Texas Register, Volume 29, Number 30, Pages 7013-7230, July 23, 2004 Page: 7,067
7013-7230 p. ; 28 cm.View a full description of this periodical.
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offered by the prior plan vendor's trust department or by other ven-
dors, the deferrals and investment income are deemed invested in the
vendor's qualified investment products for the purpose of this subsec-
tion.
(9) The plan administrator, in its discretion, may immedi-
ately transfer under-collateralized funds plus any amount reasonably
necessary to prevent future under-collateralization. The transfer shall
be carried out in accordance with the procedures set forth in 87.15[(e)]
of this title. The prior plan vendor may not charge the participant a fee
or penalty due to a withdrawal of under-collateralized funds.
(k) [(1)] Limits on account balances in credit unions.
(1) This subsection applies only to a qualified vendor that
is a credit union.
(2) A prior plan [qualified] vendor may not accept deferrals
to an account if the deferrals would cause the balance of the account
to exceed $100,000 (as amended), the amount insured by the National
Credit Union Administration and National Credit Union Share Insur-
ance Fund unless the vendor or participant has complied with paragraph
(6) of this subsection.
(3) In this subsection, the term "deferred compensation in-
formation" means:
(A) the amount by which the balance of each account
as of the end of the previous month exceeds $100,000 (as amended);
(B) the qualified investment product in which the par-
ticipant's future deferrals will be invested, in lieu of investing them in
the credit union's qualified investment products.
(C) the total amount by which the balances of all re-
ported accounts exceed $100,000 (as amended).
(4) Once each month, a prior plan [qualified] vendor shall
report deferred compensation information to the plan administrator no
later than 1 p.m., central time, on a call-in day. If a prior plan [qualified]
vendor has no accounts that exceed $100,000 (as amended), the prior
plan vendor must report that fact to the plan administrator.
(5) The plan administrator shall notify the agency co-
ordinator for each participant whose account exceeds $100,000 (as
amended). Upon receiving the notice, the agency coordinator shall
request the participant to specify in a change agreement:
(A) the qualified investment product to which at least
the amount in the account in excess of $100,000 (as amended) will be
moved; and
(B) the qualified investment product in which the par-
ticipant' s future deferrals will be invested, in lieu of investing them in
the credit union's qualified investment products.
(6) If a participant does not want funds in excess of
$100,000 (as amended) transferred from the credit union, the partici-
pant may keep funds at the credit union if:
(A) the credit union will pledge collateral for all funds
in excess of $100,000 (as amended) in accordance with plan adminis-
trator procedures; or
(B) the participant acknowledges and accepts the liabil-
ity of uninsured funds through a signed statement on forms furnished
by the plan administrator.
(7) If a participant does not submit a change agreement to
the agency coordinator immediately after receiving a request from the
participant's agency coordinator in accordance with paragraph (5) of
this subsection and if paragraph (6) of this subsection is not compliedwith, the agency coordinator shall notify the plan administrator. Upon
receiving the notification, the plan administrator shall:
(A) initiate a transfer of the amount in the account in
excess of $100,000 (as amended) in accordance with 87.15[(e)(1)] of
this title; and
(B) prohibit the participant from deferring additional
amounts to the prior plan [qualified] vendor's qualified investment
products.
(1) [(i)] Audits
[(1)] The plan administrator may audit or cause an audit to
be performed of a current or former prior plan [qualified] vendor related
to [eeneerning] the vendor's participation in the plan.
E(2) The plan administrator may audit or eaase an audit to
be performed of a vender that was a qualified vendor at one time but
has since lost its qualified status The audit may cover the vendor's
...t.eiji atie" in the plate}
(m) [(n)] The plan administrator may expel a prior plan vendor
that fails to maintain all requirements needed to become a prior plan
[qualified] vendor. Such vendor may not charge or permit to be charged
a fee or penalty to participants, the plan or plan administrator for the
transfers made due to expulsion.
87.9. Investment Products.
(a) Prohibited activity. A prior plan [qualified] vendor or prior
plan vendor representative may not solicit investments in an investment
product after August 31, 2000.
(b) New qualified investment products.
(1) Notwithstanding anything to the contrary in the sec-
tions in this chapter, other than 87.31 and paragraph (2) of this sub-
section, the plan administrator may not:
(A) approve an investment product as a qualified invest-
ment product; or
(B) issue a product approval notice.
(2) Paragraph (1) (A) and (B) of this subsection do not ap-
ply to a qualified investment product that the plan administrator ap-
proved for participation in the plan before May 7, 1990. If the plan ad-
ministrator has not executed a product contract with a prior plan [quali-
fied] vendor that is sponsoring a qualified investment product, the plan
administrator and the prior plan [qualified] vendor shall execute a prod-
uct contract no later than the 90th day after May 7, 1990. If a product
contract is not executed, the plan administrator shall terminate the qual-
ified investment product's participation in the plan.
(c) Eligibility of investment products. The investment prod-
ucts that are eligible for approval as qualified investment products are:
(1) fixed and variable rate annuities;
(2) life insurance (except that new life policies may not be
offered in the plan by any vendor after December 31, 1992);
(3) stable value account;[mutual funds and]
(4) self-directed brokerage account; moneyy market ac-
i.erti .eates of (deposit share ertifeates r passbeek savings
.ecoutts offered by n , Savings and lean ort.ie. er edit
union.]
(5) mutual funds; and
(6) money market accounts, certificates of deposit, share
certificates or passbook savings accounts offered by a bank, savings
and loan association, or credit union.PROPOSED RULES July 23, 2004 29 TexReg 7067
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Texas. Secretary of State. Texas Register, Volume 29, Number 30, Pages 7013-7230, July 23, 2004, periodical, July 23, 2004; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth101134/m1/54/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.