DEFINITIONS

In this chapter: (1) "Board of trustees" means the board of trustees of the Employees Retirement System of Texas. (2) "Employee" means an individual who is an officer or employee of a state agency or political subdivision, as appropriate. (2-a) "Institution of higher education" means an institution of higher education as defined by Section 61.003, Education Code. (3) "Investment income" means the amount earned from investment in a qualified investment product of compensation deferred under a deferred compensation plan. (4) "Participating employee" means an employee who contracts to participate in a deferred compensation plan. (5) "Plan administrator" means the person responsible for administering a deferred compensation plan. (6) "Political subdivision" means a governmental entity in the state that is not a state agency and includes a county, municipality, school district, river authority, other special purpose district or authority, and junior college district. (7) "Qualified vendor" means a vendor approved by a plan administrator or with whom a plan administrator has contracted for participation in the deferred compensation plan. (8) "State agency" means a board, commission, office, department, or other agency in the executive, judicial, or legislative branch of state government, including an institution of higher education. (9) "Vendor" means a private entity that sells investment products. (10) "401(k) plan" means an employees' deferred compensation plan, the federal income tax treatment of which is governed by Section 401(k) of the Internal Revenue Code of 1986 (26 U.S.C. Section 401(k)). (11) "457 plan" means an employees' deferred compensation plan, the federal income tax treatment of which is governed by Section 457 of the Internal Revenue Code of 1986 (26 U.S.C. Section 457).