(a) Assessed contributions. Contributions assessed
by the approved PEO from clients for coverage for their participants
must be sufficient to fund at least 100 percent of the plan and trust's
aggregate stop-loss retention, as provided in Division 6 of this subchapter,
plus all other expenses of the plan and trust.
(b) Payments to the trust. An approved PEO must transfer
to the trust all payments from clients or participants that represent
or that are intended as contributions to the trust as soon as those
amounts can reasonably be segregated from the approved PEO's general
assets, but no later than 15 days after receipt. These payments are
plan assets.
(c) Reimbursement from plan assets. An approved PEO
may be reimbursed by the trust for its reasonable expenses incurred
to:
(1) establish and initially administer the plan and
trust; and
(2) comply with this subchapter, including contracting
for stop-loss insurance and fidelity coverage.
(d) Transactions with respect to plan and trust. An
approved PEO in its transactions with respect to the plan and trust
must not:
(1) deal with plan assets in its own interest or for
its own account;
(2) act on behalf of or represent a person whose interests
are adverse to the interests of the plan or the interests of its participants;
or
(3) receive any consideration from any person dealing
with the plan and trust in connection with a transaction involving
plan assets.
(e) Conduct with respect to plan and trust. An approved
PEO's conduct with respect to the plan and trust must remain in compliance
with applicable federal and state laws.
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