(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.
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Source Note: The provisions of this §87.3 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective March 21, 1997, 22 TexReg 2513; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023; amended to be effective January 10, 2006, 31 TexReg 170; amended to be effective June 14, 2007, 32 TexReg 3357; amended to be effective December 31, 2007, 32 TexReg 10054;amended to be effective June 9, 2015, 40 TexReg 3575 |