MN HF4656

Adds a new exception (clause 15) allowing supplemental retirement plans funded solely by employee accumulated sick leave, vacation leave, and severance pay under federal Internal Revenue Code provisions.

Permits public employers to make matching contributions to deferred compensation plans based on employees' qualified student loan payments under the Secure 2.0 Act of 2022, in addition to or instead of matching elective deferrals.

Limits total employer matching contributions (combining student loan payment matches and elective deferral matches) to the lesser of: (1) the maximum authorized in the employer's policy, (2) one-half of the annual elective deferral limit under Internal Revenue Code section 402(g), or (3) the employee's annual compensation.

Clarifies that contributions deducted from accumulated sick leave, vacation leave, or severance pay are not subject to the matching contribution requirements and limits in paragraph (f).

Both sections effective the day following final enactment.