An Act To Promote Individual Retirement Savings through a Public-Private Partnership
Maine Legislature, Session 130, LD 1622
Committee: Health Coverage, Insurance and Financial Services
Sponsors: VITELLI, GRAMLICH, SANBORN, STEWART, BROOKS, FAY, TEPLER
Amends: 5 MRSA §12004-G, 5 MRSA §172

Legislative Document
No. 1622
S.P. 515
In Senate, April 28, 2021
An Act To Promote Individual Retirement Savings through a 
Public-Private Partnership
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator VITELLI of Sagadahoc.
Cosponsored by Representative GRAMLICH of Old Orchard Beach and
Senators: SANBORN of Cumberland, STEWART of Aroostook, Representatives: BROOKS 
of Lewiston, FAY of Raymond, TEPLER of Topsham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA c. 7-A is enacted to read:
CHAPTER 7-A
MAINE RETIREMENT SAVINGS BOARD
§171. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Board.  "Board" means the Maine Retirement Savings Board under section 172.
2.  Covered employee.  "Covered employee" means an individual who is 18 years of 
age or older who is employed by a covered employer and who has wages or other 
compensation that are allocable to the State during a calendar year. "Covered employee" 
does not include: 
A.  An employee covered under the federal Railway Labor Act, 45 United States Code, 
Section 151;
B.  An employee on whose behalf an employer makes contributions to a multiemployer 
pension trust fund authorized by the federal Labor Management Relations Act, 1947, 
Public Law 80-101, known as the Taft-Hartley Act; or  
C.  An individual who is an employee of the Federal Government, the State or any 
other state, any county or municipal corporation or any of the State's or any other state's 
units or instrumentalities.
"Covered employee" may include a part-time, seasonal or temporary employee only to the 
extent permitted in rules adopted by the board pursuant to section 174. 
3.  Covered employer.  "Covered employer" means a person or entity engaged in a 
business, industry, profession, trade or other enterprise in the State, whether for profit or 
not for profit, that has not offered to an employee, effective in form or operation at any 
time within the current calendar year or 2 preceding calendar years, a specified tax-favored 
retirement plan.  "Covered employer" does not include: 
A.  The Federal Government, the State or any other state, any county or municipal 
corporation or any of the State's or any other state's units or instrumentalities; or 
B.  An employer that has not been in business during both the current calendar year 
and the preceding calendar year. 
If an employer does not maintain a specified tax-favored retirement plan for a portion of a 
calendar year ending on or after the effective date of this chapter, but does adopt such a 
plan for the remainder of that calendar year, the employer is not a covered employer for the 
remainder of the year. 
4.  Enterprise fund.  "Enterprise fund" means the Maine Retirement Savings Program 
Enterprise Fund established in section 178.
5.  ERISA.  "ERISA" means the federal Employee Retirement Income Security Act of 
1974, as amended, 29 United States Code, Section 1001 et seq.
6.  Internal Revenue Code.  "Internal Revenue Code" means the United States Internal 
Revenue Code of 1986, as amended.
7.  IRA.  "IRA" means a traditional IRA or Roth IRA.
8.  Participant.  "Participant" means an individual who has an IRA under the program.
9.  Payroll deduction IRA or payroll deduction IRA arrangement.  "Payroll 
deduction IRA" or "payroll deduction IRA arrangement" means an arrangement by which 
an employer allows employees to contribute to an IRA by means of payroll deduction.
10.  Program.  "Program" means the Maine Retirement Savings Program established 
in accordance with this chapter.  
11.  Retirement system.  "Retirement system" means the Maine Public Employees 
Retirement System established in section 17101.
12.  Roth IRA.  "Roth IRA" means a Roth individual retirement account or Roth 
individual retirement annuity described in Section 408A of the Internal Revenue Code.
13.  Specified tax-favored retirement plan.  "Specified tax-favored retirement plan" 
means a plan, program or arrangement that is tax-qualified under or described in, and 
satisfies the requirements of, Section 401(a), Section 401(k), Section 403(a), Section 
403(b), Section 408(k), Section 408(p) or Section 457(b) of the Internal Revenue Code, 
without regard to whether it constitutes an employee benefit plan under ERISA.  
14.  Traditional IRA. "Traditional IRA" means a traditional individual retirement 
account or traditional individual retirement annuity described in Section 408(a) or Section 
408(b) of the Internal Revenue Code. 
15.  Wages. "Wages" means any compensation within the meaning of Section 219(f)(1) 
of the Internal Revenue Code that is received by an employee from an employer during a 
calendar year.
§172.  Maine Retirement Savings Board
The Maine Retirement Savings Board is established pursuant to section 12004-G, 
subsection 33-G to develop and maintain the Maine Retirement Savings Program for 
individuals employed or self-employed for wages or other compensation in this State.
1.  Appointments.  The board consists of 9 voting members as follows:
A.  The Treasurer of State, or the Treasurer of State's designee; and
B.  Eight members appointed by the Governor:
(1) A member who has a favorable reputation for skill, knowledge and experience 
relating to the interests of employees in achieving financial security and developing 
financial capability, including through retirement saving;
(2) A member who is a representative of an association representing employees, 
including covered employees, or who has a favorable reputation for skill, 
knowledge and experience relating to the interests of employees in retirement 
saving; 
(3) A member who is a representative of employers, including covered employers, 
or who has a favorable reputation for skill, knowledge and experience relating to 
the interests of small employers in retirement saving;
(4) A member of the public who is retired and is a representative of the interests of 
retirees and employees;
(5) A member who has a favorable reputation for skill, knowledge and experience 
in the field of retirement saving, retirement plans and retirement investment; 
(6) A member who has expertise and experience in stakeholder outreach and 
engagement and marketing;
(7) A member who has expertise and experience in developing or maintaining 
online platforms and systems; and
(8) A member who has expertise and experience in program development and 
management.
2.  Confirmation of members.  The 8 members of the board appointed by the 
Governor are subject to approval by the joint standing committee of the Legislature having 
jurisdiction over financial services matters and confirmation by the Senate.
3.  Terms; vacancy.  The term of office of each member of the board appointed by the 
Governor is 4 years. A member is eligible for reappointment. If there is a vacancy for any 
cause for a member appointed by the Governor, the Governor shall make an appointment 
to become immediately effective for the unexpired term.
4.  Chair.  The Treasurer of State, or the Treasurer of State's designee, shall serve as 
the chair of the board.
5.  Quorum.  A majority of the voting members of the board constitutes a quorum for 
the transaction of business.
6.  Compensation.  A member of the board, except for the Treasurer of State and any 
designee of the Treasurer of State, must be compensated according to the provisions of 
section 12004-G, subsection 33-G.
7.  Staffing.  Except as otherwise provided, the Office of the Treasurer of State shall 
provide staff support to the board. The board shall reimburse the Office of the Treasurer of 
State for the full cost of any staff time provided to the board. 
8.  Meetings.  The board shall meet monthly beginning no later than May 2022 and 
may also meet at other times at the call of the chair. All meetings of the board are public 
proceedings within the meaning of Title 1, chapter 13, subchapter 1.
§173.  Duties of board; requirements of program
1.  Duties.  In carrying out the purposes of this chapter, the board shall:
A. Develop, establish, implement and maintain the program and, to that end, may 
conduct market, legal and feasibility analyses if the board considers them advisable;
B. Adopt rules the board considers necessary or advisable for the implementation and 
general administration and operation of the program as provided in section 174, 
consistent with the Internal Revenue Code and regulations under that Code, including 
to ensure that the program satisfies all criteria for favorable federal tax treatment and 
complies, to the extent necessary, with any other applicable federal or state law;
C. Use private sector partnerships to contract with a program administrator to 
administer the program and manage the investments under the supervision and 
guidance of the board in accordance with this chapter; 
D. Cause funds to be held and invested and reinvested under the program;
E. Develop and implement an investment policy that defines the program's investment 
objectives consistent with the objectives of the program and that provides for policies 
and procedures consistent with those investment objectives. The board shall strive to 
select and offer investment options available to participants and other program features 
that are intended to achieve maximum possible income replacement balanced with an 
appropriate level of risk in an IRA-based environment consistent with the investment 
objectives under the policy. The investment options may encompass a range of risk and 
return opportunities and allow for a rate of return commensurate with an appropriate 
level of risk in view of the investment objectives under the policy. The menu of 
investment options must be determined by considering the nature and objectives of the 
program, the desirability based on behavioral research findings of limiting investment 
options under the program to a reasonable number and the extensive investment options 
available to participants in the event that they roll over funds in an IRA established 
under the program to an IRA outside the program.  In accordance with paragraphs K 
and O, the board, in carrying out its responsibilities and exercising its powers under 
this chapter, shall employ or retain appropriate entities or personnel to assist or advise 
it and to whom to delegate the carrying out of such responsibilities and exercise of such 
powers; 
F. Arrange for collective, common and pooled investment of assets of the program and 
enterprise fund, including investments in conjunction with other funds with which 
these assets are permitted to be collectively invested, with a view to saving costs 
through efficiencies and economies of scale;
G. Cause the program, enterprise fund and arrangements and accounts established 
under the program to be designed, established and operated: 
(1) In accordance with best practices for retirement savings accounts;
(2) To encourage participation and saving and to make it simple, easy and 
convenient for participants to contribute and manage their savings;
(3) To promote sound investment practices and appropriate investment menus and 
default investments;
(4) To maximize simplicity and ease of administration for covered employers;  
(5) To minimize costs, including by collective investment and economies of scale;
(6) To promote portability of benefits; and
(7) To avoid preemption of the program by federal law; 
H.  Educate participants and potential participants on the benefits of planning and 
saving for retirement, help them decide the level of participation and saving strategies 
that may be appropriate for them and help them develop greater financial capability 
and financial literacy, including through partnerships with organizations based in the 
State specializing in financial literacy education; 
I.  In accordance with rules adopted by the board, determine the eligibility of an 
employer, employee or other individual to participate in the program, including 
conditions under which an employer that terminates the offering of a specified tax-
favored retirement plan can become a covered employer eligible to participate in the 
program; 
J.  Arrange for and facilitate compliance by the program or arrangements established 
under the program with all requirements applicable to the program under the Internal 
Revenue Code, including requirements for favorable tax treatment of the IRAs, and 
any other applicable federal or state law or accounting requirements, including using 
its best efforts to implement procedures minimizing the risk that covered employees 
will exceed the limits on tax-favored IRA contributions that they are eligible to make 
and otherwise providing or arranging for assistance to covered employers and covered 
employees in complying with applicable law and tax-related requirements in a cost-
effective manner. The board may establish any processes it reasonably considers to be 
necessary or advisable to verify whether an employer is a covered employer, including 
reference to online data and possible use of questions in employer state tax filings, 
consistent with the objective of avoiding to the fullest extent practicable any need to 
require employers that are not covered employers to register with the program or take 
other action to demonstrate that they maintain specified tax-favored retirement plans 
or are exempt for other reasons from being treated as covered employers;  
K.  Employ or otherwise retain a program administrator, an executive director, staff, a 
trustee, a record keeper, investment managers, investment advisors, other 
administrative, professional and expert advisors and service providers, none of whom 
may be members of the board and all of whom serve at the pleasure of the board, and 
the board shall determine their duties and compensation. The board may authorize the 
executive director employed by the board to enter into contracts, as described in 
paragraph O, on behalf of the board or conduct any business necessary for the efficient 
operation of the board;
L.  Discharge its duties and ensure that the members of the board discharge their duties 
with respect to the program solely in the interest of the participants as follows:
(1) For the exclusive purpose of providing benefits to participants and defraying 
reasonable expenses of administering the program; and
(2) With the care, skill, prudence and diligence under the circumstances then 
prevailing that persons of prudence, discretion and intelligence, acting in a like 
capacity and familiar with those matters, would use in the conduct of an enterprise 
of a like character and with like aims;
M.  Make provision for costs and expenses incurred to initiate, implement, maintain, 
manage and administer the program and its investments to be paid or defrayed from 
investment returns or assets of the program or from the charging and collection of other 
fees, charges or funds, whether account-based, asset-based, per capita or otherwise, by 
or for the program or pursuant to arrangements established under the program to the 
extent permitted under federal and state law; 
N. Accept any grants, gifts, legislative appropriation, loans and other funds from the 
State, any unit of federal, state or local government or any other person, firm or entity 
to defray the costs of administering and operating the program in accordance with the 
requirements of section 178, subsection 1;
O. Make and enter into contracts, agreements or arrangements for and collaborate and 
cooperate with and retain, employ and contract with or for any of the following to the 
extent the board considers necessary or advisable for the effective and efficient design, 
implementation and administration of the program consistent with the purposes set 
forth in this chapter and to maximize outreach to covered employers and covered 
employees:
(1) Services of private and public financial institutions, depositories, consultants, 
actuaries, counsel, auditors, investment advisors, investment administrators, 
investment management firms, other investment firms, 3rd-party administrators, 
other professionals and service providers, the retirement system, the Office of the 
Treasurer of State, other state treasurers and other state public retirement systems;
(2) Research, technical, financial, administrative and other services; 
(3) Services of other state agencies and instrumentalities, including without 
limitation those with responsibilities for tax collection, budget, finance, labor and 
employment regulation, consumer protection, business regulation and liaison, 
benefits and public assistance, to assist the board in the exercise of its powers and 
duties, and all such agencies and instrumentalities shall provide such assistance at 
the board's request; or
(4) Services to develop and implement outreach efforts to gain input and 
disseminate information regarding the program and retirement saving in general, 
including timely information to covered employers regarding the program and how 
it applies to them, with special emphasis on their ability at any time to sponsor a 
specified tax-favored retirement plan that would exempt them from any 
responsibilities under the program; 
P. Ensure that all contributions to an IRA under the program are used only to pay 
benefits to participants under the program, pay the cost of administering the program 
or make investments for the benefit of the program and that no assets of the program 
or enterprise fund are transferred to the General Fund or to any other fund of the State 
or are otherwise encumbered or used for any other purpose; 
Q. Consider whether procedures should be adopted to allow employers that are not 
covered employers because they are exempt from covered employer status to 
voluntarily participate in the program by automatically enrolling their employees, 
considering, among other factors, the potential legal consequences and the degree of 
employer demand to participate or facilitate participation by employees; 
R. Evaluate the need for, and procure if and as considered necessary, insurance against 
any loss in connection with the property, assets or activities of the program, including, 
if and as considered necessary, pooled private insurance; 
S. Indemnify, including procurement of insurance if and as needed for this purpose, 
each member of the board from personal loss or liability resulting from a member's 
action or inaction as a member of the board; 
T. Collaborate with, and evaluate the role of, financial advisors or other financial 
professionals, including in assisting and providing guidance for covered employees; 
U. Along with its members, the program administrator and other staff of the board, 
comply with any applicable state ethics and gift laws, procurement codes and 
restrictions and restrictions on honoraria and may not: 
(1) Directly or indirectly have any interest in the making of any investment under 
the program or in gains or profits accruing from any such investment; 
(2) Borrow any program-related funds or deposits, or use any such funds or 
deposits in any manner, for the benefit of the board or any member or as an agent 
or partner of others; or
(3) Become an endorser, surety or obligor on investments made under the program; 
and
V. Carry out its powers and duties under the program pursuant to this chapter and 
exercise any other powers as are appropriate for the effectuation of the purposes, 
objectives and provisions of this chapter pertaining to the program.
2.  Required elements of program.  In accordance with the implementation dates set 
forth in subsection 3, the program must:
A.  Allow an eligible individual in this State to choose whether or not to contribute to 
an IRA under the program, including allowing a covered employee in the State the 
choice to contribute to an IRA under the program through a payroll deduction IRA 
arrangement;
B.  Notwithstanding any provision of state law related to payroll deduction to the 
contrary, require each covered employer to offer its covered employees the choice 
whether or not to contribute to a payroll deduction IRA by automatically enrolling them 
in the payroll deduction IRA with the opportunity to opt out.  A covered employee who 
is not a participant because that employee has opted out will be automatically 
reenrolled with the opportunity to opt out again at regular or ad hoc intervals 
determined by the board in its discretion, but not more frequently than annually;
C.  Provide that the IRA to which contributions are made is a Roth IRA, except that 
the board has the authority at any time, in its discretion, to add an option for all 
participants to affirmatively elect to contribute to a traditional IRA as an alternative to 
the Roth IRA;
D.  Provide that, unless otherwise specified by the covered employee, a covered 
employee must automatically initially contribute 5% of the covered employee's salary 
or wages to the program and may elect to opt out of the program at any time or 
contribute at any higher or lower rate, expressed as a percentage of salary or wages, or, 
if the board in its discretion permits, expressed as a flat dollar amount, subject in all 
cases to the IRA contribution and income eligibility limits applicable under the Internal 
Revenue Code at no additional charge. The board is authorized to change, from time 
to time, the 5% automatic initial default contribution rate for all covered employees in 
its discretion;
E.  Provide on a uniform basis, if and when the board so determines in its discretion, 
for an annual increase of each participant's contribution rate, by not more than 1% of 
salary or wages per year up to a maximum of 8%.  Any such increases must apply to 
participants, as determined by the board in its discretion, either by default or only if 
initiated by affirmative participant election and are in either case subject to the IRA 
contribution and income eligibility limits applicable under the Internal Revenue Code;
F.  Provide for direct deposit of contributions into investments under the program, 
including, but not limited to, a default investment such as a series of target date funds 
and a limited number of investment alternatives including a principal preservation 
option determined by the board. In addition, the board may provide that each 
participant's initial contributions, up to a specified dollar amount or for a specified 
period of time, are required to be invested in a principal preservation investment or, in 
the board's discretion, must be defaulted into such an investment unless the participant 
affirmatively opts for a different investment for those contributions. The board shall 
determine how often participants will have the opportunity to change their selections 
of investments for future contributions or existing balances or both;  
G.  Provide that employer contributions by a covered employer are not required or 
permitted;
H.  Be professionally managed;
I.  When possible and practicable, use existing employer and public infrastructure to 
facilitate contributions, record keeping and outreach and use pooled or collective 
investment arrangements for amounts contributed to the program;
J.  Require the maintenance of separate records and accounting for each account under 
the program and allow for participants to maintain their accounts regardless of place of 
employment and to roll over funds into other IRAs or other retirement accounts;
K.  Provide for reports on the status of each participant's account to be provided to each 
participant at least annually and make best efforts to provide each participant frequent 
or continual online access to information on the status of that participant's account;
L.  Provide that each participant owns the contributions to and earnings on amounts 
contributed to the participant's account under the program and that the State and 
covered employers have no proprietary interest in those contributions or earnings;
M.  Be designed and implemented in a manner consistent with federal law to the extent 
that it applies and consistent with the program not being preempted by, and the payroll 
deduction IRAs and covered employers not being subject to, ERISA;
N.  Promote expanded retirement saving by encouraging employers in the State that 
would otherwise be covered employers to instead adopt a specified tax-favored 
retirement plan;
O.  Make provision for participation in the program by individuals who are not 
employees, such as self-employed individuals and independent contractors, as 
provided in rules adopted pursuant to section 174, subsection 2;
P.  Seek to keep fees, costs and expenses of the program as low as practicable, except 
that any administrative fee imposed on a covered employee for participating in the 
program may not exceed a reasonable amount relative to fees charged by similar 
established programs in other states.  The fee may be an asset-based or investment 
return fee, flat fee or hybrid of the permissible fee structures identified in this 
paragraph;
Q.  Adopt rules and establish procedures governing the distribution of funds from the 
program, including such distributions as may be permitted or required by the program 
and any applicable provisions of tax laws, with the objectives of maximizing financial 
security in retirement, helping to protect spousal rights and assisting participants with 
the challenges of decumulation of savings. The board has the authority to provide for 
one or more reasonably priced distribution options to provide a source of regular 
retirement income, including income for life or for the participant's life expectancy or 
for joint lives and life expectancies, as applicable;
R.  Adopt rules and establish procedures promoting portability of benefits, including 
the ability to make tax-free rollovers or transfers from IRAs under the program to other 
IRAs or to tax-qualified plans that accept such rollovers or transfers;
S.  Establish penalties in accordance with subsection 4 for a covered employer that fails 
without reasonable cause to enroll a covered employee in the program as required or 
that fails to transmit a payroll deduction IRA contribution to the program as required;
T.  In accordance with subsection 1, paragraph C, use private sector partnerships to 
administer the program and invest the contributions to the program under the 
supervision and guidance of the board; and 
U.  Allow the board to provide for the establishment, maintenance, administration, 
operation and implementation of the program to be carried out jointly with, or in 
partnership, collaboration, coordination or alliance with one or more other states, the 
Federal Government or any federal, state or local agencies or instrumentalities. 
3.  Implementation. The board shall implement the program in phases as required in 
this subsection. 
A. Beginning April 1, 2023, the board shall require a covered employer with 25 or 
more covered employees to offer the program to its covered employees. 
B. Beginning October 1, 2023, the board shall require a covered employer with 15 to 
covered employees to offer the program to its covered employees.
C. Beginning April 1, 2024, the board shall require a covered employer with 5 to 14 
covered employees to offer the program to its covered employees.
Notwithstanding paragraphs A to C, a covered employer may voluntarily offer the program 
to its covered employees on or after April 1, 2023. A covered employer with fewer than 5 
employees is not required to offer the program to its covered employees but may offer the 
program to its employees at the option of the employer. 
4.  Penalties.  The board shall establish and enforce penalties in accordance with this 
subsection. 
A. If a covered employer fails to enroll a covered employee without reasonable cause, 
the covered employer is subject to a penalty for each covered employee for each 
calendar year or portion of a calendar year during which the covered employee was not 
enrolled in the program or had not opted out of participation in the program and, for 
each calendar year beginning after the date on which a penalty has been assessed with 
respect to a covered employee, is subject to a penalty for any portion of that calendar 
year during which the covered employee continues to be unenrolled without opting out 
of participation in the program. The amount of any penalty imposed on a covered 
employer for the failure to enroll a covered employee without reasonable cause is 
determined as follows: 
(1) Prior to April 1, 2024, the maximum penalty per covered employee is $10; 
(2) From April 1, 2024 to March 31, 2025, the maximum penalty per covered 
employee is $20; 
(3) From April 1, 2025 to September 30, 2026, the maximum penalty per covered 
employee is $50; and 
(4) On or after October 1, 2026, the maximum penalty per covered employee is 
$100.
B. A penalty may not be imposed on a covered employer for any failure to enroll a 
covered employee for which it is established that the covered employer did not know 
that the failure existed and exercised reasonable diligence to meet the requirements of 
this chapter.
C.  A penalty may not be imposed on a covered employer for any failure to enroll a 
covered employee if the covered employer exercised reasonable diligence to meet the 
requirements of this chapter and the covered employer complies with those 
requirements with respect to each covered employee by the end of the 90-day period 
beginning on the first date the covered employer knew, or exercising reasonable 
diligence would have known, that the failure existed. 
D. In the case of a failure that is due to reasonable cause and not to willful neglect, all 
or part of the penalty may be waived to the extent that the payment of the penalty would 
be excessive or otherwise inequitable relative to the failure involved.
E. If a covered employer fails to remit a payroll deduction contribution to the program 
on the earliest date the amount withheld from the covered employee's compensation 
can reasonably be segregated from the covered employer's assets, but not later than the 
15th day of the month following the month in which the covered employee's 
contribution amounts are withheld from the covered employee's paycheck, the failure 
to remit the contribution on a timely basis is subject to the same penalties as apply to 
employer misappropriation of employee wage withholdings and to the penalties 
specified in paragraph A.
F. The Attorney General shall represent the board in enforcement and collection of 
penalties.
§174.  Rules
1.  Authority.  The board may adopt rules as necessary to implement this chapter, 
except that the board shall adopt rules required pursuant to subsection 2. Rules adopted 
pursuant to this chapter are routine technical rules as defined in chapter 375, subchapter 
2-A.
2.  Required rules.  The board shall adopt rules to:
A. Establish the processes for enrollment and contributions to an IRA under the 
program, notwithstanding any provision of state law related to payroll deductions to 
the contrary, including withholding by covered employers of employee payroll 
deduction contributions from wages and remittance for deposit to an IRA, automatic 
enrollment in a payroll deduction IRA and opt-outs by covered employees, voluntary 
contributions by others, including self-employed individuals and independent 
contractors, through payroll deduction or otherwise, the making of default 
contributions using default investments and participant selection of alternative 
contribution rates or amounts and alternative investments from among the options 
offered under the program;
B. Establish the processes for withdrawals, rollovers and direct transfers from an IRA 
under the program in the interest of facilitating portability of benefits;
C. Establish processes for phasing in enrollment of eligible individuals, including 
phasing in enrollment of covered employees by size or type of covered employer in 
accordance with section 173, subsection 3; 
D. Establish requirements for the determination of whether a part-time, seasonal or 
temporary employee is a covered employee eligible to participate in the program;   
E. Establish a process for a participant to make nonpayroll contributions to accounts 
under the program;
F. Establish a process for an employer to be determined to be exempt from the program 
because the employer sponsors a specified tax-favored retirement plan; and 
G. Conduct outreach to individuals, employers, other stakeholders and the public 
regarding the program, including specifying the contents, frequency, timing and means 
of required disclosures from the program to covered employees, participants, other 
individuals eligible to participate in the program, covered employers and other 
interested parties.  These disclosures must include, but are not limited to, the following:
(1) The benefits and risks associated with tax-favored retirement saving under the 
program; 
(2) The potential advantages and disadvantages associated with contributing to a 
Roth IRA and, if applicable, a traditional IRA under the program;
(3) The eligibility rules for a Roth IRA and, if applicable, a traditional IRA; 
(4) That the individual and not the employer, the State, the board, any board 
member or other state official or the program is solely responsible for determining 
whether, and, if so, how much, the individual is eligible to contribute on a tax-
favored basis to an IRA;
(5) The penalty for excess contributions to an IRA and the method of correcting 
excess contributions;
(6) Instructions for enrolling, opting out of participation, making contributions and 
making withdrawals, including the possibility of contributing to an IRA, whether 
offered under the program or not, by means other than automatic enrollment in a 
payroll deduction IRA; 
(7) Instructions for opting out of each of the Roth IRA, the default contribution 
rate and the default investment if the covered employee prefers a traditional IRA, 
including the possibility of contributing to a traditional IRA, if offered as an option 
under the program, a higher or lower contribution rate or different investment 
alternatives;
(8) The potential availability of a saver's tax credit, including the eligibility 
conditions for the credit and instructions on how to claim it;
(9) That employees seeking tax, investment or other financial advice should 
contact appropriate professional advisors and that covered employers are not in a 
position to provide such advice and are not liable for decisions individuals make 
in relation to the program;
(10) That the payroll deduction IRA is intended not to be an employer-sponsored 
retirement plan and that the program is not an employer-sponsored retirement plan;
(11) The potential implications of account balances under the program for the 
application of asset limits under certain public assistance programs; 
(12) That the participant is solely responsible for investment performance, 
including market gains and losses, and that IRAs and rates of return are not 
guaranteed by any employer, the State, the board, any board member or state 
official or the program; 
(13) Additional information about retirement and saving and other information 
designed to promote financial literacy and capability, which may take the form of 
links to, or explanations of how to obtain, such information; and
(14) How to obtain additional information about the program. 
§175. Protection from liability
1.  Employer protection from liability. A covered employer or other employer is not 
and may not be considered a fiduciary in relation to the program or enterprise fund or any 
other arrangement under the program. A covered employer or other employer is not and 
may not be liable for and does not and may not bear responsibility for: 
A. An employee's decision to participate in or opt out of the program;
B. Investment decisions of the board or any participant;  
C. The administration, investment, investment returns or investment performance of 
the program, including without limitation any interest rate or other rate of return on any 
contribution or account balance; 
D. The program design or the benefits paid to participants;
E. An individual's awareness of or compliance with the conditions and other provisions 
of the tax laws that determine which individuals are eligible to make tax-favored 
contributions to an IRA, in what amount and in what time frame and manner; or
F. Any loss, deficiency, failure to realize any gain or any other adverse consequences, 
including without limitation any adverse tax consequences or loss of favorable tax 
treatment, public assistance or other benefits, incurred by any person as a result of 
participating in the program.
2.  Protection for the State and others.  The State, the board, each member of the 
board or other state official and any other state board, commission or agency, and any 
member, officer or employee of any of these entities, and the program:
A. Have no responsibility for compliance by individuals with the conditions and other 
provisions of the Internal Revenue Code that determine which individuals are eligible 
to make tax-favored contributions to IRAs, in what amount and in what time frame and 
manner;
B. Have no duty, responsibility or liability to any party for the payment of any benefits 
under the program, regardless of whether sufficient funds are available under the 
program to pay such benefits;
C. Do not and may not guarantee any interest rate or other rate of return on or 
investment performance of any contribution or account balance; and
D. Are not and may not be liable or responsible for any loss, deficiency, failure to 
realize any gain or any other adverse consequences, including without limitation any 
adverse tax consequences or loss of favorable tax treatment, public assistance or other 
benefits, incurred by any person as a result of participating in the program.
3. Debts, contracts and obligations.  The debts, contracts and obligations of the 
program or the board are not the debts, contracts and obligations of the State, and the faith 
and credit or the taxing power of the State is not pledged directly or indirectly to the 
payment of the debts, contracts and obligations of the program or the board.
4. Immunity of board members.  The board and its staff are immune from suit on any 
and all tort claims seeking recovery of damages to the same extent as governmental entities 
under the Maine Tort Claims Act.
5.  Legal representation and defense of board.  The Attorney General is legal counsel 
to the board and shall represent and defend the board, as a group and individually, in 
connection with any claim, suit or action at law arising out of the performance or 
nonperformance of any actions related to the program under this chapter to the same extent 
as provided for governmental entities in the Maine Tort Claims Act.  
§176.  Confidentiality of account information
1. Individual account information.  Individual account information for accounts 
under the program, including, but not limited to, names, residential addresses, e-mail 
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 program 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.
2. Restriction on use of personal information.  An individual or organization that has 
access to personal information of participants solely because of its contracts or agreements 
with the board to provide services or support to the program, including plan administration, 
may not use that information to market its products or services not associated with the 
program to participants unless the participant affirmatively consents to receive such 
information.
§177.  Intergovernmental collaboration and cooperation
The board may enter into an intergovernmental agreement or memorandum of 
understanding with the State and any agency or instrumentality of the State to receive 
outreach, technical assistance, enforcement and compliance services, collection or 
dissemination of information pertinent to the program, subject to such obligations of 
confidentiality as may be agreed to or required by law, or other services or assistance.  The 
State and any agencies or instrumentalities of the State that enter into such agreements or 
memoranda of understanding shall collaborate to provide the outreach, assistance, 
information and compliance or other services or assistance to the board. The agreements or 
memoranda of understanding may cover the sharing of costs incurred in gathering and 
disseminating information and the reimbursement of costs for any enforcement activities 
or assistance.
§178. Maine Retirement Savings Program Enterprise Fund
1. Fund established.  The Maine Retirement Savings Program Enterprise Fund is 
established as an enterprise fund.  The board shall use funds deposited in the enterprise 
fund in accordance with this section.  The enterprise fund may receive grants, gifts, 
donations, appropriations, loans or other funds designated for administrative expenses or 
otherwise transferred to the enterprise fund from or deposited in the enterprise fund by the 
State or a unit of federal, state or local government or any other person, firm, partnership 
or corporation, including appropriations to the enterprise fund by the Legislature and funds 
from the payment of application, account, administrative or other fees and the payment of 
other funds due the board.  Interest or other investment earnings or returns that are 
attributable to funds in the enterprise fund must be deposited into or retained in the 
enterprise fund.  The enterprise fund may not lapse but must be carried forward to carry 
out the purposes of this chapter. The board shall amortize any amounts appropriated to the 
enterprise fund by the Legislature to ensure that those amounts are paid back to the funding 
sources based on an amortization schedule determined by the board, but no later than 5 
years after the program is fully implemented.  
2. Borrowing.  To enable or facilitate the start-up and continuing operation, 
maintenance, administration and management of the program until the program 
accumulates sufficient balances and can generate sufficient funding through fees assessed 
on program accounts for the program to become financially self-sustaining, the board may 
borrow from the State, any unit of federal, state or local government or any other person, 
firm, partnership or corporation working capital funds and other funds as may be necessary 
for this purpose, as long as such funds are borrowed in the name of the program and board 
only and that any such borrowing is repaid solely from the revenues of the program. The 
board may not borrow from the retirement system for any purpose. The board may enter 
into long-term procurement contracts with one or more financial or service providers that 
provide a fee structure that would assist the program in avoiding or minimizing the need to 
borrow or to rely upon general assets of the State.
3. Administrative costs.  Subject to appropriation by the Legislature, the State may 
pay administrative costs associated with the creation, maintenance, operation and 
management of the program and provide funding for the program until sufficient assets are 
available in the enterprise fund for that purpose. Thereafter, all administrative costs of the 
enterprise fund, including any repayment of start-up funds provided by the State, must be 
repaid only out of money on deposit in the enterprise fund. However, private funds or 
federal funding received in order to implement the program until the enterprise fund is self-
sustaining may not be repaid unless those funds were offered contingent upon the promise 
of such repayment.
4. Use of enterprise fund.  The board shall use the money in the enterprise fund solely 
to pay the administrative costs and expenses of the program and the administrative costs 
and expenses the board incurs in the performance of its duties under this chapter. 
§179.  Accounting and annual report
1. Account; audit.  The board shall cause an accurate account of all of the program's, 
enterprise fund's and board's activities, operations, receipts and expenditures to be 
maintained on a calendar year basis. A full audit of the books and accounts of the board 
pertaining to those activities, operations, receipts and expenditures must be conducted by 
a certified public accountant, including, but not limited to, direct and indirect costs 
attributable to the use of outside consultants, independent contractors and any other persons 
who are not state employees for the administration of the program.  For the purposes of the 
audit, the auditors must have access to the properties and records of the program and board 
and may prescribe methods of accounting and the rendering of periodic reports in relation 
to projects undertaken by the program.  
2. Submission of report.  Beginning February 1, 2024 and annually thereafter, the 
board shall submit to the Governor, the Treasurer of State and the Legislature an audited 
financial report, prepared in accordance with generally accepted accounting principles, 
detailing the activities, operations, receipts and expenditures of the program and board 
during the preceding calendar year. The report must include the number of participants, the 
investment options and their rates of return and other information regarding the program 
and must also include projected activities of the program for the current calendar year.  
Sec. 2.  5 MRSA §12004-G, sub-§33-G is enacted to read:
33-G.   
Treasurer of 
State 
Maine Retirement Savings Board 
Legislative Per 
Diem and 
Expenses 
MRSA §172 
Sec. 3.  Implementation of Maine Retirement Savings Program.  Except as 
provided in this section, the Maine Retirement Savings Board shall establish the Maine 
Retirement Savings Program as required under this Act so that individuals may begin 
making contributions under the program no later than April 1, 2023. The board shall phase 
in the program with regard to covered employers and accept contributions from covered 
employees employed by those covered employers as required under this Act and may in its 
discretion phase in the program for individuals who are not employees, such as self-
employed individuals or independent contractors, except that any implementation schedule 
set by the board must be such that all individuals may begin making contributions under 
the program no later than January 1, 2025. The board may not implement the program if 
and to the extent that the board determines that the program is preempted by the federal 
Employee Retirement Income Security Act of 1974, as amended, 29 United States Code, 
Section 1001 et seq.  If and to the extent that the board determines that a portion or aspect 
of the program is preempted by the federal Employee Retirement Income Security Act of 
1974, the board may not implement that portion or aspect of the program but shall proceed 
to implement the remainder of the program to the extent practicable. If the board determines 
that some but not all of the payroll deduction individual retirement account arrangements 
or other arrangements under the program are or would be employee benefit plans under the 
federal Employee Retirement Income Security Act of 1974, the board shall implement the 
program with respect to the other arrangements under the program to the extent practicable 
and may not implement the program with respect to plans covered by the federal Employee 
Retirement Income Security Act of 1974 or proceed to implement the program with respect 
to plans covered by the federal Employee Retirement Income Security Act of 1974 on a 
basis reflecting their status or possible status as such, as long as such actions do not create 
an undue risk of causing the federal Employee Retirement Income Security Act of 1974 to 
preempt state law with respect to other portions of the program or causing other 
arrangements under the program to be treated as plans covered by the federal Employee 
Retirement Income Security Act of 1974.
Sec. 4.  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, 2 members for a 2-year term, 3 members for a 3-year term and any other member for 
a 4-year term.  The Governor shall appoint the initial members of the board no later than 
April 1, 2022.
Sec. 5.  Transfer of settlement funds; fiscal year 2021-22.  Notwithstanding 
any provision of law to the contrary, no later than February 1, 2022, the State Controller 
shall transfer $1,600,000 of the funds received pursuant to court order in State of Maine v. 
Equifax, Inc., Kennebec County Superior Court Docket No. CV-19-152 and the Wells 
Fargo & Company multistate settlement agreement signed December 28, 2018 to the Maine 
Retirement Savings Program Enterprise Fund established in the Maine Revised Statutes, 
Title 5, section 178.  Funds transferred pursuant to this section must be used solely for 
consumer and antitrust activities identified in the court decree and approved by the 
Attorney General with the consent of the President of the Senate, the Speaker of the House 
of Representatives, the Minority Leader of the Senate and the Minority Leader of the House 
of Representatives.
Sec. 6.  Appropriations and allocations.  The following appropriations and 
allocations are made.
MAINE RETIREMENT SAVINGS BOARD
Maine Retirement Savings Program N347
Initiative: Allocates funds to the Maine Retirement Savings Program Enterprise Fund to be 
used in accordance with the Maine Revised Statutes, Title 5, chapter 7-A.
MAINE RETIREMENT SAVINGS PROGRAM 
ENTERPRISE FUND
2021-22
2022-23
All Other
$1,600,000
$500
__________
__________
MAINE RETIREMENT SAVINGS PROGRAM 
ENTERPRISE FUND TOTAL
$1,600,000
$500
SUMMARY
This bill establishes the Maine Retirement Savings Board to establish and administer 
the Maine Retirement Savings Program.  The bill designates the Treasurer of State as the 
chair of the board and places the program under the oversight of the Office of the Treasurer 
of State. The bill requires the board to develop a voluntary 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.