34 Tex. Admin. Code § 87.3 - Administrative and Miscellaneous Provisions
(a) Plan administrator.
(1) The plan administrator shall administer
all aspects of the plan.
(2) The
plan administrator shall:
(A) act for the
state in all administrative matters concerning the plan;
(B) adopt and amend rules that are consistent
with state and federal law;
(C)
enter into necessary contracts; and
(D) take whatever action is necessary to
ensure compliance with state and federal law and the sections in this
chapter.
(b)
Participation by state agencies in the plan.
(1) Commencing participation in the plan.
(A) A state agency may commence participation
in the plan by:
(i) sending a written notice
from its head of agency to the plan administrator; and
(ii) complying with the plan administrator's
documentary, training, and other requirements for participation in the
plan.
(B) The plan
administrator may determine the effective date of a state agency's
participation in the plan.
(C) If
the plan administrator does not determine the effective date in accordance with
subparagraph (B) of this paragraph, this subparagraph applies.
(i) If the plan administrator receives the
written notice on the first day of a month, then the state agency's
participation in the plan is effective on the first pay date of the following
month.
(ii) Otherwise, the state
agency's participation in the plan is effective on the first pay date of the
second month following the month in which the plan administrator receives the
notice.
(2)
Terminating participation in the plan.
(A)
Voluntary termination.
(i) A state agency may
terminate its participation in the plan by sending a written notice from its
head of agency to the plan administrator.
(ii) If the plan administrator receives the
notice on the first day of a month, then the state agency's participation in
the plan terminates on the first pay date of the third month following the
month in which the plan administrator receives the notice. Otherwise, the state
agency's participation in the plan terminates on the first pay date of the
fourth month following the month in which the plan administrator receives the
notice.
(iii) A state agency's
termination of its participation in the plan does not entitle the agency's
participants to a distribution of their deferrals and investment
income.
(iv) A participant who is
employed by a state agency that has terminated its participation in the plan
may not make additional deferrals until either the agency resumes participating
in the plan or the participant becomes employed by a state agency participating
in the plan.
(v) The benefits
coordinator of a state agency that has terminated its participation in the plan
is not relieved from the responsibilities set forth in the sections in this
chapter, except to the extent that the agency's participants will not be making
additional deferrals to the plan.
(B) Involuntary termination or suspension.
(i) The plan administrator may terminate or
suspend a state agency's participation in the plan if the agency or the
agency's coordinator violates the sections in this chapter.
(ii) The plan administrator may determine the
length of a suspension after considering all relevant circumstances.
(iii) The plan administrator may reinstate a
state agency that has been terminated from participation in the plan if the
plan administrator determines that the best interests of the plan would be
served.
(iv) If the plan
administrator terminates or suspends a state agency's participation in the
plan, the agency's participants are not entitled to a distribution of their
deferrals and investment income by virtue of the termination or
suspension.
(v) The participant of
a state agency that the plan administrator has terminated or suspended from
participation in the plan may not make additional deferrals until the plan
administrator reinstates the agency, the suspension ends, or the participant
becomes employed by a state agency participating in the plan.
(vi) The agency administrator of a terminated
or suspended state agency is not relieved from the responsibilities set forth
in the sections in this chapter, except to the extent that the agency's
participants will not be making additional deferrals to the plan.
(3) Benefits
coordinator. A benefits coordinator's responsibilities may include:
(A) maintaining records concerning each
participant as required by the plan administrator;
(B) keeping participation agreements on
file;
(C) retaining the original
copies of insurance policies and annuity contracts;
(D) ensuring that deferrals are properly
deducted from a participant's salary and sent to the appropriate entity as
directed by the plan administrator;
(E) monitoring the annual deferral limits for
each plan participant to ensure the maximum annual deferral limit is within the
amount allowed by the Internal Revenue Service or 100% of the participant's
includible income is not exceeded;
(F) calculating and monitoring catch-up
limits and furnishing the plan administrator with the applicable catch-up
forms;
(G) ensuring that all forms
and other paperwork are properly completed and forwarded to the appropriate
party;
(H) balancing participant
records and reconciling those records with the data provided by the prior plan
vendors and the plan administrator;
(I) informing employees and participants
about the plan, including the necessity to file distribution agreements in
accordance with §
87.17 of this title (relating to
Distributions);
(J) acting as a
buffer between employees and participants on the one hand and prior plan
vendors on the other, although a benefits coordinator is prohibited from
providing investment advice;
(K)
attempting to locate missing participants and beneficiaries in accordance with
§
87.17(q) of this
title;
(L) assisting a participant
who has retired or left state employment if the participant's last position in
state government was with that particular agency that employs the benefits
coordinator;
(M) continuing to
assist a participant with all deferred compensation matters if a participant
transfers from a participating state agency to a non-participating state agency
until the participant returns to a different participating agency;
(N) assisting the beneficiary of a
participant whose last position in state government was with that particular
state agency that employs the benefits coordinator;
(O) notifying the plan administrator when a
participant dies or separates from service; and
(P) performing any other duties specified in
the sections in this chapter or the plan document.
(c) Miscellaneous provisions.
(1) The participation in the plan of an
investment provider or TPA, qualified investment product, state employee,
vendor representative, or employee of a prior or revised plan vendor is subject
to changes in federal law, federal regulations, state law, and the sections in
this chapter.
(2) The fiscal year
of the plan begins on January 1 of each year.
(3) The mailing address of the plan
administrator is: Plan Administrator, Deferred Compensation §457 Plan,
Employees Retirement System of Texas, P.O. Box 13207, Austin, Texas
78711-3207.
(4) If a provision in
the sections in this chapter or the plan document conflicts with a federal law,
rule, or regulation governing the plan, then the law, rule, or regulation
prevails over the provision.
(5)
The participation of an employee in the plan does not give the employee a legal
or equitable right against the participant's employing state agency, the plan
administrator, or the state of Texas except as provided in the sections in this
chapter or the plan document. The plan does not affect the terms of employment
between a participant and the participant's employing state agency.
(6) If a time limit is expressed in terms of
a number of days and the last day of the time limit falls on a weekend or
holiday recognized by the state of Texas for observance by state employees, the
last day of the time period is the first business day after the weekend or
holiday.
(7) The interests of each
participant or beneficiary under the plan are not subject to the claims of the
participant's or beneficiary's creditors; and neither the participant nor any
beneficiary shall have any right to sell, assign, transfer, or otherwise convey
the right to receive any payments hereunder or any interest under the plan,
which payments and interest are expressly declared to be non-assignable and
non-transferable. This rule is applicable as referenced in §
87.17(e)(7) of
this title (relating to Distributions by Employees) for qualified domestic
relations orders.
Notes
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