Texas Labor Code - Section 407A.457. Trust Fund; Schedule
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§ 407A.457. TRUST FUND; SCHEDULE. (a) Each group shall
contribute an amount, based on the total amount of income benefit
payments made in this state for the preceding reported calendar
year, to create, over a period of 10 years beginning January 1,
2006, a trust fund of at least $1 million for:
(1) the emergency payment of the compensation
liabilities of an insolvent group; and
(2) the administrative expenses of the guaranty fund.
(b) The board may adopt provisions in the plan of operation
that provide for the indexing of the amount of the trust fund to a
risk analysis.
(c) At least annually, the board shall adopt a year-by-year
schedule of assessments to meet the funding goal of the trust fund.
(d) The board may:
(1) defer assessments if the fund equals or exceeds $2
million; and
(2) allow the trust fund to accrete based on its
investment earnings.
(e) The contribution required for the first year after a
group is issued a certificate of approval under this chapter shall
be based on the group's estimated income benefit payments for the
group's first year of operation.
(f) Each group certified under this chapter shall make
contributions under this section to the trust fund, and the board
shall provide a mechanism in the plan of operation to ensure that
all groups contribute equitably to the trust fund.
(g) The board shall administer the trust fund in accordance
with the plan of operation adopted by the board and approved by the
commissioner.
Added by Acts 2005, 79th Leg., ch. 1055, § 1, eff. Sept. 1, 2005.
Section: 407A.404 407A.451 407A.452 407A.453 407A.454 407A.455 407A.456 407A.457 407A.458 407A.459 407A.460 407A.461 407A.462 407A.463 407A.464
Last modified: August 10, 2007
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