

(4) a human resources or retirement benefits executive from a private company with
substantial experience in administering the company's 401(k) plan, appointed by the governor;
and

(5) a small business owner, a small business executive, or a nonprofit executive appointed
by the governor.

Sec. 13.

Minnesota Statutes 2024, section 187.08, subdivision 2, is amended to read:

Subd. 2.

Appointment.

new text begin (a) new text end Members appointed by the governor must be appointed as
provided in section 15.0597.

new text begin (b) The Legislative Commission on Pensions and Retirement is not required to consider
a seat on the board as vacant if the incumbent provides notice to the chair of the board and
executive director that the incumbent wishes to serve an additional term as permitted under
subdivision 3. The executive director of the program must notify the secretary of state and
the chair or executive director of the Legislative Commission on Pensions and Retirement
that the incumbent wishes to serve an additional term. The secretary of state must not post
a seat as vacant and accept applications if the chair of the board and the chair or executive
director of the Legislative Commission on Pensions and Retirement accept the incumbent's
request to serve an additional term.
new text end

Sec. 14.

Minnesota Statutes 2025 Supplement, section 187.08, subdivision 3, is amended
to read:

Subd. 3.

Membership terms.

(a) Board members serve for two-year terms, except:

(1) the executive directors of the Minnesota State Retirement System and the State Board
of Investment serve indefinitely; and

(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), deleted text begin item
deleted text end deleted text begin (iii), deleted text end and the member who is a human resources executive under subdivision 1, clause (4),
is three years.

(b) new text begin A new text end board deleted text begin members' terms may be renewed, deleted text end new text begin member may renew the member's term, new text end
but no member new text begin , other than the executive directors of the Minnesota State Retirement Systems
and the State Board of Investment, new text end may serve more than two consecutive terms. new text begin To serve
an additional term, an incumbent must notify the chair of the board and the executive director
that the incumbent wishes to serve an additional term.
new text end

Sec. 15.

Minnesota Statutes 2024, section 187.08, subdivision 6, is amended to read:

Subd. 6.

Chair new text begin ; quorum new text end .

new text begin (a) new text end The board deleted text begin shall deleted text end new text begin must new text end deleted text begin select deleted text end new text begin elect new text end a chair from among its
members. The chair deleted text begin shall serve deleted text end new text begin serves for new text end a two-year term new text begin and may be reelected by the
members for additional two-year terms new text end . The board may select other officers as necessary
to assist the board in performing the board's duties.

new text begin (b) A majority of the members, not including for this purpose any vacant member seat,
constitutes a quorum. Approval of any item of board business is effective if approved by a
simple majority vote of members present at a meeting.
new text end

Sec. 16.

Minnesota Statutes 2024, section 187.08, subdivision 8, is amended to read:

Subd. 8.

Duties.

In addition to the duties set forth elsewhere in this chapter, the board
has the following duties:

(1) to establish secure processes for enrolling covered employees in the program and
for transmitting employee contributions to accounts in the trust;

(2) to prepare a budget and establish procedures for the payment of costs of administering
and operating the program;

(3) to lease or otherwise procure equipment necessary to administer the program;

(4) to procure insurance in connection with the property of the program and the activities
of the board, executive director, and other staff;

(5) to determine the following:

(i) any criteria for a covered employee other than employment with a covered employer
under section 187.03, subdivision 5;

(ii) contribution rates and an escalation schedule under section 187.05, subdivision 4;

(iii) withdrawal and distribution options under section 187.05, subdivision 6; and

(iv) the default investment fund under section 187.06, subdivision 5;

(6) to keep annual administrative fees, costs, and expenses as low as possible:

(i) except that any administrative fee assessed against the accounts of covered employees
may not exceed a reasonable amount relative to the fees charged by auto-IRA or defined
contribution programs of similar size in the state of Minnesota or another state; and

(ii) the fee may be asset-based, flat fee, or a hybrid combination of asset-based and flat
fee;

(7) to determine the eligibility of an employer, employee, or other individual to participate
in the program and review and decide claims for benefits and make factual determinations;

deleted text begin (8) to prepare information regarding the program that is clear and concise for
dissemination to all covered employees and includes the following:
deleted text end

deleted text begin (i) the benefits and risks associated with participating in the program;
deleted text end

deleted text begin (ii) procedures for enrolling in the program and opting out of the program, electing a
different or zero percent employee contribution rate, making investment elections, applying
for a distribution of employee accounts, and making a claim for benefits;
deleted text end

deleted text begin (iii) the federal and state income tax consequences of participating in the program, which
may consist of or include the disclosure statement required to be distributed by retirement
plan trustees or custodians under the Internal Revenue Code and the Treasury Regulations
thereunder;
deleted text end

deleted text begin (iv) how to obtain additional information on the program; and
deleted text end

deleted text begin (v) disclaimers of covered employer and state responsibility, including the following
statements:
deleted text end

deleted text begin (A) covered employees seeking financial, investment, or tax advice should contact their
own advisors;
deleted text end

deleted text begin (B) neither a covered employer nor the state of Minnesota are liable for decisions covered
employees make regarding their account in the program;
deleted text end

deleted text begin (C) neither a covered employer nor the state of Minnesota guarantees the accounts in
the program or any particular investment rate of return; and
deleted text end

deleted text begin (D) neither a covered employer nor the state of Minnesota monitors or has an obligation
to monitor any covered employee's eligibility under the Internal Revenue Code to make
contributions to an account in the program, or whether the covered employee's contributions
to an account in the program exceed the maximum permissible contribution under the
Internal Revenue Code;
deleted text end

deleted text begin (9) deleted text end new text begin (8) new text end to publish an annual deleted text begin financial deleted text end report deleted text begin , prepared according to generally accepted
accounting principles, on the operations of the program, which must include but not be
limited to costs attributable to the use of outside consultants, independent contractors, and
other persons who are not state employees deleted text end and deliver the report to the chairs and ranking
minority members of the legislative committees with jurisdiction over jobs and economic
development and state government finance, the executive directors of the State Board of
Investment and the Legislative Commission on Pensions and Retirement, and the Legislative
Reference Library;

deleted text begin (10) to publish an annual report regarding plan outcomes, progress toward savings goals
established by the board, statistics on the number of participants, participating employers,
and covered employees who have opted out of participation, plan expenses, estimated impact
of the program on social safety net programs, and penalties and violations, and disciplinary
actions for enforcement, and deliver the report to the chairs and ranking minority members
of the legislative committees with jurisdiction over jobs and economic development and
state government finance, the executive directors of the State Board of Investment and the
Legislative Commission on Pensions and Retirement, and the Legislative Reference Library;
deleted text end

deleted text begin (11) deleted text end new text begin (9) new text end to file all reports required under the Internal Revenue Code or chapter 290;

deleted text begin (12) deleted text end new text begin (10) new text end to, at the board's discretion, seek and accept gifts, grants, and donations to be
used for the program, unless such gifts, grants, or donations would result in a conflict of
interest relating to the solicitation of service provider for program administration, and deposit
such gifts, grants, or donations in the Secure Choice administrative fund;

deleted text begin (13) deleted text end new text begin (11) new text end to, at the board's discretion, seek and accept appropriations from the state or
loans from the state or any agency of the state;

deleted text begin (14) deleted text end new text begin (12) new text end to assess the feasibility of partnering with another state or a governmental
subdivision of another state to administer the program through shared administrative
resources and, if determined beneficial, enter into contracts, agreements, memoranda of
understanding, or other arrangements with any other state or an agency or a subdivision of
any other state to administer, operate, or manage any part of the program, which may include
combining resources, investments, or administrative functions;

deleted text begin (15) deleted text end new text begin (13) new text end to hire, retain, and terminate third-party service providers as the board deems
necessary or desirable for the program, including but not limited to the trustees, consultants,
investment managers or advisors, custodians, insurance companies, recordkeepers,
administrators, consultants, actuaries, legal counsel, auditors, and other professionals,
provided that each service provider is authorized to do business in the state;

deleted text begin (16) deleted text end new text begin (14) new text end to interpret the program's governing documents and this chapter and make all
other decisions necessary to administer the program;

deleted text begin (17) deleted text end new text begin (15) new text end to conduct comprehensive employer and worker education and outreach
regarding the program that reflect the cultures and languages of the state's diverse workforce
population, which may, in the board's discretion, include collaboration with state and local
government agencies, community-based and nonprofit organizations, foundations, vendors,
and other entities deemed appropriate to develop and secure ongoing resources; and

deleted text begin (18) deleted text end new text begin (16) new text end to prepare notices for delivery to covered employees regarding the escalation
schedule and to each covered employee before the covered employee is subject to an
automatic contribution increase.

Sec. 17.

Minnesota Statutes 2025 Supplement, 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, the commissioner of employment and
economic development, 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. The board, executive director, and program
staff must maintain the privacy of data obtained under any intergovernmental agreement if
required under chapter 13.

(b) For purposes of section 268.19, subdivision 1, paragraph (a), clause (20), "assisting
with communication with employers and to verify employer compliance with chapter 187"
means providing the executive director with at least the following information for employers,
to the extent available to the commissioner of employment and economic development:

(1) federal employer identification number;

(2) business name, address, mailing address, email address, and phone number;

(3) number of employees; and

(4) employer industry code.

(c) The commissioner of administration must deleted text begin provide deleted text end new text begin assist the executive director in
identifying and leasing suitable new text end office space new text begin for the executive director and program staff new text end in
deleted text begin the Capitol complex for the executive director and staff of the program deleted text end new text begin the city of St. Paul new text end .

Sec. 18.

Minnesota Statutes 2025 Supplement, section 187.12, subdivision 1, is amended
to read:

Subdivision 1.

Failure to enroll covered employees deleted text begin or distribute information deleted text end .

deleted text begin (a) deleted text end
The board may assess penalties against a covered employer that fails to comply with section
187.07, subdivision 1 deleted text begin or 3 or both subdivisions 1 and 3, beginning with the second
anniversary of the date on which the covered employer was first required to comply with
section 187.07, subdivision 1 or 3, as applicable. deleted text end new text begin , paragraph (a), beginning with the second
anniversary of the last day of the applicable enrollment window or fails to comply with
section 187.07, subdivision 1, paragraph (b), beginning with the second anniversary of the
first paycheck after a covered employee's waiting period, as follows:
new text end

deleted text begin (b) The board may assess the following penalties for a covered employer's failure to
comply with section 187.07, subdivision 1 or 3:
deleted text end

(1) on the second anniversary, a penalty of $100 per covered employee, not to exceed
$4,000;

(2) on the third anniversary, a penalty of $200 per covered employee, not to exceed
$6,000;

(3) on the fourth anniversary, a penalty of $300 per covered employee; and

(4) on each anniversary after the fourth anniversary, a penalty of $500 per covered
employee.

deleted text begin (c) If the covered employer fails to comply with section 187.07, subdivisions 1 and 3,
the board must assess two times the penalties in paragraph (b).
deleted text end

deleted text begin (d) The date on which a covered employer is first required to comply with section 187.07,
subdivision 1, is the following:
deleted text end

deleted text begin (1) for paragraph (a), on or before the 30th day after the first day of employment of a
covered employee hired by the covered employer; and
deleted text end

deleted text begin (2) for paragraph (b), on or before the 30th day after the end of the enrollment window
applicable to the covered employer.
deleted text end

deleted text begin (e) The date on which a covered employer is first required to comply with section 187.07,
subdivision 3, is the following:
deleted text end

deleted text begin (1) for paragraph (a), for a newly hired covered employee, no later than 14 days after
the covered employee's first day of employment; and
deleted text end

deleted text begin (2) for paragraph (b), no later than the 14th day prior to the date of the first paycheck
from which employee contributions could be deducted for transmittal to the program.
deleted text end

Sec. 19.

new text begin [187.13] REQUIRED NOTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Notice to covered employees upon enrollment. new text end

new text begin (a) The board must
disseminate a notice regarding the program that is clear and concise to all covered employees
no later than seven days after a covered employee is enrolled by a covered employer.
new text end

new text begin (b) The information in the notice must include:
new text end

new text begin (1) the benefits and risks associated with participating in the program;
new text end

new text begin (2) procedures for enrolling in the program and opting out of the program, electing a
different or zero percent employee contribution rate, making investment elections, applying
for a distribution of employee accounts, and making a claim for benefits;
new text end

new text begin (3) the federal and state income tax consequences of participating in the program, which
may consist of or include the disclosure statement required to be distributed by trustees or
custodians under the Internal Revenue Code;
new text end

new text begin (4) how to obtain additional information on the program; and
new text end

new text begin (5) disclaimers of covered employer and state responsibility, including the following
statements:
new text end

new text begin (i) a covered employee seeking financial, investment, or tax advice should contact the
covered employee's advisors;
new text end

new text begin (ii) neither a covered employer nor the board, the program, or the state of Minnesota is
liable for decisions a covered employee makes regarding the covered employee's account
in the program;
new text end

new text begin (iii) neither a covered employer nor the state of Minnesota guarantees the accounts in
the program or any particular investment rate of return; and
new text end

new text begin (iv) neither a covered employer nor the state of Minnesota monitors or has an obligation
to monitor a covered employee's eligibility under the Internal Revenue Code to make
contributions to an account in the program or whether the covered employee's contributions
to an account in the program exceed the maximum permissible contribution under the
Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Annual notice to covered employees. new text end

new text begin The executive director must communicate
annually by email or other means in writing to each covered employee:
new text end

new text begin (1) the annual limit on employee contributions to a traditional IRA and a Roth IRA in
effect under sections 408 and 408A of the Internal Revenue Code; and
new text end

new text begin (2) that it is the responsibility of the covered employee to reduce the covered employee's
contribution rate from the rate under section 187.07, subdivision 1, paragraph (b), as
necessary to stay within the limit under section 408 or 408A of the Internal Revenue Code
that is applicable to the covered employee and the type of IRA to which the contributions
are being credited.
new text end

Sec. 20.

new text begin [187.14] CONFIDENTIALITY OF DATA AND NONSOLICITATION.
new text end

new text begin Subdivision 1. new text end

new text begin Confidentiality of data. new text end

new text begin Covered employee data, account owner data,
account data, and data on beneficiaries of accounts are private data. The program, executive
director, and program staff must not disclose private data on individuals, as defined in
section 13.02, to anyone other than the covered employee, account owner, or beneficiary,
except:
new text end

new text begin (1) pursuant to a court order;
new text end

new text begin (2) upon the written consent of the covered employee, account owner, beneficiary, or
other person who provides the data or is the subject of the data; or
new text end

new text begin (3) to a third party with which the program has contracted to perform administrative or
record-keeping functions, but only to the extent necessary to carry out the functions and
subject to the requirements of this subdivision as if the third party were the program.
new text end

new text begin Subd. 2. new text end

new text begin Nonsolicitation restriction. new text end

new text begin Neither program staff nor a third-party
administrator, record keeper, or any other vendor or consultant with which the program has
contracted may solicit a covered employee, an account owner, or a beneficiary for any
product or services not related to the program.
new text end

Sec. 21. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2025 Supplement, section 187.07, subdivision 3, new text end new text begin is repealed.
new text end

Sec. 22. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 21 are effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 26-07808

187.07 RESPONSIBILITIES OF COVERED EMPLOYERS.

Subd. 3.

Distribution of information.

(a) 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 no later than 14 days after the covered employee's first day of employment.

(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.