Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 4 - EMPLOYEES RETIREMENT SYSTEM OF TEXAS › Chapter 87 - DEFERRED COMPENSATION › Section 87.37 - 457 Plan Document

Current through Reg. 49, No. 28; July 12, 2024
(a) In this
				chapter, "plan document" means the Texa$aver 457 plan document as executed and
				approved by the Executive Director, and as amended hereafter, as authorized by
				the Board of Trustees on December 4, 2014, and pursuant to subsection (c) of
				this section.
(b) All provisions of
				the revised plan, as defined herein, are governed by the plan document. In the
				event of a conflict between the plan document and another provision of this
				chapter, the provisions or requirements of the plan document prevail. 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 plan." Except as otherwise provided in this
				section, the provisions of §§
									87.1,
				87.3,
				87.5,
				87.7,
				87.9,
				87.11,
				87.13,
				87.15,
				87.17,
				87.19,
				87.21,
				87.23, and
				87.29 of
				this chapter continue to apply to participation agreements, distribution
				agreements, and prior plan vendor contracts entered into pursuant to applicable
				provisions of the prior plan. The 457 plan, as revised and adopted in the plan
				document, and as may be amended hereafter, shall be referred to as the "revised
				plan," and shall apply to all deferrals and transfers to and distributions from
				the 457 plan that take place or have taken place on or after September 1,
				2000.
(c) The Board of Trustees has
				authorized the Executive Director to execute the 457 plan document and to make
				further changes to the plan document as deemed necessary or advisable for the
				benefit of the revised plan and its participants.
(d) The plan administrator shall administer
				the revised plan in the manner provided in the plan document, and may assess
				fees and expenses against participants in the plan and their account balances
				as necessary to cover the costs of administering the revised plan.
(e) A copy of the plan document may be
				obtained from the Employees Retirement System of Texas on request.
(f) Transition from the prior plan.
(1) This subsection regarding the transition
				from the prior plan shall apply to deferrals, transfers and distributions that
				take place on or after September 1, 2000. After that date, the plan
				administrator shall cease to accept deferrals to investment products approved
				under the prior plan, with the exception of life insurance products, to which
				deferrals may be continued as necessary to maintain the life
				insurance.
(2) A participant with
				an account balance in investment products approved under the prior plan may
				elect to maintain the balance in those products or to transfer the balance to
				one or more products approved under the revised plan. A participant may not
				transfer funds from one prior plan vendor in the prior plan to another prior
				plan vendor in the prior plan. Annuitized and life insurance products may not
				be transferred to the revised plan. Balances transferred to a product approved
				under the revised plan may not be transferred to a product approved under the
				prior plan. Transfer of funds to the revised plan that are in distribution must
				be paid out over a uniform term.
(3) Notwithstanding the provisions of
				paragraph (2) of this subsection, the plan administrator may require that an
				account balance in an investment product in the prior plan be transferred from
				such product approved under the prior plan to a product(s) approved under the
				revised plan if the plan administrator determines it is in the best interests
				of the plan.
(4) On or after
				September 1, 2000, prior plan vendors and vendor representatives of qualified
				investment products under the prior plan shall cease solicitation of business
				for such products from participants and employees.
(5) Distribution agreements for investment
				products in the prior plan filed on or after September 1, 2000, shall use the
				same beginning date, duration and frequency for all prior plan vendors and
				investment products.
(6) A
				beneficiary designation form for investment products in the prior plan must be
				properly executed by the participant and filed with the applicable prior plan
				vendors. In the revised plan, a beneficiary designation form must be properly
				executed by the participant and filed with the TPA in accordance with the plan
				document. A beneficiary designation form filed with the TPA of the revised plan
				applies only to those funds that have been transferred to the revised
				plan.
(7) Termination of deferrals
				in prior plan; resumption of deferrals.
(A) A
				participant may voluntarily terminate additional deferrals in the prior plan by
				providing appropriate notice to the TPA.
(B) A participant who has terminated
				additional deferrals in the prior plan, but who has not separated from service,
				may resume deferrals in the 457 plan by re-enrolling in the revised plan in
				accordance with the plan document.