| (a) Establishing the plan. A PEO applying for a certificate
of approval must establish its plan in compliance with the Employee
Retirement Income Security Act of 1974, 29 U.S.C. §1102, concerning
Establishment of Plan.
(b) Required plan provisions. The plan:
(1) must be a nonprofit entity;
(2) must hold all plan assets in a trust as established
under §13.551 of this title (relating to Trust Formation);
(3) must accept as participants the covered employees
or dependents of covered employees of every client that elects to
allow its covered employees to participate in the plan; and
(4) may not condition participation on a client's claims
history or its covered employees' health status-related factors.
(c) Plan amendment. An approved PEO may amend the terms
of its plan without the approval of the plan's trustees; the trustees
may not amend the terms of the plan.
(d) Approval of plan amendment. A plan amendment must
be submitted to TDI as provided in §13.552 of this title (relating
to Required Filings) for review and approval by the commissioner before
becoming effective.
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