Section 10-7A-5 - Deferred compensation plan; approval.
10-7A-5. Deferred compensation plan; approval.
A. The board shall review proposals providing investment options to participants of a deferred compensation plan submitted by deferred compensation carriers which have been engaged for a minimum of three years in the business of funding public employee deferred compensation plans authorized by 26 U.S.C. Section 457 and approve not more than four such proposals which are consistent with the goals of providing state or local public employees with an investment that, in the opinion of the board, is safe and will provide a reasonable return to the employees upon their reaching the appropriate age or date at which they may begin receiving funds from the deferred compensation plan.
B. The type of deferred compensation investment options that may be approved include:
(1) life insurance or annuity contracts with insurance companies licensed to conduct such business in New Mexico;
(2) mutual funds, including stock funds and money market funds;
(3) deferred compensation investment options of New Mexico banks or savings and loan associations, such banks or savings and loan associations to provide, as security for participants' funds, collateral, such as U.S. treasury securities or other liquid securities, for amounts of participants' funds in excess of applicable depository insurance; and
(4) other deferred compensation investment options, including those created by the board not requiring funding agreements with deferred compensation carriers, deemed by the board to fulfill the goals of providing viable deferred compensation for state or local public employees.