An Act To Promote Individual Savings Accounts through a Public-Private Partnership
Sec. 1. 5 MRSA c. 7-A is enacted to read:
MAINE RETIREMENT SAVINGS BOARD
§ 171. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
§ 172. Maine Retirement Savings Board
The Maine Retirement Savings Board is established within the Office of the Treasurer of State to develop and maintain a defined contribution retirement plan for persons employed for compensation in this State and to conduct a market and legal analysis of the plan.
(1) A member who is a representative of employers;
(2) A member with experience in the field of investments;
(3) A member who is a representative of an association representing employees; and
(4) A public member who is retired;
§ 173. Duties of board; requirements of plan
(1) Services of private and public financial institutions, depositories, consultants, investment advisers, investment administrators and 3rd-party plan administrators;
(2) Research, technical and other services;
(3) Services of other state agencies to assist the board in its duties;
(4) Services to evaluate the need for, and procure as needed, pooled private insurance for the plan; or
(5) Services to develop and implement an outreach plan to gain input and disseminate information regarding the plan and retirement savings in general.
§ 174. Rules
(1) The benefits and risks associated with making contributions to the plan;
(2) Instructions for making contributions to the plan;
(3) How to opt out of the plan;
(4) How to participate in the plan with a level of contributions other than the default rate;
(5) The process for withdrawal of retirement savings;
(6) How to obtain additional information about the plan;
(7) That employees seeking financial advice should contact financial advisers, that participating employers are not in a position to provide financial advice and that participating employers are not liable for decisions employees make pursuant to this chapter;
(8) That the plan is not an employer-sponsored retirement plan; and
(9) That the plan accounts and rate of return are not guaranteed by the State.
§ 175. Confidentiality of account information
Individual account information for accounts under the plan developed under this chapter, including, but not limited to, names, addresses, telephone numbers, personal identification information, amounts contributed and earnings on amounts contributed, is confidential and must be maintained as confidential except to the extent necessary to administer the plan in a manner consistent with this chapter, the tax laws of this State and the Internal Revenue Code or unless the person who provides the information or is the subject of the information expressly agrees in writing that the information may be disclosed.
§ 176. Maine Retirement Savings Plan Trust Fund
§ 177. Maine Retirement Savings Plan Enterprise Fund
The Maine Retirement Savings Plan Enterprise Fund is established as an enterprise fund. The Treasurer of State shall use funds deposited in the enterprise fund to pay for administrative expenses incurred in the performance of the treasurer's 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.
§ 178. Duty and liability of the State
§ 179. Annual reports
Beginning in January 2022 and annually thereafter, the board shall report to the Governor and to the Legislature on the board's activities and the operations of the plan, including, but not limited to, the number of employees in the plan, the number of investment options and rates of return and other information that is relevant to make a full, fair and effective disclosure of the operations of the plan.
Sec. 2. 5 MRSA §12004-G, sub-§33-G is enacted to read:
|Treasurer of State||Maine Retirement Savings Board||Legislative Per Diem and Expenses||5 MRSA §172|
Sec. 3. Market analysis and feasibility study. Before establishing a plan developed under this Act, the Maine Retirement Savings Board shall conduct a market analysis to determine the feasibility of the plan; determine whether and to what extent plans with the characteristics described in the Act currently exist in the private market; obtain legal advice regarding the applicability of the federal Employee Retirement Income Security Act of 1974, 29 United States Code, Section 1001 et seq., and the Internal Revenue Code to the plan; investigate whether employers that are not required to participate in the plan can make the plan available to their employees; investigate how to allow individuals who are not automatically enrolled in the plan to opt in to the plan and make contributions to an account, either through payroll contributions or another method of contribution; and coordinate efforts with other states that have similar retirement savings programs. The Maine Retirement Savings Board shall report to the Legislature on or before December 31, 2020. The report must include the results of the market analysis and feasibility study; the findings from legal advice obtained by the board; an analysis of potential costs to employers, including administrative costs, associated with providing automatic payroll deductions for participation in the plan and recommendations on how to eliminate or reduce those costs through incentives, tax credits or other means; a draft of the request for proposals to solicit bids from plan administrators; a timeline for implementation of the plan; and an overview of any contracts entered into by the board in the performance of its duties.
Sec. 4. Effective date for contributions. Except as provided in this section, the Maine Retirement Savings Board shall establish the plan developed under this Act so that individuals may begin making contributions to the plan no later than July 1, 2021. If the Maine Retirement Savings Board determines that the plan developed by the board under this Act would qualify as an employee benefit plan under the federal Employee Retirement Income Security Act of 1974, 29 United States Code, Section 1001 et seq., the board may not establish the plan.
Sec. 5. Staggered terms. Notwithstanding the Maine Revised Statutes, Title 5, section 172, subsection 3, with regard to the original appointments of the members of the Maine Retirement Savings Board, the Governor shall appoint one member for a one-year term, one member for a 2-year term, one member for a 3-year term and any other member for a 4-year term.
This bill establishes the Maine Retirement Savings Board and authorizes the board to develop a program to offer individual defined contribution retirement accounts for persons employed in the State who do not have access to a qualified retirement plan through their employers or who are self-employed.