S 194 NM WORK & SAVE ACT & RETIREMENT CHANGES

Sen Bill Tallman

Actions: [3] STBTC/SFC-STBTC [9] w/o rec/a-SFC

Scheduled: Not Scheduled

 Senate Bill 194 (SB 194) aligns provisions of the New Mexico Work and Save Act to enable auto-IRA partnership with other states; clarifies definitions; requires certain employers to register as participating employers and to auto-enroll employees in the New Mexico Work and Save IRA program; allows employees to opt-out of auto-enrollment; and makes an appropriation. 

 Senate Bill 194 (SB 194) Section 1 amends Section 58-33-2 NMSA 1978 in the following ways:
•	Amends Subsection C “covered employee” definition by adding that the person earns taxable income for at least one hundred days.
•	Amends Subsection D “covered employer” definition by adding that the employer must have employed five or more employees during the previous year, operated for 12 consecutive months, and hasn’t offered all employees Internal Revenue code qualified retirement plans in the past two years.
•	Adds Subsection R “wages”, which is defined as compensation received by an employee during a calendar year.

Senate Bill 194 (SB 194) Section 2 amends Section 58-33-9 NMSA 1978.
•	Amends Subsection (A)(2) to state that on or after July 1, 2023 a covered employer that is not a marketplace participant or does not offer all of its employees a qualified plan pursuant to Internal Revenue Code, will register and become a participating employer in the New Mexico work and save IRA program.
•	Amends Subsection (A)(14) to state that the board will, at least annually, revue total fees and expenses allowed pursuant to the New Mexico Work and Save Act.

 

 STBTCa/SB 194: Senate Tax, Business and Transportation Committee amends Senate Bill 194:

•	Inserts “requiring cooperation from state agencies to share relevant data” (pages 1 and 2, lines 9 and 1)
•	Strikes “proceeding” (page 3, line 7)
•	Inserts “preceding” (page 3, line 7)
•	Strikes “2023” (page 6, line 14)
•	Inserts “2024” (page 6, line 14)
•	Strikes “”” (page 9, line 12)
•	Inserts new subsection on page 9 between lines 16 and 17 "Subsection D”: outlines agency cooperation with the New Mexico work and save IRA program.