HF782 Summary

• Establishes the Minnesota Secure Choice retirement program as an auto-IRA program allowing employees at businesses with 5+ workers to make payroll deduction contributions to individual retirement accounts (Roth or Traditional IRAs).

• Creates a 7-member board of directors to administer the program, with members appointed by the Legislative Commission on Pensions and Retirement and the Governor, including representatives with experience in 401(k) plans, IRAs, and retirement investments.

• Requires covered employers to enroll eligible employees in the program and withhold contributions unless employees opt out; employers have no fiduciary responsibility and face civil penalties for non-compliance.

• Establishes a Secure Choice trust to hold contributions and a separate administrative fund, with investment options selected by the State Board of Investment and fiduciaries relieved of liability for employee-directed investment losses.

• Transfers $5,000,000 from the general fund in fiscal year 2024 to the administrative fund and requires the program to begin operations no earlier than January 1, 2025, with full implementation completed within two years.