A. In developing and implementing the New Mexico retirement plan marketplace, the board may work in concert with other states offering an online marketplace similar to the New Mexico retirement plan marketplace website.
B. The board shall:
(1) design the New Mexico retirement plan marketplace as a website to connect employers and individuals with retirement savings plans, ensuring that the design does not favor a particular kind of service provider or business model;
(2) establish requirements for financial service firms that participate in the marketplace and for plans offered on the marketplace;
(3) develop marketing materials; and
(4) promote the benefits of retirement savings and financial literacy.
C. The board shall provide public notice of the process for inclusion on the New Mexico retirement plan marketplace website before the website becomes publicly available. The marketplace shall be available to the public before the board opens New Mexico work and save for enrollment, and the marketplace website address shall be included on any internet website posting or other materials regarding New Mexico work and save.
D. The board shall allow all financial service firms that meet the requirements established by the board to participate in the New Mexico retirement plan marketplace. In addition, the board shall not exclude, by policy or otherwise, a retirement plan or option within a plan that meets the requirements of the board and is otherwise allowed under federal or state law, including plan design options that are selected by the employer.
E. Participation in plans offered on the New Mexico retirement plan marketplace is voluntary for covered employers and employees; provided that an employer that offers a retirement plan through the New Mexico retirement plan marketplace may use automatic enrollment and automatic escalation of contributions but shall allow an employee opt-out option.
F. The New Mexico retirement plan marketplace may offer an array of private retirement plan options, including a:
(1) simple individual retirement-type plan;
(2) payroll deduction individual retirement-type plan;
(3) multiple-employer plan, if allowed under federal law; and
(4) plan described in Section 401(a) or 403(b) of the Internal Revenue Code.
G. The New Mexico retirement plan marketplace shall offer a financial literacy module for employers and employees.
H. The New Mexico retirement plan marketplace shall allow, but shall not require, the availability within approved plans of distribution options that provide income in retirement, including systematic withdrawal programs, guaranteed lifetime withdrawal benefits and annuities.
I. The board shall establish administrative fees for financial service firms that participate in the New Mexico retirement plan marketplace. The fees shall be sufficient to cover the actual cost of maintaining the New Mexico retirement plan marketplace.
History: Laws 2020, ch. 7, § 8.
ANNOTATIONSCross references. — For Section 401(a) or 403(b) of the Internal Revenue Code, see 26 U.S.C. §§ 401(a) or 403(b).
Effective dates. — Laws 2020, ch. 7 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective May 20, 2020, 90 days after adjournment of the legislature.
Temporary provisions. — Laws 2020, ch. 7, § 13 provided:
A. The New Mexico retirement plan marketplace shall be implemented no later than July 1, 2021.
B. New Mexico work and save shall be implemented so that covered employees may begin contributing to New Mexico work and save no later than January 1, 2022.