| (a) In this chapter, "plan document" means the Texa$aver
457 plan document as executed and approved by the Executive Director,
and as amended hereafter, as authorized by the Board of Trustees on
December 4, 2014, and pursuant to subsection (c) of this section.
(b) All provisions of the revised plan, as defined
herein, are governed by the plan document. In the event of a conflict
between the plan document and another provision of this chapter, the
provisions or requirements of the plan document prevail. This section
also applies to the State of Texas Deferred Compensation 457 Plan
adopted by the Employees Retirement System of Texas effective January
1, 1991, and as amended prior to adoption of the revised plan. The
1991 plan is referred to in this section as the "prior plan." Except
as otherwise provided in this section, the provisions of §§87.1,
87.3, 87.5, 87.7, 87.9, 87.11, 87.13, 87.15, 87.17, 87.19, 87.21,
87.23 and 87.29 of this chapter continue to apply to participation
agreements, distribution agreements, and prior plan vendor contracts
entered into pursuant to applicable provisions of the prior plan.
The 457 plan, as revised and adopted in the plan document, and as
may be amended hereafter, shall be referred to as the "revised plan,"
and shall apply to all deferrals and transfers to and distributions
from the 457 plan that take place or have taken place on or after
September 1, 2000.
(c) The Board of Trustees has authorized the Executive
Director to execute the 457 plan document and to make further changes
to the plan document as deemed necessary or advisable for the benefit
of the revised plan and its participants.
(d) The plan administrator shall administer the revised
plan in the manner provided in the plan document, and may assess fees
and expenses against participants in the plan and their account balances
as necessary to cover the costs of administering the revised plan.
(e) A copy of the plan document may be obtained from
the Employees Retirement System of Texas on request.
(f) Transition from the prior plan.
(1) This subsection regarding the transition from the
prior plan shall apply to deferrals, transfers and distributions that
take place on or after September 1, 2000. After that date, the plan
administrator shall cease to accept deferrals to investment products
approved under the prior plan, with the exception of life insurance
products, to which deferrals may be continued as necessary to maintain
the life insurance.
(2) A participant with an account balance in investment
products approved under the prior plan may elect to maintain the balance
in those products or to transfer the balance to one or more products
approved under the revised plan. A participant may not transfer funds
from one prior plan vendor in the prior plan to another prior plan
vendor in the prior plan. Annuitized and life insurance products may
not be transferred to the revised plan. Balances transferred to a
product approved under the revised plan may not be transferred to
a product approved under the prior plan. Transfer of funds to the
revised plan that are in distribution must be paid out over a uniform
term.
(3) Notwithstanding the provisions of paragraph (2)
of this subsection, the plan administrator may require that an account
balance in an investment product in the prior plan be transferred
from such product approved under the prior plan to a product(s) approved
under the revised plan if the plan administrator determines it is
in the best interests of the plan.
(4) On or after September 1, 2000, prior plan vendors
and vendor representatives of qualified investment products under
the prior plan shall cease solicitation of business for such products
from participants and employees.
(5) Distribution agreements for investment products
in the prior plan filed on or after September 1, 2000, shall use the
same beginning date, duration and frequency for all prior plan vendors
and investment products.
(6) A beneficiary designation form for investment products
in the prior plan must be properly executed by the participant and
filed with the applicable prior plan vendors. In the revised plan,
a beneficiary designation form must be properly executed by the participant
and filed with the TPA in accordance with the plan document. A beneficiary
designation form filed with the TPA of the revised plan applies only
to those funds that have been transferred to the revised plan.
(7) Termination of deferrals in prior plan; resumption
of deferrals.
(A) A participant may voluntarily terminate additional
deferrals in the prior plan by providing appropriate notice to the
TPA.
(B) A participant who has terminated additional deferrals
in the prior plan, but who has not separated from service, may resume
deferrals in the 457 plan by re-enrolling in the revised plan in accordance
with the plan document.
|
