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A BILL TO BE ENTITLED
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AN ACT
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relating to a plan-to-plan transfer of certain assets from the |
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TexaSaver 457 plan administered by the Employees Retirement System |
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of Texas to a 457 plan created by an institution of higher |
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education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 609, Government Code, is |
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amended by adding Section 609.515 to read as follows: |
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Sec. 609.515. TRANSFER TO 457 PLAN OF INSTITUTION OF HIGHER |
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EDUCATION. (a) The board of trustees, as authorized by 26 C.F.R. |
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Section 1.457-10(b)(1) and (3), shall allow the transfer from its |
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TexaSaver 457 plan to the plan administrator of a 457 plan created |
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by an institution of higher education under Subchapter D of all |
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deferred amounts and investment income administered by the |
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TexaSaver 457 plan for employees of the institution of higher |
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education who are participating in or eligible to participate in |
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the institution's 457 plan at the time of the transfer. |
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(b) The board of trustees and the institution of higher |
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education desiring the transfer shall cooperate with each other to |
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ensure that the transfer is accomplished as expeditiously as |
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possible. The institution of higher education must make a request |
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to the board of trustees in order to begin a transfer under this |
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Section. After the transfer, the plan administrator for the 457 |
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plan created by an institution of higher education shall be |
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responsible for all fiduciary duties, plan administration and other |
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responsibilities regarding the deferred amounts and investment |
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income that have been transferred, and the board of trustees is |
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relieved of all fiduciary duties, plan administration duties, |
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liability, and any other responsibility with regard to such |
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deferred amounts and investment income that were transferred. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |