The Minnesota House of Representatives on May 1 passed a bill that would create the Minnesota Secure Choice Retirement Program, a state-run retirement plan for private-sector employees whose employers do not provide one.
HF 782, introduced by Rep. Jamie Becker-Finn (DFL-Roseville) on Jan. 25, 2023, passed in a 71-60 vote on May 1. Becker-Finn has recognized that the “nerdy” American Retirement Association support of the measure has been “a big deal.”
The bill includes provisions stating that:
- Employers that employ five or more covered employees and that do not sponsor their own workforce retirement savings plan would be required to participate.
- Employees could:
- decide whether their contributions will be pre-tax or after-tax (Roth);
- opt out of participation;
- change the rate at which they contribute;
- direct the investment of their accounts into an array of investment funds offered through the State Board of Investment; and
- leave their account after leaving employment with the state for distribution at a later date or elect a distribution in the form of a lump sum or other options to be determined by the board, including lifetime income options.
- The annual limits on contributions to an account under the program would be the federal IRA limits annually adjusted by the U.S. Treasury Department.
On to the Senate
The Senate version, SF 413, was introduced on Jan. 19. However, the House-passed bill has been substituted for that Senate bill, and HF 782 was sent to the state Senate on May 2. It is now before the Senate Finance Committee.