| 1 | 1 | | 1.1 A bill for an act |
|---|
| 2 | 2 | | 1.2 relating to retirement; requiring the commissioner of employment and economic |
|---|
| 3 | 3 | | 1.3 development to disclose information; making administrative and technical changes |
|---|
| 4 | 4 | | 1.4 to the Minnesota Secure Choice Retirement Program Act; amending Minnesota |
|---|
| 5 | 5 | | 1.5 Statutes 2024, sections 116J.401, by adding a subdivision; 187.03, subdivisions |
|---|
| 6 | 6 | | 1.6 5, 7, by adding a subdivision; 187.05, subdivisions 4, 6, by adding a subdivision; |
|---|
| 7 | 7 | | 1.7 187.07, subdivisions 1, 2, 3, 6; 187.08, subdivisions 3, 7; 187.11. |
|---|
| 8 | 8 | | 1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
|---|
| 9 | 9 | | 1.9 Section 1. Minnesota Statutes 2024, section 116J.401, is amended by adding a subdivision |
|---|
| 10 | 10 | | 1.10to read: |
|---|
| 11 | 11 | | 1.11 Subd. 4.Disclosure to Secure Choice board.(a) Within 30 days of receiving a request |
|---|
| 12 | 12 | | 1.12from the executive director or interim executive director of the Minnesota Secure Choice |
|---|
| 13 | 13 | | 1.13retirement program, the commissioner must disclose to the executive director or interim |
|---|
| 14 | 14 | | 1.14executive director, as applicable, information regarding employers engaged in a business, |
|---|
| 15 | 15 | | 1.15industry, profession, trade, or other enterprise in the state, whether for profit or not for profit. |
|---|
| 16 | 16 | | 1.16Information requested may include but is not limited to: |
|---|
| 17 | 17 | | 1.17 (1) for each employer: |
|---|
| 18 | 18 | | 1.18 (i) the employer's business name, federal employer identification number, mailing and |
|---|
| 19 | 19 | | 1.19street addresses, and telephone number; and |
|---|
| 20 | 20 | | 1.20 (ii) the names of one or more individuals who will serve as a point of contact for the |
|---|
| 21 | 21 | | 1.21executive director or interim executive director and each individual's email address and |
|---|
| 22 | 22 | | 1.22telephone number; and |
|---|
| 23 | 23 | | 1Section 1. |
|---|
| 33 | 32 | | 2.2determined is needed to provide notice to employers about the program or to monitor |
|---|
| 34 | 33 | | 2.3compliance with and enforce the requirements of chapter 187. |
|---|
| 35 | 34 | | 2.4 (b) The executive director or interim executive director must use information obtained |
|---|
| 36 | 35 | | 2.5under this section for purposes consistent with this chapter and must maintain the privacy |
|---|
| 37 | 36 | | 2.6of the information if required under chapter 13. |
|---|
| 38 | 37 | | 2.7 Sec. 2. Minnesota Statutes 2024, section 187.03, subdivision 5, is amended to read: |
|---|
| 39 | 38 | | 2.8 Subd. 5.Covered employee.(a) "Covered employee" means a person who is employed |
|---|
| 40 | 39 | | 2.9by a covered employer and who satisfies any other criteria established by the board. |
|---|
| 41 | 40 | | 2.10 (b) Covered employee does not include: |
|---|
| 42 | 41 | | 2.11 (1) a person who, on December 31 of the preceding calendar year, was younger than 18 |
|---|
| 43 | 42 | | 2.12years of age; |
|---|
| 44 | 43 | | 2.13 (2) a person covered under the federal Railway Labor Act, as amended, United States |
|---|
| 45 | 44 | | 2.14Code, title 45, sections 151 et seq.; |
|---|
| 46 | 45 | | 2.15 (3) a person on whose behalf an employer makes contributions to a Taft-Hartley |
|---|
| 47 | 46 | | 2.16multiemployer pension trust fund; or |
|---|
| 48 | 47 | | 2.17 (4) a person employed by the government of the United States, another country, the state |
|---|
| 49 | 48 | | 2.18of Minnesota, another state, or any subdivision thereof.; or |
|---|
| 50 | 49 | | 2.19 (5) a person employed on a temporary or seasonal basis for a limited duration, which |
|---|
| 64 | 63 | | 3.2 Subd. 7.Executive director."Executive director" means the chief executive and |
|---|
| 65 | 64 | | 3.3administrative head of the program or, if an executive director has not been appointed, |
|---|
| 66 | 65 | | 3.4executive director means the interim executive director, if one has been appointed. |
|---|
| 67 | 66 | | 3.5 Sec. 5. Minnesota Statutes 2024, section 187.05, is amended by adding a subdivision to |
|---|
| 68 | 67 | | 3.6read: |
|---|
| 69 | 68 | | 3.7 Subd. 1a.Certification by employers that are not covered employers.(a) Any entity |
|---|
| 70 | 69 | | 3.8or person may file a certification with the executive director on a form prescribed by the |
|---|
| 71 | 70 | | 3.9executive director and provide documentation in support of the certification, as requested |
|---|
| 72 | 71 | | 3.10by the executive director, stating that the entity or person is not a covered employer. The |
|---|
| 73 | 72 | | 3.11certification must state that the entity or person is not a covered employer for one or more |
|---|
| 74 | 73 | | 3.12of the following reasons: |
|---|
| 75 | 74 | | 3.13 (1) the entity or person has not been engaged for at least 12 months in a business, industry, |
|---|
| 76 | 75 | | 3.14profession, trade, or other enterprise in Minnesota, whether for profit or not for profit; |
|---|
| 77 | 76 | | 3.15 (2) the entity or person does not employ five or more employees; |
|---|
| 78 | 77 | | 3.16 (3) the entity or person sponsors or contributes to or, in the immediately preceding 12 |
|---|
| 79 | 78 | | 3.17months, sponsored or contributed to a retirement savings plan for its employees; or |
|---|
| 80 | 79 | | 3.18 (4) the entity is a political subdivision of the state or federal government. |
|---|
| 81 | 80 | | 3.19 (b) Within 30 days of receiving the certification, the executive director must accept the |
|---|
| 82 | 81 | | 3.20certification or issue a determination that the entity or person is a covered employer and |
|---|
| 83 | 82 | | 3.21subject to the requirements of section 187.07. |
|---|
| 84 | 83 | | 3.22 (c) The entity or person may appeal the executive director's determination by filing an |
|---|
| 85 | 84 | | 3.23appeal with the board of directors no later than 30 days after receipt of the determination. |
|---|
| 86 | 85 | | 3.24 Sec. 6. Minnesota Statutes 2024, section 187.05, subdivision 4, is amended to read: |
|---|
| 87 | 86 | | 3.25 Subd. 4.Contribution rate.(a) The board must establish default, minimum, and |
|---|
| 88 | 87 | | 3.26maximum may change the required employee contribution rates and an the escalation |
|---|
| 89 | 88 | | 3.27schedule to automatically increase each covered employee's contribution rate annually until |
|---|
| 90 | 89 | | 3.28the contribution rate is equal to the maximum contribution rate under section 187.07, |
|---|
| 91 | 90 | | 3.29subdivision 1. The board must provide all covered employers with notice of a change in |
|---|
| 92 | 91 | | 3.30employee contribution rates or the escalation schedule at least six months in advance of the |
|---|
| 93 | 92 | | 3.31effective date of the change. |
|---|
| 94 | 93 | | 3Sec. 6. |
|---|
| 96 | 95 | | 4.2by the board, to change the contribution rate, opt out or elect not to contribute, or cease |
|---|
| 97 | 96 | | 4.3contributions. |
|---|
| 98 | 97 | | 4.4 Sec. 7. Minnesota Statutes 2024, section 187.05, subdivision 6, is amended to read: |
|---|
| 99 | 98 | | 4.5 Subd. 6.Withdrawals and distributions.The board must establish alternatives |
|---|
| 100 | 99 | | 4.6permitting covered employees to take a withdrawal of all or a portion of the covered |
|---|
| 101 | 100 | | 4.7employee's account while employed and one or more distributions following termination |
|---|
| 102 | 101 | | 4.8of employment. By July 1, 2028, the board must include lifetime income options as |
|---|
| 103 | 102 | | 4.9distribution alternatives must include lifetime income options. |
|---|
| 104 | 103 | | 4.10 Sec. 8. Minnesota Statutes 2024, section 187.07, subdivision 1, is amended to read: |
|---|
| 105 | 104 | | 4.11 Subdivision 1.Requirement to enroll employees.(a) Each covered employer must |
|---|
| 106 | 105 | | 4.12enroll its covered employees in the program and withhold payroll deduction contributions |
|---|
| 107 | 106 | | 4.13from each covered employee's paycheck no later than 30 days after the covered employee's |
|---|
| 108 | 107 | | 4.14first day of employment, unless the covered employee has elected not to contribute. |
|---|
| 109 | 108 | | 4.15 (b) Unless the board has approved a different rate or rates under section 187.05, |
|---|
| 110 | 109 | | 4.16subdivision 4, or a covered employee has elected a different contribution rate or not to |
|---|
| 111 | 110 | | 4.17contribute, the employee contribution rates and escalation schedule are: |
|---|
| 112 | 111 | | 4.18 (1) five percent of pay for the covered employee's first year of participation; |
|---|
| 113 | 112 | | 4.19 (2) six percent of pay for the covered employee's second year of participation; |
|---|
| 114 | 113 | | 4.20 (3) seven percent of pay for the covered employee's third year of participation; and |
|---|
| 115 | 114 | | 4.21 (4) eight percent of pay for the covered employee's fourth year of participation and each |
|---|
| 116 | 115 | | 4.22year thereafter. |
|---|
| 117 | 116 | | 4.23 (c) Paragraph (a) does not apply to a covered employer until the covered employer's |
|---|
| 118 | 117 | | 4.24enrollment window has opened. No later than 30 days after the end of the enrollment window, |
|---|
| 119 | 118 | | 4.25the covered employer must have enrolled all covered employees, except for any covered |
|---|
| 120 | 119 | | 4.26employee who has elected not to contribute. |
|---|
| 121 | 120 | | 4.27 Sec. 9. Minnesota Statutes 2024, section 187.07, subdivision 2, is amended to read: |
|---|
| 122 | 121 | | 4.28 Subd. 2.Remitting contributions.Notwithstanding section 181.06, a covered employer |
|---|
| 123 | 122 | | 4.29must timely remit payroll deduction contributions as required by the board withheld from |
|---|
| 124 | 123 | | 4.30the paycheck of each covered employee to the program as soon as practicable after the |
|---|
| 125 | 124 | | 4.31deduction is taken and no later than 30 days after the date of each paycheck. |
|---|
| 126 | 125 | | 4Sec. 9. |
|---|
| 140 | | - | 5.14 Subd. 6.Enforcement.(a) As described under section 187.012, The board may must |
|---|
| 141 | | - | 5.15impose: (1) statutory civil penalties against any covered employer that fails to comply with |
|---|
| 142 | | - | 5.16subdivisions subdivision 1, 2, and or 3; and (2) statutory civil or criminal penalties against |
|---|
| 143 | | - | 5.17any covered employer that fails to comply with subdivision 2. |
|---|
| 144 | | - | 5.18 (b) At the request of the board, the attorney general shall enforce the penalties imposed |
|---|
| 145 | | - | 5.19by the board against a covered employer. Proceeds of such penalties, after deducting |
|---|
| 146 | | - | 5.20enforcement expenses, must be deposited in the Secure Choice administrative fund and are |
|---|
| 147 | | - | 5.21appropriated to the program. |
|---|
| 148 | | - | 5.22 (c) The board must provide covered employers with written warnings to any covered |
|---|
| 149 | | - | 5.23employer who fails to comply with subdivision 1 or 3 or both subdivisions 1 and 3 for the |
|---|
| 150 | | - | 5.24first year two years of noncompliance before assessing. If the covered employer has not |
|---|
| 151 | | - | 5.25complied with subdivision 1 or 3 during the two-year period after the date on which the |
|---|
| 152 | | - | 5.26covered employer was first required to comply with subdivision 1 or 3, as applicable, the |
|---|
| 153 | | - | 5.27board must assess penalties. |
|---|
| 154 | | - | 5.28 Sec. 12. Minnesota Statutes 2024, section 187.08, subdivision 3, is amended to read: |
|---|
| 155 | | - | 5.29 Subd. 3.Membership terms.(a) Board members serve for two-year terms, except for: |
|---|
| 156 | | - | 5.30 (1) the executive directors of the Minnesota State Retirement System and the State Board |
|---|
| 157 | | - | 5.31of Investment, who serve indefinitely; and |
|---|
| 139 | + | 5.14 Subd. 6.Enforcement.(a) The board may must impose statutory civil penalties against |
|---|
| 140 | + | 5.15any covered employer that fails to comply with subdivisions subdivision 1, 2, and or 3. |
|---|
| 141 | + | 5.16 (b) At the request of the board, the attorney general shall enforce the penalties imposed |
|---|
| 142 | + | 5.17by the board against a covered employer. Proceeds of such penalties, after deducting |
|---|
| 143 | + | 5.18enforcement expenses, must be deposited in the Secure Choice administrative fund and are |
|---|
| 144 | + | 5.19appropriated to the program. |
|---|
| 145 | + | 5.20 (c) The board must provide covered employers with written warnings to any covered |
|---|
| 146 | + | 5.21employer who fails to comply with subdivision 1 or 3 or both subdivisions 1 and 3 for the |
|---|
| 147 | + | 5.22first year two years of noncompliance before assessing. If the covered employer has not |
|---|
| 148 | + | 5.23complied with subdivision 1 or 3 during the two-year period after the date on which the |
|---|
| 149 | + | 5.24covered employer was first required to comply with subdivision 1 or 3, as applicable, the |
|---|
| 150 | + | 5.25board must assess penalties. |
|---|
| 151 | + | 5.26 Sec. 12. Minnesota Statutes 2024, section 187.08, subdivision 3, is amended to read: |
|---|
| 152 | + | 5.27 Subd. 3.Membership terms.(a) Board members serve for two-year terms, except for: |
|---|
| 153 | + | 5.28 (1) the executive directors of the Minnesota State Retirement System and the State Board |
|---|
| 154 | + | 5.29of Investment, who serve indefinitely; and |
|---|
| 155 | + | 5.30 (2) the initial term of the member who is an executive or other professional with |
|---|
| 156 | + | 5.31substantial experience in retirement plan investments under subdivision 1, clause (3), item |
|---|
| 159 | | - | S2985-1 1st EngrossmentSF2985 REVISOR VH 6.1 (2) the initial term of the member who is an executive or other professional with |
|---|
| 160 | | - | 6.2substantial experience in retirement plan investments under subdivision 1, clause (3), item |
|---|
| 161 | | - | 6.3(iii), and the member who is a human resources executive under subdivision 1, clause (4), |
|---|
| 162 | | - | 6.4is three years. |
|---|
| 163 | | - | 6.5 (b) Board members' terms may be renewed, but no member may serve more than two |
|---|
| 164 | | - | 6.6consecutive terms. |
|---|
| 165 | | - | 6.7 Sec. 13. Minnesota Statutes 2024, section 187.08, subdivision 7, is amended to read: |
|---|
| 166 | | - | 6.8 Subd. 7.Executive director; staff.(a) The board must appoint an executive director, |
|---|
| 167 | | - | 6.9determine the duties of the executive director, and set the compensation of the executive |
|---|
| 168 | | - | 6.10director. The board may appoint an interim executive director to serve as executive director |
|---|
| 169 | | - | 6.11during any period that the executive director position is vacant. |
|---|
| 170 | | - | 6.12 (b) The executive director may participate in deliberations but must not vote on any |
|---|
| 171 | | - | 6.13matter before the board. The executive director must not participate in deliberations on any |
|---|
| 172 | | - | 6.14matter before the board that results or is likely to result in direct measurable economic gain |
|---|
| 173 | | - | 6.15to the executive director or the executive director's family. |
|---|
| 174 | | - | 6.16 (c) The executive director must file with the Campaign Finance and Public Disclosure |
|---|
| 175 | | - | 6.17Board an economic interest statement in a manner as prescribed by section 10A.09, |
|---|
| 176 | | - | 6.18subdivisions 5 and 6. |
|---|
| 177 | | - | 6.19 (b) (d) The board may hire staff as necessary to support the board and the executive |
|---|
| 178 | | - | 6.20director or interim executive director in performing their duties or the board may authorize |
|---|
| 179 | | - | 6.21the executive director or interim executive director to hire staff. |
|---|
| 180 | | - | 6.22 Sec. 14. Minnesota Statutes 2024, section 187.11, is amended to read: |
|---|
| 181 | | - | 6.23 187.11 OTHER STATE AGENCIES TO PROVIDE ASSISTANCE. |
|---|
| 182 | | - | 6.24 (a) The board may enter into intergovernmental agreements with the commissioner of |
|---|
| 183 | | - | 6.25revenue, the commissioner of labor and industry, the commissioner of employment and |
|---|
| 184 | | - | 6.26economic development, and any other state agency that the board deems necessary or |
|---|
| 185 | | - | 6.27appropriate to provide outreach, technical assistance, or compliance services. An agency |
|---|
| 186 | | - | 6.28that enters into an intergovernmental agreement with the board pursuant to this section must |
|---|
| 187 | | - | 6.29collaborate and cooperate with the board to provide the outreach, technical assistance, or |
|---|
| 188 | | - | 6.30compliance services under any such agreement. The board, executive director, and program |
|---|
| 189 | | - | 6.31staff must maintain the privacy of data obtained under any intergovernmental agreement if |
|---|
| 190 | | - | 6.32required under chapter 13. |
|---|
| 158 | + | 25-04680 as introduced03/13/25 REVISOR VH/VJ 6.1(iii), and the member who is a human resources executive under subdivision 1, clause (4), |
|---|
| 159 | + | 6.2is three years. |
|---|
| 160 | + | 6.3 (b) Board members' terms may be renewed, but no member may serve more than two |
|---|
| 161 | + | 6.4consecutive terms. |
|---|
| 162 | + | 6.5 Sec. 13. Minnesota Statutes 2024, section 187.08, subdivision 7, is amended to read: |
|---|
| 163 | + | 6.6 Subd. 7.Executive director; staff.(a) The board must appoint an executive director, |
|---|
| 164 | + | 6.7determine the duties of the executive director, and set the compensation of the executive |
|---|
| 165 | + | 6.8director. The board may appoint an interim executive director to serve as executive director |
|---|
| 166 | + | 6.9during any period that the executive director position is vacant. |
|---|
| 167 | + | 6.10 (b) The executive director may participate in deliberations but must not vote on any |
|---|
| 168 | + | 6.11matter before the board. The executive director must not participate in deliberations on any |
|---|
| 169 | + | 6.12matter before the board that results or is likely to result in direct measurable economic gain |
|---|
| 170 | + | 6.13to the executive director or the executive director's family. |
|---|
| 171 | + | 6.14 (c) The executive director must file with the Campaign Finance and Public Disclosure |
|---|
| 172 | + | 6.15Board an economic interest statement in a manner as prescribed by section 10A.09, |
|---|
| 173 | + | 6.16subdivisions 5 and 6. |
|---|
| 174 | + | 6.17 (b) (d) The board may hire staff as necessary to support the board and the executive |
|---|
| 175 | + | 6.18director or interim executive director in performing their duties or the board may authorize |
|---|
| 176 | + | 6.19the executive director or interim executive director to hire staff. |
|---|
| 177 | + | 6.20 Sec. 14. Minnesota Statutes 2024, section 187.11, is amended to read: |
|---|
| 178 | + | 6.21 187.11 OTHER STATE AGENCIES TO PROVIDE ASSISTANCE. |
|---|
| 179 | + | 6.22 (a) The board may enter into intergovernmental agreements with the commissioner of |
|---|
| 180 | + | 6.23revenue, the commissioner of labor and industry, the commissioner of employment and |
|---|
| 181 | + | 6.24economic development, and any other state agency that the board deems necessary or |
|---|
| 182 | + | 6.25appropriate to provide outreach, technical assistance, or compliance services. An agency |
|---|
| 183 | + | 6.26that enters into an intergovernmental agreement with the board pursuant to this section must |
|---|
| 184 | + | 6.27collaborate and cooperate with the board to provide the outreach, technical assistance, or |
|---|
| 185 | + | 6.28compliance services under any such agreement. The board, executive director, and program |
|---|
| 186 | + | 6.29staff must maintain the privacy of data obtained under any intergovernmental agreement if |
|---|
| 187 | + | 6.30required under chapter 13. |
|---|
| 188 | + | 6.31 (b) The commissioner of administration must provide office space in the Capitol complex |
|---|
| 189 | + | 6.32for the executive director and staff of the program. |
|---|