The State of Minnesota enacted the Minnesota Secure Choice Retirement Program (the “Program”) in 2023, with an original launch date of January 1, 2025. While that deadline has passed, the Program’s new implementation date is now set for January 1, 2026.

Who Must Participate?

The Program requires Minnesota employers with five (5) or more employees to participate if they do not currently offer a qualified retirement plan. This requirement applies regardless of whether employees reside in Minnesota.

How the Program Works

The Program is structured as an employee-funded retirement savings initiative:

• Contributions are deducted directly from employee paychecks and deposited into individual Roth IRA or traditional IRA accounts.
• A Roth IRA will be automatically established for each employee unless they elect pre-tax contributions through a traditional IRA.
• The proposed initial contribution rate is 5% of wages, with automatic annual increases of 1% until reaching a maximum of 8%.
• Employees may opt out of participation at any time.

Employer Responsibilities

While employers cannot contribute to employee accounts under this Program, they do have specific obligations:

• Facilitate payroll deductions and remit contributions to the Program’s service provider.
• Bear administrative costs associated with processing and remitting contributions.
• Provide Program information and enrollment materials to employees.
• Note: There are no setup fees for establishing employee accounts.

Importantly, employers who do not offer a qualifying retirement plan cannot opt out of the Program once their compliance date arrives.

Implementation Timeline

The Program features a phased rollout based on employer size. Employers should note they are not required to implement the Program until their designated compliance date:

https://securechoice.mn.gov/

Next Steps

Even if your compliance date is not immediate, we recommend familiarizing yourself with the Program requirements well in advance. This preparation ensures smooth implementation and gives you adequate time to communicate the new benefit to your employees.

For more information, visit the official Program website: https://securechoice.mn.gov/.

Please contact us with any questions regarding the Program. We will continue to provide updates as additional information becomes available.