APPROVED CHAPTER
JUNE 23, 2021 356
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-ONE
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S.P. 515 - L.D. 1622
An Act To Promote Individual Retirement Savings through a Public-Private
Partnership
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.
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 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 its employees, 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.
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§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 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 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 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 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 members of the board shall elect one of its members annually to 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.
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 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:
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 (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;
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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
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 or make investments for the benefit of the program and that no assets of the program