Fund Transfers

(1) Any deferred compensation programadopted hereunder shallprovide for transfers of employee funds to and from other such plans upon separation of an employee's service and employment with another employer having a deferred compensation program hereunder. (2) Any transfers as described in 960 CMR 3.07(1) may be invested in any investment option available under another such plan, at the direction of the employee. (3) To the extent permitted by the terms of any contract between the treasurer and any funding provider in the deferred compensation program, participants may elect to transfer funds from one investment option to another within a given plan. Should any employee participating in the deferred compensation plan apply for life insurance protection to be purchased with deferred funds, and thereafter be refused such protection, or if such life insurance is thereafter canceled, the insurer shall remain in possession of such funds deferred for this purpose until the employee makes another election for investment of such funds.