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SF 413

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/04/2023 08:06am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to retirement; establishing the Minnesota Secure Choice retirement
program; transferring money; appropriating money; proposing coding for new law
as Minnesota Statutes, chapter 187.

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

Section 1.

new text begin [187.01] MINNESOTA SECURE CHOICE RETIREMENT PROGRAM;
CITATION.
new text end

new text begin This chapter shall be known as and may be cited as the "Minnesota Secure Choice
Retirement Program Act."
new text end

Sec. 2.

new text begin [187.03] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of this chapter, the terms defined in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin "Board" or "board of directors" means the board of directors of the
Minnesota Secure Choice retirement program.
new text end

new text begin Subd. 3. new text end

new text begin Compensation. new text end

new text begin "Compensation" means compensation within the meaning of
Section 219(f)(1) of the Internal Revenue Code that is received by a covered employee
from, or with respect to service performed for, a covered employer.
new text end

new text begin Subd. 4. new text end

new text begin Contribution rate. new text end

new text begin "Contribution rate" means the percentage of compensation
withheld from a covered employee's compensation and deposited in an account established
for the covered employee under the program.
new text end

new text begin Subd. 5. new text end

new text begin Covered employee. new text end

new text begin (a) "Covered employee" means a person who is employed
by a covered employer and who satisfies any other criteria established by the board.
new text end

new text begin (b) Covered employee does not include:
new text end

new text begin (1) a person who, on December 31 of the preceding calendar year, was younger than 18
years of age;
new text end

new text begin (2) a person covered under the federal Railway Labor Act, as amended, United States
Code, title 45, sections 151 et seq.;
new text end

new text begin (3) a person on whose behalf an employer makes contributions to a Taft-Hartley
multiemployer pension trust fund; or
new text end

new text begin (4) a person employed by the government of the United States, another country, the state
of Minnesota, another state, or any subdivision thereof.
new text end

new text begin Subd. 6. new text end

new text begin Covered employer. new text end

new text begin (a) "Covered employer" means a person or entity:
new text end

new text begin (1) engaged 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) that employs ten or more covered employees; and
new text end

new text begin (3) that does not sponsor or contribute to and did not in the immediately preceding 12
months sponsor or contribute to a retirement savings plan for its employees.
new text end

new text begin (b) Covered employer does not include:
new text end

new text begin (1) an employer that has not engaged in a business, industry, profession, trade, or other
enterprise in Minnesota, whether for profit or not for profit, at any time during the
immediately preceding 12 months; and
new text end

new text begin (2) a state or federal government or any political subdivision thereof.
new text end

new text begin (c) For purposes of this chapter in the case of a taxpaying employer described in section
268.046 that contracts with an employee leasing company, professional employer
organization, or similar person for such person to obtain the taxpaying employer's workforce
and provide workers to the taxpaying employer for a fee, the workers covered by such
contract shall be treated as employed by the taxpaying employer and not by such other
person. Nothing in this chapter shall prohibit a covered employer that is a taxpaying employer
described in section 268.046 from contracting with an employee leasing company,
professional employer organization, or similar person for such person to assist the taxpaying
employer with the performance of some or all of such taxpaying employer's responsibilities
as a covered employer under this chapter.
new text end

new text begin Subd. 7. new text end

new text begin Executive director. new text end

new text begin "Executive director" means the chief executive and
administrative head of the program.
new text end

new text begin Subd. 8. new text end

new text begin Internal Revenue Code. new text end

new text begin "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended, United States Code, title 26.
new text end

new text begin Subd. 9. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota Secure Choice retirement program.
new text end

new text begin Subd. 10. new text end

new text begin Retirement savings plan. new text end

new text begin "Retirement savings plan" means a plan or program
offered by an employer that permits contributions to be set aside for retirement on a pretax
or after-tax basis and permits all employees of the employer to participate except those
employees who have not satisfied participation eligibility requirements that are no more
restrictive than the eligibility requirements permitted under section 410(b) of the Internal
Revenue Code. Retirement savings plan includes but is not limited to a plan described in
section 401(a) of the Internal Revenue Code, an annuity plan or annuity contract described
in section 403(a) or 403(b) of the Internal Revenue Code, a plan within the meaning of
section 457(b) of the Internal Revenue Code, a simplified employee pension (SEP) plan, a
savings incentive match plan for employees (SIMPLE) plan, an automatic enrollment payroll
deduction individual retirement account, and a multiemployer pension plan described in
section 414(f) of the Internal Revenue Code.
new text end

new text begin Subd. 11. new text end

new text begin Secure Choice administrative fund. new text end

new text begin "Secure Choice administrative fund"
or "administrative fund" means the fund established under section 187.06, subdivision 2.
new text end

new text begin Subd. 12. new text end

new text begin Secure Choice trust. new text end

new text begin "Secure Choice trust" or "trust" means a trust established
under section 187.06, subdivision 1, to hold contributions and investment earnings thereon
under the program.
new text end

new text begin Subd. 13. new text end

new text begin Roth IRA. new text end

new text begin "Roth IRA" means an individual retirement account established
under section 408A of the Internal Revenue Code to hold and invest after-tax assets.
new text end

new text begin Subd. 14. new text end

new text begin Traditional IRA. new text end

new text begin "Traditional IRA" means an individual retirement account
established under section 408 of the Internal Revenue Code to hold and invest pretax assets.
new text end

Sec. 3.

new text begin [187.05] SECURE CHOICE RETIREMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin (a) The board must operate an employee retirement
savings program whereby employee payroll deduction contributions are transmitted on an
after-tax or pretax basis by covered employers to individual retirement accounts established
under the program.
new text end

new text begin (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 under the program.
new text end

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

new text begin Subd. 2. new text end

new text begin Compliance with Internal Revenue Code. new text end

new text begin The board must establish and
administer each Roth IRA and traditional IRA opened under the program in compliance
with section 408 or 408A of the Internal Revenue Code, as applicable, for the benefit of the
covered employee for whom the account was opened.
new text end

new text begin Subd. 3. new text end

new text begin Contributions held in trust. new text end

new text begin Each covered employer must transmit employee
payroll deduction contributions to an account established for the benefit of the covered
employee in a trust established to hold contributions under the program.
new text end

new text begin Subd. 4. new text end

new text begin Contribution rate. new text end

new text begin (a) The board must establish default, minimum, and
maximum employee contribution rates and an escalation schedule to automatically increase
each covered employee's contribution rate annually until the contribution rate is equal to
the maximum contribution rate.
new text end

new 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.
new text end

new text begin Subd. 5. new text end

new text begin Vesting. new text end

new text begin Covered employees are 100 percent vested in their accounts at all
times.
new text end

new text begin Subd. 6. new text end

new text begin Withdrawals and distributions. new text end

new text begin 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. Distribution alternatives must include lifetime income options.
new text end

new text begin Subd. 7. new text end

new text begin Individuals not employed by a covered employer. new text end

new text begin The board may allow
individuals to open and contribute to an account in the program, in which case the individual
shall be considered a covered employee for purposes of sections 187.05 to 187.12.
new text end

Sec. 4.

new text begin [187.06] ESTABLISHMENT OF SECURE CHOICE TRUST AND
ADMINISTRATIVE FUND; EMPLOYEE ACCOUNTS; INVESTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Secure Choice trust established. new text end

new text begin The Secure Choice trust is established
as an instrumentality of the state to hold employee payroll deduction contributions and
earnings on the contributions. The board must appoint a financial institution to act as trustee
or custodian. The trustee or custodian must manage and administer trust assets for the
exclusive purposes of providing benefits and defraying reasonable expenses of administering
the program.
new text end

new text begin Subd. 2. new text end

new text begin Secure Choice administrative fund established; money appropriated. new text end

new text begin (a)
The Secure Choice administrative fund is established in the state treasury as a fund separate
and apart from the Secure Choice trust.
new text end

new text begin (b) The board of directors may assess administrative fees on each covered employee's
account to be applied toward the expenses of administering the program. Money in the
administrative fund is appropriated to the board to pay administrative expenses of
administering the program if fees from the trust are not sufficient to cover expenses. The
board must determine which administrative expenses will be paid using money in the
administrative fund and which administrative expenses will be paid using money in the trust
in the exercise of its fiduciary duty.
new text end

new text begin (c) The board may receive and deposit into the administrative fund any gifts, grants,
donations, loans, appropriations, or other moneys designated for the administrative fund
from the state, any unit of federal or local government, any other entity, or any person.
new text end

new text begin (d) Any interest or investment earnings that are attributable to money in the administrative
fund must be deposited into the administrative fund.
new text end

new text begin Subd. 3. new text end

new text begin Individual accounts established. new text end

new text begin The trustee or custodian, as applicable, must
maintain an account for employee payroll deduction contributions with respect to each
covered employee. Interest and earnings on the amount in the account are credited to the
account and losses are deducted.
new text end

new text begin Subd. 4. new text end

new text begin Investments. new text end

new text begin The board must make available for investment a diversified array
of investment funds selected by the State Board of Investment. Members of the board, the
executive director and members of the State Board of Investment, and all other fiduciaries
are relieved of fiduciary responsibility for investment losses resulting from a covered
employee's investment directions. Each covered employee is entitled to direct the investment
of the contributions credited to the covered employee's account in the trust and earnings on
the contributions into the array of investment funds selected by the State Board of Investment.
new text end

new text begin Subd. 5. new text end

new text begin Default investment fund. new text end

new text begin The board must designate a default investment fund
that is diversified to minimize the risk of large losses and consists of target date funds, a
balanced fund, a capital preservation fund, or any combination of the foregoing funds.
Accounts for which no investment direction has been given by the covered employee must
be invested in the default investment fund. Members of the board, the executive director of
the State Board of Investment, and all other fiduciaries are relieved of fiduciary duty with
regard to investment of assets in the default investment fund.
new text end

new text begin Subd. 6. new text end

new text begin Inalienability of accounts. new text end

new text begin No account under the program is subject to
assignment or alienation, either voluntarily or involuntarily, or to the claims of creditors,
except as provided in section 518.58.
new text end

new text begin Subd. 7. new text end

new text begin Accounts not property of the state or covered employers. new text end

new text begin The assets of the
Secure Choice trust shall be preserved, invested, and expended solely for the purposes of
the trust and no property rights in the trust assets shall exist in favor of the state or any
covered employer. The assets of the Secure Choice trust shall not be transferred or used by
the state for any purpose other than the purposes of the trust, including reasonable
administrative expenses of the program. Amounts deposited in the trust shall not constitute
property of the state and shall not be commingled with state funds, and the state shall have
no claim to or against, or interest in, the assets of the Secure Choice trust.
new text end

Sec. 5.

new text begin [187.07] RESPONSIBILITIES OF COVERED EMPLOYERS.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement to enroll employees. new text end

new text begin Each covered employer must enroll
its covered employees in the program and withhold payroll deduction contributions from
each covered employee's paycheck, unless the covered employee has elected not to contribute.
The board must establish penalties for covered employers for failing to enroll covered
employees.
new text end

new text begin Subd. 2. new text end

new text begin Remitting contributions. new text end

new text begin A covered employer must timely remit contributions
as required by the board. The board must establish penalties for covered employers for
failing to timely remit contributions.
new text end

new text begin Subd. 3. new text end

new text begin Distribution of information. new text end

new text begin 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 at least 30 days 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 program.
new text end

new text begin Subd. 4. new text end

new text begin No fiduciary responsibility. new text end

new text begin Except for the responsibilities described in
subdivisions 1 to 3, a covered employer has no obligations to covered employees and is not
a fiduciary for any purpose under the program or in connection with the Secure Choice
trust. Covered employers are not responsible for the administration, investment performance,
plan design, or benefits paid to covered employees.
new text end

new text begin Subd. 5. new text end

new text begin Employer liability. new text end

new text begin A covered employer is not liable to a covered employee
for damages alleged to have resulted from a covered employee's participation in or failure
to participate in the program.
new text end

new text begin Subd. 6. new text end

new text begin Enforcement. new text end

new text begin (a) The board must establish monthly or quarterly penalties
against any covered employer that fails to comply with subdivisions 1, 2, and 3. The penalties
for a failure to comply with subdivision 2 shall be commensurate with penalties for failure
to remit state payroll taxes and, for any compliance failure, commensurate with penalties
imposed under similar programs in other states.
new text end

new text begin (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.
new text end

new text begin (c) The board must provide covered employers with written warnings for the first year
of noncompliance before assessing penalties.
new text end

Sec. 6.

new text begin [187.08] SECURE CHOICE RETIREMENT PROGRAM BOARD OF
DIRECTORS.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

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

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

new text begin (2) the executive director of the State Board of Investment or the executive director's
designee;
new text end

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

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

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

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

new text begin (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
new text end

new text begin (5) a small business owner or executive appointed by the governor.
new text end

new text begin Subd. 2. new text end

new text begin Appointment. new text end

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

new text begin Subd. 3. new text end

new text begin Membership terms. new text end

new text begin (a) Board members serve for two-year terms, except for
the executive directors of the Minnesota State Retirement System and the State Board of
Investment, who serve indefinitely.
new text end

new text begin (b) Board members' terms may be renewed, but no member may serve more than two
consecutive terms.
new text end

new text begin Subd. 4. new text end

new text begin Resignation; removal; vacancies. new text end

new text begin (a) A board member may resign at any time
by giving written notice to the board.
new text end

new text begin (b) A board member may be removed by the appointing authority and a majority vote
of the board following notice and hearing before the board. For purposes of this subdivision,
the chair may invite the appointing authority or a designee of the appointing authority to
serve as a voting member of the board if necessary to constitute a quorum.
new text end

new text begin (c) If a vacancy occurs, the Legislative Commission on Pensions and Retirement or the
governor, as applicable, shall appoint a new member within 90 days.
new text end

new text begin Subd. 5. new text end

new text begin Compensation. new text end

new text begin Public members are compensated and expenses reimbursed as
provided under section 15.0575, subdivision 3.
new text end

new text begin Subd. 6. new text end

new text begin Chair. new text end

new text begin The board shall select a chair from among its members. The chair shall
serve a two-year term. The board may select other officers as necessary to assist the board
in performing the board's duties.
new text end

new text begin Subd. 7. new text end

new text begin Executive director; staff. new text end

new text begin The board must appoint an executive director,
determine the duties of the director, and set the compensation of the executive director. The
board may also hire staff as necessary to support the board in performing its duties.
new text end

new text begin Subd. 8. new text end

new text begin Duties. new text end

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

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

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

new text begin (3) to lease or otherwise procure equipment necessary to administer the program;
new text end

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

new text begin (5) to determine the following:
new text end

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

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

new text begin (iii) withdrawal and distribution options under section 187.05, subdivision 6; and
new text end

new text begin (iv) the default investment fund under section 187.06, subdivision 5;
new text end

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

new text begin (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
new text end

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

new text begin (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;
new text end

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

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

new 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;
new text end

new 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;
new text end

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

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

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

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

new 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
new text end

new 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;
new text end

new text begin (9) to publish an annual financial report, 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 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;
new text end

new text begin (10) to publish an annual report regarding plan outcomes, progress toward savings goals
established by the board, statistics on covered employees and participating employers, plan
expenses, estimated impact of the program on social safety net programs, and penalties and
violations 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;
new text end

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

new text begin (12) 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;
new text end

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

new text begin (14) 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 subdivision of any other state to
administer, operate, or manage any part of the program, which may include combining
resources, investments, or administrative functions;
new text end

new text begin (15) 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;
new text end

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

new text begin (17) 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
new text end

new text begin (18) 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.
new text end

new text begin Subd. 9. new text end

new text begin Rules. new text end

new text begin The board of directors is authorized to adopt rules as necessary to
implement this chapter.
new text end

new text begin Subd. 10. new text end

new text begin Conflict of interest; economic interest statement. new text end

new text begin No member of the board
may participate in deliberations or vote on any matter before the board that will or is likely
to result in direct, measurable economic gain to the member or the member's family. Members
of the board shall 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

Sec. 7.

new text begin [187.09] FIDUCIARY DUTY; STANDARD OF CARE.
new text end

new text begin (a) The members of the board, the executive director of the program, the executive
director and members of the State Board of Investment, and any person who controls the
disposition or investment of the assets of the Secure Choice trust:
new text end

new text begin (1) owe a fiduciary duty to the covered employees who participate in the program and
their beneficiaries;
new text end

new text begin (2) must administer the program solely for the exclusive benefit of such covered
employees and their beneficiaries, and for the exclusive purpose of providing benefits and
paying reasonable plan expenses;
new text end

new text begin (3) are subject to the standard of care established in section 356A.04, subdivision 2; and
new text end

new text begin (4) are indemnified and held harmless by the state of Minnesota for the reasonable costs,
expenses, or liability incurred as a result of any actual or threatened litigation or
administrative proceeding arising out of the performance of the person's duties.
new text end

new text begin (b) Except as otherwise established in this chapter, the fiduciaries under paragraph (a)
owe no other duty to covered employees, express or implied, in common law or otherwise.
new text end

Sec. 8.

new text begin [187.10] NO STATE LIABILITY.
new text end

new text begin The state has no liability for the payment of, the amount of, or losses to any benefit to
any participant in the program.
new text end

Sec. 9.

new text begin [187.11] OTHER STATE AGENCIES TO PROVIDE ASSISTANCE.
new text end

new text begin (a) The board may enter into intergovernmental agreements with the commissioner of
revenue, the commissioner of labor and industry, 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 end

new text begin (b) The commissioner of administration must provide office space in the Capitol complex
for the executive director and staff of the program.
new text end

Sec. 10. new text beginMINNESOTA SECURE CHOICE RETIREMENT PROGRAM; START
OF OPERATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Program start; phasing. new text end

new text begin (a) The board of directors of the Minnesota
Secure Choice retirement program must begin operation of the secure choice retirement
program under Minnesota Statutes, section 187.05, by January 1, 2025.
new text end

new text begin (b) The board of directors must open the program in phases, and the last phase must be
opened no later than two years after the opening of the first phase.
new text end

new text begin Subd. 2. new text end

new text begin Board appointments; first meeting. new text end

new text begin Appointing authorities must make
appointments to the board of directors under Minnesota Statutes, section 187.08, by January
15, 2024. The Legislative Commission on Pensions and Retirement must designate one
member of the board to convene the first meeting of the board of directors by March 1,
2024. At the first meeting, the board shall elect a chair.
new text end

Sec. 11. new text beginBOARD SUPPORT UNTIL APPOINTMENT OF EXECUTIVE DIRECTOR.
new text end

new text begin With the assistance of the Legislative Coordinating Commission, the executive director
of the Legislative Commission on Pensions and Retirement must:
new text end

new text begin (1) provide notice to members of the board regarding the first meeting of the board and
work with the chair designated under Minnesota Statutes, section 187.08, subdivision 7, to
determine the agenda and provide meeting support; and
new text end

new text begin (2) serve as the interim executive director to assist the board until the board completes
the search, recruitment, and interview process and appoints the executive director under
Minnesota Statutes, section 187.08, subdivision 8.
new text end

Sec. 12. new text beginTRANSFERS.
new text end

new text begin $....... in fiscal year 2024 and $....... in fiscal year 2025 are transferred from the general
fund to the Secure Choice administrative fund established under Minnesota Statutes, section
187.06, to establish and administer the Secure Choice retirement program. The base for this
transfer is $....... in fiscal year 2026, $....... in fiscal year 2027, and $0 in fiscal year 2028
and thereafter.
new text end

Sec. 13. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 and 6 to 12 are effective the day following final enactment. Section 5 is
effective the day after the Secure Choice retirement program board of directors opens the
Secure Choice retirement savings program for enrollment of covered employees.
new text end