SIFMA provides the Minnesota State Government Operations Committee with this Statement for the Record for the hearing to consider HF 2419, Minnesota Secure Choice Retirement Savings Program.

SIFMA agrees there is a savings challenge in this country. Individuals need to save more for retirement and need to better understand the benefits of compounding interest, diversification, and not accessing retirement savings accounts for other purposes. Additional education is part of this process, with age appropriate programs for children and adults. Enhanced federal and state programs and incentives encouraging more employers to offer these plans and more employees to utilize them would be helpful.

However, SIFMA believes HF 2419 is a step in the wrong direction. It would burden Minnesota with additional costs and liability to develop, establish and administer a new program. Such a program would directly compete with the private market which today provides a wide variety of individual retirement account options for employees who are ready to contribute a percentage of their annual compensation towards retirement.