34 Tex. Admin. Code § 7.106 - Plan Managers
(a) Access to books
and records. A plan manager shall provide the comptroller with access to the
books and records of the manager as the comptroller determines necessary to
assess the manager's compliance with Education Code, Chapter 54, Subchapter G,
this subchapter, the savings trust agreement, or the contract between the board
and the manager.
(b) Savings trust
accounts. A plan manager shall hold each savings trust account in trust.
Notwithstanding the foregoing, the Texas Trust Code does not apply to a savings
trust agreement or a savings trust account.
(c) Investments. A plan manager shall ensure
that each investment by the manager is made with the judgment and care that a
person of prudence, discretion, and intelligence would exercise in the
management of the property of another, not in regard to speculation but in
regard to the permanent disposition of funds, with consideration of the
probable income as well as the probable safety of capital.
(d) Marketing of savings plan.
(1) A plan manager shall develop a strategy
to market the savings plan and present the strategy to the executive director
for review. If the executive director approves the strategy, the manager shall
fully implement that strategy.
(2)
A plan manager may contract with a financial institution to market the savings
plan on behalf of the manager.
(e) Account services. A plan manager may
contract with a financial institution to provide account services to the owner
of a savings trust account that the manager administers. The institution may
charge a fee or commission for those services.
(f) Investment alternatives. The plan
manager, under board supervision, may formulate a variety of alternative
investment strategies for savings trust accounts, so long as such strategies
are consistent with the board's investment policy and with the requirements and
limitations of Internal Revenue Code of 1986, §529, as amended, and the
regulations thereunder. An owner is entitled to select a strategy from among
such alternatives, as permitted by Internal Revenue Code of 1986, §529, as
amended.
(g) Board review. From
time to time, and in accordance with procedures that the board establishes, the
board shall review, monitor, and audit the actions of the plan manager and
financial institutions, as described in subsections (c), (d), (e), and (f) of
this section and without impairment to any other right that the board may have
to terminate a contract with a plan manager, may terminate the contract with a
plan manager or withdraw its approval to any of the above matters, if in its
judgment the board finds that continuation of that contract or the continued
approval is not in the best interests of the owners and beneficiaries, so long
as such action is consistent with rights and obligations of the board under the
savings trust agreement.
Notes
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