Minnesota Secure Choice Retirement Program Employers Overview

Employers with five or more employees who do not offer employees a retirement plan are required to enroll in the Minnesota Secure Choice Retirement Program. Employees may not opt out of the Program.

Employers contributions are not permitted; the only contributions to the Program will be wages withheld from employees’ pay checks.

Employers will be required to deduct contributions from their employees’ paychecks and remit those to the Program. Employers will be responsible for any cost associated with deducting the contributions and remitting them to the recordkeeper. The recordkeeper will offer several ways to interface with their current payroll software and payroll firms. There will be no cost to the employer.

The employee’s payroll deduction contribution will be deposited into a Roth IRA account unless otherwise elected into another account. The Program will also offer a traditional IRA so the employee can elect to contribute on a pre-tax basis.

An initial contribution of 5% is proposed with annual automatic escalation of 1% until it reaches 8%.