28 Tex. Admin. Code § 13.556 - Protection of Plan and Trust Assets
(a)
Trustees' fidelity coverage. The board of trustees must maintain a fidelity
bond or a zero-deductible crime policy that complies with the requirements of §
13.568 of this title (relating to
Standards for Fidelity Coverage). The fidelity bond or zero-deductible crime
policy must cover each person responsible for handling or administering plan
assets, including the board of trustees, the approved PEO, its directors,
officers, agents and employees, or any other individual responsible for
servicing the plan.
(b) Errors and
omissions insurance. The board of trustees must purchase an errors and
omissions policy in the amount of $500,000 to cover the performance of their
duties to the plan and trust. The policy must be purchased from a company that
satisfies the requirements of §
13.568(a)(2) of
this title.
(c) Ensuring existence
of PEO's fidelity coverage. The trustees must annually require that the
approved PEO provide them with documentation that it has maintained and is
maintaining in effect fidelity coverage that complies with §
13.542 of this title (relating to
PEO's Fidelity Coverage).
Notes
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