2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 33 - New Mexico Work and Save › Section 58-33-4 - Board; scope of authority; powers and duties.

A. The board shall not directly or indirectly manage or maintain the funds or accounts of a program participant. The board shall contract with appropriate financial service providers to manage and maintain the funds and accounts of a program participant.
B. In carrying out its duties to achieve the goals and objectives of the New Mexico Work and Save Act, the board shall:
(1) provide for the design, establishment and operation of the New Mexico work and save IRA program pursuant to the provisions of Section 58-33-9 NMSA 1978 and shall provide oversight and modify the program as necessary;
(2) provide for the design, establishment and operation of the New Mexico retirement plan marketplace pursuant to the provision of Section 58-33-8 NMSA 1978 and shall provide oversight and modify the marketplace as necessary;
(3) be covered against liability pursuant to the provisions of the Tort Claims Act and, in addition, shall evaluate the need for, and procure as needed:
(a) insurance against any and all loss in connection with the property, assets or activities of the New Mexico retirement plan marketplace or the New Mexico work and save IRA program; and
(b) insurance indemnifying each board member from personal loss or liability, including legal fees and expenses, resulting from a member's action or inaction as a board member other than in cases of gross negligence as determined by a final adjudication by a court of competent jurisdiction;
(4) elect a chair and other officers it deems necessary;
(5) meet as necessary to perform its duties;
(6) appoint an executive director, who shall be the chief administrative officer of the board; and
(7) review and revise board rules and processes as necessary in response to changes in applicable state and federal laws to ensure the objectives of the New Mexico Work and Save Act.
C. In the design and implementation of the New Mexico work and save IRA program or the New Mexico retirement plan marketplace, the board shall:
(1) act in accordance with best practices for retirement saving vehicles;
(2) encourage participation, saving, sound investment practices and appropriate selection of investment options, including any default investments;
(3) maximize simplicity and ease of administration for covered employers;
(4) minimize total costs, including by collective investment and economies of scale;
(5) require portability of benefits;
(6) avoid preemption of the New Mexico work and save IRA program by federal law;
(7) ensure that no assets of the New Mexico retirement plan marketplace or the New Mexico work and save IRA program are encumbered, expended or otherwise used for a purpose other than one specified in the New Mexico Work and Save Act;
(8) develop and implement an education and outreach plan to gain input and disseminate information regarding the New Mexico retirement plan marketplace, the New Mexico work and save IRA program and retirement savings in general, including timely information to covered employers regarding the applicable provisions of the New Mexico work and save IRA program;
(9) develop and implement an investment policy and designate appropriate default investments for the New Mexico work and save IRA program that include a mix of asset classes, including target date funds and index funds, that minimize program participant fees and total expenses;
(10) establish procedures for the timely and fair resolution of any disputes related to accounts or program operation; and
(11) perform other activities as are needed to further the purposes of the New Mexico Work and Save Act.
D. The board may:
(1) promulgate rules as necessary and appropriate to carry out the provisions of the New Mexico Work and Save Act consistent with the Internal Revenue Code and rules adopted in accordance with that code, including ensuring that the New Mexico work and save IRA program satisfies all criteria for favorable tax treatment and complies with all applicable federal and state laws;
(2) enter into contracts, agreements, memorandums of understanding or other arrangements with private or nonprofit entities or with this or any other state or their agencies or instrumentalities to operate or manage any part of the New Mexico work and save IRA program or the New Mexico retirement plan marketplace, including combining resources, investments or administrative functions;
(3) sue and be sued in its name;
(4) fix, revise and collect fees and other charges in connection with the New Mexico retirement plan marketplace or the New Mexico work and save IRA program;
(5) contract with private and public entities and professionals, technology entities or professionals, financial institutions, depositories, financial service providers, consultants, actuaries, attorneys, auditors, investment advisers, investment administrators, investment management firms, other investment firms, third party administrators and other professionals as may be appropriate or required;
(6) make and execute contracts, agreements or instruments necessary or convenient in the exercise of the powers and functions granted the board by the New Mexico Work and Save Act; provided that the board may delegate that power to the executive director and may limit the scope of that delegation;
(7) invest and reinvest its funds in accordance with applicable state and federal law; and
(8) collaborate with and evaluate the role of financial service providers, advisors or other financial professionals and financial institutions, including those assisting and providing guidance to program participants.
History:
Laws 2020, ch. 7, § 4; 2021, ch. 46, § 3.
ANNOTATIONS
Cross references.
— For Internal Revenue Code,
see
26 U.S.C. § 1 et seq.
The 2021 amendment,
effective June 18, 2021, revised the duties of the New Mexico work and save board, provided that the New Mexico work and save board shall not directly or indirectly manage or maintain the funds or accounts of program participants, but will instead contract with appropriate financial service providers to manage and maintain the funds and accounts of program participants, provided that the board is covered against claims arising under the New Mexico Work and Save Act pursuant to the provisions of the Tort Claims Act, and authorized the board to procure other insurance for liability and indemnification as needed; in the section heading, after "Board", added "scope of authority"; in Subsection A, after "The board shall", added the remainder of the subsection; redesignated former Subsection B as Subsection D; in Subsection B, added "In carrying out its duties to achieve the goals and objectives of the New Mexico Work and Save Act, the board shall", added Paragraphs B(1) through B(3) and redesignated former Paragraphs A(1) through A(3) as Paragraphs B(4) through B(6), deleted former Paragraph A(4) and added Paragraph B(7); in Subsection C, added "In the design and implementation of the New Mexico work and save IRA program or the New Mexico retirement plan marketplace, the board shall" and redesignated former Subparagraphs A(5)(a) through A(5)(f) as Paragraphs C(1) through C(6), respectively, and redesignated former Paragraphs A(6) through A(9) as Paragraphs C(7) through C(10), respectively, after each occurrence of "New Mexico work and save", added "IRA program" throughout, in Paragraph C(7), after "no assets of", added "the New Mexico retirement plan marketplace or the", in Paragraph C(8), after "covered employers regarding", added "the applicable provisions of the", and deleted former Paragraph A(10); and in Subsection D, Paragraph D(1), after "arrangements with", added "private or nonprofit entities or with", in Paragraph D(5), after "public", added "entities and professionals, technology entities or professionals", after "depositories", added "financial service providers", and after "professionals as may be", added "appropriate or", and in Paragraph D(8), after "role of financial", added "service providers".
Temporary provisions.
— Laws 2021, ch. 46, § 11 provided that the New Mexico work and save board shall implement the New Mexico retirement plan marketplace and the New Mexico work and save IRA program on or before July 1, 2024.