implementation.

A. The New Mexico work and save IRA program developed by the board under the New Mexico Work and Save Act shall:

(1)     facilitate the establishment of individual retirement accounts for program participants that are administered and managed by board-approved financial service providers;

(2)     provide that a covered employer may voluntarily choose to participate in the New Mexico work and save IRA program;

(3)     provide that a participating employer may automatically enroll its employees but shall allow its employees to opt out;

(4)     allow covered employees to voluntarily contribute to an individual retirement account through automatic payroll deductions, if allowed pursuant to federal law;

(5)     provide that the default investment option for program participants shall be a Roth individual retirement account with a target date fund investment and a default contribution rate established by the board by rule; provided that the board may establish a principal protection fund for initial savings up to an amount established by the board; and provided that a program participant may choose to stop participating altogether, choose a different investment from among the options available or choose to contribute at a higher or lower contribution rate, subject to the Roth individual retirement account contribution dollar limits applicable under the Internal Revenue Code;

(6)     offer default escalation of contribution rates that can be increased or decreased by program participants within the limits allowed by the Internal Revenue Code;

(7)     provide for direct deposit of contributions into one or more investments approved by the board;

(8)     be professionally managed;

(9)     not allow employer contributions by covered employers;

(10)    ensure that each board-approved financial service provider submits a report on the status of each program participant’s account to each program participant at least annually and provides annual reports to the board regarding the number of program participant accounts maintained by the financial service provider and the overall value of those accounts;

(11)    when practicable, use existing employer and public infrastructure to facilitate contributions, recordkeeping and outreach and use pooled or collective investment arrangements;

(12)    provide that each program participant owns the contributions to and earnings on amounts contributed to the participant’s account under the New Mexico work and save IRA program and that the state, the board and covered employers have no proprietary interest, whether legal or equitable, in those contributions or earnings;

(13)    not impose any duties on employers pursuant to the federal Employee Retirement Income Security Act of 1974; and

(14)    keep total fees and expenses below one percent of the funds invested by a program participant in the New Mexico work and save IRA program.

B. The board shall ensure that the New Mexico work and save IRA program is financially self-sustaining no later than five years after the date that it is fully implemented.

C. If a covered employer knowingly or intentionally fails to transmit a payroll deduction contribution to the New Mexico work and save IRA 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 fifteenth 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 those contributions on a timely basis shall be subject to the same sanctions as employer misappropriation of employee wage withholdings.