Texas Register, Volume 29, Number 30, Pages 7013-7230, July 23, 2004 Page: 7,084
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(2) The provisions of 87.15 of this title (relating to Trans-
fers) shall apply to the authority of the plan administrator to make trans-
fers under the revised plan. Limitations on the plan administrator im-
posed in 87.7(b)(1) (relating to prior plan vendor participation [Ven-
dor Participation]) and 87.9(b)(1) (relating to Investment Products) of
this title shall not apply to administration of the revised plan.
(3) A participant shall select a single manner of distribution
and a single date of distribution of all of the participant's investments
in the revised plan.
(4) The plan administrator may assess a fee if necessary to
cover the costs of administering the revised plan.
(5) If a participant has not selected an investment product
to receive deferrals, the deferrals shall be invested in a [money market
account or sueh other] product selected by the plan administrator in its
sole discretion. Balances in the revised plan may not be transferred to
the prior [previous] plan.
(6) Deferrals and transfers to the revised plan shall be ac-
cepted by the revised plan beginning on the effective date of this sec-
tion.
(c) Change of name or legal status by a revised plan vendor. If
a revised plan vendor's name or legal status changes through merger,
sale, dissolution, or any other means, the revised plan vendor must no-
tify the plan administrator in writing no later than the 30th day after
the change. The notice must contain a detailed description of the trans-
action that causes the change. If a notice requirement in a contract
between the revised plan vendor and the plan administrator is different
than required in this paragraph, then the notice should be made in ac-
cordance with the contractual provision.
(d) [(e)] Transition from the prior [previous] plan.
(1) On the effective date of this section, the plan adminis-
trator shall cease to accept deferrals to investment products approved
under the prior [previous] plan, with the exception of life insurance
products, to which deferrals may be continued as necessary to main-
tain the life insurance.
(2) A participant with an account balance in investment
products approved under the prior [previous] plan may elect to main-
tain the balance in those products or to transfer the balance to one or
more products approved under the revised plan. Annuitized and life
insurance products may not be transferred to the revised plan. Bal-
ances transferred to a product approved under the revised plan may not
be transferred to a product approved under the prior [previous] plan.
Transfer of funds to the revised plan that are in distribution must be
paid out over a uniform term. A participant may not transfer funds from
one prior plan vendor qualifiedd vendr] in the prior [previous] plan to
another prior plan [qualified] vendor in the prior [previous] plan.
(3) Notwithstanding the provisions of paragraph (2) of this
subsection, the plan administrator may require that an account balance
in an investment product be transferred from such product approved
under the prior [previous] plan to a product(s) approved under the re-
vised plan if the plan administrator determines it is in the best interests
of the plan.
(4) On the effective date of this section, prior plan vendors
and vendor representatives of qualified investment products under the
prior [previous] plan shall cease solicitation of business for such prod-
ucts from participants and employees.
(5) Distribution agreements for investment products in the
prior [previous] plan filed on or after the effective date of this section
shall use the same beginning date, duration and frequency for all prior
plan vendors and investment products.(6) A beneficiary designation form filed with the admin-
istrator of the revised plan applies only to those funds that have been
transferred to the revised plan.
(7) Termination and resumption of deferrals.
(A) An employee may voluntarily terminate additional
deferrals by providing appropriate notice to the TPA.
(B) An employee who has terminated additional defer-
rals, but who has not separated from service, may resume deferrals by
re-enrolling in the revised plan.
(e) Audits. The plan administrator or its designee may audit
or cause an audit to be performed of a revised plan vendor related to
the vendor's participation in the plan.
87.33. The Economic Growth and Tax Relief and Reconciliation Act.
(a) The Economic Growth and Tax Relief and Reconciliation
Act of 2001 (referred to as "EGTRRA" and/or "Act") allows a plan
administrator to amend eligible 457 deferred compensation plans to
provide additional benefits to participants. The following resolutions
set forth the decisions and provisions effective January 1, 2002.
(b) Applicability.
(1) This section applies to the State of Texas Deferred
Compensation 457 Plan as revised and adopted by the Employees
Retirement System of Texas effective September 1, 2000, and filed
with the Secretary of State. The plan as revised and adopted is
incorporated into this section. Copies may be obtained upon request.
(2) 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 [previous] plan." Except as otherwise provided in this section,
the provisions of 87.1 through 87.31 of this title continue to apply to
participation agreements, distribution agreements, and prior plan ven-
dor contracts entered into pursuant to applicable provisions of the prior
[previous] plan.
(3) This section takes effect January 1, 2002 and shall apply
to deferrals, transfers/rollovers and distributions that take place on or
after January 1, 2002.
(c) Administration of the revised plan. The plan administrator
shall administer the revised plan in the manner provided in the plan
and 87.3 of this title (relating to Administrative and Miscellaneous
Provisions).
(d) Catch-up contributions during the three years prior to nor-
mal retirement age are increased to twice the applicable deferral limit.
(e) A participant age 50 or older during any calendar year shall
be eligible to make additional pre-tax contributions in accordance with
Internal Revenue Code 414(v) applicable to 457 plans, in excess of
normal deferral amounts. A participant who elects to defer contribu-
tions under the normal catch-up provisions may not also defer under
the special catch-up and Internal Revenue Code 414(v).
(f) Plan Loans - The plan administrator is authorized to im-
plement procedures to establish a loan program for the revised plan.
Plan loans shall be permitted only from assets deposited in the revised
plan. Participants with account balances in the prior [previous] plan
must transfer those balances to the revised plan in order to qualify for
a plan loan.
(g) Distributions.
(1) Change or Cancellation of Irrevocable Distribution
Elections - A participant or a beneficiary of a participant who29 TexReg 7084 July 23, 2004 Texas Register
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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/m1/71/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.