CRG(LEGAL) - INSURANCE AND ANNUITIES MANAGEMENT: DEFERRED COMPENSATION AND ANNUITIES

Deferred Compensation—Section 457

Plan Administrator

Duties Regarding Qualified Vendors

Develop and implement criteria and procedures for evaluating a vendor's application to become a qualified vendor. Gov't Code 609.113(a)

Determine the minimum and maximum number of vendors that may be qualified vendors at any given time. Gov't Code 609.114

Develop and implement requirements for qualified vendors and their employees concerning disclosure, reporting, standards of conduct, solicitation, advertising, relationships with participating employees, the nature and quality of services provided to those employees, and other matters. Gov't Code 609.116

Qualified Investment Product

Roth Contribution Programs

Annuities—Section 403(b)

Definitions

Qualified investment products that are annuity contracts; or

Qualified investment products other than annuity contracts.

Meets the requirements of Section 403(b), Internal Revenue Code of 1986, and its subsequent amendments;

Complies with applicable federal insurance and securities laws and regulations; and

Complies with applicable state insurance and securities laws and rules.

Employee Designation

Payroll Deduction

Prohibitions

Refuse to enter into a salary reduction agreement with an employee if the qualified investment product that is the subject of the salary reduction is an eligible qualified investment and is registered with TRS under V.A.T.S. Article 6228-5, Section 8A, except as provided below at item 8 and Exceptions;

Require or coerce an employee's attendance at any meeting at which qualified investment products are marketed;

Limit the ability of an employee to initiate, change, or terminate a qualified investment product at any time the employee chooses;

Grant exclusive access to an employee by discriminating against or imposing barriers to any agent, broker, or company that provides qualified investment products;

Grant exclusive access to information about an employee's financial information, including information about an employee's qualified investment products, to a company or agent or affiliate of a company offering qualified investment products unless the employee consents in writing to the access;

Accept any benefit from a company or from an agent or affiliate of a company that offers qualified investment products;

Use public funds to recommend a qualified investment product offered by a company or an agent or affiliate of a company that offers a qualified investment product; or

Enter into or continue a salary reduction agreement with an employee if the qualified investment product that is the subject of the salary reduction agreement is not an eligible qualified investment, including the investment product of a company whose certification has been denied, suspended, or revoked without first providing the employee with notice in writing that:

Indicates the reason the subject of the salary reduction agreement is no longer an eligible qualified investment or why certification has been denied, suspended, or revoked; and

Clearly states that by signing the notice the employee is agreeing to enter into or continue the salary reduction agreement.

Exceptions

The eligible qualified investment product that is the subject of the salary reduction agreement is offered by a company that does not comply with the district's administrative requirements;

The district imposes the administrative requirements uniformly on all companies that offer eligible qualified investment products; and

The administrative requirements are necessary to comply with employer responsibilities imposed by:

Section 403(b), Internal Revenue Code of 1986, and its subsequent amendments;

Any other provision of the Internal Revenue Code of 1986 that applies to Section 403(b);

Any regulation adopted in relation to a law described by item (a) or (b) that is effective after December 31, 2007; or

Any change to V.A.T.S. Article 6228a-5 that becomes effective after January 1, 2007.

Ralls ISD

CRG(LEGAL)-P

UPDATE 111

DATE ISSUED: 6/27/2018