In the 2023 Legislative Session, Minnesota created Chapter 187, the Minnesota Secure Choice Retirement Program (“MN SCRP”). This was Chapter 46 of House File 782. With the many sweeping employment law changes and new regulations slammed through by the DFL trifecta, MN SCRP got little attention. But now that its implementation is (sort of) approaching, I’m fielding quite a few questions on it. Here’s what you need to know.
In short, MN SCRP is a program whereby employees whose employers don’t sponsor a retirement plan to participate in one.
Here are the hard details:
What is it? Essentially it’s a retirement plan for Minnesotans who don’t get one though their employer. Like any IRA, contributions (in an amount to be determined later) are sent to the plan to be invested (in ways to be determined later) for the employee’s retirement, to be withdrawn at times to be determined later and in ways to be determined later.
Why do we know so little? Chapter 187 is remarkably brief. In fact it’s incredibly brief when compared to things like MN Paid Family Leave and Earned Sick and Safe Time. Chapter 187 says a “Board” will be established to run the program. The statue then “the board must establish . . .” nearly all of the important details. As passed in 2023, the statute didn’t even say when the program was to begin. It had a “no earlier than [date] of January 1, 2025.”
Who’s covered? Employers with five or more “covered employees” that don’t already offer a retirement savings plan. We don’t know what a “covered employee” is (the board will decide that too) but it doesn’t mean anyone under 18. In the 2025 session, the Legislature also excluded seasonal employees (those intended to work 180 days or less) from the definition of “covered employee” but then allowed these employees to opt-in (whereas other “covered employees” are in unless they opt-out.)
What do covered employers have to do? Covered employers will not have to contribute to the plan. Covered employers will simply serve as unpaid administrators for the MN SCRP. Covered employers will have to:
- Inform covered employees of the program (specific details of what must be shared with employees will be determined by the board).
- Enroll covered employees in MN SCRP, unless those employees opt out.
- Collect employee contributions from wages.
- Hold the contributions in trust.
- Remit contributions to MN SCRP in a manner to be determined later by the board. (In the 2025 session, it was clarified that these must be remitted no more than 30 days after withholding.)
- Pay civil penalties (to be determined by the board) if they fail to do any of the above.
- Pay criminal penalties if they fail to remit withheld wages to MN SCRP.
When does this start? As I said above, when passed, Chapter 187 simply didn’t say when MN SCRP would start. In the 2025 session, the Legislature empowered the board to establish an enrollment window and a “phase-in schedule.” That phase in schedule has not been established by the board, but according to the MN SCRA website, it is expected that the program will start enrolling the largest employers before March 30, 2026 and the smallest employers will be enrolled in “25-30 months”.
Speaking of the board, the State of Minnesota currently lists three appointees and five vacancies. The board is currently advertising for the position of Executive Director.
What should employers be doing now? If you employ five or more employees, and you don’t currently offer a retirement plan, you may want to begin shopping for one so that when this program hits you, you at least have the ability to compare costs and benefits of a private plan as against whatever is offered by the state. If you don’t intend to offer a plan, be checking securechoice.mn.gov regularly to see exactly what the unelected board is going to require of your payroll department and when.
