A school district or open enrollment charter school may enter into a 403(b) plan salary reduction agreement with its employee only if the 403(b) investment product is offered by a company that is certified to the TRS Board of Trustees — unless a contract between an employee and a company was entered into before June 1, 2002 or unless excepted under Section 9 of art. 6228a-5.
Beginning January 1, 2008, employees of Texas public and open enrollment charter schools may enter into new 403(b) plan salary reduction agreements only for 403(b) investment products on the TRS registered product list unless excepted under Section 9 of art. 6228a-5. A salary reduction agreement is an agreement between an educational institution and an employee to reduce the employee's salary for the purpose of making direct contributions to or purchases of qualified investment products. After January 1, 2008, if a product is not registered with TRS, there are two ways existing contracts for non-registered products may be considered grandfathered:
- The contract began prior to June 1, 2002 or
- The contract began on or after June 1, 2002, but prior to January 1, 2008 with a company that continues to be certified with TRS.
403(b) Certified List
Note: Several companies that had previously certified to TRS are no longer on the 403(b) Certified List. The certifications for these companies expired and the companies did not recertify to TRS. The expiration effective date can be found on the list of History of All Changes to the List of 403(b) Certified Companies (pdf). If a company is not on the 403(b) Certified List, contracts begun after June 1, 2002 may no longer receive salary reduction amounts from employees of Texas public and charter schools unless excepted under Section 9 of art. 6228a-5.
403(b) Product Registration
403(b) Products List
Each year, certified companies, who have submitted the product registration application and fee, can register new products and investment options during the two established registration periods, May 1 through June 15 and November 1 through December 15.
The next Product Registration period is November 1 through December 15, 2016.
Laws and Rules
Vernon's Texas Civil Statutes Relating to 403(b) Certification, §§ 4-13,Article 6228a-5
House Bill 3480, 81st Legislature, 2009
TRS Administrative Rules, Section 53.1-53.20
Summary of Adopted 403(b) Rule Changes to Implement House Bill 3480, 81st Legislature 2009
Summary of Maximum Fees and Charges, from TRS Administrative Rules
Specific Guidelines for Educational Institutions, regarding 403(b) – Section 9, Article 6228a-5
Information Regarding §9, Article 6228a-5