An Act To Promote Individual Private Savings Accounts through a Public-private Partnership
Sec. 1. 5 MRSA c. 7-A is enacted to read:
MAINE SMALL BUSINESS RETIREMENT MARKETPLACE
§ 171. Short title
This Act may be known and cited as "the Maine Small Business Retirement Marketplace Act."
§ 172. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
§ 173. Maine Small Business Retirement Marketplace established
The Maine Small Business Retirement Marketplace is established as a retirement savings program in the form of an automatic enrollment payroll deduction individual retirement account for the purpose of promoting greater retirement savings for private-sector employees in a convenient, low-cost and portable manner.
§ 174. Operation
(1) Maintains best practices for retirement savings vehicles;
(2) Maximizes participation, savings and sound investment practices;
(3) Maximizes simplicity, including ease of administration for participating employers and enrollees;
(4) Provides an efficient product to enrollees by pooling investment funds;
(5) Ensures the portability of benefits; and
(6) Provides for the deaccumulation of enrollee assets in a manner that maximizes financial security in retirement;
§ 175. Investment; requirements
§ 176. Benefits
Interest, investment earnings and investment losses are allocated to individual accounts as established by the treasurer. An enrollee's retirement savings benefit under the marketplace is an amount equal to the balance in the enrollee's marketplace account on the date the retirement savings benefit becomes payable. The State has no liability for the payment of any benefit to any participant in the marketplace.
§ 177. Employer and employee information packets and disclosure forms
§ 178. Payments
Employee contributions deducted by the participating employer through payroll deduction must be paid by the participating employer to the fund using one or more payroll deposit retirement savings arrangements established by the treasurer, either:
§ 179. Maine Small Business Marketplace Fund
§ 180. Maine Small Business Marketplace Enterprise Fund
The Maine Small Business Marketplace Enterprise Fund is established as an enterprise fund. The treasurer shall use funds deposited in the enterprise fund to pay for administrative expenses incurred in the performance of its duties under this chapter. The enterprise fund may receive grants or other funds designated for administrative expenses from the State or a unit of federal or local government or any other person, firm, partnership or corporation. Interest earnings that are attributable to funds in the enterprise fund must be deposited into the enterprise fund. The enterprise fund may not lapse, but must be carried forward to carry out the purposes of this chapter.
§ 181. Duty and liability of the State
§ 182. Duty and liability of participating employers
§ 183. Audit and reports
§ 184. Penalty
An employer who fails without reasonable cause to enroll employees in the marketplace in accordance with the requirements of this chapter is subject to a penalty equal to $250 for each employee for each calendar year or portion of a calendar year during which the employee was not enrolled in the marketplace or had not opted out of participation in the marketplace.
§ 185. Rules
The treasurer shall adopt rules to implement this chapter. Rules adopted pursuant to this section are routine technical rules as defined in chapter 375, subchapter 2-A.
Sec. 2. Ruling on applicability of federal Employee Retirement Income Security Act. The treasurer shall request in writing an opinion or ruling from the appropriate entity with jurisdiction over the federal Employee Retirement Income Security Act of 1974, Public Law 93-405, regarding the applicability of the federal Employee Retirement Income Security Act to this Act. The treasurer may not implement this Act if the individual retirement account arrangements to be offered in accordance with this Act fail to qualify for the favorable federal income tax treatment ordinarily accorded to individual retirement accounts under the Internal Revenue Code or if it is determined that the Maine Small Business Marketplace constitutes an employee benefit plan and state or employer liability is established under the federal Employee Retirement Income Security Act.
This bill establishes the Maine Small Business Marketplace. The bill requires employers of more than 10 employees that have not offered their employees a qualified retirement plan in the preceding 2 years to offer a payroll deposit retirement savings arrangement to their employees to allow contributions to an individual retirement account. The bill also allows small employers with fewer than 10 employees to voluntarily participate in the marketplace. The bill requires the Treasurer of State to administer and oversee the marketplace.