The Land of 10,000 Lakes is poised to become the next to adopt a measure creating a state-run retirement program that provides coverage for private-sector employees whose employers do not.
The state Senate approved the bill that would do so on May 11, and the House had done so 10 days earlier; the support of the American Retirement Association (ARA) has been noted as important.
The Senate approved the measure in a 34-33 vote. Sen. Sandra L. Pappas (DFL-St. Paul) introduced the Senate version of the bill on Jan. 19, 2023. The House had passed HF 782 in a 71-60 vote on May 1. The measure now goes to the desk of Gov. Tim Walz (D), who has two weeks to sign it.
The legislation would require employers that employ five or more covered employees and that do not sponsor their own workforce retirement savings plan to participate. It also would afford employees a variety of options. They could:
- decide whether their contributions will be pre-tax or after-tax;
- opt out of participation;
- change their contribution rate;
- direct the investment of their accounts into an array of investment funds offered through the State Board of Investment; and
- leave their account after leaving employment with the state for distribution at a later date or elect a distribution in the form of a lump sum or other options to be determined by the board, including lifetime income options.
ARA Lauded for Support
Lawmakers in both chambers expressed gratitude for the American Retirement Association’s support of the legislation. Rep. Jamie Becker-Finn (DFL-Roseville), who introduced the bill in the House, recognized that the ARA support of the measure has been “a big deal.” And Sen. Pappas, likewise, expressed gratitude for the ARA’s support.
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