SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR

SENATE BILL 711

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

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; ALLOWING A MUNICIPALITY WITH MORE THAN TWO HUNDRED THOUSAND INHABITANTS TO ESTABLISH A MUNICIPAL POST-EMPLOYMENT LIFE INSURANCE BENEFITS TRUST.

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

     SECTION 1. [NEW MATERIAL] MUNICIPAL POST-EMPLOYMENT LIFE INSURANCE BENEFITS TRUST.--

          A. A municipal post-employment life insurance benefits 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 life insurance benefit trusts shall be irrevocable, and the money in the trust shall be dedicated exclusively to funding post-retirement life insurance benefits pursuant to the provisions of the trust established by the municipal treasurer.

          C. Money in a municipal post-employment life insurance benefits 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 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 life insurance benefits trust.

          E. As used in this section:

                (1) "municipal post-employment life insurance benefits 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, state-chartered or national bank 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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