On Wednesday, February 26, 2020, Governor Michelle Lujan Grisham signed into law House Bill 44, the Work and Save Act.
The act creates a voluntary retirement savings program for private-sector and nonprofit employees and the self-employed. Alongside that it creates a web-based retirement savings plan marketplace for employers who want to go above and beyond what is offered through the Work and Save program.
Work and Save is under the purview of the State Treasurer’s Office, and we are starting right away. First is the creation of the New Mexico Work and Save board. Treasurer Eichenberg will appoint two members, Governor Lujan Grisham will appoint three members, Speaker of the House of Representatives Brian Egolf will appoint two members, and Senate President Pro Tempore Mary Kay Papen will appoint two members. The board will then appoint an Executive Director/Chief Administrative Officer.
The New Mexico Work and Save Act also ensures that the program is not exempted by federal law (i.e., ERISA), allows for protecting covered employers who opt in, provides for confidentiality of participants and account information, and requires annual reports.
HB 44’s sponsors are Rep. Tomás Salazar, Rep. Christine Chandler, Rep. Gail Armstrong, Sen. Bill Tallman, and Sen. Michael Padilla. Rep. Salazar and Sen. Tallman have worked on this program with Treasurer Eichenberg for more than two years, along with folks from AARP New Mexico and Think New Mexico.