Section 87.37 - 457 Plan Document(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.34 Tex. Admin. Code § 87.37
Adopted by Texas Register, Volume 40, Number 23, June 5, 2015, TexReg 3576, eff. 6/9/2015