Section 13.550 - Plan Formation(a) Establishing the plan. A PEO applying for a certificate of approval must establish its plan in compliance with the Employee Retirement Income Security Act of 1974, 29 U.S.C. §1102, concerning Establishment of Plan.(b) Required plan provisions. The plan: (1) must be a nonprofit entity;(2) must hold all plan assets in a trust as established under § 13.551 of this title (relating to Trust Formation);(3) must accept as participants the covered employees or dependents of covered employees of every client that elects to allow its covered employees to participate in the plan; and(4) may not condition participation on a client's claims history or its covered employees' health status-related factors.(c) Plan amendment. An approved PEO may amend the terms of its plan without the approval of the plan's trustees; the trustees may not amend the terms of the plan.(d) Approval of plan amendment. A plan amendment must be submitted to TDI as provided in § 13.552 of this title (relating to Required Filings) for review and approval by the commissioner before becoming effective.28 Tex. Admin. Code § 13.550
Adopted by Texas Register, Volume 41, Number 20, May 13, 2016, TexReg 3493, eff. 5/17/2016