Texas Government Code Title 6, Chapter 609 - Deferred Compensation Plans

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 609.001 - Definitions
  In this chapter: (1) "Board of trustees" means the board of trustees of the Employees Retirement System of Texas. (2) "Employee" means an individual who...
• Texas Section 609.002 - Qualifications For Qualified Vendor
  A vendor may be a qualified vendor for a 457 plan or a 401(k) plan created by a political subdivision, group of political subdivisions, an...
• Texas Section 609.003 - Qualified Investment Product
  (a) To be classified as a qualified investment product for a deferred compensation plan, an investment product must be approved by the plan administrator to...
• Texas Section 609.004 - Permissible Use Of Public Funds
  A deferred compensation plan governed by this chapter is a permissible use of the funds of a state agency or political subdivision. Added by Acts...
• Texas Section 609.005 - Plan As Compensation
  (a) A deferred compensation plan is a part of an employee's compensation and is in addition to a retirement, pension, or benefit system established by...
• Texas Section 609.006 - Conformance To Or Conflict With Federal Law
  (a) A deferred compensation plan must conform to federal law to provide that deferred amounts and investment income are not includable, for federal income tax...
• Texas Section 609.007 - Contract For Deferment Of Compensation
  (a) A political subdivision may contract with an employee of the political subdivision for the deferment of any part of the employee's compensation. (b) The...
• Texas Section 609.008 - Crediting Trust Fund Interest
  Interest earned on an employee's deferred amounts and investment income deposited in any of the deferred compensation trust funds, as defined by Section 609.101, or...
• Texas Section 609.009 - Trust For 457 Plan
  An employee's deferred amounts and investment income under a 457 plan and the qualified investment products in which the amounts are invested are held in...
• Texas Section 609.010 - Liability; Responsibility For Monitoring
  (a) The board of trustees, a state agency, a political subdivision, a plan administrator, or an employee of any of those persons is not liable...
• Texas Section 609.011 - Notification By Plan Administrator
  (a) The plan administrator of a plan established under this chapter may notify an employee participating in the plan that the administrator believes that: (1)...
• Texas Section 609.012 - Transfer From A Plan Vendor
  The plan administrator of a plan established under this chapter may immediately transfer to the plan's deferred compensation trust fund all deferred amounts and investment...
• Texas Section 609.013 - Inability To Distribute
  If a plan administrator cannot distribute promptly an employee's deferred amounts and investment income when a distribution is due and permissible under federal law, the...
• Texas Section 609.014 - Coordination Of Plans
  Notwithstanding any other provision of this chapter, an institution of higher education, as defined by Section 61.003, Education Code, participating in a group benefits program...

SUBCHAPTER B DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF POLITICAL SUBDIVISIONS

• Texas Section 609.015 - Beneficiary Causing Death Of Participating Employee
  (a) Any benefits, funds, or account balances payable on the death of a participating employee may not be paid to a person convicted of or...
• Texas Section 609.101 - Definitions
  In this subchapter: (1) "Deferred compensation plan" means a plan established under this subchapter. (2) "Deferred compensation trust fund" means the fund in which deferred...
• Texas Section 609.102 - Creation Of Plan
  (a) A political subdivision may create and administer for its employees a 401(k) plan under this subchapter. (b) A political subdivision may create and administer...
• Texas Section 609.1025 - Roth Contribution Programs
  A political subdivision may: (1) establish a qualified Roth contribution program in accordance with Section 402A, Internal Revenue Code of 1986, under which an employee...
• Texas Section 609.103 - Designation Of Plan Administrator
  (a) A political subdivision that creates a deferred compensation plan shall designate a plan administrator for the plan. (b) Political subdivisions that create a single...
• Texas Section 609.104 - Removal Of Plan Administrator
  A political subdivision or group of political subdivisions that designates a plan administrator may remove the plan administrator at any time unless specifically provided otherwise...
• Texas Section 609.105 - Delegation Of 401(k) Plan Administrator's Authority And Responsibilities
  Sec. 609.105. DELEGATION OF 401(K) PLAN ADMINISTRATOR'S AUTHORITY AND RESPONSIBILITIES. A plan administrator of a 401(k) plan may delegate the administrator's authority and responsibilities under...
• Texas Section 609.106 - Oversight Committee
  (a) A political subdivision or group of political subdivisions that creates a deferred compensation plan may direct and supervise the activities of the plan administrator...
• Texas Section 609.107 - Authority Of Plan Administrator
  (a) A plan administrator shall execute necessary contracts for the administration of the deferred compensation plan, subject to any prior approval required by the political...
• Texas Section 609.108 - Investment And Transfer Of Deferred Amounts And Income
  The plan administrator shall: (1) invest the deferred amounts and investment income of a participating employee in the qualified investment products designated by the employee;...
• Texas Section 609.109 - Participation Of Independent Contractors
  (a) The plan administrator shall determine whether a person who provides services as an independent contractor to a political subdivision that created the plan may...
• Texas Section 609.110 - Changing Amount Deferred
  An employee may change the amount to be deferred by notifying the plan administrator of the change in accordance with the requirements of the administrator....
• Texas Section 609.111 - Distribution
  A plan administrator shall develop and implement procedures for: (1) the designation by a participating employee of a beneficiary to receive the employee's deferred amounts...
• Texas Section 609.112 - Fee
  (a) A political subdivision or group of political subdivisions that creates a deferred compensation plan may assess a fee for the administration of the plan...
• Texas Section 609.113 - Evaluation And Approval Of Qualified Vendor
  (a) A plan administrator shall develop and implement criteria and procedures for evaluating a vendor's application to become a qualified vendor. (b) A plan administrator...
• Texas Section 609.114 - Number Of Vendors Under 457 Plan
  The plan administrator of a 457 plan shall determine the minimum and maximum number of vendors that may be qualified vendors for the plan at...
• Texas Section 609.115 - Contract With Qualified Vendor
  (a) After a plan administrator approves an application of a vendor to become a qualified vendor or, under a 401(k) plan, after the plan administrator...
• Texas Section 609.116 - Regulation Of Qualified Vendors
  A plan administrator shall develop and implement requirements for qualified vendors and their employees concerning disclosure, reporting, standards of conduct, solicitation, advertising, relationships with participating...
• Texas Section 609.117 - Loans Under 401(k) Plan
  Sec. 609.117. LOANS UNDER 401(K) PLAN. The plan administrator of a 401(k) plan shall develop and implement procedures to efficiently administer a program that allows...
• Texas Section 609.1175 - Loans Under 457 Plan
  The plan administrator of a 457 plan may develop and implement procedures to efficiently administer a program under the plan that allows a qualified vendor...
• Texas Section 609.118 - Trust For 401(k) Plan
  Sec. 609.118. TRUST FOR 401(K) PLAN. A political subdivision or group of political subdivisions that creates a 401(k) plan may: (1) establish a trust to...

SUBCHAPTER C DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF STATE AGENCIES

• Texas Section 609.119 - Transfer On Vendor's Failure
  A political subdivision or group of subdivisions that creates a deferred compensation plan may authorize or require as a part of the plan that the...
• Texas Section 609.501 - Definition
  In this subchapter, "deferred compensation plan" means a plan established under this subchapter. Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept....
• Texas Section 609.502 - Creation Of Plan; Participation
  (a) The board of trustees of the Employees Retirement System of Texas is the trustee and the plan administrator of a 401(k) plan and a...
• Texas Section 609.5021 - Roth Contribution Programs
  The board of trustees may: (1) establish a qualified Roth contribution program in accordance with Section 402A, Internal Revenue Code of 1986, under which an...
• Texas Section 609.5025 - Automatic Participation; Default Investment Product
  (a) This section applies only to an employee of a state agency participating in a 401(k) plan. (b) An employee participates in a 401(k) plan...
• Texas Section 609.5026 - State Matching Contributions
  Subject to a separate legislative appropriation for that purpose, the Employees Retirement System of Texas may make matching contributions to a 401(k) plan on behalf...
• Texas Section 609.503 - Changing Amount Deferred
  An employee may change the amount to be deferred by notifying the board of trustees in accordance with the requirements of the board of trustees....
• Texas Section 609.504 - Investment And Transfer Of Deferred Amounts And Income
  After execution of a contract under Section 609.007, the board of trustees shall: (1) invest the deferred amounts and investment income of the employee in...
• Texas Section 609.505 - Qualified Vendor
  (a) The board of trustees or a third party administrator approved by the board, in accordance with rules adopted under this subchapter, may contract with...
• Texas Section 609.506 - Insurance Company As Qualified Vendor
  On written request, the Texas Department of Insurance shall certify in writing to the board of trustees whether an insurance company is eligible to be...
• Texas Section 609.507 - Financial Institution As Qualified Vendor
  Each bank or savings and loan association that is a qualified vendor is not required to comply with Chapter 404 with regard to deferrals and...
• Texas Section 609.508 - Rules
  (a) The board of trustees may adopt rules, including plans and procedures, and orders necessary to carry out the purposes of this subchapter, including rules...
• Texas Section 609.509 - Contracts For Goods And Services
  (a) The board of trustees may contract for necessary goods and consolidated billing, accounting, and other services to be provided in connection with a deferred...
• Texas Section 609.510 - Exemption For Certain Contracts
  A contract authorized by Section 609.505 or by Section 609.509 for either deferred compensation plan is exempt from: (1) Subtitle D, Title 10; (2) Chapter...
• Texas Section 609.511 - Fee
  (a) The board of trustees may assess a fee against participating employees or qualified vendors, or both the employees and the qualified vendors, in the...
• Texas Section 609.512 - Deferred Compensation Plan Trust Funds
  (a) The TexaSaver 401(k) trust fund is in the state treasury. The fund is for the benefit of the program described by Section 609.001(10). (b)...
• Texas Section 609.513 - Discretionary Transfer
  (a) The board of trustees may transfer an employee's deferred amounts and investment income from a qualified investment product to the trust fund of the...
• Texas Section 609.514 - Alternative To Fund Deposit
  Instead of depositing deferred amounts and investment income in the trust fund of the deferred compensation plan, the board of trustees may invest them in...

SUBCHAPTER D DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF INSTITUTIONS OF HIGHER EDUCATION

• Texas Section 609.515 - Transfer To 457 Plan Of Institution Of Higher Education
  (a) The board of trustees, as authorized by 26 C.F.R. Section 1.457-10(b)(1) and (3), shall allow the transfer from its TexaSaver 457 plan to the...
• Texas Section 609.701 - Definitions
  In this subchapter: (1) "Deferred compensation plan" means a plan established under this subchapter. (2) "Deferred compensation trust fund" means the fund in which deferred...
• Texas Section 609.702 - Creation Of Plan
  (a) An institution of higher education may create and administer for its employees a 457 plan under this subchapter. (b) An institution of higher education...
• Texas Section 609.703 - Designation Of Plan Administrator
  (a) An institution of higher education that creates a deferred compensation plan shall designate a plan administrator for the plan. (b) Institutions of higher education...
• Texas Section 609.704 - Removal Of Plan Administrator
  An institution of higher education or group of institutions of higher education that designates a plan administrator may remove the plan administrator at any time...
• Texas Section 609.705 - Oversight Committee
  (a) An institution of higher education or group of institutions of higher education that creates a deferred compensation plan may direct and supervise the activities...
• Texas Section 609.706 - Authority Of Plan Administrator
  (a) A plan administrator shall execute necessary contracts for the administration of the deferred compensation plan, subject to any prior approval required by the institution...
• Texas Section 609.707 - Investment And Transfer Of Deferred Amounts And Income
  The plan administrator shall: (1) invest the deferred amounts and investment income of a participating employee in the qualified investment products designated by the employee;...
• Texas Section 609.708 - Participation Of Independent Contractors
  (a) The plan administrator shall determine whether a person who provides services as an independent contractor to an institution of higher education that created the...
• Texas Section 609.709 - Changing Amount Deferred
  An employee may change the amount to be deferred by notifying the plan administrator of the change in accordance with the requirements of the administrator....
• Texas Section 609.710 - Distribution
  A plan administrator shall develop and implement procedures for: (1) the designation by a participating employee of a beneficiary to receive the employee's deferred amounts...
• Texas Section 609.711 - Fee
  (a) An institution of higher education or group of institutions of higher education that creates a deferred compensation plan may assess a fee for the...
• Texas Section 609.712 - Evaluation And Approval Of Qualified Vendor
  (a) A plan administrator shall develop and implement criteria and procedures for evaluating a vendor's application to become a qualified vendor. (b) A plan administrator...
• Texas Section 609.713 - Number Of Vendors Under 457 Plan
  The plan administrator of a 457 plan shall determine the minimum and maximum number of vendors that may be qualified vendors for the plan at...
• Texas Section 609.714 - Contract With Qualified Vendor
  (a) After a plan administrator approves an application of a vendor to become a qualified vendor, the plan administrator shall execute a written contract with...
• Texas Section 609.715 - Regulation Of Qualified Vendors
  A plan administrator shall develop and implement requirements for qualified vendors and their employees concerning disclosure, reporting, standards of conduct, solicitation, advertising, relationships with participating...
• Texas Section 609.716 - Transfer On Vendor's Failure
  An institution of higher education or group of institutions of higher education that creates a deferred compensation plan may authorize or require as a part...

Last modified: September 28, 2016