SECTION 13.555. Trustees' Responsibility and Authority

(a) Responsible for operations and assets. Members of the board of trustees are responsible for all operations of the trust and must take all necessary precautions to safeguard plan assets.

(b) Contract for plan administration. Within 12 months of the establishment of the initial board of trustees, the board of trustees must contract with a third party administrator to perform the day-to-day operations of the plan.

(c) Insure payment of claims. Within 12 months of the establishment of the initial board of trustees, the board of trustees, or an approved PEO acting as their agent, will contract for, and pay for with plan assets, a stop-loss insurance agreement in the name of and for the benefit of the plan and trust that complies with the requirements of §13.567 of this title (relating to Stop-Loss Insurance) to insure payment of all claims arising under the terms of the plan.

(d) Appointment of agents. The trustees may appoint agents for the trust as necessary to meet the obligations of the plan and trust. Each agent may only exercise the authority and perform the duties required in the management of the trust and the affairs of the plan that is delegated to them by the board of trustees.

(e) Service without compensation. A member of the board of trustees serves without compensation except for actual and necessary expenses.

Source Note: The provisions of this §13.555 adopted to be effective May 17, 2016, 41 TexReg 3479