There has been a lot of confusion about who is impacted by the law passed in 2023 creating the MN Secure Choice Retirement Plan and the program’s timeline for implementation. This new mandate will impact employers with five or more employees that do NOT offer a retirement program to their employees. At a recent meeting of the SCRP board, a timeline of implementation was set out by staff stating that the new retirement program will NOT start until first quarter of 2026 at the earliest and then will likely be phased in by employer size. There is no action needed by employers in at this time.
The 2023 law, Ch. 187 MN Statutes, creating this new state retirement program is intended to encourage greater retirement savings for private sector employees that do not have a retirement program at their place of employment. Employers will be required to transmit a payroll deduction from their employee’s pay and remit it to the state for investment in a state run individual retirement account for the employees. Employees are allowed to opt out. The employer’s role is restricted in this type of plan and employers are not allowed to do a retirement match. Further details on the program’s roll out are still to be determined by the SCRP board and they will be developing a website in the near future. In the meantime, you can find information on the law at the MN Legislative Commission on Pensions and Retirement at https://lcpr.mn.gov/SecureChoice.htm |
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