Minnesota
On May 19, 2023 Governor Walz (D) signed House File 782 into law, establishing the Minnesota Secure Choice Retirement Program– a statewide retirement savings plan for all private-sector employees who are not currently participating in a retirement plan at their workplace; a state-facilitated automatic enrollment individual retirement account (IRA) program.
Legislative Summary:
House File 782 was proposed January 25, 2023 and referred to the State and Local Government Finance and Policy Committee, then to the Judiciary FInance and Civil Law Committee; co-sponsors on the bill include Representative Jamie Becker-Finn (D) and Senator Sandra Pappas (D). The Minnesota House of Representatives passed the bill on May 1, 2023, The Minnesota Senate ratified the bill May 12, 2023.
Program Description:
Minnesota Secure Choice Retirement Program is a new retirement savings (Automatic IRA) program, pending enactment by the Minnesota Secure Choice Retirement Program Board of Directors. The purpose of the program is meant to prepare people for retirement by nudging them into saving money, which means facilitating automatic enrollment of every employee into a state-facilitated payroll-deduct Roth IRA.
Affected Employers:
Minnesota employers, including non-profits, with one or more employees, who are at least 18 years of age, and have been in business for at least one year, will be required to register for the state-run program or sponsor their own qualified private retirement plan.
General Requirement:
Not yet established by the Minnesota Secure Choice Board of Directors.
Launch Status:
January 1, 2025
Full Implementation:
N/A
Compliance Deadline:
N/A
Non-Compliance Penalties:
N/A
Employer Costs:
N/A
Employee Costs:
N/A
Investments:
N/A