--- url: 'https://www.fmjlaw.com/update-minnesotas-secure-choice-mandatory-retirement-program-will-become-available-on-or-after-january-1-2026/' title: 'UPDATE: Minnesota’s Secure Choice Mandatory Retirement Program Will Become “Available” on or After January 1, 2026' author: name: Adam url: 'https://www.fmjlaw.com/author/adam-brownfmjlaw-com/' date: '2025-05-16T15:29:13+00:00' modified: '2025-09-30T18:28:29+00:00' type: post summary: Employers should begin preparing now to comply with the new requirements of the SCRP. categories: - Article - Legal Alert - Newsroom - Thought Leadership tags: - employment law - HR - SCRP - Secure Choice Retirement Program published: true --- # UPDATE: Minnesota’s Secure Choice Mandatory Retirement Program Will Become “Available” on or After January 1, 2026 In May 2023, the Minnesota Legislature enacted a bill establishing a mandatory retirement program as part of the Minnesota Secure Choice Retirement Program (the “SCRP”). The SCRP is codified at Minn. Stat. §§ 187.01 to 187.11. [Click here](https://www.fmjlaw.com/minnesotas-new-mandatory-retirement-benefits-program-will-open-in-2025/) to read one of our prior articles about this statute. The SCRP has undergone a number of updates, and it will now be “available” to employers on or after January 1, 2026. According to the SCRP’s website ([https://mn.gov/scrb/](https://mn.gov/scrb/)), the SCRP “was established by the legislature to encourage saving for retirement by employees working for employers who do not offer a workplace retirement plan.” It will become available to employers on, or after, January 1, 2026. The website provides that “employers will be given time after that to enroll in the Program and begin payroll deduction contributions” and it “will help employers get started.” ## SCRP Application Employers with *five or more employees* that do not offer employees a retirement plan are *required* to enroll in the plan. These employers are not allowed to opt out of the program. If an employer already offers a retirement plan, they will not be required to participate in the Program. Employers are not required to contribute to the SCRP. In fact, employer contributions are not permitted. The only contributions to the program will be wages withheld from employee paychecks. ## Mechanics There is not much information out yet about how the program will actually work. For now, we know that employers will be required to deduct employees’ contributions from their paychecks and remit those contributions to the SCRP. Employers will be responsible for any cost associated with this process, but based on current information, the SCRP will offer several ways to submit contributions. The SCRP site provides that the program should be able to “interface with current payroll software or payroll firms.” Employers will also be required to distribute information to employees at times. That information will be provided by the SCRP. **Contributions and Employee Options** Contribution amounts have not been set yet. The SCRP Board of Directors will establish initial contribution amounts. After that, employees will be able to adjust contribution amounts. Employees could also choose to opt out of the SCRP entirely. Unless an employee makes a different election, the employee’s payroll deduction contributions will be deposited into a Roth IRA. The SCRP will also offer traditional IRAs, and it appears that employees will have some options to choose for their contributions. ## Withdrawal Employees are expected to be allowed to withdraw their funds from their IRA in the SCRP prior to retirement. There is little other guidance in terms of vesting, timing, etc. Whether the withdrawal will be taxed depends on whether the IRA is a Roth IRA or traditional IRA, the age of the employee, and other considerations. The SCRP will handle all withdrawals and provide tax information regarding the withdrawals. ## What Liability, if Any, Will Employers Have Under the Secure Choice Program? The statute makes it clear that beyond the duties outlined above, a covered employer has no obligations to employees and it is not a fiduciary for any purpose under the program or in connection with the SCRP. Furthermore, employers are not liable to employees for damages alleged to have resulted from an employee’s participation in or failure to participate in the program. Under the statute, the SCRP will have some enforcement powers, including the ability to impose civil penalties against employers that fail to comply with the enrollment, remittance, and information requirements of the program. At this time, there is little guidance in terms of the manner in which the program will be implemented. The mechanics of the program are not yet clear. Notwithstanding, employers that may potentially be subject to the Secure Choice Program should stay up to date on the requirements and be ready to comply with new requirements as they are released. FMJ continues to monitor the SCRP, and we can help your organization set up a plan for compliance whenever you are ready. If you have questions about this issue or anything else related to employment law, please contact [Shannon McDonough](https://www.fmjlaw.com/professional/shannon-m-mcdonough/) or the rest of our [HR & Employment Team](https://www.fmjlaw.com/practice-area/hr-employment/). 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