Section 87.3 - Administrative and Miscellaneous Provisions(a) Plan administrator. (1) The plan administrator shall administer all aspects of the plan.(2) The plan administrator shall: (A) act for the state in all administrative matters concerning the plan;(B) adopt and amend rules that are consistent with state and federal law;(C) enter into necessary contracts; and(D) take whatever action is necessary to ensure compliance with state and federal law and the sections in this chapter.(b) Participation by state agencies in the plan. (1) Commencing participation in the plan. (A) A state agency may commence participation in the plan by: (i) sending a written notice from its head of agency to the plan administrator; and(ii) complying with the plan administrator's documentary, training, and other requirements for participation in the plan.(B) The plan administrator may determine the effective date of a state agency's participation in the plan.(C) If the plan administrator does not determine the effective date in accordance with subparagraph (B) of this paragraph, this subparagraph applies. (i) If the plan administrator receives the written notice on the first day of a month, then the state agency's participation in the plan is effective on the first pay date of the following month.(ii) Otherwise, the state agency's participation in the plan is effective on the first pay date of the second month following the month in which the plan administrator receives the notice.(2) Terminating participation in the plan.(A) Voluntary termination. (i) A state agency may terminate its participation in the plan by sending a written notice from its head of agency to the plan administrator.(ii) If the plan administrator receives the notice on the first day of a month, then the state agency's participation in the plan terminates on the first pay date of the third month following the month in which the plan administrator receives the notice. Otherwise, the state agency's participation in the plan terminates on the first pay date of the fourth month following the month in which the plan administrator receives the notice.(iii) A state agency's termination of its participation in the plan does not entitle the agency's participants to a distribution of their deferrals and investment income.(iv) A participant who is employed by a state agency that has terminated its participation in the plan may not make additional deferrals until either the agency resumes participating in the plan or the participant becomes employed by a state agency participating in the plan.(v) The benefits coordinator of a state agency that has terminated its participation in the plan is not relieved from the responsibilities set forth in the sections in this chapter, except to the extent that the agency's participants will not be making additional deferrals to the plan.(B) Involuntary termination or suspension. (i) The plan administrator may terminate or suspend a state agency's participation in the plan if the agency or the agency's coordinator violates the sections in this chapter.(ii) The plan administrator may determine the length of a suspension after considering all relevant circumstances.(iii) The plan administrator may reinstate a state agency that has been terminated from participation in the plan if the plan administrator determines that the best interests of the plan would be served.(iv) If the plan administrator terminates or suspends a state agency's participation in the plan, the agency's participants are not entitled to a distribution of their deferrals and investment income by virtue of the termination or suspension.(v) The participant of a state agency that the plan administrator has terminated or suspended from participation in the plan may not make additional deferrals until the plan administrator reinstates the agency, the suspension ends, or the participant becomes employed by a state agency participating in the plan.(vi) The agency administrator of a terminated or suspended state agency is not relieved from the responsibilities set forth in the sections in this chapter, except to the extent that the agency's participants will not be making additional deferrals to the plan.(3) Benefits coordinator. A benefits coordinator's responsibilities may include: (A) maintaining records concerning each participant as required by the plan administrator;(B) keeping participation agreements on file;(C) retaining the original copies of insurance policies and annuity contracts;(D) ensuring that deferrals are properly deducted from a participant's salary and sent to the appropriate entity as directed by the plan administrator;(E) monitoring the annual deferral limits for each plan participant to ensure the maximum annual deferral limit is within the amount allowed by the Internal Revenue Service or 100% of the participant's includible income is not exceeded;(F) calculating and monitoring catch-up limits and furnishing the plan administrator with the applicable catch-up forms;(G) ensuring that all forms and other paperwork are properly completed and forwarded to the appropriate party;(H) balancing participant records and reconciling those records with the data provided by the prior plan vendors and the plan administrator;(I) informing employees and participants about the plan, including the necessity to file distribution agreements in accordance with § 87.17 of this title (relating to Distributions);(J) acting as a buffer between employees and participants on the one hand and prior plan vendors on the other, although a benefits coordinator is prohibited from providing investment advice;(K) attempting to locate missing participants and beneficiaries in accordance with § 87.17(q) of this title;(L) assisting a participant who has retired or left state employment if the participant's last position in state government was with that particular agency that employs the benefits coordinator;(M) continuing to assist a participant with all deferred compensation matters if a participant transfers from a participating state agency to a non-participating state agency until the participant returns to a different participating agency;(N) assisting the beneficiary of a participant whose last position in state government was with that particular state agency that employs the benefits coordinator;(O) notifying the plan administrator when a participant dies or separates from service; and(P) performing any other duties specified in the sections in this chapter or the plan document.(c) Miscellaneous provisions. (1) The participation in the plan of an investment provider or TPA, qualified investment product, state employee, vendor representative, or employee of a prior or revised plan vendor is subject to changes in federal law, federal regulations, state law, and the sections in this chapter.(2) The fiscal year of the plan begins on January 1 of each year.(3) The mailing address of the plan administrator is: Plan Administrator, Deferred Compensation §457 Plan, Employees Retirement System of Texas, P.O. Box 13207, Austin, Texas 78711-3207.(4) If a provision in the sections in this chapter or the plan document conflicts with a federal law, rule, or regulation governing the plan, then the law, rule, or regulation prevails over the provision.(5) The participation of an employee in the plan does not give the employee a legal or equitable right against the participant's employing state agency, the plan administrator, or the state of Texas except as provided in the sections in this chapter or the plan document. The plan does not affect the terms of employment between a participant and the participant's employing state agency.(6) If a time limit is expressed in terms of a number of days and the last day of the time limit falls on a weekend or holiday recognized by the state of Texas for observance by state employees, the last day of the time period is the first business day after the weekend or holiday.(7) The interests of each participant or beneficiary under the plan are not subject to the claims of the participant's or beneficiary's creditors; and neither the participant nor any beneficiary shall have any right to sell, assign, transfer, or otherwise convey the right to receive any payments hereunder or any interest under the plan, which payments and interest are expressly declared to be non-assignable and non-transferable. This rule is applicable as referenced in § 87.17(e)(7) of this title (relating to Distributions by Employees) for qualified domestic relations orders.34 Tex. Admin. Code § 87.3
The provisions of this §87.3 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective March 21, 1997, 22 TexReg 2513; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023; amended to be effective January 10, 2006, 31 TexReg 170; amended to be effective June 14, 2007, 32 TexReg 3357; amended to be effective December 31, 2007, 32 TexReg 10054; Amended by Texas Register, Volume 40, Number 23, June 5, 2015, TexReg 3576, eff. 6/9/2015