Texas Register, Volume 29, Number 30, Pages 7013-7230, July 23, 2004 Page: 7,081
7013-7230 p. ; 28 cm.View a full description of this periodical.
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(iii) electronic file transfer - use of file transfer pro-
tocol (FTP), via the Internet or as an attachment to an electronic mail
(E-mail).
(B) Only prior plan [qualified] vendors with less than
fifty participants are eligible to report on a manual form.
(C) Before a prior plan [qualified] vendor may use a
medium other than a manual form to file a quarterly report with the
plan administrator, the vendor must submit a written request along with
a electronic transfer file, or diskette to the plan administrator. The ERS
must approve and make arrangements with the prior plan [qualified]
vendor prior to testing the electronic file transfer [described in subpara-
graph (A)(v of this paragraph]. The electronic transfer file, or diskette
must be in the format and contain the information prescribed by the
DCP reporting specifications and contain the information that the plan
administrator requires including the items listed in paragraph (d)(2)(A)
- (J) of this subsection. Failure to submit data in the specified format
will result in the return of the media without processing. If the plan
administrator determines that the electronic transfer file, or diskette is
inadequate, the plan administrator shall ensure that the number of par-
ticipants whose deferrals and investment income are invested at any
given time in the vendor's qualified investment products does not ex-
ceed 49.
(D) The product types must be defined and coded as
prescribed by the plan administrator and as in the DCP quarterly re-
porting specifications.
(E) If a participant or beneficiary has invested deferrals
and investment income in two or more qualified investment products
offered by the same prior plan [qualified] vendor and the products are
of the same type, then the prior plan vendor must report a cumulative
total of those deferrals and investment income.
(4) A prior plan vendor that fails to submit to the plan ad-
ministrator any required report with an authorized signature or the as-
sessed fee will be subject to [result in a] formal reprimand. After two
[three] formal reprimands, a vendor may be expelled [is subject to sus-
pension -or expulsion] from the plan and subject to further liability as
applicable.
(5) Late reports and/or fee payment.
(A) A report or fees are [is] delinquent if the plan ad-
ministrator receives the report and/or fees after the due date.
(B) A report or fees that are [is] received before the due
date but which are [is] returned to the vendor for completion or cor-
rection are [is] delinquent if the plan administrator does not receive the
completed or corrected version of the report or correct amount of fees
within 10 days after the original due date.
(e) Recordkeeping. A prior plan [qualified] vendor shall retain
records concerning investments in each qualified investment product
by each participant. The records must be retained until the expiration
of the second year after the prior plan vendor has distributed all the
participant's deferrals and investment income.
(f) Quarterly reconciliation. In accordance with
87.3(b)(3)(H) of this title (relating to Participation by State
Agencies), an agency coordinator may be [is] responsible for balanc-
ing participant and beneficiary records and reconciling those records
with the data provided by qualified vendors and the plan administrator.
Prior plan vendors [Vendors] shall assist the plan administrator and
state agencies with correcting and explaining any discrepancies.
Failure to assist the plan administrator and state agencies with this
reconciliation will be considered a rules violation, and the planadministrator may take appropriate action under 87.21 of this title
(relating to Remedies).
87.21. Remedies.
(a) Remedies for violations of the sections in this chapter.
(1) The plan administrator may cancel a product contract,
change agreement, participation agreement, exercise any available
remedy under applicable law, or combination of the preceding when a
prior plan [qualified] vendor uses methods that violate the sections in
this chapter to obtain investments in the prior plan vendor's qualified
investment products.
(2) The plan administrator may expel a prior plan [quali-
fied] vendor from the plan or suspend its right to receive new deferrals
and investment income when the prior plan vendor or revised plan ven-
dor violates the sections in this chapter.
(3) The plan administrator may prohibit an employee of a
prior plan [qualified] vendor or a vendor representative from further
solicitation or acceptance of deferred compensation business when the
employee or representative violates the sections in this chapter.
(4) If a prior plan [qualified] vendor does not notify the plan
administrator by no later than the 30th day after a change in vendor
status, the plan administrator shall expel the prior plan vendor. For the
purpose of this paragraph, the term "change in vendor status" means
the events covered by 87.7(e)[(f] of this title (relating to prior plan
vendor participation [Vender Participation]).
(5) The plan administrator may [shall suspend er] expel a
prior plan [qualified] vendor that does not file reports [a report] with
and remit all fees it owes to the plan administrator for any two quarters
in a 12-month period.
(6) The plan administrator may [shall suspend or] expel
a non-filer that files two or more reports or remits two or more fee
payments to the plan administrator after the due date specified within
87.19(d)(1) [87.19()(41)] of this title (relating to Reporting and
Record Keeping by prior plan vendors [Qualified Vendors]) within a
12-month period.
(7) The plan administrator may [suspend r] expel a prior
plan [qualified] vendor who fails to comply with the DCP quarterly re-
porting specifications and rules on reporting for any two quarters within
a 12-month period.
(8) The plan administrator may [suspend or] expel a prior
plan [qualified] vendor whose failure to comply with the requirements
in 87.7(i)[)] or O)[(k)] of this title (relating to prior plan vendor par-
ticipation and to 87.17 of this title (relating to Distributions) [Vendor
Participation)] was:
(A) intentional;
(B) caused by a reckless disregard of the requirements;
(C) due to gross negligence; or
(D) due to negligence.
(9) For violations not specifically mentioned in this sub-
section, the plan administrator may reprimand, suspend, expel, or oth-
erwise discipline a prior plan [qualified] vendor, employee of a prior
plan [qualified] vendor, or vendor representative.
(10) The plan administrator may suspend or expel a prior
plan vendor who fails to remit to the plan administrator plan fees by
the due date.PROPOSED RULES July 23, 2004 29 TexReg 7081
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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/m1/68/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.