House state and local government committee approves HF782 3/9/23

HF782 would establish the Minnesota Secure Retirement Program that would help employees better prepare for their golden years. An employer that does not sponsor a retirement plan would transmit a percentage of the employees pay on an after-tax or pre-tax basis to a state-sponsored individual retirement account. Minimum and maximum contribution rates would be set by a seven-member board of directors created by the bill. The program would begin by Jan. 1, 2025. A fiscal note shows a $2.24 million cost in the 2024-25 biennium. Program participation would be mandatory for employers that do not sponsor a retirement savings plan for their employees, however, employees could opt out of participation.