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SF 1213

Minnesota State Colleges and Universities locating an eligible person's missing IRAP account or pay the eligible person $25,000 requirement provision

2025-2026 Regular Session Introduced by Jeremy Miller

MnSCU must locate missing IRAP retirement accounts or pay $25,000 per person to eligible individuals unable to access their savings.

Referred to State and Local Government
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Bill Summary · SF 1213

Legislative bill overview

SF 1213 requires Minnesota State Colleges and Universities (MnSCU) to locate missing Individual Retirement Account Plan (IRAP) accounts belonging to eligible persons, or alternatively pay those individuals $25,000 in compensation. The bill establishes a mandate for the system to conduct searches for dormant retirement accounts and provides a financial remedy if accounts cannot be located.

Why is this important

Many workers have lost track of retirement savings from previous employers or educational institutions, creating a "lost and found" problem in the retirement system. This bill attempts to address that by either reuniting people with their money or providing direct compensation, which could significantly impact individuals' retirement security and MnSCU's financial obligations.

Potential points of contention

  • Financial liability: The $25,000 per-person payout could create substantial unfunded liabilities for MnSCU, potentially affecting institutional budgets and operations
  • Eligibility definition: The bill's definition of "eligible person" is not detailed in this summary, raising questions about who qualifies and how broadly this applies
  • Feasibility and enforcement: Locating dormant accounts across systems may be technically challenging; unclear whether MnSCU has sufficient resources or access to necessary records
  • Precedent concerns: This compensation model could incentivize similar claims against other state institutions or employers

Compiled from official sources — confirm details with the bill’s official record.

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