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Committee reviews retirement plan structure for personal care attendants; SF 2640 laid over
Summary
Senators heard MMB and union witnesses on provisions in Senate File 2640 that would create a jointly governed vehicle to permit a defined-contribution retirement program for a bargaining unit of home care workers; the committee adopted an author's amendment and laid the bill over for possible inclusion in the omnibus.
Senate File 2640 — legislation tied to the negotiated contract covering a statewide bargaining unit of home care workers — was discussed at length as the committee considered language establishing a joint state-and-union vehicle to implement a future defined-contribution retirement program. Committee members adopted an author’s amendment and laid the bill over for possible inclusion in the omnibus.
Jennifer Ziegler, enterprise director of labor relations at Minnesota Management and Budget, told the committee the contract itself does not create or fund a retirement plan but “provides the structure for the retirement program at some point in the future if negotiated and funded by the legislature.” Ziegler said the contract includes a one-time $350,000 investment to create a joint state-and-union entity modeled after an existing Washington state program; the amendment broadened program options so the trust could consider alternatives such as Secure Choice or other individual-account programs while explicitly forbidding creation of a defined-benefit plan in this section.
Rick Varco, political director for SEIU Healthcare Minnesota and Iowa, and other witnesses noted the bargaining unit is estimated at about 55,000 workers; Senator May Quade stated the larger PCA workforce in Minnesota totals about 274,000. Committee members discussed eligibility and equity questions for non-union personal care attendants and whether Secure Choice or other retirement mechanisms would be available to workers outside the bargaining unit.
Several senators also expressed process concerns. Senator Drazkowski criticized negotiating contract provisions that require future legislative funding and said the committee should be clearer about fiscal impacts; committee members noted the bill’s cost items are handled in the human services budget and the omnibus fiscal note will accompany the larger budget package.
The committee adopted the A2 author’s amendment clarifying the trust language and broader program options, then laid Senate File 2640, as amended, over for possible inclusion in the omnibus human services budget.
