| to be used for, or diverted to, purposes other than for the exclusive benefit of participants and their beneficiaries. Adoption of this rule shall constitute notice to prior plan vendors holding assets under the plan to change their records effective January 1, 1999, to reflect that assets are held in trust by the Board of Trustees for the exclusive benefit of the participants and beneficiaries. Failure of a vendor to change its records on a timely basis may result in the expulsion of the vendor from the plan. (r) Market risk and related matters. (1) The plan administrator, the trustee, an employing state agency, or an employee of the preceding are not liable to a participant if all or part of the participant's deferrals and investment income are diminished in value or lost because of: (A) market conditions; (B) the failure, insolvency, or bankruptcy of an investment provider; or (C) the plan administrator's initiation of a transfer or investment of deferrals in accordance with the sections in this chapter. (2) A participant is solely responsible for monitoring his or her own investments and being knowledgeable about: (A) the financial status and stability of the investment provider in which the participant's deferrals and investment income are invested; (B) market conditions; (C) the resulting cost of making a transfer or distribution from a qualified investment product; (D) the amount of the participant's deferrals and investment income that are invested in an investment provider's qualified investment products; (E) the riskiness of a qualified investment product; and (F) the federal tax advantages and consequences of participating in the plan and receiving distributions of deferrals and investment income. (s) Alienation of deferrals and investment income. A participant's deferrals and investment income may not be: (1) assigned or conveyed; (2) pledged as collateral or other security for a loan; (3) attached, garnished, or subjected to execution; or (4) conveyed by operation of law in the event of the participant's bankruptcy, or insolvency. |
| Source Note: The provisions of this §87.5 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 January 1, 1994, 18 TexReg 8460; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective March 21, 1997, 22 TexReg 2513; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 11, 2003, 28 TexReg 7785; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023;amendedtobeeffective January 10, 2006, 31 TexReg 170; amended to be effective September 14, 2006, 31 TexReg 7367; amended to be effective June 14, 2007, 32 TexReg 3357; amended to be effective December 31, 2007, 32 TexReg 10054 |
