(a) Pricing and billing. An approved PEO must be fair
and accurate in its pricing and billings with respect to the plan,
and may not make any materially inaccurate, knowingly or recklessly
misleading, or fraudulent misrepresentations of the projected contributions
to be assessed for plan coverage for a client's covered employees
or participants.
(b) Notice of increased contribution. An approved PEO
may not increase a client's contribution amount without giving the
client at least 60 days' advance notice of the amount of the increase.
(c) PEO solely responsible if trust assets insufficient.
An approved PEO's professional employer services agreement must provide
that the PEO, and not the client, will be responsible for funding
any additional asset amount needed to equal the liabilities owed by
the plan. An approved PEO may not contractually obligate its clients
to make up any shortfall in trust assets.
(d) Agreement in conflict with this subchapter. An
approved PEO's professional employer services agreement is unenforceable
to the extent that it conflicts with the requirements of this subchapter.
(e) Summary plan description. An approved PEO must
provide each participant an evidence of coverage and a summary plan
description specific to the participant's plan. The summary plan description
must contain the following statement: "The benefits and coverages
described in this document are provided through a self-funded health
benefit plan and trust fund established and funded by your employers,
{insert the name of the covered employer and the approved PEO}. The
plan and trust are established in compliance with Chapter 91 of the
Texas Labor Code and the Employee Retirement Income Security Act of
1974, 29 U.S.C. §§1001-1191c. This is not an insurance contract,
and you are not protected by an insurance guarantee fund or other
protective governmental program."
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