HOUSE BILL 97

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

David E. Adkins and Daymon Ely

AN ACT

RELATING TO PUBLIC FINANCES; ALLOWING A MUNICIPALITY 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 benefits trust 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; and

                (2) "trust company" means an individual or a company, corporation, firm, partnership, state-chartered bank, 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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