(3) Prohibited Distribution by ORP Company. If an ORP
company provides a participant with any access to ORP funds prior
to the earlier of the participant's termination of employment with
all ORP employers or attainment of age 70-1/2, then the ORP employer,
as the plan sponsor, and the ORP company, as the trustee of the funds,
shall rectify the situation in accordance with applicable IRS procedures.
(g) ORP Employer Reports.
(1) Required Information. All ORP employers shall submit
the following information to the Board:
(A) number of ORP participants;
(B) amount of contributions sent to ORP companies;
(C) list of ORP-eligible positions; and
(D) any other information required by the Board.
(2) Annual Report.
(A) Format. The required information shall be provided
in a reporting format developed by the Board, which may include an
electronic format.
(B) Due Date. The required information shall be reported
on a fiscal year basis and shall normally be due on October 1 of each
year for the most recent fiscal year ending August 31.
(3) Additional Information as Needed. ORP employers
shall provide additional information to the Board as needed to carry
out its functions under the ORP statute, which may be in the form
of ad hoc reports, formal or informal surveys, or other format, and
may be requested in an electronic format.
(h) Required Notices to Employees.
(1) Basic Information for Newly Eligible Employees.
On or before an ORP-eligible employee's initial ORP eligibility date,
which is the first day of his or her 90-day ORP election period, each
institution shall provide the ORP-eligible employee with written introductory
information on ORP developed by the Board and titled, "An Overview
of TRS and ORP for Employees Eligible to Elect ORP."
(A) Uniform and Unbiased. The purpose of this notification
requirement is to ensure that all employees who become eligible to
elect ORP are provided general, uniform and unbiased information on
which to base their decision.
(B) Electronic Notification. An institution may meet
this notification requirement by:
(i) placing a link on its website to the Board's ORP
website;
(ii) providing the ORP-eligible employee with local
internet/intranet access to the link to the Board's ORP website; and
(iii) within the required timeframe, notifying the
ORP-eligible employee in writing of the location of the link to the
Board's ORP website.
(2) ORP Election Period Dates. Each ORP employer shall,
within 15 business days of an ORP-eligible employee's initial ORP
eligibility date, provide written notification to the ORP-eligible
employee that indicates the beginning and ending dates of his or her
ORP election period and the local procedures for submitting the election
form and additional required paperwork.
(3) Participant's ORP Responsibilities. On or before
an ORP-eligible employee's initial ORP eligibility date, which is
the first day of his or her 90-day ORP election period, each ORP employer
shall provide written notification to the ORP-eligible employee that:
(A) an election of ORP entails certain responsibilities
for the employee, including selection and monitoring of ORP companies
and investments; and
(B) the ORP employer has no fiduciary responsibility
for the market value of a participant's ORP investments or for the
financial stability of the ORP companies chosen by the participant.
(4) Possible Retiree Group Insurance Eligibility. ORP
employers shall include in their normal out-processing procedures
for terminated employees, a notification to ORP participants that
includes the following information:
(A) the participant's possible future eligibility for
retiree group insurance as an ORP retiree;
(B) the ORP employer's policies for handling certification
that an ORP participant meets the eligibility requirements for enrollment
in retiree group insurance as an ORP retiree; and
(C) for ORP employers that are covered under the group
insurance program administered by ERS, a caution to the participant
to refrain from withdrawing all of his or her ORP funds if the participant
enrolls in the group insurance program administered by ERS as an ORP
retiree or anticipates enrolling at a later date.
(D) The notification may be either general in nature
or specific to each participant.
(5) Verification of Notification Receipt. ORP employers
shall develop forms and/or procedures to carry out the notification
requirements in this subsection that provide documentation of the
employee's acknowledgement of receipt of this information, including
the date of receipt, such as a signature or electronic verification.
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Source Note: The provisions of this §25.6 adopted to be effective May 23, 2004, 29 TexReg 5079; amended to be effective November 28, 2005, 30 TexReg 7873; amended to be effective August 30, 2016, 41 TexReg 6484 |