| (C) The plan administrator, in its discretion, may direct the prior plan vendor to make the check payable to the payee specified by the plan administrator, which may be the TPA or an eligible plan in the case of a plan-to-plan transfer. An eligible plan-to-plan post-severance transfer may include a transfer to another eligible governmental plan. If the plan administrator directs the prior plan vendor to send funds directly to the TPA, the plan administrator shall provide instructions concerning the investment of the amounts transferred. If the specified payee is the TPA, they shall promptly deposit the check into the applicable account previously agreed upon. The prior plan vendor shall use its best efforts to ensure that the plan administrator or the specified payee receives the check no later than the 15th day after the prior plan vendor receives notification of the transfer. (D) If the check is sent to the plan administrator, the plan administrator shall: (i) endorse the check in favor of the TPA that will be receiving the transfer; and (ii) mail to the TPA that will be receiving the transfer the endorsed check and written instructions concerning the investment of the amounts transferred. (E) The TPA must send written confirmation to the plan administrator concerning the TPA's receipt of the transferred funds and written instructions. The TPA must ensure that the plan administrator receives the written confirmation no later than the 15th day after the TPA receives the transferred funds and instructions. (F) Upon approval of the plan administrator, the vendor transferring funds may cause a wire transfer to be made in lieu of issuing a check: (i) if the prior plan vendor sending funds complies with procedures specified by the plan administrator; (ii) the prior plan vendor receiving funds is approved by the plan administrator to accept a wire transfer of funds; and (iii) the prior plan vendor receiving funds complies with procedures specified by the plan administrator. (e) Resolving transfer-related problems. A prior plan vendor shall use its best efforts, exercise good faith and reasonable diligence in resolving all transfer-related administrative problems with the plan administrator or participant within a reasonable length of time, not to exceed 30 days, after receiving a transfer notification. The plan administrator may not complete any forms provided by a prior plan vendor in connection with a transfer. (f) Transfers into life insurance products. (1) The only transfer allowed into a life product is a transfer from an existing life insurance product to a life insurance product approved by the plan administrator. (2) This paragraph is effective until December 31, 1998. When a participant chooses to transfer deferrals and investment income to an existing replacement life insurance product within the same prior plan vendor, the State of Texas: (A) retains all of the incidents of ownership of the life insurance product; (B) is the sole beneficiary of the life insurance product; (C) is not required to transfer the life insurance product to the participant or the participant's beneficiary; and (D) is not required to pass through the proceeds of the product to the participant or the participant's beneficiary. (3) This paragraph is effective January 1, 1999, and thereafter. When a participant chooses to transfer deferrals and investment income to a life insurance product within the same prior plan vendor, the life insurance product shall be held in trust for the exclusive benefit of the participant and beneficiaries. (g) Telephone transfers. (1) A prior plan vendor may apply for approval to offer to participants the capability of making transfers of plan deferrals and investment earnings currently on account with that prior plan vendor from one qualified investment product or products to another qualified investment product or products within that prior plan vendor via telephone instructions given by the participant or plan administrator. (2) When a participant is in distribution, the telephone transfer option may be used; however, it must be used in accordance with §87.17(i)(6)(C) of this title (relating to Transfers). (3) The prior plan vendor and the participant must obtain approval from the plan administrator and must follow all instructions and procedures prescribed by the plan administrator. |
| Source Note: The provisions of this §87.15 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective November 9, 1994, 19 TexReg 8617; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 10, 1999, 24 TexReg 165; 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 |
