An Act To Promote Individual Private Savings Accounts through a Public-private Partnership
Maine Legislature, Session 127, LD 1318
Committee Amendment CA_A_H555 (House)

COMMITTEE AMENDMENT "A" to H.P. 896, L.D. 1318, Bill, "An Act To 
Promote Individual Private Savings Accounts through a Public-private Partnership" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA c. 7-A is enacted to read: 
CHAPTER 7-A 
MAINE SMALL BUSINESS RETIREMENT MARKETPLACE 
§171. Short title 
This Act may be known and cited as "the Maine Small Business Retirement 
Markett,lace Act." 
§172. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Approved plan. "Approved plan" means a retirement plan offered by a private 
sector financial services firm that meets the requirements of this chapter to participate in 
the marketplace. 
2. Balanced fund. "Balanced fund" means a mutual fund that has an investment 
mandate to balance its portfolio holdings. The fund may include a mix of stocks and 
bonds in varying proportions according to the fund's investment outlook. 
3. Eligible employer. "Eligible employer" means a self-employed individual, a sole 
proprietor or an employer with fewer than 100 qualified employees at the time of 
enrollment. 
4. Enrollee. 
"Enrollee" means an employee who is voluntarily enrolled in an 
approved plan offered by an eligible employer through the marketplace. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 896, L.D. 1318 
5. Internal Revenue Code. "Internal Revenue Code" means the Internal Revenue 
Code of 1986, or any successor law, in effect for the calendar year. 
6. 
Marketplace. 
"Marketplace" means the Maine Small Business Retirement 
Marketplace established under section 173. 
7. myRA. "myRA" means the myRA retirement program administered by the 
United States Department of the Treasury. "myRA" is a Roth individual retirement 
account under Section 408A of the Internal Revenue Code. 
8. Participating employer. "Participating employer" means an eligible employer 
with employees enrolled in an approved plan offered through the marketplace who 
chooses to participate in the marketplace and offers approved plans to employees for 
voluntary enrollment. 
9. 
Payroll deduction retirement savings arrangement. 
"Payroll deduction 
retirement savings arrangement" means an arrangement by which a participating 
employer allows enrollees to remit payroll deduction contributions to an approved plan. 
10. Private sector financial services firm. "Private sector financial services firm" 
or "financial services firm" means a person or entity that: 
A. 
Is licensed, chartered or holds a certificate of authority by the appropriate 
regulatory agency within the Department of Professional and Financial Regulation or 
by an appropriate federal regulatory agency: and 
B. Meets all federal laws and regulations to offer retirement plans. 
11. Qualified employee. "Qualified employee" means an employee who is defined 
by the federal Internal Revenue Service as eligible to participate in a qualified plan 
pursuant to the Internal Revenue Code. 
-"$ 
12. Target date fund or other similar fund. "Target date fund or other similar 
fund" means a hybrid mutual fund that automatically resets the asset mix of stocks, bonds 
and cash equivalents in its portfolio according to a selected time frame that is appropriate 
for a particular investor so as to address a projected retirement date. 
13. Treasurer. "Treasurer" means the Treasurer of State. 
§173. Maine Small Business Retirement Marketplace established 
The Maine Small Business Retirement Marketplace is established to connect eligible 
employers and their employees with approved retirement plans for the purpose of 
promoting greater retirement savings for private-sector employees in a convenient, low-
cost and portable manner. The marketplace must offer approved plans beginning January 
1, 2019 in accordance with the requirements of this chapter. 
1. Plan for operation. The treasurer shall design a plan for the operation of the 
marketplace. The treasurer shall consult with relevant state, quasi-government, public, 
private and nonprofit agencies and organizations in designing and managing the 
marketplace. 
2. Contracted services. As necessary for the implementation and oversight of the 
marketplace, the treasurer shall contract with a 3rd-party consultant to do the following: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"A "to H.P. 896, L.D. 1318 
A. 
Establish a protocol for reviewing and approving the qualifications of all 
private-sector financial services finns that meet the qualifications to participate in the 
marketplace. The protocol must include objective criteria and may not provide for 
any unfair advantage to the 3rd-party consultant that establishes the protocol: 
B. Design and operate a publicly accessible website that includes infonnation about 
how eligible employers can voluntarily participate in the marketplace; 
C. 
Develop marketing materials about the marketplace that can be distributed 
electronically, posted on publicly accessible websites of any state agency that 
interacts with eligible employers or inserted into mail distributed by relevant finns or 
state agencies; 
D. Ensure that financial services firms that participate in the marketplace allow a 
licensed professional who assists an eligible employer or an employee to enroll in a 
plan offered through the marketplace to receive routine, market-based commissions 
or other compensation for services; 
E. 
Identify and promote existing federal and state tax credits and benefits for 
employers and employees that encourage retirement savings or participation in 
retirement plans; and 
F. 
Promote the benefits of retirement savings and distribute infonnation that 
promotes financial literacy. 
3. Participation of financial services firms. The treasurer shall encourage the 
participation of private sector financial services finns in the marketplace and approve for 
participation in the marketplace all private sector financial services firms that meet the 
requirements of this subsection and other requirements of this chapter. 
A. The treasurer shall confinn that the private sector financial services firm and any 
retirement plan offered by that financial services firm in the marketplace meets the 
requirements of this chapter and any relevant federal laws and regulations. 
B. In order for the marketplace to operate, there must be at least 2 financial services 
firms offering approved plans. This paragraph may not be construed to limit the 
number of private sector financial services firms with approved plans from 
participating in the marketplace. 
C. A financial services finn participating in the marketplace shall offer a minimum 
of 2 investment options for an approved plan: 
(1) A target date fund or other similar fund, with asset allocations and maturities 
designed to coincide with an enrollee's expected date of retirement: and 
(2) A balanced fund. 
D. A financial services finn participating in the marketplace may not charge the 
participating employer an administrative fee and may not charge enrollees more than 
basis points in total annual administrative fees. A financial services firm shall 
provide information about the historical investment perfonnance of the financial 
services finn's product. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ·A" to H.P. 896, L.D. 1318 
4. Minimum plan options in marketplace. The treasurer shall approve a variety of 
retirement plans to meet the needs of investors with various levels of risk tolerance and 
various ages in accordance with this subsection. 
A. At a minimum, the following types of retirement plans must be available to 
employers on a voluntary basis from the marketplace: 
(1) A retirement plan that provides for employer contributions to participating 
enrollee accounts; 
(2) A payroll deduction individual retirement savings arrangement open to all 
employees, to which the employer does not contribute; 
(3) A myRA plan; and 
( 4) A life insurance plan that is designed for retirement purposes. 
B. In order to be approved, a retirement plan must meet federal law and Internal 
Revenue Service regulations for qualified retirement plans. The treasurer may remove 
an approved plan that no longer meets the requirements of this chapter. At least 
annually, the treasurer shall review plans offered through the marketplace to confirm 
that the plans comply with the requirements of this chapter, exc~t for those 
requirements that pertain to federal laws and regulations. 
5. 
Rollover contributions. 
An approved plan must include the option for an 
enrollee to roll any contributions made on a pretax basis into a different individual 
retirement account or another eligible retirement plan after ceasing participation in a plan 
approved by the marketplace. 
The treasurer through rulemaking shall address how 
rollover contributions are handled for eligible employers that have employees in other 
states and whether out-of-state employees with existing individual retirement accounts 
may roll them into any approved plan offered through the marketplace. 
6. 
Voluntarv narticipation; automatic enrollment. 
Participation in the 
marketplace is voluntary for both eligible employers and qualified employees. 
An 
employer that chooses to participate in the marketplace may select an approved payroll 
deduction retirement savings arrangement that provides for automatic enrollment of 
qualified employees if employees have the right to opt out. 
7. Not an entitlement. A person is not guaranteed enrollment in any approved plan 
offered through the marketplace. 
8. Funds. In addition to any appropriated funds, the treasurer may use private 
funding sources, including private foundation grants, to pay for marketplace expenses. On 
behalf of the marketplace, the treasurer may seek federal and private grants and may 
accept any funds awarded to the treasurer for use in the marketplace. If funds are 
available, the treasurer may provide an incentive payment to participating employers that 
enroll in the marketplace. 
9. No liability to State. The treasurer may not expose the State as an employer or 
through administration of the marketplace to any potential liability under the federal 
Employee Retirement Income Security Act of 1974. The treasurer may not offer and 
operate a state-based retirement plan for an employer or individual who is not employed 
by the State. 
COMMITTEE AMENDMENT 
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COMMITTEE AM.ENDMENT"A" to H.P. 896, L.D. 1318 
10. Biennial report. Beginning January 1, 2021 and every 2 years thereafter, the 
treasurer shall report on the effectiveness and efficiency of the marketplace, including the 
levels of enrollment and the retirement savings levels of participating enrollees that are 
obtained in aggregate on a voluntary basis from private sector financial services firms 
that participate in the marketplace. The treasurer shall submit the written report to the 
joint standing committee of the Legislature having jurisdiction over insurance and 
financial services matters. 
11. Rules. The treasurer shall adopt rules to implement this chapter to allow the 
marketplace to begin offering approved plans to eligible employers beginning January 1, 
2019. Rules adopted pursuant to this subsection are routine technical rules as defined in 
chapter 375, subchapter 2-A. Prior to adopting rules, the treasurer shall consult with 
organizations representing eligible employers, qualified employees, private and nonprofit 
sector retirement plan administrators and providers, organizations representing private 
sector financial services firms, private and nonprofit organizations engaged in promoting 
financial literacy and engaged in assisting small businesses and any other individuals or 
entities to assist in developing an effective and efficient method for operating the 
marketplace. 
Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
TREASURER OF STATE, OFFICE OF 
Administration - Treasury 0022 
Initiative: Provides funding for one Public Service Coordinator I position, consulting 
fees, web development costs and associated administration fees to design, implement and 
oversee the Maine Small Business Retirement Marketplace. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2015-16 
2016-17 
0.000 
1.000 
$0 
$85,300 
$0 
$98,600 
$0 
$183,900 
This amendment is the minority report of the committee and replaces the bill. As in 
the bill, the amendment establishes the Maine Small Business Retirement Marketplace. 
The amendment provides employers of fewer than 100 employees an opportunity to offer 
retirement plans that are approved by the marketplace to their employees on a voluntary 
basis. The amendment also allows sole proprietors and self-employed individuals to 
voluntarily participate in the marketplace. The amendment requires that the marketplace 
provide at least 2 types of retirement plans to eligible employers, an individual retirement 
account plan that allows an employer to make contributions to participating employees' 
accounts and a payroll deposit retirement savings arrangement in which an employer does 
not contribute to an employee's account, and a minimum of 2 plans available to individual 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 896, L.D. 1318 
employees, a myRA and a life insurance plan. The amendment requires the Treasurer of 
State to administer and oversee the marketplace. The amendment adds an appropriations 
and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 03/08/16 ~ae 
LD 1318 
LR 1830(02) 
An Act To Promote Individual Private Savings Accounts through a Public-private Partnership 
Fiscal Note for Bill as Amended by Committee Amendment 'A" { t\ -5 55} 
Committee: Insurance and Financial Services 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
FY2016-17 
$0 
$183,900 
$0 
$183,900 
Projections 
FY 2017-18 
$552,185 
$552,185 
Projections 
FY 2018-19 
$405,483 
$405,483 
The bill includes a General Fund appropriation of $183,900 to the Office of Treasurer of State in fiscal year 2016-17 
for one Public Service Coordinator I position, consulting fees and start-up costs to design and implement the Maine 
Small Business Retirement Marketplace. Treasury has indicated substantial additional costs will be incurred in fiscal 
years 2017-18 and 2018-19 for web development and administration of the program. 
LR1830(02)- Fiscal Note - Page I of 1