If you’re one of the 40% of working Minnesotans who do not have a retirement plan, you could benefit from passage of the Minnesota Secure Choice Retirement Program Act. This legislation could give up to 900,000 Minnesotans access to retirement savings plans.
Minnesota Secure Choice Retirement Program Act
State Senator Sandy Pappas and State Representative Jamie Becker-Finn have introduced the Minnesota Secure Choice Retirement Program Act, a public-private partnership to provide employees who otherwise don’t have access to retirement savings plans a chance to save for retirement. This legislation has been introduced before, in 2019, and it’s unclear whether it will pass during the current legislative session. Notably, however, this year the bill has some bipartisan support in the state Senate.
How would the program work? It takes a two-pronged approach, offering one option for individual employees — a state-sponsored Individual Retirement Account (IRA) plan — and another option for employers — a state-sponsored multiple employer retirement plan. Employees would be automatically enrolled by their employers and have a percentage of each paycheck withheld unless they specifically opt out of the program. A seven-member board of directors would be created to administer and manage the plans.
Other states offer similar public retirement plan programs: California, Oregon and Illinois have auto-IRA programs in which employers who do not sponsor a tax-qualified retirement plan are required by law to enroll their employees in a payroll deduction Roth IRA.
We can help with your questions
Do you have questions about your retirement plan or pension? The Upper Midwest Pension Rights Project may be able to help. We provide no-cost legal services and advice for retirement savings and pension plan issues. Contact us at 1-866-783-5021 or pensions@trellisconnects.org.
Disclaimer: This blog is not legal advice but contains general information not applicable to specific matters. No attorney-client relationship is formed by access to this information.
