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SF 976

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 10:12am

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

Current Version - as introduced

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A bill for an act
relating to retirement; establishing the Minnesota Secure Choice retirement
program; 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 [187.02] STATEMENT OF PURPOSE.
new text end

new text begin The state creates and establishes a public-private partnership model known as the
"Minnesota Secure Choice Retirement Program" for privately employed workers to save
for retirement for the following reasons:
new text end

new text begin (1) for millions of Americans, including hundreds of thousands of Minnesotans, a secure
retirement is not attainable, with nearly half of working-age households having no more
than approximately $40,000 in retirement savings;
new text end

new text begin (2) Americans who do not have access to a retirement savings plan through their
workplace are more likely to rely on Social Security as their only source of retirement
income;
new text end

new text begin (3) in Minnesota, the average monthly Social Security benefit is $1,200, with nearly 30
percent of seniors relying on Social Security as their sole source of income;
new text end

new text begin (4) increased retirement savings can save Minnesota taxpayers an estimated $124,500,000
over a span of ten years in Medicaid savings alone; and
new text end

new text begin (5) research has shown that offering workers a way to save through their job increases
their ability to save dramatically and promotes individual responsibility and financial
freedom.
new text end

Sec. 3.

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" means the Secure Choice retirement program board of directors.
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 an eligible employee
from an eligible 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 an eligible
employee's compensation that is withheld from the employee's compensation and deposited,
as applicable (i) in the account in the IRAP established for the eligible employee or (ii) in
the account in the MERP established for the eligible employee pursuant to the plan document
adopted by the employee's eligible employer under the MERP.
new text end

new text begin Subd. 5. new text end

new text begin Eligible employee. new text end

new text begin "Eligible employee" means a person who is employed by
an eligible employer and who, for the immediately preceding calendar year, worked 500 or
more hours of service for the eligible employer and whose primary work location is in the
state. Once a person has 500 or more hours of service in a calendar year, the person continues
to be an eligible employee for as long as the person is employed by an eligible employer,
even if the person has fewer than 500 hours of service in a subsequent calendar year. Eligible
employee does not include a person who, on December 31 of the preceding calendar year,
was less than 18 years of age.
new text end

new text begin Subd. 6. new text end

new text begin Eligible employer. new text end

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

new text begin (1) engaged in a business, industry, profession, trade, or other enterprise in the state,
whether for profit or not for profit;
new text end

new text begin (2) that employs one or more eligible employees or is a sole proprietor; and
new text end

new text begin (3) that does not sponsor or contribute to a retirement savings plan for its employees or,
in the case of a sole proprietorship, for the sole proprietor.
new text end

new text begin (b) Eligible employer does not include an employer that has not engaged in a business,
industry, profession, trade, or other enterprise in the state, whether for profit or not for profit,
at any time during the immediately preceding calendar year.
new text end

new text begin (c) Eligible employer does not include the state or federal government or any political
subdivision thereof.
new text end

new text begin Subd. 7. new text end

new text begin ERISA. new text end

new text begin "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, United States Code, title 29, section 1001, et seq.
new text end

new text begin Subd. 8. 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. 9. 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, section 1, et seq.
new text end

new text begin Subd. 10. new text end

new text begin Participating employee. new text end

new text begin "Participating employee" means an eligible employee
who is contributing to the Secure Choice retirement program.
new text end

new text begin Subd. 11. new text end

new text begin Participating employer. new text end

new text begin "Participating employer" means an eligible employer
that participates in a payroll deposit retirement savings arrangement for eligible employees
as provided for in this chapter.
new text end

new text begin Subd. 12. new text end

new text begin Payroll deposit retirement savings arrangement. new text end

new text begin "Payroll deposit retirement
savings arrangement" means an arrangement by which an employer makes contributions
on behalf of participating employees by deducting a specified portion of the employee's pay
and transmitting the deducted amount to the Secure Choice retirement program at the same
time and manner as payroll deductions for federal and state tax withholding.
new text end

new text begin Subd. 13. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota Secure Choice retirement program,
which consists of the Secure Choice individual retirement account plan (IRAP) and the
Secure Choice multiple employer retirement plan (MERP).
new text end

new text begin Subd. 14. new text end

new text begin Retirement savings plan. new text end

new text begin "Retirement savings plan" means a plan or program
that permits contributions to be set aside for retirement; provides for the deferral of income
tax on the contributions, unless the employee elects to contribute after-tax amounts; and
permits all employees 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 any plan that satisfies the applicable requirements
of section 401(a) of the Internal Revenue Code, a plan listed in section 219(g)(5) 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. 15. 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 1.
new text end

new text begin Subd. 16. new text end

new text begin Secure Choice individual retirement account plan or IRAP. new text end

new text begin "Secure Choice
individual retirement account plan" or "IRAP" means the plan established under section
187.05.
new text end

new text begin Subd. 17. new text end

new text begin Secure Choice multiple employer retirement plan or MERP. new text end

new text begin "Secure
Choice multiple employer retirement plan" or "MERP" means the plan established under
section 187.04.
new text end

new text begin Subd. 18. new text end

new text begin Secure Choice retirement savings trust or Secure Choice trust. new text end

new text begin "Secure
Choice retirement savings trust" or "Secure Choice trust" is a trust established to hold
contributions and investment earnings on funds contributed under the IRAP or the MERP.
A separate trust may be established for the IRAP, called the "IRAP trust", and the MERP,
called the "MERP trust".
new text end

Sec. 4.

new text begin [187.04] SECURE CHOICE MULTIPLE EMPLOYER RETIREMENT
PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin MERP established. new text end

new text begin No later than January 1, 2025, the board shall design,
establish, and maintain, as plan sponsor, a qualified defined contribution plan under section
401(a) of the Internal Revenue Code that includes a cash or deferred arrangement under
section 401(k) of the Internal Revenue Code and satisfies the requirements of section 413(c)
of the Internal Revenue Code as a multiple employer plan. The plan documents for the
MERP shall:
new text end

new text begin (1) include an adoption agreement in which an eligible employer can select terms and
conditions to allow the plan to meet the needs of the employer's particular workforce;
new text end

new text begin (2) provide eligible employers with the option to make employer matching or
nonmatching contributions or employee contributions by payroll deduction on a pre-tax or
after-tax basis or a combination of such employer and employee contributions;
new text end

new text begin (3) preclude eligible employers from electing a contribution rate for employee or employer
contributions that is lower than the entry-level contribution rate for the IRAP;
new text end

new text begin (4) provide that all employee and employer contributions shall at all times be 100 percent
vested; and
new text end

new text begin (5) provide that accounts are distributable following termination of employment in the
form of a lump sum, installments, or in a direct rollover within the meaning of section 402(c)
of the Internal Revenue Code and that all or any portion of an account may be applied toward
the purchase of an immediate or deferred annuity from an insurance company licensed to
do business in the state.
new text end

new text begin Subd. 2. new text end

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

new text begin The board shall:
new text end

new text begin (1) submit the MERP plan documents to the Internal Revenue Service for a determination
that the MERP satisfies the applicable requirements of sections 401(a) and 413(c) of the
Internal Revenue Code; and
new text end

new text begin (2) shall administer the MERP in compliance with sections 401(a) and 413(c) of the
Internal Revenue Code and all other applicable federal and state laws, including ERISA.
new text end

new text begin Subd. 3. new text end

new text begin Eligible employer participation. new text end

new text begin The executive director shall enter into a
participation agreement with each eligible employer that submits an application to participate
as a participating employer in the MERP and satisfies the eligibility conditions established
by the board.
new text end

new text begin Subd. 4. new text end

new text begin Contributions held in trust. new text end

new text begin Each eligible employer that becomes a participating
employer shall transmit employer contributions and employee payroll deduction
contributions, as applicable, to the MERP trust in the manner and according to the schedule
specified and established by the board.
new text end

new text begin Subd. 5. new text end

new text begin Eligible employer spin-off. new text end

new text begin An eligible employer may elect to terminate
membership in the MERP as an eligible employer and request the transfer of the accounts
attributable to its employees or former employees to another retirement savings plan
sponsored or maintained by the eligible employer or to individual retirement accounts in
the name of each employee or former employee in accordance with the Internal Revenue
Code and ERISA. The board shall establish procedures and notice requirements to allow
such membership termination and account transfers.
new text end

Sec. 5.

new text begin [187.05] SECURE CHOICE INDIVIDUAL RETIREMENT ACCOUNT
PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin IRAP established. new text end

new text begin No later than January 1, 2023, the board shall design,
establish, and maintain a payroll deduction arrangement whereby employee payroll deduction
contributions are transmitted by the employee's eligible employer to an individual retirement
account established for the employee. The board shall establish procedures for opening an
individual retirement account for each employee whose eligible employer transmits employee
payroll deduction contributions under the IRAP.
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 Each individual retirement account
opened under the IRAP shall be established and administered in compliance with section
408(a) of the Internal Revenue Code for the benefit of the employee for whom the account
was opened.
new text end

new text begin Subd. 3. new text end

new text begin Contributions held in custodial account or trust. new text end

new text begin Employee payroll deduction
contributions shall be transmitted by the employer to an account established for the benefit
of the employee that is a custodial account or, if a trust is established to hold contributions
under the IRAP, under the trust in the manner and according to the schedule specified and
established by the board.
new text end

new text begin Subd. 4. new text end

new text begin Contribution rate. new text end

new text begin The board shall establish default, minimum, and maximum
contribution rates and autoescalation requirements whereby each employee's contribution
rate automatically increases from year to year until it reaches a maximum contribution rate,
subject to the employee's election to change the contribution rate or cease contributions.
new text end

new text begin Subd. 5. new text end

new text begin Vesting. new text end

new text begin Employees shall at all times be 100 percent vested in their accounts.
new text end

new text begin Subd. 6. new text end

new text begin Distributions. new text end

new text begin The board shall establish alternatives for taking a distribution
of an account following termination of employment, including the option to elect a direct
rollover within the meaning of section 402(c) of the Internal Revenue Code. Distribution
alternatives shall include the option to transfer all or any portion of the account toward the
purchase of an immediate or deferred annuity from an insurance company licensed to do
business in the state.
new text end

new text begin Subd. 7. new text end

new text begin Individuals not employed by an eligible employer. new text end

new text begin The board may allow
individuals to open and contribute to an account in the IRAP outside of an employment
relationship with an eligible employer, in which case the individual shall be considered an
eligible employee.
new text end

Sec. 6.

new text begin [187.06] ESTABLISHMENT OF ADMINISTRATIVE FUND, TRUSTS, AND
CUSTODIAL ACCOUNTS; INVESTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Secure Choice administrative fund established. new text end

new text begin The Secure Choice
administrative fund is established in the state treasury as a fund separate and apart from the
Secure Choice trust and the IRAP and MERP accounts. The board shall use money in the
administrative fund to pay for administrative expenses it incurs in the performance of its
duties under this chapter. The administrative fund may receive 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. Any interest or
investment earnings that are attributable to money in the administrative fund must be
deposited into the administrative fund. The board shall separately account for any amounts
received with a direction that such amounts are to be used only for the benefit of the IRAP
or the MERP, and shall apply such amounts as directed.
new text end

new text begin Subd. 2. new text end

new text begin Trust or custodial accounts established. new text end

new text begin The board shall establish and
administer a trust for the MERP to hold and invest contributions under the MERP. The
board shall establish and maintain custodial accounts or a trust for the IRAP to hold and
invest contributions under the IRAP.
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, shall
maintain accounts for employer and employee contributions with respect to each employee
under the MERP and for each employee contributing under the IRAP. Interest, earnings,
and losses shall be allocated to accounts as prescribed by the board. A participating
employee's retirement savings benefit under the program shall be an amount equal to the
balance in the participating employee's account on the date the retirement savings benefit
becomes payable.
new text end

new text begin Subd. 4. new text end

new text begin Investments. new text end

new text begin Each employee or former employee is entitled to direct the
investment of the contributions credited to the employee's account in the trust or custodial
account, as applicable. The board shall make available for investment a diversified array
of investment funds selected by the State Board of Investment under section 356.645 and
shall otherwise comply with the requirements of section 404(c) of ERISA and related
regulations. Members of the board, the executive director of the State Board of Investment,
and all other fiduciaries are relieved of fiduciary responsibility for investment losses resulting
from the employee's investment directions.
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 shall designate a default investment fund
that satisfies the requirements of section 404(c)(5) of ERISA and related regulations.
Accounts for which no investment direction has been given by the employee or former
employee shall 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 under section 404 of ERISA and section 356A.06, subdivision 10, 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 for a domestic relations order that assigns all or a portion of an account in the MERP
to an alternate payee and satisfies the requirements to be considered a qualified domestic
relations order under section 206(d) of ERISA and section 414(p) of the Internal Revenue
Code.
new text end

new text begin Subd. 7. new text end

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

new text begin The assets of the
Secure Choice trust shall at all times be preserved, invested, and expended solely for the
purposes of the trust and no property rights therein shall exist in favor of the state or any
eligible 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 appropriate
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. 7.

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

new text begin Subdivision 1. new text end

new text begin Requirement to offer retirement savings plan. new text end

new text begin If an eligible employer
does not execute a participation agreement to become a participating employer in the Secure
Choice multiple employer retirement plan under section 187.04, the eligible employer shall
enroll eligible employees in the Secure Choice individual retirement account plan. If an
eligible employer offered a retirement savings plan within the last two years, the eligible
employer may not become a participating employer in the MERP, but shall automatically
enroll eligible employees in the IRAP. An eligible employer may become a participating
employer in the MERP no earlier than two years after the date as of which all assets in any
retirement savings plan sponsored by the eligible employer were distributed or otherwise
transferred to employees, former employees, or any eligible retirement plan, within the
meaning of section 402(c)(8) of the Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Remitting contributions. new text end

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

new text begin Subd. 3. new text end

new text begin Distribution of plan information. new text end

new text begin Participating employers shall provide
information packets prepared by the board to all employees regarding the MERP or IRAP,
as applicable:
new text end

new text begin (1) for participating employers in the MERP, the information must be provided to an
employee no later than 30 days before the date the employee first begins participation in
the plan; or
new text end

new text begin (2) for employees contributing to an IRAP, the information must be provided to an
employee no later than 30 days before the date of the first payroll from which employee
contributions are deducted for transmittal to the IRAP.
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 participating employer has no obligations to employees and is not a
fiduciary or considered to be a fiduciary regarding the Secure Choice trust or the program.
Participating employers do not bear responsibility for the administration, investment
performance, plan design, or benefits paid to plan participants.
new text end

new text begin Subd. 5. new text end

new text begin Employer liability. new text end

new text begin An employer is not liable to an employee or former
employee for alleged damages resulting from an 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 The Minnesota attorney general has the power to enforce the
provisions of this chapter. The attorney general may impose, after due process, monthly or
quarterly penalties against any eligible employer that fails to comply with this section, in
an amount or amounts determined by the board. Proceeds of such penalties, after deducting
enforcement expenses, shall be deposited in the Secure Choice administrative fund and are
appropriated to the program.
new text end

Sec. 8.

new text begin [187.08] SECURE CHOICE RETIREMENT SAVINGS 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 comprised of seven members as follows:
new text end

new text begin (1) the executive director of the Minnesota State Retirement System;
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 at least ten years' experience in record keeping
401(k) plans;
new text end

new text begin (ii) executive or operations manager with at least ten years' experience in individual
retirement accounts; and
new text end

new text begin (iii) executive or other professional with at least ten years' experience in retirement plan
investments;
new text end

new text begin (4) a human resources or retirement benefits executive from a Fortune 500 company
with at least ten years' 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 Public members appointed by the governor shall be appointed
as provided in section 15.0597.
new text end

new text begin Subd. 3. new text end

new text begin Terms of initial appointees and deadline for first appointments. new text end

new text begin (a) The
terms of initial appointees are as follows:
new text end

new text begin (1) the executive directors of the Minnesota State Retirement System and the State Board
of Investment shall serve indefinitely;
new text end

new text begin (2) the members appointed by the Legislative Commission on Pensions and Retirement
shall initially serve three, four, and five years, respectively; and
new text end

new text begin (3) the governor's appointees shall serve three-year terms.
new text end

new text begin (b) The appointing authorities must make their first appointments to the board by January
15, 2022.
new text end

new text begin Subd. 4. new text end

new text begin Membership terms. new text end

new text begin Except as provided in subdivision 3 for first appointees,
public members serve a term of four years.
new text end

new text begin Subd. 5. new text end

new text begin Removal; vacancies. new text end

new text begin Public members may be removed and vacancies filled,
as provided under section 15.0575, subdivisions 4 and 5.
new text end

new text begin Subd. 6. new text end

new text begin Compensation. new text end

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

new text begin Subd. 7. new text end

new text begin Chair. new text end

new text begin The Legislative Commission on Pensions and Retirement shall appoint
one of the members of the board of directors as its chair.
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 in this chapter, the board has the
following duties:
new text end

new text begin (1) appoint an executive director, determine the duties of the executive director, and set
the compensation of the executive director;
new text end

new text begin (2) establish secure processes for enrolling employees in the IRAP and for transmitting
employee and employer contributions to custodial accounts or accounts within a trust;
new text end

new text begin (3) prepare a budget and establish procedures for the payment of costs of administering
and operating the program;
new text end

new text begin (4) lease or otherwise procure office space and equipment necessary to operate the
program;
new text end

new text begin (5) 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 (6) accept contributions from employees and from participating employers for the benefit
of their employees in cash or cash equivalents only;
new text end

new text begin (7) keep annual administrative expenses as low as possible, but in no event may they
exceed one percent of the total trust balance, and allocate administrative expenses to each
employee's account on a pro rata basis, or such other basis as the board determines to be
equitable;
new text end

new text begin (8) 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 (9) take all actions required or advisable to ensure that the MERP is treated as a single
plan for purposes of the Internal Revenue Code and ERISA;
new text end

new text begin (10) prepare information regarding the MERP or IRAP, as applicable, that satisfies the
requirements for a "summary plan description" under ERISA for dissemination to all
participating employees and includes the following:
new text end

new text begin (i) the benefits and risks associated with participating in the MERP or IRAP, as
applicable;
new text end

new text begin (ii) procedures for enrolling in the MERP or IRAP, as applicable, 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 IRAP or the
MERP, as applicable, 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 MERP or IRAP, as applicable; and
new text end

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

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

new text begin (B) neither eligible employers nor the state is liable for decisions eligible employees
make regarding their account in the IRAP or MERP, as applicable;
new text end

new text begin (C) neither eligible employers nor the state guarantees the accounts in the IRAP or
MERP, as applicable, or any investment, rate of return, or interest on amounts held in any
account; and
new text end

new text begin (D) neither eligible employers nor the state monitors or has an obligation to monitor any
eligible employee's eligibility under the Internal Revenue Code to make contributions to an
account in the IRAP or the MERP, as applicable, or whether the eligible employee's
contributions to an account in the IRAP or the MERP, as applicable, exceed the maximum
permissible contribution under the Internal Revenue Code;
new text end

new text begin (11) publish an annual audited financial report, prepared according to generally accepted
accounting principles, on the operations of the program and audited by an independent
certified public accountant, which shall include but not be limited to direct and indirect
costs attributable to the use of outside consultants, independent contractors, and other persons
who are not state employees. The report shall be provided 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 (12) publish an annual report regarding plan outcomes, progress toward savings goals
established by the board, statistics on eligible employees and participating employers, plan
expenses, estimated impact of the program on social safety net programs, and penalties and
violations. The report shall be provided 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 (13) adopt rules to implement the program;
new text end

new text begin (14) properly file all reports required under the Internal Revenue Code and ERISA for
the MERP and the IRAP;
new text end

new text begin (15) at its 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 (16) at its 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 (17) assess the feasibility of multi-state or regional agreements to administer the program
through shared administrative resources and, if determined beneficial, enter into contracts,
agreements, memorandums 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 (18) 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; and
new text end

new text begin (19) 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 Subd. 9. 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

new text begin Subd. 10. new text end

new text begin Liability; indemnification. new text end

new text begin A member of the board shall be indemnified and
held harmless by the state for the reasonable costs or expenses incurred as a result of any
actual or threatened litigation or administrative proceeding arising out of the performance
of the member's duties.
new text end

Sec. 9.

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

new text begin Subdivision 1. new text end

new text begin Fiduciary duty for MERP. new text end

new text begin The members of the board, the State Board
of Investment, the executive director, and any person who controls the disposition or
investment of any assets of the Secure Choice trust are fiduciaries subject to sections 404
to 408 of ERISA, to the extent any of them exercise fiduciary duty.
new text end

new text begin Subd. 2. new text end

new text begin Fiduciary duty for IRAP. new text end

new text begin The members of the board, the State Board of
Investment, the executive director, and any person who controls the disposition or investment
of any assets of the Secure Choice trust are fiduciaries subject to chapter 356A and must
undertake their activities as fiduciaries consistent with chapter 356A.
new text end

Sec. 10.

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. 11.

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. Any agency that enters into an intergovernmental agreement with the board pursuant
to this section shall 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 revenue, the commissioner of labor and industry, and any other
state agency shall provide information and data on employees, employers, and corporations
doing business in the state, upon the request of the board or executive director. The state
agency providing the information or data may require that the board or executive director
comply with confidentiality requirements as a condition to providing such information or
data.
new text end

Sec. 12.

new text begin [187.12] SEVERABILITY.
new text end

new text begin If any provision of this chapter is found to be unconstitutional and void, the remaining
provisions of this chapter are valid.
new text end

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

new text begin Sections 1 to 6 and 8 to 12 are effective the day following final enactment. Section 7 is
effective the day after the Secure Choice retirement program board of directors opens the
Secure Choice retirement savings program for enrollment of eligible employees in the IRAP.
new text end