Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 4 - EMPLOYEES RETIREMENT SYSTEM OF TEXAS › Chapter 87 - DEFERRED COMPENSATION › Section 87.21 - Remedies

Current through Reg. 49, No. 28; July 12, 2024
(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 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 vendor from the plan or suspend its right
				to receive new deferrals and investment income when the prior plan vendor or
				revised plan vendor violates the sections in this chapter.
(3) The plan administrator may prohibit an
				employee of a prior plan 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 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)
				of this title (relating to prior plan vendor participation).
(5) The plan administrator may expel a prior
				plan vendor that does not file reports 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 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)
				of this title (relating to Reporting and Record Keeping by prior plan vendors)
				within a 12-month period.
(7) The
				plan administrator may expel a prior plan vendor who fails to comply with the
				DCP quarterly reporting specifications and rules on reporting for any two
				quarters within a 12-month period.
(8) The plan administrator may expel a prior
				plan vendor whose failure to comply with the requirements in §
										87.7(i)
				or (j) of this title (relating to prior plan
				vendor participation) and to §
										87.17 of
				this title (relating to Distributions) 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 subsection, the plan
				administrator may reprimand, suspend, expel, or otherwise discipline a prior
				plan vendor, employee of a prior plan 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.
(11) The plan administrator may determine the
				effective date of an expulsion, termination, prohibition, or cancellation when
				the plan administrator:
(A) expels a prior
				plan vendor or terminates a prior plan vendor's participation in the
				plan;
(B) prohibits a vendor
				representative or an employee of a prior plan vendor from further solicitation
				or acceptance of deferred compensation business; or
(C) cancels a product contract, change
				agreement, participation agreement, or combination of the preceding.
(12) When the plan administrator
				suspends a prior plan vendor's participation in the plan, the plan
				administrator may determine the effective date and termination date of the
				suspension.