A bill for an act
relating to retirement; establishing the Minnesota Secure Choice retirement
program; proposing coding for new law as Minnesota Statutes, chapter 187.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [187.01] MINNESOTA SECURE CHOICE RETIREMENT PROGRAM;
CITATION.
new text end

new text begin This chapter shall be known as and may be cited as the "Minnesota Secure Choice
Retirement Program Act."
new text end

Sec. 2.

new text begin [187.02] STATEMENT OF PURPOSE.
new text end

new text begin The state of Minnesota creates and establishes a public-private partnership model known
as the "Minnesota Secure Choice retirement program" for privately employed workers to
save for retirement for the following reasons:
new text end

new text begin (1) for millions of Americans, including hundreds of thousands of Minnesotans, a secure
retirement is not attainable, with the median retirement account balance being $3,000 for
all working-age households and $12,000 for near-retirement-age households;
new text end

new text begin (2) Americans who do not have access to a retirement savings plan through their
workplace are more likely to rely on Social Security as their only source of retirement
income;
new text end

new text begin (3) in Minnesota, the average monthly Social Security benefit is $1,600, with nearly 14
percent of seniors relying on Social Security for 90 percent of their income;
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new text begin (4) increased retirement savings can save Minnesota taxpayers an estimated $258,000,000
over a span of ten years in Medicaid savings alone; and
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new text begin (5) research has shown that offering workers a way to save through their job increases
their ability to save dramatically and promotes individual responsibility and financial
freedom.
new text end

Sec. 3.

new text begin [187.03] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of this chapter, the terms defined in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin "Board" means the Secure Choice retirement program board of directors.
new text end

new text begin Subd. 3. new text end

new text begin Compensation. new text end

new text begin "Compensation" means compensation within the meaning of
Section 219(f)(1) of the Internal Revenue Code that is received by a covered employee from
a covered employer.
new text end

new text begin Subd. 4. new text end

new text begin Contribution rate. new text end

new text begin "Contribution rate" means the percentage of compensation
withheld from a covered employee's compensation and deposited in an account established
for the covered employee under the program.
new text end

new text begin Subd. 5. new text end

new text begin Covered employee. new text end

new text begin (a) "Covered employee" means a person who is employed
by a covered employer and who, for the immediately preceding calendar year, was credited
with 500 or more hours of service for the covered employer and whose primary work location
is in Minnesota. Once a person has been credited with 500 or more hours of service in a
calendar year, the person continues to be a covered employee for as long as the person is
employed by a covered employer, even if the person is credited with fewer than 500 hours
of service in the current or subsequent calendar year.
new text end

new text begin (b) Covered employee does not include:
new text end

new text begin (1) a person who, on December 31 of the preceding calendar year, was younger than 18
years of age;
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new text begin (2) a person covered under the federal Railway Labor Act, as amended, United States
Code, title 45, sections 151 et seq.;
new text end

new text begin (3) a person on whose behalf an employer makes contributions to a Taft-Hartley
multiemployer pension trust fund; and
new text end

new text begin (4) a person employed by the government of the United States, another country, the state
of Minnesota, another state, or any subdivision thereof.
new text end

new text begin Subd. 6. new text end

new text begin Covered employer. new text end

new text begin (a) "Covered employer" means a person or entity:
new text end

new text begin (1) engaged in a business, industry, profession, trade, or other enterprise in Minnesota,
whether for profit or not for profit;
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new text begin (2) that employs one or more covered employees or is a sole proprietor; and
new text end

new text begin (3) that does not sponsor or contribute to and did not in the immediately preceding
calendar year sponsor or contribute to a retirement savings plan for its employees or, in the
case of a sole proprietorship, for the sole proprietor.
new text end

new text begin (b) Covered employer does not include:
new text end

new text begin (1) an employer that has not engaged in a business, industry, profession, trade, or other
enterprise in Minnesota, whether for profit or not for profit, at any time during the
immediately preceding calendar year; and
new text end

new text begin (2) a state or federal government or any political subdivision thereof.
new text end

new text begin Subd. 7. new text end

new text begin Executive director. new text end

new text begin "Executive director" means the chief executive and
administrative head of the program.
new text end

new text begin Subd. 8. new text end

new text begin Internal Revenue Code. new text end

new text begin "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended, United States Code, title 26.
new text end

new text begin Subd. 9. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota Secure Choice retirement program.
new text end

new text begin Subd. 10. new text end

new text begin Retirement savings plan. new text end

new text begin "Retirement savings plan" means a plan or program
offered by an employer that permits contributions to be set aside for retirement on a pre-tax
or after-tax basis and permits all employees of the employer to participate except those
employees who have not satisfied participation eligibility requirements that are no more
restrictive than the eligibility requirements permitted under section 410(b) of the Internal
Revenue Code. Retirement savings plan includes but is not limited to a plan described in
section 401(a) of the Internal Revenue Code, an annuity plan or annuity contract described
in section 403(a) or (b) of the Internal Revenue Code, a plan within the meaning of section
457(b) of the Internal Revenue Code, a simplified employee pension (SEP) plan, a savings
incentive match plan for employees (SIMPLE) plan, a payroll deduction individual retirement
account, and a multiemployer pension plan described in section 414(f) of the Internal
Revenue Code.
new text end

new text begin Subd. 11. new text end

new text begin Secure Choice administrative fund. new text end

new text begin "Secure Choice administrative fund"
or "administrative fund" means the fund established under section 187.06, subdivision 2.
new text end

new text begin Subd. 12. new text end

new text begin Secure Choice trust. new text end

new text begin "Secure Choice trust" means a trust established under
section 187.06, subdivision 1, to hold contributions and investment earnings thereon under
the program.
new text end

new text begin Subd. 13. new text end

new text begin Roth IRA. new text end