(a) Establishing the plan. A PEO applying for a certificate of approval must establish its plan in compliance with the Employee Retirement Income Security Act of 1974, 29 U.S.C. §1102, concerning Establishment of Plan.
(b) Required plan provisions. The plan:
  (1) must be a nonprofit entity;
  (2) must hold all plan assets in a trust as established under §13.551 of this title (relating to Trust Formation);
  (3) must accept as participants the covered employees or dependents of covered employees of every client that elects to allow its covered employees to participate in the plan; and
  (4) may not condition participation on a client's claims history or its covered employees' health status-related factors.
(c) Plan amendment. An approved PEO may amend the terms of its plan without the approval of the plan's trustees; the trustees may not amend the terms of the plan.
(d) Approval of plan amendment. A plan amendment must be submitted to TDI as provided in §13.552 of this title (relating to Required Filings) for review and approval by the commissioner before becoming effective.

Source Note: The provisions of this §13.550 adopted to be effective May 17, 2016, 41 TexReg 3479