HOUSE BILL 577

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

David E. Adkins

AN ACT

RELATING TO PUBLIC FINANCES; ALLOWING A MUNICIPALITY WITH MORE THAN TWO HUNDRED THOUSAND INHABITANTS TO ESTABLISH A MUNICIPAL POST-EMPLOYMENT BENEFIT TRUST.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] MUNICIPAL POST-EMPLOYMENT BENEFIT TRUST FUND.--

          A. A municipal post-employment benefit trust may be established, maintained and used by a municipal treasurer with the advice and consent of the municipal board of finance.

          B. The municipality's contributions to the municipal post-employment benefit trust shall be irrevocable, and the money in the trust shall be dedicated exclusively to funding post-retirement benefits pursuant to the provisions of the trust established by the municipal treasurer.

          C. Money in a municipal post-employment benefit trust shall be invested pursuant to the Uniform Prudent Investor Act and the provisions of this section. Earnings and income from investment of money in the municipal post-employment benefit trust shall be credited to the trust.

          D. The municipal treasurer shall serve as the trustee and may use the services of a trust company to manage the investment of money in the municipal post-employment benefit trust.

          E. As used in this section:

                (1) "municipal post-employment benefit trust" means an investment fund established, maintained and used by a municipality exclusively for the purposes permitted under Section 115 of the Internal Revenue Code of 1986;

                (2) "municipality" means an incorporated city that has a population of more than two hundred thousand people according to the most recent federal decennial census; and

                (3) "trust company" means an individual or a company, corporation, firm, partnership or other legal entity that provides investment services pursuant to the Trust Company Act and that agrees to adhere to the provisions of the Uniform Prudent Investor Act.

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