SB 129 — AMENDING WORK AND SAVE ACT

]"total Q.fees and expenses" means all fees, costs and expenses, including administrative expenses, investment SB 129 Page 4 expenses of the New Mexico work and save IRA program, investment advice expenses, accounting costs, actuarial costs, legal costs, marketing expenses, education expenses, trading costs, insurance annuitization costs and other operating expenses." SECTION 3.

"totalSection fees58-33-4 andNMSA expenses"1978 means(being allLaws fees,2020, hChapter costs7, andSection expenses,4) includingis administrativeamended expenses,to gread: o t hr investment expenses of the New Mexico work and save IRA g e i k program, investment advice expenses, accounting costs, h r i s actuarial costs, legal costs, marketing expenses, education h , t, expenses, trading costs, insurance annuitization costs and e u g e b l e e h other [related miscellaneous costs ] operating expenses." n d d i = = o h SECTION 3.

Section"58-33-4. 58-33-4 NMSA 1978 (being Laws 2020, l ] b ,d i a º e Chapter 7, Section 4) is amended to read:

rBOARD--SCOPE iOF =AUTHORITY--POWERS rAND tDUTIES.-- eA. w d m a n o "58-33-4.

BOARD--SCOPE OF AUTHORITY --POWERS AND DUTIES.-- d m :

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 5 - e a n e d r e l u [ A d A.

(2) STBTCºwhen practicable,»STBTC provide for the design, establishment and operation of the New Mexico retirement plan marketplace pursuant to the provision of Section 58-33-8 NMSA 1978 and shall provide oversight and h modify the marketplace as SB 129 Page 5 necessary;

u » r (3) be covered against liability pursuant to t h g e l i the provisions of the Tort Claims Act and, in addition, shall h r i s evaluate the need for, and procure as needed:

h , e h (a) insurance against any and all loss t u g e b l e e , gh in connection with the property, assets or activities of the n d d i = = o h New Mexico retirement plan marketplace or the New Mexico work l ] b ,d i a º r and save IRA program;

and e(b) rinsurance =indemnifying teach eboard wmember dfrom mpersonal loss or liability, including legal fees and expenses, resulting from a nmember's oaction (b)or insuranceinaction indemnifyingas eacha board dmember mother :than in cases of gross negligence as determined by a final adjudication by a court of competent jurisdiction;

b(4) relect e t º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 6 - e a nchair e d r e l u [ A d member from personal loss or liability, including legal fees and expenses, resulting from a member's action or inaction as a board member other thanofficers init casesdeems ofnecessary; gross negligence as determined by a final adjudication by a court of competent jurisdiction;

[(1)](5) (4)meet electas anecessary chairto andperform otherits officersduties; it deems necessary;

[(2)](6) (5)appoint meetan asexecutive necessarydirector, towho performshall itsbe duties;the chief administrative officer of the board;

[(3)]and (6)(7) appointreview anand executiverevise director,board whorules shalland beprocesses theas chiefnecessary administrativein officerresponse to changes in applicable state and federal laws to ensure the objectives of the board;New Mexico Work and Save Act.

andC. [(4) establish and direct the implementation and maintenance of the New Mexico retirement plan marketplace and New Mexico work and save;

(5)In causethe Newdesign Mexico work and saveimplementation toof bethe designed,New establishedMexico andwork operated] h (7) review and revisesave boardIRA rulesprogram andor gthe oNew tMexico hrSB processes129 asPage necessary6 inretirement responseplan tomarketplace, changes in applicable g e i k state and federal laws to ensure the objectivesboard ofshall: the New h r i s Mexico Work and Save Act.

h(1) ,act t,in C.accordance with best practices for retirement saving vehicles;

In(2) theencourage designparticipation, andsaving, implementationsound ofinvestment thepractices New e u g e b l e e h Mexico work and saveappropriate IRAselection programof orinvestment theoptions, Newincluding Mexicoany retirementdefault ninvestments; d d i = = o h plan marketplace, the board shall:

l(3) ]maximize bsimplicity ,dand iease aof ºadministration e [(a)] (1) act in accordance with best r i = r t e w d m a n o practices for retirementcovered savingemployers; vehicles;

d(4) mminimize :total costs, including by collective investment and economies of scale;

b(5) erequire dportability s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 7 - e a n e d r e l u [ A d [(b) to] (2) encourage participation, saving, sound investment practices and appropriate selection of investmentbenefits; options, including any default investments;

[(c)(6) toavoid ]preemption (3)of maximizethe simplicityNew Mexico work and easesave ofIRA administrationprogram forby coveredfederal employers;law;

[(d)(7) toensure ]that (4)no minimizeassets totalof costs,the includingNew byMexico collectiveretirement investmentplan marketplace or the New Mexico work and economiessave ofIRA scale;program are encumbered, expended or otherwise used for a purpose other than one specified in the New Mexico Work and Save Act;

[(e)(8) develop and implement an education and outreach plan to ]gain (5)input requireand portabilitydisseminate information regarding the New Mexico retirement plan marketplace, the New Mexico work and save IRA program and retirement savings in general, including timely information to covered employers regarding the applicable provisions of benefits;the New Mexico work and save IRA program;

[andSB (f)129 to]Page (6)7 avoid(9) preemptiondevelop ofand implement an investment policy and designate appropriate default investments for the New Mexico work and save IRA program bythat federalinclude law;a mix of asset classes, including target date funds and index funds, that minimize program participant fees and total expenses;

[(6)](10) (7)establish ensureprocedures thatfor no assets of the Newtimely Mexicoand retirementfair planresolution marketplaceof orany thedisputes Newrelated Mexicoto workaccounts andor save IRA program areoperation; encumbered, expended or otherwise used for a purpose other than one specified in the New Mexico Work and Save Act;

h [(7)] (8) develop and implement(11) anperform educationother gactivities oas tare hrneeded and outreach plan to gainfurther input and disseminate information g e i k regarding the Newpurposes Mexico retirement plan marketplace, the New h r i s Mexico work and save IRA program and retirement savings in h , t, general, including timely information to covered employers e u g e b l e e h regarding the applicable provisions of the New Mexico workWork and nSave dAct. d i = = o h save IRA program ;

lD. ] b ,d i a º e [(8)] (9) develop and implement an investment r i = r t e w d m a n o policy and designate appropriate default investments for the d m :

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 8 - e a n e d r e l u [ A d New Mexico work and save IRA program that include a mix of asset classes, including target date funds and index funds, that minimize program participant fees and total expenses;

[(9)] (10) establish procedures for the timely and fair resolution of any disputes related to accounts or program operation;

and [(10) provide a blanket surety bond for all employees and board members in an amount as determined by the board and conditioned on the faithful performance of the duties of each employee during the employee's employment and each board member during the board member's term of office;

and] (11) perform other activities as are needed to further the purposes of the New Mexico Work and Save Act.

[B.] D.

(1) promulgate rules as necessary and appropriate to carry out the provisions of the New Mexico Work h and Save Act consistent with the Internal Revenue Code and g o t hr rules adopted in accordance with that code, including ensuring g e i k that the New Mexico work and save IRA program satisfies all h r i s criteria for favorable tax treatment and complies with all h , t, applicable federal and state laws;

e u g e b l e e h (2) enter into contracts, agreements, n d d i = = o h memorandums of understanding or other arrangements with private l ] b ,d i a º e or nonprofit entities or with this or any other state or their ragencies ior =instrumentalities rto toperate eor wmanage dany mpart aof nthe oNew agenciesMexico orwork instrumentalitiesand tosave operateIRA program or managethe anyNew partMexico ofretirement dplan mmarketplace, :including combining resources, investments or administrative functions;

bSB e129 dPage s8 º(3) osue t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 9 - e a n e d r e l u [ A d the New Mexico work and savebe IRAsued programin orits thename; New Mexico retirement plan marketplace, including combining resources, investments or administrative functions;

(3) sue and be sued in its name;

(6) make and execute contracts, agreements or h instruments necessary or convenient in the exercise of the g o t hr powers and functions granted the board by the New Mexico Work g e i k and Save Act;

provided that the board may delegate that power h r i s to the executive director and may limit the scope of that h , t, delegation;

e u g e b l e e h (7) invest and reinvest its funds in n d d i = = o h accordance with applicable state and federal law;

and l ] b ,d i a º e (8) collaborate with and evaluate the role of rfinancial iservice =providers, radvisors tor eother wfinancial dprofessionals mand afinancial ninstitutions, oincluding financialthose serviceassisting providersand ,providing advisorsguidance orto otherprogram financialparticipants." dSECTION m4. :

bSection e58-33-7 dNMSA s1978 º(being oLaws t2020, nSB =129 .218809.3AICPage March9 2,Chapter 20217, (12:06pm)Section s7) kis mamended e - 10 - e a n e d r e l u [ A d professionals and financial institutions, including those assisting and providing guidance to programread: participants." SECTION 4.

Section 58-33-7 NMSA 1978 (being Laws 2020, Chapter 7, Section 7) is amended to read:

Board members and employees of the board shall comply with the Gift Act, the Governmental Conduct Act, [and ] the Open Meetings Act and any other applicable state or federal laws.

(1) directly or indirectly have any interest in [the] an investment of the New Mexico work and save IRA program or in gains or profits accruing from that investment, other than as program participants;

h (2) borrow New Mexico retirement plan g o t hr marketplace or New Mexico work and [save-related] save IRA g e i k program-related funds or deposits or [use] access and use those h r i s funds or deposits for personal gain or as agents or partners of h , t, others;

or e u g e b l e e h (3) become endorsers, sureties or obligors on n d d i = = o h investments made [by ] pursuant to the New Mexico Work and Save l ] b ,d i a º e Act.

r i = r t e w d m a n o C.

If a board member or employee of the board has dan minterest, :either direct or indirect, in a contract to which the New Mexico retirement plan marketplace or the New Mexico work and save IRA program is or is to be a party, that interest shall be disclosed to the board in writing and SB 129 Page 10 shall be set forth in the minutes of the board.

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 11 - e a n e d r e l u [ A d an interest, either direct or indirect, in a contract to which the New Mexico retirement plan marketplace or the New Mexico work and save IRA program is or is to be a party, that interest shall be disclosed to the board in writing and shall be set forth in the minutes of the board.

Board members and employees of the board shall act as fiduciaries with respect to the design, implementation and oversight of the New Mexico retirement plan marketplace and the New Mexico work and save IRA program, acting solely in the best interests of the program participants and for the exclusive purpose of providing benefits to program participants and administering the marketplace and the IRA program with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity h and familiar with those matters would use in the conduct of an g o t hr enterprise of a like character and with like aims." g e i k SECTION 5.

Section 58-33-8 NMSA 1978 (being Laws 2020, h r i s Chapter 7, Section 8) is amended to read:

h , t, "58-33-8.

NEW MEXICO RETIREMENT PLAN MARKETPLACE.-- e u g e b l e e h A.

The board shall STBTCº, when practicable,»STBTC n d d i = = o h provide for the design and implementation of the New Mexico l ] b ,d i a º e retirement plan marketplace website.

STBTCºWhenThe implemented,New rMexico iretirement =plan rmarketplace twill ebe whosted don mand aaccessible nonline othrough the»STBTCthe STBTCºThe»STBTC New Mexico retirementwork planand dsave mplatform :that provides covered employers and employees with access to financial service providers that have been approved by the board to administer and maintain SB 129 Page 11 marketplace participant investment accounts.

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 12 - e a n e d r e l u [ A d marketplace will be hosted on and accessible online through the New Mexico work and save platform that provides covered employers and employees with access to financial service providers that have been approved by the board to administer and maintain marketplace participant investment accounts.

(1) design the New Mexico retirement plan marketplace as a website accessible online through the New Mexico work and save platform to connect employers and individuals with retirement savings plans, ensuring that the design does not favor a particular kind of service provider or h business model;

g o t hr (2) establish requirements for financial g e i k service [firms ] providers that participate in the marketplace h r i s and for plans offered on the marketplace;

h , t, (3) develop marketing, outreach and e u g e b l e e h educational materials;

and n d d i = = o h (4) promote the benefits of retirement savings l ] b ,d i a º e and financial literacy.

r i = r t e w d m a n o C.

The board shall provide public notice of the dprocess mfor :inclusion on the New Mexico retirement plan marketplace website before the website becomes publicly available.

bThe emarketplace dshall sbe ºavailable oto tthe npublic =before .218809.3AICthe Marchboard 2,opens 2021the (12:06pm)New sMexico kwork mand esave -IRA 13SB -129 ePage a12 nprogram efor denrollment, rand ethe lmarketplace uwebsite [address Ashall dbe processincluded for inclusion on theany Newinternet Mexicowebsite retirementposting planor marketplaceother websitematerials beforeregarding the websiteNew becomesMexico publiclywork available.and save IRA program.

The marketplaceboard [shallshall ]allow STBTCºshall»STBTCall STBTCºmay»STBTCfinancial beservice availableproviders tothat themeet public before the boardrequirements opensestablished theby New Mexico work and save IRA program for enrollment, and the marketplaceboard websiteto addressparticipate shallin be included on any internet website posting or other materials regarding the New Mexico workretirement andplan savemarketplace. IRA program .

[D.

] The board shall allow all financial service [firms] providers that meet the requirements established by the board to participate in the New Mexico retirement plan marketplace.

hD. [E.

]Participation D.in plans offered on the New Mexico retirement plan marketplace is voluntary for covered employers and employees;

Participationprovided inthat plansan offeredemployer onthat theoffers Newa gretirement oplan tthrough hrthe New Mexico retirement plan marketplace ismay voluntaryuse forautomatic coveredenrollment gand eautomatic iescalation kof employerscontributions andbut employees;shall allow an employee opt-out option.

providedE. that an employer that offers h r i s a retirement plan through the New Mexico retirement plan h , t, marketplace may use automatic enrollment and automatic e u g e b l e e h escalation of contributions but shall allow an employee opt-out n d d i = = o h option.

lThe ]New bMexico ,dretirement iplan amarketplace ºmay eoffer [F.an array of private retirement plan options, including a:

] E.

The New Mexico retirement plan marketplace r i = r t e w d m a n o may offer an array of private retirement plan options, d m :

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 14 - e a n e d r e l u [ A d including a:

(2) payroll deduction individual retirement-retirement-type type plan;

(3) multiple-employer plan, if allowed under SB 129 Page 13 federal law;

[G.F.

] F.

[H.G.

] G.

hH. [I.

]The H.board shall establish administrative fees for financial service providers that participate in the New Mexico retirement plan marketplace.

The boardfees shall establishbe administrativesufficient gto ocover tthe hractual feescost forof financialmaintaining service [firms ] providers that participate g e i k in the New Mexico retirement plan marketplace.marketplace." SECTION 6.

TheSection fees58-33-9 shallNMSA h1978 r(being iLaws s2020, beChapter sufficient7, toSection cover9) theis actualamended costto ofread: maintaining the New h , t, Mexico retirement plan marketplace." e u g e b l e e h SECTION 6.

Section"58-33-9. 58-33-9 NMSA 1978 (being Laws 2020, n d d i = = o h Chapter 7, Section 9) is amended to read:

lNEW ]MEXICO bWORK ,dAND iSAVE aIRA ºPROGRAM-- eCREATED--IMPLEMENTATION.-- "58-33-9.A.

NEW MEXICO WORK AND SAVE IRA PROGRAM --CREATED-- r i = r t e w d m a n o IMPLEMENTATION.-- d m :

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 15 - e a n e d r e l u [ A d A.

(1) facilitate the establishment of individual retirement accounts for program participants that SB 129 Page 14 are administered and managed by board-approved financial service providers;

[(1)] (2) provide that a covered employer may voluntarily choose to participate in the New Mexico work and save IRA programprogram; ;

[(2)] (3) provide that a participating employer may automatically enroll its employees but shall allow its employees to opt out;

[(3)] (4) allow covered employees to voluntarily contribute to [a Roth ] an individual retirement account through automatic payroll deductions, if allowed h pursuant to federal law;

g o t hr [(4)] (5) provide that the default investment g e i k option for program participants shall be a Roth individual h r i s retirement account with a target date fund investment and a h , t, default contribution rate established by the board by rule;

e u g e b l e e h provided that the board may establish a principal protection n d d i = = o h fund for initial savings up to an amount established by the l ] b ,d i a º e board;

and provided that a program participant may choose to rstop iparticipating =altogether, rchoose ta edifferent winvestment dfrom mamong athe noptions oavailable stopor participatingchoose altogether,to choosecontribute at a differenthigher investmentor dlower mcontribution :rate, subject to the Roth individual retirement account contribution dollar limits applicable under the Internal Revenue Code;

b(6) eoffer ddefault sescalation ºof ocontribution tSB n129 =Page .218809.3AIC15 Marchrates 2,that 2021can (12:06pm)be sincreased k m e - 16 - e a n e d r e l u [ A d from among the options available or choosedecreased toby contributeprogram atparticipants awithin higher or lower contribution rate, subject to the Roth individual retirement account contribution dollar limits applicableallowed underby the Internal Revenue Code;

[(5)](7) (6)provide offerfor defaultdirect escalationdeposit of contributioncontributions ratesinto thatone can be increased or decreasedmore byinvestments programapproved participants within the limits allowed by the Internalboard; Revenue Code;

[(6)](8) (7)be provideprofessionally formanaged; direct deposit of contributions into one or more investments approved by [New Mexico work and save] the board;

[(7)](9) (8)not beallow professionallyemployer managed;contributions by covered employers;

[(8)](10) (9)ensure notthat alloweach employerboard-approved contributionsfinancial service provider submits a report on the status of each program participant's account to each program participant at least annually and provides annual reports to the board regarding the number of program participant accounts maintained by coveredthe employers;financial service provider and the overall value of those accounts;

[(9)(11) providewhen ]practicable, (10)use ensureexisting thatemployer eachand board-public approvedinfrastructure financial service provider submits a report on the h status of each program participant's account to eachfacilitate programcontributions, grecordkeeping o t hr participant at least annually and providesoutreach annual reports to g e i k the board regarding the number of program participant accounts h r i s maintained by the financial service provider and theuse overallpooled hor ,collective t,investment valuearrangements; of those accounts;

e(12) uprovide gthat eeach bprogram lparticipant eowns ethe hcontributions [(10)]to (11)and whenearnings practicable,on useamounts existingcontributed nto dthe dparticipant's iaccount =under =the oNew hMexico employerwork and publicsave infrastructureIRA toprogram facilitateand contributions,that lthe ]state, bthe ,dboard iand acovered ºemployers ehave recordkeepingno andproprietary outreachinterest, andwhether uselegal pooled or collectiveSB r129 iPage =16 requitable, tin ethose wcontributions dor mearnings; a n o investment arrangements;

d(13) mnot :impose any duties on employers pursuant to the federal Employee Retirement Income Security Act of 1974;

band e(14) dkeep stotal ºfees oand texpenses nbelow =one .218809.3AICpercent Marchof 2,the 2021funds (12:06pm)invested sby k m e - 17 - e a n e d r e l u [ A d [(11)] (12) provide that each program participant ownsin the contributions to and earnings on amounts contributed to the participant's account under the New Mexico work and save IRA programprogram. and that the state, the board and covered employers have no proprietary interest, whether legal or equitable, in those contributions or earnings;

[(12)] (13) not impose any duties on employers pursuant to the federal Employee Retirement Income Security Act of 1974;

and [(13)] (14) keep total fees and expenses below one percent of the funds invested by a program participant in the New Mexico work and save IRA program.

If a covered employer knowingly or intentionally h fails to transmit a payroll deduction contribution to the New g o t hr Mexico work and save IRA program on the earliest date the g e i k amount withheld from the covered employee's compensation can h r i s reasonably be segregated from the covered employer's assets, h , t, but not later than the fifteenth day of the month following the e u g e b l e e h month in which the covered employee's contribution amounts are n d d i = = o h withheld from the covered employee's paycheck, the failure to l ] b ,d i a º e remit those contributions on a timely basis shall be subject to r i = r t e w d m a n o the same sanctions as employer misappropriation of employee dwage mwithholdings." :SECTION 7.

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 18 - e a n e d r e l u [ A d wage withholdings." SECTION 7.

POLICIES AND PROCEDURES FOR THE NEW MEXICO WORK AND SAVE IRA PROGRAMPROGRAM.--The .--The board shall promulgate rules SB 129 Page 17 to implement the New Mexico work and save IRA program that:

establish the processes for program participants to enroll in and contribute to New Mexico work and save IRA program payroll deduction individual retirement accounts, including elections by covered employees, withholding by participating employers of program participants' payroll deduction contributions from wages and remittance for deposit to the program participants' individual retirement accounts and h voluntary enrollment and contributions by self-employed g o t hr persons;

g e i k C.

establish the processes for withdrawals, h r i s rollovers, conversions and direct transfers from individual h , t, retirement accounts in the interest of facilitating portability e u g e b l e e h and maximization of benefits;

n d d i = = o h D.

establish processes governing the distribution l ] b ,d i a º e of funds from the New Mexico work and save IRA program;

and r i = r t e w d m a n o E.

require education of and outreach to covered demployers, mcovered :employees and the public regarding the New Mexico work and save IRA program.

bThe erules dshall sspecify ºthe ocontent, tfrequency, ntiming =and .218809.3AICmeans Marchof 2,required 2021disclosures (12:06pm)from sthe kNew mMexico ework -and 19save -IRA eprogram ato nSB e129 dPage r18 ecovered lemployees, ucovered [ A d employers, coveredprogram employeesparticipants and theparticipating publicemployers regarding the New Mexico work and saveother IRAinterested programparties. .

The rules shall specify the content, frequency, timing and means of required disclosures from the New Mexico work and save IRA program to covered employees, covered employers, program participants and participating employers and other interested parties.

(2) the potential advantages and disadvantages associated with contributing to [Roth ] individual retirement accounts through the New Mexico work and save IRA program;

(3) the eligibility rules for [Roth ] individual retirement accounts;

(4) that the program participant is solely responsible for determining whether and, if so, how much the h program participant is eligible to contribute on a tax-favored g o t hr basis to [a Roth ] an individual retirement account;

g e i k (5) the penalty for excess contributions to h r i s [Roth] individual retirement accounts and the method of h , t, correcting excess contributions;

e u g e b l e e h (6) instructions for enrolling, making n d d i = = o h elections to contribute or to decline to contribute and making l ] b ,d i a º e elections regarding contribution rates, types of individual r i = r t e w d m a n o retirement accounts and investments;

d(7) minstructions :for implementing and for changing the elections;

b(8) ethe dpotential savailability ºof oa tprogram nSB =129 .218809.3AICPage March19 2,participant's 2021tax (12:06pm)credit, sincluding kthe meligibility econditions -for 20the -credit eand a n e d r e l u [ A d (7) instructions foron implementinghow andto forclaim changingit; the elections;

(8)(9) statements that the potentialNew availabilityMexico ofwork and save IRA program, the board, board members or board employees, a covered employer or the state does not offer tax, investment or other financial advice, and that the program participant'sparticipant taxshould credit,contact includingappropriate professional advisors, and that only the eligibilityprogram conditionsparticipant is liable for decisions the creditprogram andparticipant instructionsmakes onin howrelation to claimthe it;New Mexico work and save IRA program;

(9)(10) statements that thepayroll Newdeduction Mexicoindividual workretirement andaccounts saveare IRA program , the board, board members or board employees, a covered employer or the state [do ] does not offerintended tax,to investmentbe oremployer-sponsored otherretirement financialplans advice, and that the programNew participantMexico shouldwork contact appropriate professional advisors, and thatsave onlyIRA the program participant is liablenot foran decisionsemployer-sponsored theretirement programplan; participant makes in relation to the New Mexico work and save IRA program ;

(10)(11) statementsthe thatpotential payrollimplications deductionof individualaccount retirementbalances accountsin are not intended to be employer- sponsored retirement plans and that the New Mexico work and h save IRA program isfor notthe anapplication employer-sponsoredof retirementasset plan;limits under certain public assistance programs;

g(12) othat tthe hrprogram (11)participant theis potentialsolely implicationsresponsible offor accountinvestment gperformance, eincluding imarket kgains balancesand inlosses, and that individual retirement accounts and rates of return are not guaranteed by the New Mexico work and save IRA programprogram, for the hboard, rindividual iboard smembers, applicationboard ofSB asset129 limitsPage under20 certainemployees, publiccovered assistanceemployers hor ,the t,state programs;or any of its officers or employees;

e u g e b l e e h (12) that the program participant is solely n d d i = = o h responsible for investment performance, including market gains l ] b ,d i a º e and losses, and that individual retirement accounts and rates r i = r t e w d m a n o of return are not guaranteed by the New Mexico work and save d m :

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 21 - e a n e d r e l u [ A d IRA program, the board, individual board members, board employees, covered employers or the state or any of its officers or employees;

(1) the decision by a covered employee to h participate or not to participate in the New Mexico work and g o t hr save [by a covered employee ] IRA program;

g e i k (2) the performance of a specific [election h r i s under] savings option selection made by a program participant h , t, and facilitated through the New Mexico work and save [made by a e u g e b l e e h program participant] IRA program;

n d d i = = o h (3) investment decisions made by a program lparticipant; ] b ,d i a º e participant [or the board ];

r(4) ithe =administration, rinvestment, tinvestment ereturns wor dinvestment mperformance aof nan oIRA (4)savings option facilitated through the administration,New investment,Mexico investmentwork dand mSB :129 Page 21 save IRA program, including interest rate or other rate of return on a contribution or individual retirement account balance;

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 22 - e a n e d r e l u [ A d returns or investment performance of an IRA savings option facilitated through the New Mexico work and save IRA program, including interest rate or other rate of return on a contribution or [Roth ] individual retirement account balance;

(6) a program participant's awareness of or compliance with the conditions and other provisions of the tax laws that determine which persons are eligible to make tax-tax-favored favored contributions to individual retirement accounts, in what amount and in what time frame and manner;

or (7) loss, failure to realize gain or other adverse consequences, including adverse tax consequences or loss of favorable tax treatment, public assistance or other benefits incurred by a program participant as a result of h participating in the New Mexico work and save IRA program.

g o t hr B.

No covered employer shall be or shall be g e i k considered to be a fiduciary under the New Mexico work and save h r i s IRA program ." h , t, SECTION 9.

Section 58-33-12 NMSA 1978 (being Laws 2020, e u g e b l e e h Chapter 7, Section 12) is amended to read:

n d d i = = o h "58-33-12.

ANNUAL REPORT.--The board shall prepare an l ] b ,d i a º e annual report on the operation of the New Mexico work and save r i = r t e w d m a n o [to be provided ] IRA program and STBTCº, when d m :

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 23 - e a n e d r e l u [ A d implemented,»STBTC the New Mexico retirement plan marketplace and shall provide the report to the governor, the state treasurer and appropriate legislative interim committees and [made ] shall make the report available to all program participants, participating employers and the general public." SECTION 10.

A new section of the New Mexico Work and Save Act is enacted to read:

"[NEW MATERIAL ] BOARD AND STATE NOT GUARANTORS.--The board, each board member and the state shall not guarantee any rate of return or interest rate on any contribution made by a New Mexico work and save IRA program participant or New Mexico retirement plan marketplace participant." SFCº SECTION 11.

A new section of the New Mexico Work and Save Act is enacted to read:

"[NEW MATERIAL] WORK AND SAVE FUND--CREATED.--There is created in the state treasury the "work and save fund" to be h administered by the board.

Money in the fund is appropriated g o t hr to the board for the sole purposes of carrying out the g e i k provisions of the New Mexico Work and Save Act.

The fund shall h r i s consist of appropriations by the legislature, fees collected by h , t, e u g the board, gifts, grants and donations and revenue otherwise e b l e e h accruing to the fund.

Money in the fund shall be disbursed on n d d i = = o h warrants signed by the secretary of finance and administration l ] b ,d i a º e r i = r pursuant to vouchers signed by the chair of the board or the t e w d m a n o chair's authorized designee.

Earnings of the fund shall be d m :

b e d s º o t n = .218809.3AIC March 2, 2021 (12:06pm) s k m e - 24 - e a n e d r e l u [ A d credited to the fund, and any unexpended and unencumbered balances in the fund at the end of a fiscal year shall not revert to the general fund or any other fund."»SFC STBTCºSECTION 12.

TEMPORARY PROVISION--NEW MEXICO WORK AND SAVE ACT--IMPLEMENTATION DATES--CONDITIONS ON IMPLEMENTATION.-- A.

The New Mexico retirement plan marketplace shall be implemented when determined practicable by the New Mexico work and save board and at such time that the board determines it has the necessary funding for the design, implementation and maintenance of the marketplace.

TheNo Newcovered Mexicoemployer work and save IRA program shall be implementedor by the New Mexico work and save board at such time that the board determines it has the necessary funding for the design, implementation and maintenance of the program.»STBTC h STBTCºSECTION SFCº12.»SFC SFCº11.»SFC TEMPORARY u » r t h PROVISION--NEW MEXICO WORK AND SAVE ACT--IMPLEMENTATION g e l i DATES.--The New Mexico work and save board shall implementbe theconsidered hto rbe ia sfiduciary Newunder Mexico retirement plan marketplace and the New Mexico work h , e h t u g and save IRA programprogram." onSECTION or9. before July 1, 2024.»STBTC e b l e e , gh - 25 - n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

bSection r58-33-12 eNMSA t1978 º(being oLaws t2020, nChapter =7, .218809.3AICSection March12) 2,is 2021amended (12:06pm)to sread: k m e e a n e d r e l u [ A d

"58-33-12.

ANNUAL REPORT.--The board shall prepare an annual report on the operation of the New Mexico work and save IRA program and the New Mexico retirement plan marketplace and shall provide the report to the governor, SB 129 Page 22 the state treasurer and appropriate legislative interim committees and shall make the report available to all program participants, participating employers and the general public." SECTION 10.

A new section of the New Mexico Work and Save Act is enacted to read:

"BOARD AND STATE NOT GUARANTORS.--The board, each board member and the state shall not guarantee any rate of return or interest rate on any contribution made by a New Mexico work and save IRA program participant or New Mexico retirement plan marketplace participant." SECTION 11.

TEMPORARY PROVISION--NEW MEXICO WORK AND SAVE ACT--IMPLEMENTATION DATES.--The New Mexico work and save board shall implement the New Mexico retirement plan marketplace and the New Mexico work and save IRA program on or before July 1, 2024.

SB 129 Page 23 25