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Title 58 RETIREMENT Part I. Louisiana State Employees' Retirement System Chapter 1. General Provisions...... 1 §101. Definitions...... 1 §109. Waiver of the Electronic Funds Transfer Requirement...... 1 §111. Contributions by Electronic Funds Transfer or Certified Check...... 1 §113. Rollover of Refunds...... 1 §115. Plan Year...... 1 §117. Limitations Year...... 1 Chapter 3. Election of Active Member Trustees...... 1 §301. Eligible Candidates [Formerly §303.A]...... 1 §303. Nomination Process [Formerly §303.A]...... 2 §305. Vacancies; Special Elections...... 2 §307. Optional Retirement Plan Participants...... 2 Chapter 4. Rules Common to the Election of Both Active and Retired Member Trustees...... 2 §401. General Schedule of Elections [Formerly §§301 and 501.B]...... 2 §403. Receipt of Nominating Petitions...... 3 §405. Election Process [Formerly §§303.C-I and 503.C-J]...... 3 §407. Winning Candidates [Formerly LAC 58:I.303.B and G, 501.A and 503.H]...... 3 §409. Candidates Withdrawing Prior to Election...... 4 §411. No Solicitation [Formerly §303.J and §503.K]...... 4 Chapter 5. Election of Retired Member Trustees...... 4 §501. Eligible Candidates [Formerly §503.A]...... 4 §503. Nomination Process...... 4 §505. Vacancies; Special Elections [Formerly §507]...... 5 Chapter 7. Purchase of Military Service under R.S. 11:153...... 5 §701. Purchase of Military Service...... 5 §703. Requirements for Application to Purchase Military Service...... 5 Chapter 9. Purchase of Retirement Credit under R.S. 29:411 et seq., and the Uniformed Services Employment and Reemployment Rights Act...... 5 §901. Requirements...... 5 §903. Exclusions...... 6 §905. Limitations...... 6 §907. Credit for Eligibility or Benefit Purposes...... 6 §909. Certification of Military Service...... 6 §911. Differential Payments Made by the Agencies...... 6 §913. Payment of Contributions after Military Service is Completed...... 6 §915. Death and Survivor Benefits...... 7 Chapter 11. Voluntary Deductions from Retiree Benefits Payroll...... 7 §1101. Application Process for Voluntary Payroll Deduction...... 7 §1103. Vendor Requirements...... 7 §1105. Notification, Implementation and Transition...... 8 §1107. Deduction Authorization...... 8 §1111. Vendor Responsibilities...... 8 §1113. LASERS' Responsibilities...... 9 Table of Contents

§1115. Reporting...... 9 §1119. Termination of Payroll Deduction...... 9 §1121. General Provisions...... 9 Chapter 13. Emergency Refunds...... 9 §1301. Conditions Giving Rise to an Emergency Refund...... 9 §1303. Procedure for an Emergency Refund...... 9 §1305. Responsibility for Overpayment of a Refund...... 9 Chapter 15. Purchases and Transfers of Service...... 10 §1501. Purchases and Transfers of Service; Calculations; Costs...... 10 §1503. Transfers of Service; Other Requirements...... 10 Chapter 17. Purchases of Service by Reinstated Employees...... 10 §1701. Purchases of Service by Reinstated Employees...... 10 §1703. Effect of Reinstatement...... 10 §1705. Service Credit for Dual Employment...... 11 §1707. Repayment of Refund of Contributions...... 11 §1709. Partial Repayment of Refund of Contributions...... 11 Chapter 19. Survivors' Benefits...... 11 §1901. Application for Benefits...... 11 §1903. Qualified Survivors...... 11 §1905. Proof of Entitlement to a Survivors' Benefit...... 12 §1907. Qualification for Benefit to Handicapped Children...... 12 §1909. Children of Previous Marriage...... 12 Chapter 21. Credit for Part-Time Service and Service in Multiple Positions...... 12 §2101. Credit for Part-Time Service and Service in Multiple Positions...... 12 Chapter 23. Renunciation of Benefit...... 12 §2301. Terms and Conditions of Renunciation of Benefit...... 12 Chapter 25. Procedures for Processing Disability Applications...... 13 §2501. Application for Disability Retirement...... 13 §2503. Disability Board Physician's Recommendation...... 13 §2505. Final Determination...... 14 §2507. Contesting Board Physician's Determination...... 14 §2509. Judicial Appeal...... 14 §2511. Certification of Continuing Eligibility...... 15 §2515. Report to the Board of Trustees...... 15 §2517. Appointment of Physicians to the State Medical Disability Board...... 15 §2519. Termination of Benefits...... 15 Chapter 27. DROP Program...... 15 Subchapter A. Participation...... 15 §2701. Eligibility...... 15 Subchapter B. "Old" DROP...... 16 §2703. Participation in Three-Year Program...... 16 §2705. Effects of Participation...... 16 Subchapter C. Withdrawal...... 16 §2711. Methods of Withdrawal...... 16 §2713. Time for Disbursement...... 16 §2715. Interest...... 17 §2717. Changes in Withdrawal...... 17 Subchapter D. "New" DROP...... 17 §2719. Eligibility...... 17 §2721. Participation in New DROP...... 17 Table of Contents

§2723. Initial Benefit Option...... 18 Chapter 29. Spousal Consent...... 18 §2901. Spousal Consent to Retirement Option...... 18 §2903. Instances Where Spousal Consent Is Not Required...... 18 Chapter 31. Excess Benefit Arrangement...... 19 §3101. Participation...... 19 §3103. Benefit...... 19 §3105. Contributions...... 19 §3107. Excess Plan Fund...... 19 §3109. Funding Assets...... 19 §3111. Non-Assignability of Benefits...... 19 §3113. Plan Administration...... 19 §3115. Retirement Benefit...... 20 §3117. DROP Benefits...... 20 Chapter 35. Optional Retirement Plan...... 20 §3501. Plan Year...... 20 §3503. Participation...... 20 §3507. Employee Contributions...... 21 §3509. Employer Contributions...... 21 §3511. ORP Provider...... 21 §3513. Investment Options...... 21 §3515. Benefit Obligations...... 21 §3517. Distribution...... 21 Chapter 37. Leave Conversion to Retirement Credit or Cash Payment...... 21 §3701. Conversion of Leave to Retirement Credit...... 21 §3703. Lump Sum Payment of Leave...... 21 §3705. Tax Liability...... 22 Chapter 41. Self-Directed Plan...... 22 §4101. SDP Provider...... 22 §4103. Persons Vesting for DROP Prior to January 1, 2004...... 22 §4105. Eligibility for Transfer of Funds into SDP...... 22 §4107. Rollovers Out of SDP to Other Providers...... 22 §4109. Right to Recover Overpayments...... 22 §4111. Time to Transfer Funds...... 22 §4113. Spousal Consent...... 22 §4115. Completion of Notification Form...... 22 §4117. Distributions...... 23 §4119. No In-Service Distribution...... 23 §4121. Civil Service Reinstatement...... 23 §4123. Beneficiary...... 23 §4125. Investment Options...... 23 §4127. Participant Investment Direction...... 23 §4129. Distributions from the Plan...... 24 §4131. Domestic Relations Orders...... 24 §4133. Disclaimer...... 24 §4135. No DROP Interest...... 24 Chapter 43. Actuarial Calculations...... 24 §4301. Charges for Actuarial Calculations...... 24 Chapter 45. Effects of Act 75 of the 2005 Regular Session...... 24 §4501. Members Affected...... 24 Table of Contents

§4503. Vesting Because of Prior State Employment...... 24 Part III. Teachers' Retirement System of Louisiana Chapter 1. General Provisions...... 27 §101. Mandatory Submission of Monthly Salaries and Contributions Reports, Contributions Correction Reports (Form 4B), and Prior Years Certification/Correction of Member Data...27 Chapter 2. Earnable Compensation Accounts...... 27 §201. Earnable Compensation Accounts...... 27 Chapter 3. Re-Employment of Retirees...... 28 §301. Retirees Returning to Work at Charter Schools...... 28 Chapter 4. Purchase of Service Credit...... 28 §401. Purchase of Service Credit for Involuntary Furlough or Leave without Pay (LWOP) Due to Gubernatorially Declared Disaster/Emergency...... 28 Chapter 5. Deferred Retirement Option Plan (DROP)...... 28 §501. Service Requirements...... 28 §503. Management of DROP Accounts...... 29 §505. Duration of DROP Participation...... 29 §507. Retirement Benefits...... 30 §509. Withdrawal of Funds from a DROP Account...... 30 §510. Distributions Provided for by Gulf Opportunity Zone Act of 2005...... 31 §511. Change of DROP Withdrawal Method...... 31 §513. Termination of DROP Participation...... 31 §515. Death of Beneficiary...... 32 §517. Affidavit of Plan Election...... 32 §519. Application for DROP...... 32 §521. Teaching Experience...... 32 Chapter 7. Renunciation of Benefits...... 32 §701. General...... 32 Chapter 9. Computation of Final Average Compensation...... 33 §901. Time Frames for Computation...... 33 Chapter 11. Voluntary Deductions from Retiree Benefits Payroll...... 33 §1101. General...... 33 §1103. Application Process...... 33 §1105. Requirements...... 33 §1107. Disclaimer...... 34 §1109. Transmittal of Withheld Amounts...... 34 §1111. Termination of Payroll Deduction...... 34 Chapter 13. Cost-of-Living...... 34 §1301. Cost-of-Living Adjustment―July 2, 1995...... 34 §1303. Cost-of-Living Adjustment―July 1, 1998...... 35 Chapter 15. Optional Retirement Plan (ORP)...... 35 §1501. Definitions...... 35 §1503. Plan Year...... 37 §1505. Establishment of Plan...... 37 §1507. Eligibility and Election to Participate...... 38 §1509. Employee Contributions...... 38 §1511. Employer Contributions...... 39 §1513. Distributions...... 39 §1515. Rollover Distribution...... 41 §1517. Benefit Limitation...... 42 Table of Contents

§1519. Annual Compensation Limitation...... 43 §1521. Fiduciary Responsibility...... 43 §1523. Plan Assets...... 43 §1525. Vesting...... 43 §1527. Governing Law...... 43 §1529. USERRA...... 44 §1531. ORP Providers...... 45 Chapter 17. Defined Benefit Plan Internal Revenue Code Provisions...... 45 §1701. Use of Plan Assets...... 45 §1703. Heroes Earnings Assistance and Relief Tax Act of 2008...... 45 §1705. Domestic Relations Orders...... 45 §1707. Limitations on Contributions and Benefits...... 45 §1709. Group Trust Participation...... 49 Part V. Firefighters' Pension and Relief Fund for the City of New Orleans and Vicinity Chapter 1. Qualified Domestic Relations Orders...... 51 §101. Determining Qualified Status of Domestic Relations Orders...... 51 §103. Definitions...... 51 §105. QDRO Language...... 52 §107. Notice...... 52 §109. Determination...... 52 §111. Payments Pending Determination...... 53 §113. Representative of Alternate Payee...... 53 Chapter 3. Procedural Rules and Regulations of the Board of Trustees...... 53 §301. Definitions...... 53 §303. Organization, Rules, and Procedures of the Board...... 53 §305. Application Procedure, Initial Determination, and Notice...... 54 §307. Hearing Procedures, Appeal, Oath, Testimony, Production of Records and Depositions...... 54 §309. Judicial Review...... 55 Chapter 5. Direct Rollovers...... 55 §501. Requirements...... 55 Chapter 7. Partial Buy Back and Partial Restoration of Forfeited Credits of Service...... 56 §701. Partial Buy Back and Partial Restoration of Forfeited Credits of Service...... 56 Chapter 9. Death Benefits...... 56 §901. Definitions...... 56 §903. Beneficiary Designations and Election of Retirement and Death Benefits...... 57 §905. Calculation of Death Benefits...... 57 §907. Preretirement Death Benefits...... 57 §909. General...... 58 Chapter 11. Calculation of Benefits...... 59 §1101. Definitions...... 59 §1103. General...... 59 §1105. Calculation of Benefit Amount...... 59 Chapter 13. Service Credit...... 60 §1301. Reciprocal Recognition of Credited Service―Reciprocal Benefit...... 60 §1303. Transfer of Service Credits...... 62 §1305. Sick and Annual Leave...... 64 Chapter 15. Deferred Retirement Option Plan...... 65 §1501. Definitions...... 65 Table of Contents

§1503. Eligibility...... 65 §1505. Participation in and Withdrawal from the DROP...... 66 §1507. Post-DROP Accruals and Retirement Benefits...... 68 §1509. Trustees' Procedures Applicable to Payments to DROP Accounts...... 69 §1511. General...... 71 Chapter 17. Election Rules...... 71 §1701. Nominations...... 71 §1703. Election Committee...... 71 §1705. Ballot Procedure...... 71 §1707. Installation of Elected Members...... 72 §1709. Election Inquiries...... 72 §1711. Special Elections...... 72 Chapter 19. Partial Lump-Sum Option Payment...... 72 §1901. General Rules for Participation...... 72 §1903. Distributions from Partial Lump-Sum Option Payment...... 73 Chapter 20. Tax Qualification Provisions...... 73 §2001. General Provisions...... 73 §2003. Actuarial Equivalence...... 73 §2005. Military Service...... 74 Part VII. School Employees' Retirement System Chapter 1. Administration of Act 416 of 1976...... 75 §101. Rules for the Administration of Act 416 of 1976...... 75 Chapter 3. Interest Rates...... 75 §301. Interest Rates Charged on Purchases of Service Credit...... 75 Chapter 4. Internal Revenue Code Provisions...... 75 §401. Limitation on Benefits...... 75 §403. Required Minimum Distributions...... 82 §405. Direct Rollovers...... 82 §407. Annual Compensation Limitation...... 83 Part IX. State Police Retirement System Chapter 1. Service Credit...... 85 §101. Military Service Credit...... 85 Chapter 2. Internal Revenue Code Provisions...... 85 §201. Limitation on Benefits...... 85 §202. Required Minimum Distributions...... 91 §203. Direct Rollovers...... 92 §204. Annual Compensation Limitation...... 92 §205. General...... 93 Chapter 3. Procedures for Election of Louisiana State Police Retirement System Trustees...... 93 §301. General Election Procedures...... 93 §303. Ballots, Count, Tabulation, Posing, Oath of Office...... 93 §305. Vacancy...... 94 Part XI. Parochial Employees' Retirement System Chapter 1. General Provisions...... 95 §103. Definitions...... 95 Chapter 3. Eligibility...... 95 §301. Persons Not Eligible for Membership; Leased Employees...... 95 Table of Contents

§303. Creditable Service; Uniformed Services Employment and Reemployment Rights Act...... 95 Chapter 5. Scope of Benefits...... 96 §501. Limitation on Payment of Benefits...... 96 §503. Early Payment of Benefits...... 96 §505. Compensation Limited...... 97 §507. Transfer of Benefits...... 97 §509. Computation of Retirement Benefits...... 98 Chapter 7. Terminations...... 99 §701. Procedures for Determination of the Unfunded Accrued Liability...... 99 Part XIII. Firefighters' Retirement System Chapter 1. General Provisions...... 101 §101. Survivor Benefits; Procedures to Use When Determining Whether Member's Death Occurred in the Line of Duty...... 101 Part XV. Sheriffs' Pension and Relief Fund Chapter 1. General Provisions...... 103 §101. Court Order or Judgment...... 103 §103. Eligible Rollover Distribution...... 103 Part XVII. Registrars of Voters Employees' Retirement System...... 105 Chapter 1. Procedures for Election of Registrars of Voters Employees’ Retirement System Trustees 105 §101. General Election Procedures...... 105 §103. Ballots, Count, Tabulation, Posting, Oath of Office...... 105 §105. Vacancy...... 105 Chapter 2. Internal Revenue Code Provisions...... 105 §201. Limitation on Benefits...... 105 §202. Required Minimum Distributions...... 112 §203. Direct Rollovers...... 112 §204. Annual Compensation Limitation...... 113 §205. General...... 113 Chapter 3. Final Average Compensation...... 114 §301. Calculation of Post-Drop Final Average Compensation...... 114 Part XVIII. Municipal Police Employees' Retirement System Chapter 1. Internal Revenue Code Provisions...... 115 §101. Limitation on Benefits...... 115 §102. Required Minimum Distributions...... 121 §103. Direct Rollovers...... 122 §104. Annual Compensation Limitation...... 122 §105. Vesting of Benefits at Plan Termination...... 123 Part XIX. Assessors' Retirement Fund Chapter 1. General Provisions...... 125 §101. Compensation...... 125 §103. Actuarial Equivalent...... 126 §105. Accumulated Contributions, Rollovers...... 127 §107. Definitions...... 128 Chapter 3. Creditable Service...... 128 §301. Death Benefits for Qualified Military Service...... 128 Table of Contents

Chapter 5. Limitation on Payment of Benefits...... 128 §501. Suspension of Benefits...... 128 §503. Required Beginning Date...... 128 §505. Benefit Limitations...... 128 Chapter 7. Accumulated Contributions...... 129 §701. Benefit Limitations...... 129 §703. Rollover of Returned Contributions...... 130 §705. Repayment of Withdrawn Accumulated Contributions...... 130 Part XXI. District Attorneys' Retirement System Chapter 1. General Provisions...... 131 §101. Compensation...... 131 §103. Actuarial Equivalent...... 132 §105. Accumulated Contributions, Rollovers...... 133 §107. Repayment of Withdrawn Accumulated Contributions...... 134 Chapter 3. Creditable Service...... 135 §301. Benefits for Qualified Military Service...... 135 Chapter 5. Limitation on Payment of Benefits...... 135 §501. Suspension of Benefits...... 135 §503. Definitions...... 135 §505. Benefit Limitations...... 136 Chapter 7. Required Minimum Distributions...... 137 §701. Required Beginning Date...... 137 Chapter 9. Funding of Retirement System...... 139 §901. Employer Contributions...... 139 Part XXIII. Survivor Benefit Board Chapter 1. Law Enforcement Officers and Firemen’s Survivor Benefit Board (Formerly LAC 37:I.Chapter 11)...... 141 §101. Survivors Benefits (Formerly LAC 37:I.1101.A-B)...... 141 §103. Definitions (Formerly LAC 37:I.1101.C)...... 141 §105. Board Membership and Domicile (Formerly LAC 37:I.1101.D)...... 141 §107. Claims Requests (Formerly LAC 37:I.1101.E)...... 142 §109. Procedures for Hearings (Formerly LAC 37:I.1101.F)...... 142 §111. Appeals (Formerly LAC 37:I.1101.G)...... 143 Title 58 RETIREMENT Part I. Louisiana State Employees' Retirement System

Chapter 1. General Provisions A. Under circumstances as determined by the executive director, LASERS may require agencies to submit employee §101. Definitions and employer contributions by electronic funds transfer ("EF T") or certified check. A. Wherever in these regulations the masculine is used, i t includes the feminine and vice versa. Wherever the singular AUTHORITY NOTE: Promulgated in accordance with is used, it includes the plural and vice versa. The following d R.S. 11:515. efinitions shall apply to all regulations promulgated under Pa HISTORICAL NOTE: Promulgated by the Department of Trea rt I, unless the usage clearly indicates another meaning. sury, Board of Trustees of the State Employees' Retirement System, LR 33:2468 (November 2007). Active Member―a member of the Louisiana State Empl §113. Rollover of Refunds oyees' Retirement System who is in state service. A. Qualified rollovers of accumulated employee contribu Active Member Trustees―those members of the board o tions to be refunded may be made to two different accounts f trustees of the Louisiana State Employees' Retirement Syst with a minimum of $500 to each account. Refunds of funds t em who are active employees, or participating in DROP. otaling less than $500 shall be limited to a single account. Board of Trustees or Board―the board of trustees of the AUTHORITY NOTE: Promulgated in accordance with R.S. 11 Louisiana State Employees' Retirement System. 515. HISTORICAL NOTE: Promulgated by the Department of Trea Director―the executive director of the Louisiana State sury, Board of Trustees of the State Employees' Retirement System, Employees' Retirement System. LR 34:97 (January 2008). DROP―Deferred Retirement Option Plan. §115. Plan Year Inactive Member―a member who is out of state service A. The plan year for LASERS shall be July 1-June 30. but is not retired and has left his contributions in the system. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 LASERS―the Louisiana State Employees' Retirement S 515. ystem. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, Retired Member Trustees—those members of the board LR 39:120 (January 2013). of trustees of the Louisiana State Employees' Retirement Sys §117. Limitations Year tem who are retired, but not those members who are particip ating in DROP. A. The limitations year for LASERS shall be January 1-December 31. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 HISTORICAL NOTE: Promulgated by the Department of Trea 515. sury, Board of Trustees of the State Employees' Retirement System, HISTORICAL NOTE: Promulgated by the Department of Trea LR 22:373 (May 1996), amended LR 24:120 (January 1998), amen sury, Board of Trustees of the State Employees' Retirement System, ded LR 43:89 (January 2017). LR 39:120 (January 2013). §109. Waiver of the Electronic Funds Transfer Requir Chapter 3. Election of Active Member ement Trustees A. LASERS may, at its option, issue paper checks in lieu of an Electronic Funds Transfer (EFT) to surviving minor ch §301. Eligible Candidates ildren under R.S. 11:471 et seq., in order to avoid overpayme [Formerly §303.A] nts or other administrative issues associated with the paymen A. An active member candidate for a position on the boa t of such benefits. rd of trustees must be an active member of the system with a AUTHORITY NOTE: Promulgated in accordance with R.S. 11 t least 10 years of credited service (excluding any military se 515 and 11:479. rvice credit) as of the date on which nominations close. Opti HISTORICAL NOTE: Promulgated by the Board of Trustees o onal retirement plan participants do not acquire service credi f the State Employees' Retirement System, LR 31:1611 (July 2005). t and are prohibited from running for trustee positions by §3 §111. Contributions by Electronic Funds Transfer or 07 of this Chapter. Certified Check B. A participant in the Deferred Retirement Option Plan who has not yet terminated state service and who is still emp

1 Louisiana Administrative Code October 2017 loyed by the state is eligible to run as an active member cand are willing to serve and the appointment does not violate law idate for election to the board of trustees, so long as he qualif or these regulations. ies under Subsection A of this Section. B. The appointment shall be valid only until January 1 of C. A rehired retiree who has selected Option 2 of R.S. 11 the year following the next election. 416 or Option 2 of R.S. 11:416.1 is eligible to run as an activ C. When the unexpired term for the vacancy is greater th e member candidate for election to the board of trustees, so l an two years, a special election shall be held to fill the vacan ong as he qualifies under Subsection A of this Section. cy simultaneous with the election ordinarily held in odd num D. A disability retiree who has returned to work under eit ber years. The ballot for the special election may be the same her R.S. 11:224 or R.S. 11:225 is eligible to run as an active as that used in the regular election. Candidates for four year t member candidate for election to the board of trustees, so lo erms may not also be candidates to complete unexpired term ng as he qualifies under subsection A of this Section. s. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 D. The deadlines and procedures for special elections sha 511 and R.S. 11:515. ll be identical to those for elections normally held in years en HISTORICAL NOTE: Promulgated by the Department of Trea ding with odd numbers. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 23:996 (August 1997), LR 25 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1278 (July 1999), LR 26:2633 (November 2000), LR 31:946 (April 511, R.S. 11:512 and R.S. 11:515. 2005), LR 34:446 (March 2008), LR 37:1614 (June 2011). HISTORICAL NOTE: Promulgated by the Department of the T §303. Nomination Process reasury, Board of Trustees of the State Employees' Retirement Syst em, LR 22:373 (May 1996), amended LR 23:997 (August 1997), L [Formerly §303.A] R 35:271 (February 2009), LR 37:1615 (June 2011). A. The board of trustees shall accept the name and final f §307. Optional Retirement Plan Participants our digits of the Social Security number of every candidate n ominated by petition of 25 or more active members of the sy A. Because optional retirement plan participants do not a stem and shall place the name of such candidates on the ball cquire service credit for purposes of determining eligibility u ot, provided each such candidate meets the requirements for nder R.S. 11:511(4), these participants are not eligible to vot trustee. Those active members signing the petition shall also e in the trustee elections or run for a position on the board of supply the final four digits of their Social Security number. trustees. When returning the nominating petition, the candidate shoul AUTHORITY NOTE: Promulgated in accordance with R.S. 11 d include his qualifications, platform and photograph for incl 511 and R.S. 11:515. usion in the election brochure circulated by LASERS. In yea HISTORICAL NOTE: Promulgated by the Department of Trea rs where a special election is held, a candidate shall clearly s sury, Board of Trustees of the State Employees' Retirement System, tate in his petition whether he is running for a four-year term LR 26:2633 (November 2000), amended LR 37:1615 (June 2011). or for the unexpired portion of the term that is the subject of Chapter 4.Rules Common to the Elect the special election. ion of Both Active and Retired Membe B. The printed name of those persons signing the nomina r Trustees ting petition must be legible for purposes of verification. Un verifiable signatories shall not count toward the required tota §401. General Schedule of Elections l of 25 and may disqualify the petition. [Formerly §§301 and 501.B] C. In years where a special election is held, a candidate s A. Elections shall be held in years ending with an odd nu hall clearly state in his petition whether he is running for a fo mber. ur-year term or for the unexpired portion of the term that is t he subject of the special election. 1. Three active member trustees shall be chosen in eac h election and shall serve a four-year term. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. 2. Beginning in 1995 and continuing thereafter every f HISTORICAL NOTE: Promulgated by the Department of Trea our years, two retired member trustees shall be chosen in an sury, Board of Trustees of the State Employees' Retirement System, election and shall serve a four year term. Beginning in 1997 LR 22:373 (May 1996), amended LR 23:996 (August 1997), LR 25 and continuing thereafter every four years, a single retired tr 1278 (July 1999), LR 26:2633 (November 2000), LR 31:946 (April ustee shall be chosen in an election and shall serve a four ye 2005), LR 34:446 (March 2008), LR 37:1615 (June 2011). ar term. §305. Vacancies; Special Elections B. The schedule for elections shall be as follows: A. The board shall appoint a member to fill any active m ember vacancy created on the board. The appointee shall pos 1. first day in March: nominations shall be opened; sess the necessary qualifications under R.S. 11:511 for the ac 2. second Tuesday in July: nominations shall be close tive member position. The board may give due consideration d. All nominating petitions must be received by the close of to the runners-up in the previous election, if those members business (4:30 p.m. Central time);

Louisiana Administrative Code August 2013 2 3. Monday following second Tuesday in July: a drawi ed before July 1 of the year in which the election is to take pl ng shall be held to determine candidate positions on a ballot; ace shall be considered a retired member for the purposes of this Section. 4. fourth Friday in September: the final day that infor mation on candidates and ballots may be mailed; C. There shall be a drawing as set forth in LAC 58:I.401 in the retirement systems building, 8401 United Plaza Boule 5. fourth Friday in October: all ballots or electronic vo vard, Baton Rouge, LA, to determine the position each candi tes must be received by the close of business (4:30 p.m. Cent date shall have on the ballot or election brochure. ral time). No faxed ballots shall be accepted; D. Each active member may vote for three candidates. 6. Wednesday following fourth Friday in October: all ballots and electronic votes shall be tallied and verified by th E. Each retiree may vote for two candidates during the el is date; ection when two retiree members are up for election, but ma y only vote for one candidate during the election where only 7. regular November meeting: the board shall be prese one retiree member is up for election. If electronic voting me nted with the certified ballot count, and if it is accepted, shall thods are utilized, members shall follow the instructions on t authorize publication of results; he election brochure for registering their votes. 8. January following election: newly elected members F. If electronic voting methods are utilized, members sha receive orientation; oaths shall be taken prior to the regular J ll follow the instructions on the election brochure for register anuary meeting. ing their votes. Votes shall be confidential. Ballots or electro C. In order to facilitate the election process, in the event nic votes received after the close of business on the fourth Fr of a disaster or emergency declared by executive order or pr iday in October (4:30 p.m. central time) shall be rejected. Ba oclamation of the governor, the executive director may chan llots must be returned to the address set forth in the instructi ge the election schedule. Such a schedule change shall be in ons on the election brochure. effect for a single election cycle only, after which the schedu G. Votes shall be tallied in accordance with the general s le shall return to that set forth in Subsection B of this Section chedule of elections.

H. The executive director shall submit a written report of AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. the election results to the board of trustees no later than the r HISTORICAL NOTE: Promulgated by the Department of Trea egular November meeting of the board of trustees. sury, Board of Trustees of the State Employees' Retirement System, I. Upon receipt of the results of the election, the board o LR 22:373 (May 1996), amended LR 23:996, 997 (August 1997), L R 25:1278 (July 1999), LR 26:2633 (November 2000), LR 33:1151 f trustees shall timely promulgate the election and notify the (June 2007), LR 34:446, 447 (March 2008), LR 37:1615 (June 201 successful candidates of their election and the secretary of st 1), LR 39:119 (January 2013). ate, so as to allow the candidates sufficient time to take and f ile the oath of office with the Secretary of State within the ti §403. Receipt of Nominating Petitions me specified by law. A. Signed nominating petitions will be accepted if receiv AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ed by facsimile or emailed by the date nominations are close 511 and R.S. 11:515. d so long as original nominating petitions are received by 4: HISTORICAL NOTE: Promulgated by the Department of Trea 30 p.m. central time on the first Friday following the close of sury, Board of Trustees of the State Employees' Retirement System, nominations. If originals are not received by that deadline, th LR 22:373 (May 1996), amended LR 23:996, 997 (August 1997), L e person in whose name they are submitted shall not be quali R 25:1278 (July 1999), LR 26:1490 (July 2000), LR 26:2633 (Nov fied as a candidate. ember 2000), LR 31:946, 947 (April 2005), LR 34:446, 447 (March 2008), LR 37:1616 (June 2011), LR 39:119 (January 2013), LR 41: AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1772 (September 2015). 511 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea §407. Winning Candidates sury, Board of Trustees of the State Employees' Retirement System, [Formerly LAC 58:I.303.B and G, 501.A and 503. LR 37:1616 (June 2011). H] §405. Election Process A.1. Active Members. The three candidates who receive [Formerly §§303.C-I and 503.C-J] the most votes shall be declared successful candidates and pr A. Active Members. Ballots or election brochures shall b esented to the board. e distributed to each active member by the fourth Friday in S 2. Retired Members. Beginning in 1995 and continuin eptember. This includes active members who are not deemed g thereafter every four years, the two retired member candid by LASERS to be retired before July 1 of the year in which t ates who receive the most votes shall be declared successful he election is to take place and participants in the DROP pro candidates and presented to the board. Beginning in 1997 an gram who have not terminated service. d continuing thereafter every four years, the retired member B. Retired Members. Ballots or election brochures shall candidate who receives the most votes shall be declared the s be distributed to each retired member by the fourth Friday in uccessful candidate and presented to the board. September. A member who is deemed by LASERS to be retir

3 Louisiana Administrative Code October 2017 B. Ties affecting elected positions shall be decided by a c HISTORICAL NOTE: Promulgated by the Department of Trea oin toss held by the executive director in the presence of the sury, Board of Trustees of the State Employees' Retirement System, candidates affected or the representative they designate. LR 22:373 (May 1996), amended LR 23:996, 997 (August 1997), L R 25:1278 (July 1999), LR 26:1490 (July 2000), LR 26:2633 (Nov C. No department in the executive branch of state govern ember 2000), LR 31:946, 947 (April 2005), LR 34:446, 447 (March ment may have more than two active trustees serving on the 2008), LR 37:1616 (June 2011). board at the same time. Ex officio trustees and their designee Chapter 5. Election of Retired Memb s do not count toward this limit. er Trustees D. If, after the conclusion of the nomination process, the number of candidates does not exceed or is fewer than the nu §501. Eligible Candidates mber of open positions for which election is being held, no e [Formerly §503.A] lection shall be held for those positions, and those candidates A. A candidate for a position of retired member trustee o that are nominated and are qualified shall be deemed success n the board of trustees must be a retired member of the syste ful candidates and presented to the board. m who has been on retired status (not including retired status 1. Active Member Trustees' Elections. Any remaining under the Deferred Retirement Option Plan) by the date on open positions shall be filled in accordance with Title 58, Par which nominations close. t I, Chapter 3, §305 of the Louisiana Administrative Code. B. A rehired retiree who selected either Option 1 or Opti 2. Retired Member Trustees’ Elections. Any remaining on 3 of R.S. 11:416 or Option 1, Option 3 or Option 4 of R.S. open positions shall be filled in accordance with Title 58, Par 11:416.1 is eligible to run as a candidate for a position of ret t I, Chapter 5, §505 of the Louisiana Administrative Code. ired member trustee on the board of trustees. E. Subsection D shall apply to both active member truste C. A participant in the Deferred Retirement Option Plan e elections and retired member trustee elections. who has not yet terminated state service and who is still emp loyed by the state is not eligible to run for board election as a F. For all relevant purposes, those candidates elected un retired member candidate. der Subsection D shall be considered to have received the m aximum number of votes possible. D. A disability retiree who has returned to work under eit her R.S. 11:224 or R.S. 11:225 is not eligible to run as a retir AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. ed member candidate for election to the board of trustees. HISTORICAL NOTE: Promulgated by the Department of Trea AUTHORITY NOTE: Promulgated in accordance with R.S. 11 sury, Board of Trustees of the State Employees' Retirement System, 511 and R.S. 11:515. LR 22:373 (May 1996), amended LR 23:996, 997 (August 1997), L HISTORICAL NOTE: Promulgated by the Department of Trea R 25:1278 (July 1999), LR 26:1490 (July 2000), LR 26:2633 (Nov sury, Board of Trustees of the State Employees' Retirement System, ember 2000), LR 31:946, 947 (April 2005), LR 34:446, 447 (March LR 22:373 (May 1996), amended LR 23:997 (August 1997), LR 25 2008), LR 37:1616 (June 2011), LR 39:119 (January 2013), LR 41: 1278 (July 1999), LR 26:1490 (July 2000), LR 26:2633 (November 1773 (September 2015). 2000), LR 31:947 (April 2005), LR 34:447 (March 2008), LR 37:1 §409. Candidates Withdrawing Prior to Election 617 (June 2011). §503. Nomination Process A. A candidate may withdraw his candidacy at any time. If he withdraws prior to the deadline for voting, all votes cas A. The board of trustees shall accept the name and final f t for him shall not be counted. our digits of the Social Security number of every candidate n AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ominated by petition of 25 or more retired members of the sy 511 and R.S. 11:515. stem and shall place the name of such candidates on the ball HISTORICAL NOTE: Promulgated by the Department of Trea ot, provided each such candidate meets the requirements for sury, Board of Trustees of the State Employees' Retirement System, trustee. Those retired members signing the petition shall also LR 37:1616 (June 2011). supply the final four digits of their Social Security number. §411. No Solicitation When returning the nominating petition, the candidate shoul [Formerly §303.J and §503.K] d include his qualifications, platform and photograph for incl usion in the election brochure circulated by LASERS. A. Candidates for election to the LASERS board of trust ees shall not solicit employees of LASERS to participate in t B. The printed name of those persons signing the nomina heir campaigns, and LASERS' employees cannot participate, ting petition must be legible for purposes of verification. Un or give assistance to any member who is running for election verifiable signatories shall not count toward the required tota or re-election to the board. Candidates shall not solicit or hav l of 25 and may disqualify the petition. e contact with any vendor or employee of a vendor who is pr C. In years where a special election is held, a candidate s oviding LASERS with products or services related to electio hall clearly state in his petition whether he is running for a fo ns of the LASERS board of trustees. LASERS employees ar ur-year term or for the unexpired portion of the term that is t e free to sign nominating petitions. he subject of the special election. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. 511 and R.S. 11:515.

Louisiana Administrative Code August 2013 4 HISTORICAL NOTE: Promulgated by the Department of Trea 5. pay for the calculation of the actuarial calculation t sury, Board of Trustees of the State Employees' Retirement System, o determine the cost to purchase the service. LR 37:1617 (June 2011). B. The active member shall pay the actuarial cost to rece §505. Vacancies; Special Elections ive the service credit. Upon receipt of the items listed above, [Formerly §507] LASERS shall issue an invoice to the active member. The in A. The Executive Board of the Retired State Employees voice is void if not paid within 90 days after the date issued. Association shall appoint a member to fill any retired memb Payment shall be made in a lump sum. er vacancy created on the board. The appointee shall possess C. The payment of the cost shall be credited to the memb the necessary qualifications under R.S. 11:511 for the retired er's account. If the member later separates from state employ member position. ment and requests a refund of contributions, the amount paid B. The appointment shall be valid only until January 1 of shall be refunded along with other employee contributions. the year following the next election. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 C. When the unexpired term for the vacancy is greater th 515 and R.S. 11:153. an two years, a special election shall be held to fill the vacan HISTORICAL NOTE: Promulgated by the Department of Trea cy simultaneously with the election ordinarily held in odd nu sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended by the Department of Treasury, B mber years. The ballot for the special election may be the sa oard of Trustees of the Louisiana State Employees' Retirement Syst me as that used in the regular election. em, LR 32:265 (February 2006), LR 43:1987 (October 2017). D. The deadlines and procedures for special elections sha Chapter 9. Purchase of Retirement C ll be identical to those for elections normally held in years en ding with odd numbers. redit under R.S. 29:411 et seq., and th AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e Uniformed Services Employment an 511, R.S. 11:512 and R.S. 11:515. d Reemployment Rights Act HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the State Employees' Retirement Syst §901. Requirements em, LR 23:998 (August 1997), amended LR 37:1617 (June 2011). A. In order to qualify for retirement credit for military se Chapter 7.Purchase of Military Servic rvice, at the time the individual was called to active military e under R.S. 11:153 service, he or she shall have been: §701. Purchase of Military Service 1. a state employee in a position that is other than tem porary including, but not limited to, probational and perman A. A maximum of four years of credit for military servic ent Civil Service positions; e may be purchased by members who rendered military servi 2. an active member of the Louisiana State Employee ce in accordance with R.S. 11:153, provided the member rec s' Retirement System; eived a discharge other than dishonorable. 3. a member of the Army National Guard of the Unite AUTHORITY NOTE: Promulgated in accordance with R.S. 11 d States, the Army Reserve, the Naval Reserve, the Marine C 515 and R.S. 11:153. HISTORICAL NOTE: Promulgated by the Department of Trea orps Reserve, the Air National Guard of the United States, A sury, Board of Trustees of the State Employees' Retirement System, ir Force Reserve, or the Coast Guard Reserve (hereinafter ca LR 22:373 (May 1996), amended LR 26:1490 (July 2000), amende lled reservist) called to active duty; and d by the Department of Treasury, Board of Trustees of the Louisian 4. shall have been released from active duty after satis a State Employees' Retirement System, LR 43:1987 (October 2017). factory completion of military duty, in accordance with the p §703. Requirements for Application to Purchase Milita rovisions of 50 U.S.C. §459. Release shall have been other t ry Service han dishonorable. A. In order to apply for purchase of the service, an active B. The member, at his option, shall pay the required emp member shall: loyee contributions to the retirement system during his perio 1. make application to LASERS; d of service in the uniformed service, or if he chooses not to make such payment during his military duty, he is entitled to 2. provide a copy of military form DD 214; purchase such credit in accordance with §901 herein. 3. certify that he is not drawing a regular retirement be AUTHORITY NOTE: Promulgated in accordance with R.S. 29 nefit based on the military service calculated on the basis of 411 and R.S. 11:515. age and service (This restriction does not apply to disability HISTORICAL NOTE: Promulgated by the Department of Trea benefits based on 25 percent or less disability received as a r sury, Board of Trustees of the State Employees' Retirement System, esult of military service); and LR 22:373 (May 1996). 4. certify that he has not received credit for the service §903. Exclusions in any other public retirement system; A. Employees who were in temporary positions such as, but not limited to, restricted appointments, job appointments,

5 Louisiana Administrative Code October 2017 provisional appointments, and student workers are not eligib service or discharge from hospitalization incidental to the mi le for retirement credit. Elected officials and appointed offici litary service. als in positions established by the constitution or laws of the AUTHORITY NOTE: Promulgated in accordance with R.S. 29 state are eligible for retirement credit. Reservists who were p 411 and R.S. 11:515. articipating in the Deferred Retirement Option Plan at the ti HISTORICAL NOTE: Promulgated by the Department of Trea me of military service are not eligible to receive service cred sury, Board of Trustees of the State Employees' Retirement System, it. LR 22:373 (May 1996). AUTHORITY NOTE: Promulgated in accordance with R.S. 29 §911. Differential Payments Made by the Agencies 411, R.S. 29:415.1 and R.S. 11:515. A. Many reservists active duty base pay may be less than HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, their state base pay. The reservist may elect to pay contributi LR 22:373 (May 1996). ons on the entire amount of state earnings that would have b een received in order to receive retirement credit for benefit §905. Limitations purposes. A. Members may receive no more than a total of five yea AUTHORITY NOTE: Promulgated in accordance with R.S. 29 rs of military service credit in the retirement system for milit 411 and R.S. 11:515. ary service rendered in accordance with R.S. 29:411 et seq., HISTORICAL NOTE: Promulgated by the Department of Trea and the Uniformed Services Employment and Reemploymen sury, Board of Trustees of the State Employees' Retirement System, t Rights Act (USERRA). LR 22:373 (May 1996). AUTHORITY NOTE: Promulgated in accordance with R.S. 29 §913. Payment of Contributions after Military Service 411 and R.S. 11:515. is Completed HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, A. The employer shall pay the employer contribution. LR 22:373 (May 1996), amended by the Department of Treasury, B B. The amount of contributions is based upon the amoun oard of Trustees of the Louisiana State Employees' Retirement Syst t of earnings the employee would have received if still empl em, LR 43:1987 (October 2017). oyed. This includes any increases in compensation the emplo §907. Credit for Eligibility or Benefit Purposes yee would have received if he or she had remained in emplo A. In accordance with provisions of USERRA, a member yment during the period of military service. If the employe shall receive credit for purposes of determining eligibility fo e's compensation varies, such as for legislators, the average r retirement at no cost to the individual or agency. In order to monthly earnings for the 12 months preceding the active mili receive credit for purposes of calculating the retirement bene tary service shall be used to determine the amount of contrib fit, contributions shall be paid to the retirement system in acc utions. ordance with section 414(u) of the Internal Revenue Code. If C. The employer shall determine the amount of earnings the employee was on paid leave during the period of active that would have been earned and compute the employee and military service, the employee has received retirement credit employer’s contributions that are due. for that service and no additional information need be furnis hed to the retirement system. D. The employee shall pay the employee contributions to the agency. The agency shall remit the employee and employ AUTHORITY NOTE: Promulgated in accordance with R.S. 29 er contributions to LASERS within 30 days after the employ 411 and R.S. 11:515. ee has paid his or her portion. The agency shall provide a mo HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, nthly breakdown of the earnings and contributions for each LR 22:373 (May 1996), amended by the Department of Treasury, B member and the certification documents to LASERS. oard of Trustees of the Louisiana State Employees' Retirement Syst E. Payment for military service shall be made in accorda em, LR 43:1987 (October 2017). nce with section 414(u) of the Internal Revenue Code. §909. Certification of Military Service AUTHORITY NOTE: Promulgated in accordance with R.S. 29 A. In order to receive retirement credit for eligibility or b 414 and R.S. 11:515. enefits purposes, the employee shall provide: HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, 1. discharge or release notice (Form DD214) and any LR 22:373 (May 1996), amended by the Department of Treasury, B other pertinent documentation from the appropriate military oard of Trustees of the Louisiana State Employees' Retirement Syst entity which provides the inclusive dates of active service or em, LR 43:1987 (October 2017). discharge from hospitalization incidental to the military servi §915. Death and Survivor Benefits ce; A. The period of military service received under the prov 2. documentation from the agency certifying that the r isions of Chapter 9 shall be counted as creditable service for eservist was employed in a position other than temporary on determining eligibility for death and survivor benefits. The a the date the active duty began; and mount of survivor benefits payable shall be calculated as pro 3. certification from the agency that the reservist appli vided for in R.S. 11:471 et seq. ed for reemployment within 90 days of release from military

Louisiana Administrative Code August 2013 6 B. The final average compensation used for the calculati AUTHORITY NOTE: Promulgated in accordance with R.S. 11 on shall be based on the actual earnings of the member. In or 515. der for the estimated earnings during the period of military s HISTORICAL NOTE: Promulgated by the Department of Trea ervice to be used in the determination of the final average co sury, Board of Trustees of the State Employees' Retirement System, LR 18:1417 (December 1992), amended LR 22:373 (May 1996), L mpensation, the employee and employer's contributions shall R 33:676 (April 2007), LR 34:1639 (August 2008). be paid for the period of military service. §1103. Vendor Requirements C. If a member dies before completing payment for milit ary service under this Chapter, a beneficiary or survivor has t A. Authority for payroll deductions shall be governed by he right to pay the required contributions as set forth in R.S. this Chapter. General insurance deduction vendors shall mee 29:415, except that the applicable time limit within which pa t the following requirements. yment must be made is that set forth in section 414(u) of the 1. Foreign companies shall: Internal Revenue Code. If the beneficiary or survivor choose s not to pay the member's contribution, the computation of d a. have a current rating in A.M. Best of B+ or better eath and survivor benefits shall be based on the actual servic unless: e credit of the member, excluding his or her military service. i. notwithstanding any other law, rule, or regulati AUTHORITY NOTE: Promulgated in accordance with R.S. 29 on to the contrary, and if they are in good standing with the 414, R.S. 29:415 and R.S. 11:515. Department of Insurance, and subject to the other applicable HISTORICAL NOTE: Promulgated by the Department of Trea provisions of this Section, a foreign company which has part sury, Board of Trustees of the State Employees' Retirement System, icipated in the Office of State Uniform Payroll deduction sys LR 22:373 (May 1996), amended by the Department of Treasury, B tem for a period of at least ten years and has a rating in A.M. oard of Trustees of the Louisiana State Employees' Retirement Syst Best of B, may continue to market and sell insurance policie em, LR 43:1987 (October 2017). s through payroll deduction until the beginning of the next o Chapter 11. Voluntary Deductions fro pen enrollment period following the four-year anniversary d ate from the date of the issuance of the B rating by A.M. Bes m Retiree Benefits Payroll t, provided they have maintained a rating of B or better for th §1101. Application Process for Voluntary Payroll Deduc e entire four-year period. Thereafter, in the event that the for tion eign insurer has maintained a rating of B by A.M. Best and t hat rating is increased from B to a B+ or better and they mee A. Application shall be made by the company, corporatio t the other applicable requirements of this Section and other n, or organization which is the provider of coverage, product, applicable rules and regulations, they may resume marketing service, or recipient of monies and shall be signed by two of and selling insurance through the payroll deduction system; ficers of the applicant company, corporation, or organization. or The completed application shall be submitted to LASERS. ii. notwithstanding any other law, rule, or regulati B. The following type providers of services shall be cons on to the contrary, if a foreign company has been participatin idered for approval: g in the Office of State Uniform Payroll deduction system fo 1. the State Group Benefits program; r a period of at least ten years, and they have a rating in A.M. Best of B, they may maintain and administer indefinitely tho 2. the group insurance plan administered by the Depar se policies purchased through payroll deduction as long as th tment of Employment and Training; ey maintain a rating by A.M. Best of no less than a B, are in 3. the Retired State Employees' Association; good standing with the Department of Insurance, and compl 4. general insurance companies and other providers th y with other applicable rules, and regulations, and laws and t at are included on the annual listing maintained by the Office he provisions of this Section; of State Uniform Payroll; b. have been doing business under the same name f 5. credit unions formed for the primary purpose of ser or not less than three years; ving state employees that have a payroll deduction for emplo c. offer like product, service, or coverage to citizens yees of the members' agencies; of Louisiana; 6. other member or retiree associations approved by th e board of trustees; d. be in compliance with all procedural, accounting, and reporting requirements governing employee deductions. 7. vendors receiving payment through voluntary dedu ctions on the effective date of these rules; and 2. Domestic companies shall: 8. other insurance companies approved by the executi a. have a current rating in A.M. Best of B or better, ve director. or if the company is of insufficient size to obtain a rating by C. Applicant shall designate a coordinator to act as prima A.M. Best, has posted a bond with the division of administra ry contact with LASERS for resolution of invoicing, refund, tion in the amount of: and reconciliation problems and resolving claims problems f or retirees.

7 Louisiana Administrative Code October 2017 i. $100,000, if the company is a member insurer month preceding the deduction using the electronic format a of the Louisiana Life and Health Insurance Guaranty Associ nd specifications established by LASERS. All deductions for ation; or a single vendor shall be submitted on one monthly file. ii. $250,000, if the company is not a member insu E. A retiree may discontinue any voluntary payroll dedu rer of the Louisiana Life and Health Insurance Guaranty Ass ction amount by providing written notification of that intent t ociation, or if the product for which the deductions are propo o the vendor. Vendors shall remove these persons from the fi sed is not covered under the Louisiana Life and Health Guar le. anty Association Act; F. A retiree cannot authorize total deductions which exce b. have been doing business under the same name f ed the amount of the benefit. or not less than three years; AUTHORITY NOTE: Promulgated in accordance with R.S. 11 c. provide like product, service, or coverage to citiz 515. ens of Louisiana; HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, d. be in compliance with all procedural, accounting, LR 18:1417 (December 1992), amended LR 22:373 (May 1996), L and reporting requirements of all rules and requirements gov R 35:2478 (November 2009). erning employee deductions. §1111. Vendor Responsibilities 3. Vendors offered through other state agencies or poli A. Vendors shall not be authorized to submit any deducti tical subdivisions, if approved by the executive director. on which was obtained from a retiree for the purpose of trans AUTHORITY NOTE: Promulgated in accordance with R.S. 11 mitting any part of that deduction to a third party. 515. B. The vendor is responsible for refunding any amounts HISTORICAL NOTE: Promulgated by the Department of Trea deducted in error to the individual retiree. sury, Board of Trustees of the State Employees' Retirement System, LR 18:1417 (December 1992), amended LR 22:373 (May 1996), L C. Any information received from LASERS shall be han R 33:676 (April 2007), LR 34:1639 (August 2008), LR 35:2477 (N dled in accordance with the Louisiana Public Records law. ovember 2009). §1105. Notification, Implementation and Transition AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. A. LASERS shall notify applicant whether applicant is a HISTORICAL NOTE: Promulgated by the Department of Trea pproved as a vendor. sury, Board of Trustees of the State Employees' Retirement System, LR 18:1417 (December 1992), amended LR 22:373 (May 1996), L B. Vendors shall enroll retirees for a monthly deduction a R 35:2478 (November 2009). mount. §1113. LASERS' Responsibilities C. Participation shall be at least 30 or more retirees, if ap A. LASERS shall be responsible for making the monthly proved by the executive director. deductions in the amount that are timely submitted by the ve D. If a vendor falls below the participation level approve ndor. d by the executive director, LASERS has the right to discont B. LASERS shall remit the amount deducted to the vend inue the payroll deduction immediately. or and shall provide a listing of all exceptions. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. 515. HISTORICAL NOTE: Promulgated by the Department of Trea HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, sury, Board of Trustees of the State Employees' Retirement System, LR 18:1417 (December 1992), amended LR 22:373 (May 1996), L LR 18:1417 (December 1992), amended LR 22:373 (May 1996), L R 35:2478 (November 2009). R 35:2478 (November 2009). §1107. Deduction Authorization §1115. Reporting A. Vendors shall be responsible for obtaining and mainta A. Vendors shall report within 10 days of final approval ining appropriate deduction authorizations from individual r any change in the name, address, company status, principal o etirees. Copies shall be made available to LASERS upon req fficers, or designated coordinator to LASERS. uest. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 B. Any disclaimer, contract, or term of participation agre 515. ement between the retiree and the vendor or provider shall n HISTORICAL NOTE: Promulgated by the Department of Trea ot be binding on LASERS. sury, Board of Trustees of the State Employees' Retirement System, C. A retiree shall have only one monthly deduction (whic LR 18:1417 (December 1992), amended LR 22:373 (May 1996), L R 35:2478 (November 2009). h may cover more than one benefit) for a single vendor effec tive at any one time. §1119. Termination of Payroll Deduction D. Vendor is responsible for submitting a computer file o A. Unethical conduct or practices of the vendor shall res f monthly deductions to LASERS by the twelfth day of the ult in the termination of deduction authority for that vendor.

Louisiana Administrative Code August 2013 8 B. Payroll deduction authority may be revoked for any v ertinent documentation to qualify for the emergency refund. endor that is removed from the annual listing maintained by Outstanding bills must be payable prior to the date the indivi the Office of State Uniform Payroll. dual would otherwise receive the refund, or other like econo mic hardship must be shown to be considered sufficient reas C. Payroll deduction authority may be revoked for any v on for declaring an emergency situation. endor that fails to comply with requirements of this rule. B. Upon receipt of the documentation and approval by th AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. e executive director, the retirement system shall issue the ref HISTORICAL NOTE: Promulgated by the Department of Trea und at the next scheduled date for issuing refund checks. The sury, Board of Trustees of the State Employees' Retirement System, refund amount shall include all employee contributions recei LR 18:1417 (December 1992), amended LR 22:373 (May 1996), 3 ved from the employing agency and posted to the individua 5:2478 (November 2009). l's account. Any additional contributions received at a later d §1121. General Provisions ate from the agency shall be refunded to the individual after t hey are received and posted to the account. A. Payroll deduction authorization shall not be transferre d. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515 and 537(B). B. Approval of an applicant in no way constitutes endors HISTORICAL NOTE: Promulgated by the Department of Trea ement or certification of the applicant or vendor or its produ sury, Board of Trustees of the State Employees' Retirement System, cts or services. LR 22:373 (May 1996). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 §1305. Responsibility for Overpayment of a Refund 515. HISTORICAL NOTE: Promulgated by the Department of Trea A. If the amount that is refunded is greater than the amou sury, Board of Trustees of the State Employees' Retirement System, nt actually due the individual, the agency paying the contrib LR 18:1417 (December 1992), amended LR 22:373 (May 1996). utions shall be responsible for recouping any overpayment fr Chapter 13. Emergency Refunds om the individual who was overpaid. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 §1301. Conditions Giving Rise to an Emergency Refund 515 and 11:537(B). A. A refund of accumulated employee contributions may HISTORICAL NOTE: Promulgated by the Department of the T be made in less than 30 calendar days after the date of separa reasury, Board of Trustees of the State Employees' Retirement Syst tion from state service in the following situations: em, LR 22:373 (May 1996), amended LR 23:1711 (December 199 7). 1. the refund results from the death of the member; or Chapter 15. Purchases and Transfers 2. the member has significant expenses for medical ca re for himself, spouse, or child; or of Service 3. an emergency situation of the member, which shall §1501. Purchases and Transfers of Service; Calculations; consist of the foreclosure on a member's domicile, repossessi Costs on of the member's vehicle, or eviction of the member from A. The purchase of service on an actuarial basis and the t his or her apartment. A document filed in the official legal pr ransfer of service from other public retirement systems into oceeding for foreclosure or repossession or a notice of evicti LASERS requires an actuarial calculation by the system actu on shall be required as proof to qualify under this provision. ary. B. The member shall provide a written request detailing t B. The cost of this calculation shall be paid by the memb he emergency situation and the executive director shall appr er requesting the calculation. Payment must be made before t ove or disapprove the request based on this written request. he request for the calculation will be forwarded to the actuar C. Emergency refunds are available on a one-time basis y. only. Once a member has taken advantage of this single opp AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ortunity and has received a refund under the terms of this Ch 424, 11:446 and 11:515. apter, that member shall no longer be eligible for an emergen HISTORICAL NOTE: Promulgated by the Department of Trea cy refund. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 32:265 (February 2006). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515 and R.S. 11:537(B). §1503. Transfers of Service; Other Requirements HISTORICAL NOTE: Promulgated by the Department of Trea A. In order to transfer service credit from other public ret sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 23:1710 (December 1997), L irement systems into LASERS, the person seeking such a tra R 31:107 (January 2005), LR 32:1466 (August 2006). nsfer must be: §1303. Procedure for an Emergency Refund 1. an active member contributing to the LASERS at th e time they apply for the transfer; or A. The member or beneficiary shall provide a copy of th e death certificate, a doctor's statement of total and permane 2. an active member of a public retirement system mai nt disability, a copy of medical invoices, or copies of other p ntained primarily for officers and employees of the state of L

9 Louisiana Administrative Code October 2017 ouisiana, or any political subdivision thereof, or of any distri and the employee shall be treated as if he was a member duri ct, board, commission, or other agency of either, or any other ng this period of purchased service credit, except that the rei such public entity who has been a member of such system fo nstated employee will not be entitled to partial repurchase pr r at least six months and who has membership credit in such ovisions for the service credit that is reinstated through legal system shall have the option of transferring all of his credit f action. rom such system he is currently contributing to or to the syst B. The reinstated employee's date of hire prior to the wro em in which he last contributed. However, membership in a ngful termination shall be used for retirement purposes, if an public retirement system cannot be changed to another publi y contribution refund that the member received is repaid not c retirement system, and any person participating in DROP c later than the sixtieth day following the first day the member annot transfer any service credit into or out of that retirement returns to work after reinstatement is ordered. If the member system. repays all or any portion of such contribution refund after th AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e sixtieth day following the first day the member returns to 143 and R.S. 11:515. work after reinstatement is ordered, the repayment shall be tr HISTORICAL NOTE: Promulgated by the Department of Trea eated in the same manner as a payment for any other refund sury, Board of Trustees of the State Employees' Retirement System, and the date of hire for retirement purposes shall be the first LR 22:373 (May 1996). day the member returns to work after reinstatement is ordere Chapter 17. Purchases of Service by d. Reinstated Employees AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. §1701. Purchases of Service by Reinstated Employees HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, A. When an employee is reinstated to a position in state LR 22:373 (May 1996), amended LR 25:2466 (December 1999). government by the Department of Civil Service or a court of law, the employee is entitled to receive retirement service cr §1705. Service Credit for Dual Employment edit for the period of time that is reinstated provided paymen A. Any active member who qualifies to purchase service t of employee and employer contributions, plus interest, is m credit under the provisions of R.S. 11:191.B may purchase th ade to the retirement system within 60 days of the reinstatem e service credit to which he would have been entitled in the s ent. ystem had he been an active contributing member of the retir B. If reinstated, the employee shall pay an amount equal ement system during the full term of his employment by pay to the current employee's contributions based on the earned c ing to the system an amount that totally offsets the actuarial ompensation for the period of time that was reinstated. The e cost of the receipt of the service credit. mploying agency shall pay the employer contributions that B. The employer for that employee may pay one-half of t would have been due plus compound interest at the actuarial he actuarial cost of the receipt of the service credit, thereby r valuation rate for all contributions payable from the date the educing the member's cost to one-half of the actuarial cost of contribution was due until paid. the service credit. If the employer pays one-half of the actuar C. When a reinstated employee is entitled to back pay fr ial cost for one employee, it shall be obligated to pay one-hal om the employing agency, the agency shall remit the employ f of the actuarial cost of all employees who qualify to purcha er and employee's contributions that would have been due if se this service credit. the employee had been employed during that time, plus inter C. The full amount must be received by the system, whet est. The agency shall also provide LASERS with a report of her the member is paying the full cost, or the employer is pa earnings on a monthly basis for the period for which the indi ying one-half and the member one-half, prior to any service vidual was reinstated. credit being attributed to a member's account. The amount m D. If a member has received a refund of contributions aft ust be paid in a lump sum. er a wrongful termination, he must repay the refund not later D. A fee of at least $75 (to be set by the system's actuar than the sixtieth day following the first day the member retur y) must be paid to the system's actuary by the individual req ns to work after reinstatement is ordered for the member's ret uesting the calculation. Payment must be made before the re irement status and service credit to be fully restored. quest for calculation will be forwarded to the actuary. E. Any costs to the retirement system associated with the AUTHORITY NOTE: Promulgated in accordance with R.S. 11 se procedures shall be paid by the employing agency. 515. HISTORICAL NOTE: Promulgated by the Department of Trea AUTHORITY NOTE: Promulgated in accordance with R.S. 11 sury, Board of Trustees of the State Employees' Retirement System, 515. LR 22:373 (May 1996). HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, §1707. Repayment of Refund of Contributions LR 22:373 (May 1996), amended LR 25:2466 (December 1999). A. A member who received a refund or employee contrib §1703. Effect of Reinstatement utions may repay the refund after the member has returned t A. Employees reinstated into state government shall be e o state service and contributed to the system for a minimum ntitled to purchase service credit as provided in this Chapter, of 18 months, by paying to the system the employee contribu

Louisiana Administrative Code August 2013 10 tion refund plus interest compounded annually at the actuari Chapter 19. Survivors' Benefits al valuation rate for all contributions payable from the date t he refund was issued until paid in one lump sum, or by partia §1901. Application for Benefits l repayment in accordance with the following Section. A. Survivors' benefits are payable only upon application B. Repayment of refunds must be completed prior to reti therefor, but the benefit becomes effective as of the day follo rement or beginning participation in DROP. wing the death of the member. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. 471 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, sury, Board of Trustees of the State Employees' Retirement System, LR 25:2467 (December 1999). LR 22:373 (May 1996). §1709. Partial Repayment of Refund of Contributions §1903. Qualified Survivors A. If a member elects to repay part of a refund, he must r A. The following individuals qualify for survivors' benef epay the contributions for the most recent service credit first. its: For example, if a member received a refund for service from 1. surviving spouse with minor children; January 1, 1991 through December 31, 1993, and elects to re pay one year of service, he/she must repay the contributions 2. handicapped or mentally retarded children; for 1993 first. 3. surviving minor child not in custody of surviving sp B. Partial payments must be made in increments based o ouse; and n service within a calendar year with the most recent year(s) 4. surviving spouse without minor child. repaid first. Example: A member worked from June 1, 1990 t hrough April 30, 1993 then received a refund. The refund ma B. The survivors' benefit is a single benefit payable to m y be repaid in the following order: ultiple qualifying groups. If more than one individual qualifi es for the benefit, the benefit shall be prorated between or a 1. January 1, 1993 through April 30, 1993; mong the qualified individuals in accordance with law. 2. January 1 through December 31, 1992; AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3. January 1 through December 31, 1991; then 472, R.S. 11:473, R.S. 11:474, R.S. 11:475, R.S. 11:480 and R.S. 1 1:515. 4. June 1 through December 31, 1990. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, C. If a member has both full time and part time service c LR 22:373 (May 1996). redit that was refunded, the years of full time service must b e repaid first. When there is both full time and part time serv §1905. Proof of Entitlement to a Survivors' Benefit ice within the calendar year(s), LASERS shall have the auth A. Each survivor benefit recipient shall present proof to ority to determine the calendar year of service credit that mu LASERS upon application, and annually or at such other tim st be repaid first. As a general rule, the year(s) with the most es LASERS feels necessary, that he is legally entitled to the full time service must be repaid before the year(s) with more survivor's benefit. If the applicant for the benefit fails to pres part time service. ent such proof to LASERS, LASERS shall deny such benefit D. Upon receipt of the partial payment, the service credit to the applicant or discontinue the benefit if the recipient fail for the calendar year repaid will be restored to the member. s to provide such proof upon reasonable request. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 E. A member may receive three invoices in a 12-month p 477 and R.S. 11:515. eriod at no cost. Each additional invoice within the HISTORICAL NOTE: Promulgated by the Department of Trea 12-month period will cost $75 each. sury, Board of Trustees of the Louisiana State Employees' Retireme F. Interest at the actuarial rate will be calculated from th nt System, LR 22:373 (May 1996). e date of the refund was issued to the date of the repayment. §1907. Qualification for Benefit to Handicapped Childr Interest will be compounded on an annual basis. en G. The partial repayment must be made in a single paym A. Totally physically disabled or mentally handicapped c ent. hildren of deceased members who are not dependent upon th e surviving spouse of the member or some other legal guardi AUTHORITY NOTE: Promulgated in accordance with R.S. 11 an and who do not also receive state assistance are eligible u 515. nder the provisions of Chapter 19. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, B. In order to cover this area not addressed by the statute LR 25:2467 (December 1999), amended LR 29:2859 (December 20 it will be the policy of the Louisiana State Employees' Retir 03). ement System to pay survivor's benefits to otherwise qualifie d physically disabled or handicapped children of deceased m embers who have neither a surviving parent or legal guardia

11 Louisiana Administrative Code October 2017 n if such child, or a person holding a power of attorney or ot Chapter 23. Renunciation of Benefit her legal authority to act on behalf of such child, provides to the system adequate annual documentation demonstrating th §2301. Terms and Conditions of Renunciation of Benefi at benefit payments will be used exclusively for the support t and care of the child. A. Any person eligible to receive, or receiving, a benefit AUTHORITY NOTE: Promulgated in accordance with R.S. 11 from the Louisiana State Employees' Retirement System ma 515. y renounce such benefit under the following terms and condi HISTORICAL NOTE: Promulgated by the Department of Trea tions. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996). 1. The renunciation shall be unconditional and irrevoc §1909. Children of Previous Marriage able. Once a benefit is renounced, LASERS shall have no fu rther obligation or liability with respect to that benefit, and t A. If a married member has major children of a prior mar he person renouncing the benefit shall, under no circumstanc riage and no minor children of the present marriage, that me es, be eligible to receive that benefit. mber may direct LASERS to divide the benefit for a survivin g spouse without minor children between the member's curre 2. A base benefit may be renounced in whole or in par nt spouse and the children of the prior marriage on a pro rata t. An adjustment to a base benefit (cost-of-living adjustment, basis with the interest of the current spouse based on the rati adjustment for inflation, or one-time supplemental payment) o of the length of the current marriage to the total state servi may only be renounced in its entirety. If an adjustment is ren ce of the member. For this benefit to be effective, the membe ounced, the base benefit need not be renounced. r must notify LASERS, in writing, that the member desires t his benefit. LASERS must receive this notification prior to t 3. If more than one person is entitled to receive a parti he member's death. cular survivor benefit, each person entitled to a portion of th e benefit may renounce his entitlement. The person or person AUTHORITY NOTE: Promulgated in accordance with R.S. 11 s who continue to have an entitlement in that benefit shall re 475 and R.S. 11:515. ceive the benefit to which they are entitled without considera HISTORICAL NOTE: Promulgated by the Department of Trea tion of the person who becomes ineligible through renunciati sury, Board of Trustees of the State Employees' Retirement System, on. Any adjustment shall be prospective only. LR 22:373 (May 1996). 4. If the party making the renunciation is married, the Chapter 21. Credit for Part-Time Ser spouse must join in the renunciation. vice and Service in Multiple Positions 5. If the person making the renunciation is subject to a §2101. Credit for Part-Time Service and Service in Mul n executed and effective community property settlement, onl tiple Positions y that portion of the benefit due the person making the renun ciation may be renounced, except as provided for in R.S. 11: A. Members of the Louisiana State Employees' Retireme 446.E. nt System shall receive service credit, up to a maximum of o 6. If the person making the renunciation is legally sep ne year of service per calendar year, for all service which is r arated or divorced, but is not subject to an executed and effe endered for an employer agency, as defined in R.S. 11:403(1 ctive community property settlement, the renunciation must 2), and which is state service, as defined in R.S. 11:403(28). be approved by the court having jurisdiction over the separat B. All compensation for such service, which meets the cr ion or divorce. iteria of R.S. 11:403, shall be recognized by the system, and 7. If the person making the renunciation is retired and employer and employee contributions must be paid thereon. has named a joint and survivor beneficiary, the renunciation C. Any employee who is part-time, seasonal, or temporar cannot affect the joint and survivors' beneficiary or benefit, i y, as defined in 26 CFR 31:312(b)(7)-2, or in any successor r ncluding adjustments to the joint and survivor benefit. egulation, shall not be or become a member of the system, e 8. If a benefit is renounced by a member prior to recei xcept membership for these employees shall be mandatory if pt by the member of a sum equal to his or her accumulated c the employee has 10 or more years' creditable service in the ontributions, the balance of the accumulated contributions w system. ill be paid to the member. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 9. A renunciation must be made on a form provided b 515. y LASERS, and must be executed before a notary public and HISTORICAL NOTE: Promulgated by the Department of Trea two witnesses, neither of whom may be a spouse nor present sury, Board of Trustees of the State Employees' Retirement System, ly named beneficiary. The renunciation is effective and irrev LR 22:373 (May 1996). ocable when received by LASERS. 10. A person revoking or participating in renunciation o f a benefit must hold LASERS harmless from such action. 11. A renunciation may not be used to terminate active participation in LASERS.

Louisiana Administrative Code August 2013 12 12. Amounts credited to a DROP account cannot be ren eview, based on the area of medical specialty most closely re ounced. lated to applicant's disability. 13. A benefit or portion of a benefit that has been renou B. If the State Medical Disability Board does not have a nced may be used to recoup benefits or refunds of accumulat physician practicing in the requisite specialty, LASERS shall ed contributions paid by administrative error or mistake. appoint a physician who practices in the requisite specialty t 14. Only those persons who have selected the maximu o the board or as an alternate physician to perform the initial m benefit or Option 1 under R.S. 11:441 may renounce their medical review. entire monthly benefit. C. The State Medical Disability Board physician shall de B. LASERS makes no representation with respect to the termine from his review whether to conduct a medical exami effect of a renunciation on a person's eligibility for receipt of nation of the applicant, or waive the medical examination be any state or federal benefits, or for participation in any privat cause obvious and overwhelming medical evidence of disabi e, local, state, or federal program. Eligibility for or participat lity exists to his satisfaction. ion in such programs, or eligibility for or receipt of such ben D. State Medical Disability Board physician shall determ efits, is an issue for which the person making the renunciatio ine that a medical examination is needed to determine wheth n is solely responsible. Ineligibility for or termination of part er an applicant is eligible for a disability retirement, LASER icipation in such programs or benefits shall not affect the irre S shall schedule an appointment with the appropriate board p vocable character of the renunciation. hysician. The applicant shall be notified of the appointment AUTHORITY NOTE: Promulgated in accordance with R.S. 11 date and time in writing. The initial examination shall be co 452 and R.S. 11:515. mpleted within six weeks of the date the completed disabilit HISTORICAL NOTE: Promulgated by the Department of Trea y application is received and eligibility is verified by LASE sury, Board of Trustees of the State Employees' Retirement System, RS. LR 22:373 (May 1996), amended LR 33:112 (January 2007). E. LASERS shall pay the cost of the initial medical exa Chapter 25. Procedures for Processin mination, including cost of laboratory tests, X-rays, and othe g Disability Applications r direct examination procedures. If the applicant fails to appe ar for this medical examination and the physician charges a c §2501. Application for Disability Retirement ancellation fee, the applicant shall be responsible for this fee. A. Applications for disability retirement shall be submitt AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ed in accordance with instructions provided to the applicant 515. or applicant's employer by LASERS, and shall be reviewed a HISTORICAL NOTE: Promulgated by the Department of Trea s follows. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 24:1958 (October 1998), LR 1. Upon receipt of a disability application, LASERS s 27:1580 (September 2001). hall verify applicant's eligibility within five business days of §2505. Final Determination receipt of the application. A.1. LASERS shall review the State Medical Disability 2. The application, examining physician's report, the d Board physician's recommendation and, based on that recom isability report by immediate supervisor, and report by appli mendation, either approve or disapprove the application. An cant's human resource administrator shall be reviewed for co applicant shall be considered as certified totally disabled wh mpleteness. en the State Medical Disability Board physician declares the 3. If the application or any of the required forms are in applicant to be totally incapacitated for the further performa complete or missing, the applicant shall be notified in writin nce of the normal duties of the job and states that such incap g, and will have 10 business days to furnish the requested inf acity is likely to be permanent. In all cases, the examining ph ormation. If the applicant fails to comply with this request th ysician shall make a recommendation if the application shou e application shall be rejected as ineligible. ld be approved or disapproved. If the physician's recommend ation is unclear, the file shall be forwarded to the disability B. Whether the applicant is determined to be eligible or i manager for review. The disability manager shall contact the neligible to apply for disability, the applicant shall be notifie physician for clarification of the recommendation. d in writing by LASERS within 10 business days of the deter mination. 2. If a correction officer, probation or parole officer, or security officer of the Department of Public Safety and Corr AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ections, or an employee of the enforcement division in the D 515. HISTORICAL NOTE: Promulgated by the Department of Trea epartment of Wildlife and Fisheries is found to be permanent sury, Board of Trustees of the State Employees' Retirement System, ly totally or partially disabled the applicant shall be entitled t LR 22:373 (May 1996), amended LR 24:1957 (October 1998), LR o a disability retirement benefit in accordance with either R. 27:1580 (September 2001). S. 11:212(B) or 214, as applicable. §2503. Disability Board Physician's Recommendation B. If the disability manager cannot make a clear determi A. LASERS shall determine the appropriate State Medic nation, the file shall be sent to LASERS' executive director, al Disability Board physician to perform the initial medical r who shall contact the examining physician for clarification,

13 Louisiana Administrative Code October 2017 or another State Medical Disability Board physician for cons AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ultation, or an appointed alternate physician shall be consulte 515. d when necessary. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, C. Any unusual applications shall immediately be presen LR 22:373 (May 1996), amended LR 24:1958 (October 1998), LR ted to the executive director for his review and determination 27:1581 (September 2001). on how it should best be handled. §2509. Judicial Appeal D. When the final determination is made, the applicant s A. The applicant has the right to appeal the decision that hall be notified in writing and a copy shall be forwarded to a applicant is not entitled to a disability retirement to the Ninet pplicant's agency. eenth Judicial District Court, Parish of East Baton Rouge. Th E. A final determination shall be made within 120 days f is appeal shall be filed within 30 days of the receipt of the fi rom the date the completed application is verified by LASE nal medical decision. RS. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. F. Disability benefits shall accrue from the date the appli HISTORICAL NOTE: Promulgated by the Department of Trea cation was filed or from the day following exhaustion of all s sury, Board of Trustees of the State Employees' Retirement System, ick leave or annual leave claimed by applicant, whichever is LR 22:373 (May 1996), amended LR 24:1959 (October 1998), LR later. If an applicant elects to remain on unused sick or annu 27:1581 (September 2001). al leave past the 120 days necessary to complete his applicati §2511. Certification of Continuing Eligibility on, a waiver shall be signed by the applicant and a re-exam s hall be scheduled at LASERS' expense after one year from d A. LASERS may require a disability retiree to complete ate of application. an annual attending physician statement (“AAPS”) once eac h year during the first five years following the disability retir AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ement and once in every three years thereafter until the retire 515. HISTORICAL NOTE: Promulgated by the Department of Trea e has reached the equivalent age of regular retirement unless sury, Board of Trustees of the State Employees' Retirement System, the medical evidence shows conclusively that the disability r LR 22:373 (May 1996), amended LR 24:1958 (October 1998), LR etiree cannot recover from the disability. The AAPS must be 27:1580 (September 2001). returned within 30 business days of the anniversary date of t §2507. Contesting Board Physician's Determination he accrual of retirement benefits by the disability retiree. De pending on the results of the AAPS LASERS may require a A. If the certification of the examining physician is conte disability retiree to undergo a medical examination. sted by either the applicant or LASERS, the contesting party shall have the right to a second medical examination if a writ B. If a medical examination is required LASERS shall sc ten appeal is filed within 30 days of notification of the initial hedule the appointment with a state medical board or appoint determination. ed alternate physician and notify the disability retiree of the appointment time and place in writing. LASERS must pay th B. The second examination shall be performed by a State e cost of this examination. If the retiree fails to appear for thi Disability Board Physician, or appointed alternate physician. s examination and the physician charges a cancellation fee, t LASERS shall schedule the appointment and notify the appli he retiree shall be responsible for this fee. cant of the time and place of the second examination in writi ng. C. The disability retiree shall be notified in writing of the physician's determination. If the physician does not recomm C. The cost of the second examination shall be paid by th end continuing disability, the disability retiree has the same a e contesting party. If the applicant fails to appear for this exa ppeal rights as the original applicant as set forth in §2507 her mination and the physician charges a cancellation fee, the ap ein. plicant shall be responsible for this fee. D. If the disability retiree refuses to submit to the examin D. If the second physician concurs in the findings and re ation, or fails to submit the AAPS in the manner set out abov commendations of the first physician, the original decision s e, his benefit shall be discontinued until he agrees to the exa hall stand as final and binding on the parties. mination or submits the AAPS. The benefit will be discontin E. If the second physician disagrees with the first physici ued 30 days after written notification to the disability retiree. an's finding and recommendation, the two physicians shall s If the refusal continues for one year, all of the retiree's rights elect a third physician to conduct another examination. The f in and to the disability benefit shall be revoked. indings and recommendations of the third physician shall be AUTHORITY NOTE: Promulgated in accordance with R.S. 11 binding, and the cost of the third physician shall be paid by 515 and R.S. 11:220. LASERS if the applicant is certified disabled, or by the appli HISTORICAL NOTE: Promulgated by the Department of Trea cant if the disability claim is denied. If the applicant fails to sury, Board of Trustees of the State Employees' Retirement System, appear for this examination and the physician charges a canc LR 22:373 (May 1996), amended LR 24:1959 (October 1998), LR 26:1490 (July 2000), LR 27:1581 (September 2001), ellation fee, the applicant shall be responsible for this fee. LR 32:265 (February 2006), LR 38:836 (March 2012).

Louisiana Administrative Code August 2013 14 §2515. Report to the Board of Trustees ntinue to be eligible to enter the "old" DROP at any time. Th e provisions of the "old" DROP remain unchanged except fo A. The applicants' names and disposition of applications r the elimination of the one year waiting period. Members eli shall be provided to the board in addition to the monthly retir gible for the "old" DROP may also choose to enter the "new" ement supplement for the board's ratification. DROP, unless they have been eligible for ordinary retirement B. The board shall receive a summary report of the numb more than three years and er of applications received, the number approved, the numbe 60 days. If they elect not to enter either DROP program, they r disapproved, a summary of the types of disabilities, the ave may elect the initial benefit option. rage age of approved applicants, the average number of year 1. The provisions of "use it or lose it" for annual leave s of state service, and the agencies of the applicants annually by action of the board of directors, will cease being applied in March for the previous calendar year. to "old" DROP participants beginning January 1, 1996. Ther AUTHORITY NOTE: Promulgated in accordance with R.S. 11 eafter, all DROP participants will be able to convert accrued 515. leave to retirement credits, or actuarially reduced lump sum HISTORICAL NOTE: Promulgated by the Department of Trea payment for accumulated leave. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 24:1959 (October 1998), LR AUTHORITY NOTE: Promulgated in accordance with R.S. 11 27:1582 (September 2001). 515. HISTORICAL NOTE: Promulgated by the Department of Trea §2517. Appointment of Physicians to the State Medical sury, Board of Trustees of the State Employees' Retirement System, Disability Board LR 22:373 (May 1996). A. Physicians may be appointed to the State Medical Dis Subchapter B. "Old" DROP ability Board or as an alternate physician by the executive di rector. Such appointments shall be subject to ratification by t §2703. Participation in Three-Year Program he board of trustees. A. Any eligible member entering DROP for the first time AUTHORITY NOTE: Promulgated in accordance with R.S. 11 on or after July 1, 1993, may make a one time election to par 515. ticipate in DROP for a period not to exceed three years. Onc HISTORICAL NOTE: Promulgated by the Department of Trea e specified, the period of participation may not be extended. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 24:1959 (October 1998), LR B. Any member in their initial DROP participation perio 27:1582 (September 2001). d between July 1, 1993, and September 1, 1993, who entered §2519. Termination of Benefits DROP prior to July 1, 1993 may extend their originally selec ted participation period by up to one additional year upon gi A. Upon receipt of a final medical determination that a di ving written notice to the retirement system. sability retiree is no longer disabled as a result of the failure to obtain a certification of continuing eligibility the retiree sh C. Any member in their initial DROP participation perio all have the right to appeal the medical determination under d who entered DROP prior to July 1, 1993, and who elect aft §2507 herein. The benefit shall continue during the appeal p er September 1, 1993, to extend their originally selected DR eriod. OP participation period by up to one year may do so upon 30 days prior written notice to the retirement system. B. The disability retiree has the right to appeal this decisi on to the Nineteenth Judicial District Court, Parish of East B D. Any member who has completed DROP participation aton Rouge. This appeal shall be filed within 30 days of the r prior to July 1, 1993, and who has remained in state service eceipt of the board's decision. without a break, may reenter the DROP program for up to on e additional year upon written notice to the retirement syste AUTHORITY NOTE: Promulgated in accordance with R.S. 11 m. 515. HISTORICAL NOTE: Promulgated by the Department of Trea AUTHORITY NOTE: Promulgated in accordance with R.S. 11 sury, Board of Trustees of the State Employees' Retirement System, 515. LR 22:373 (May 1996), amended LR 24:1960 (October 1998), LR HISTORICAL NOTE: Promulgated by the Department of Trea 27:1582 (September 2001). sury, Board of Trustees of the State Employees' Retirement System, Chapter 27. DROP Program LR 22:373 (May 1996). §2705. Effects of Participation Subchapter A. Participation A. When a person is in an extended DROP participation period, leave earned during that time can be converted to reti §2701. Eligibility rement credit if participation in DROP extends beyond Janua A. Eligibility for DROP shall be determined under the pr ry 1, 1996. ovisions of Part IV, Chapter One of Title 11 of the Louisiana B. When a person is in an extended DROP participation Revised Statutes of 1950 (R.S. 11:441 et seq.). period, interest shall not be credited to the DROP account. B. Act 1110 of 1995, effective January 1, 1996, impleme C. When a member extends their DROP participation per nted a "new" DROP program; however, a member who is eli iod, the monthly amount credited to the DROP account durin gible for retirement on or before December 31, 1995 will co

15 Louisiana Administrative Code October 2017 g the original participation period shall be the amount credite age of the participant on the date of termination. All funds fr d to the DROP account during the extended DROP participat om the DROP account must be withdrawn in accordance wit ion period. h the Internal Revenue Services Guidelines. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 B. Disbursements from the DROP accounts shall be mad 515. e on the first day of each month; if the first is a weekend or h HISTORICAL NOTE: Promulgated by the Department of Trea oliday, the disbursement shall be made on the following wor sury, Board of Trustees of the State Employees' Retirement System, kday. LR 22:373 (May 1996). C. When a retiree reaches age 70 1/2, mandatory annual Subchapter C. Withdrawal distributions shall begin in accordance with IRS regulations. §2711. Methods of Withdrawal The amount of the distributions will be recalculated annually The mandatory distribution is based on the retiree's age and A. When a participant in the Deferred Retirement Option DROP account balance using the table above. Plan terminates state employment, the amount accumulated i n the participant's DROP account may be withdrawn in any o D. Requested withdrawals from DROP accounts which f the following methods. would leave a balance in that account of $500 or less shall b e processed as a request for disbursement of the entire balan 1. Lump Sum Withdrawal ce. All such withdrawal requests shall result in the closing of a. The participant may withdraw the entire balance i the account. LASERS may, at its option, conduct audits to id n the DROP account; or entify DROP accounts with a balance of $500 or less and ma y disburse the entire amount to the person in whose name the b. receive a one-time lump sum amount specified b account exists or to their beneficiary after giving notice of at y participant; least 30 days prior to disbursement. c. if a participant dies and the designated beneficiar AUTHORITY NOTE: Promulgated in accordance with R.S. 11 y is not entitled to a monthly retirement benefit, the DROP a 515. ccount must be withdrawn within 90 days after notification o HISTORICAL NOTE: Promulgated by the Department of Trea f the death. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 25:2466 (December 1999), L 2. Monthly Withdrawal. The participant may receive a R 29:1121 (July 2003), LR 30:2079 (September 2004), LR 32:107 check each month until all the funds in the account are disbu 0 (June 2006), LR 35:2476 (November 2009). rsed. The participant choosing monthly withdrawal shall sele §2715. Interest ct one of the following methods: A. Interest shall not be credited to a participant's subacco a. the participant may establish an amount to be wit unt during the period of participation and shall be based on t hdrawn on a monthly basis; or he balance of the account at the end of each month. All amou b. the retirement system can determine a level amou nts which remain credited to the individual's subaccount afte nt to be paid monthly over the expected lifetime of the indivi r termination of participation in the plan, which is not transfe dual. This method would be similar to an annuity payment; o rred to a self-directed subaccount under R.S. 11:451.1, shall r be credited with interest at the end of each plan year at a rate equal to the realized return on the system's portfolio for that c. payments spread over a 10-year period. plan year as certified by the system actuary in his actuarial re 3. Annual Withdrawal―Amount Established by Partic port, less 1/2 of 1 percent. ipant. The participant may establish an amount to be withdra B. Plan year shall mean fiscal year. The actual posting of wn once each year. The payments shall be made in Decembe interest shall not be performed until the system actuary's rep r of each year. Changes in the amount shall be provided to L ort is approved by the Public Retirement Systems Actuarial ASERS, in writing, no later than November 15 of that year. Committee. 4. Delayed Withdrawal. The participant may choose n C. Interest shall not be paid on funds transferring to the S ot to withdraw the DROP account until some later date; how elf-Directed Plan. DROP participants who are vested under ever, the account must be disbursed within the time period s LAC 58:I.4103 who choose to transfer their funds to the SD hown in §2713. P shall not be paid DROP interest under this Section beginni AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ng on the date LASERS receives the participant's request for 515. transfer. DROP participants who were not vested under LAC HISTORICAL NOTE: Promulgated by the Department of Trea 58:I.4103 shall not be paid DROP interest under this Section. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 25:2465 (December 1999). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. §2713. Time for Disbursement HISTORICAL NOTE: Promulgated by the Department of Trea A. The DROP account must be totally disbursed within t sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 31:946 (April 2005), LR 32:1 he expected lifetime of the participant in accordance with fe 070 (June 2006), LR 35:2476 (November 2009). deral laws. The expected lifetime is determined based on the

Louisiana Administrative Code August 2013 16 §2717. Changes in Withdrawal becoming eligible, he can stay in DROP for two years and 6 0 days. A. The type of withdrawal or the amount may be change d upon written notice. Requests for change received in the of F. The participant may not end DROP prior to the stated fice of LASERS by the fifteenth of one month shall be effect ending date unless he terminates employment. This is a chan ive the following month. ge from the old DROP. Also, the stated participation period c annot be extended. B. The participant must indicate whether federal income taxes should be withheld from the amount disbursed. The tax G. The participant may elect to continue working after D instructions must be provided by the participant before a dis ROP participation. The calculation of the retirement benefit bursement can be made. will be the same as in the old DROP program, except for the conversion of unused leave. C. The forms for selecting the method of disbursement a nd the tax instructions shall be provided to the participant at H. The amount of unused sick and annual leave at the dat the time of termination, or upon request. e of termination can be converted to retirement credit, includ ing the leave that was earned during the DROP participation AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. period. If the participant terminates at the end of DROP or w HISTORICAL NOTE: Promulgated by the Department of Trea orks less than three years after DROP, the benefit based on t sury, Board of Trustees of the State Employees' Retirement System, he leave conversion will be calculated using the final averag LR 22:373 (May 1996). e compensation at the beginning of DROP participation. If th e participant works more than three years after DROP partici Subchapter D. "New" DROP pation, the benefit based on the leave conversion will be calc Editor's Note: To the extent that the above provisions are not ulated using the final average compensation for the period of impacted by the following Sections, they shall apply to the employment after DROP. new DROP. Any of the above provisions which conflict with the following provisions under the new DROP, the following I. The participant may choose to receive the actuarially r provisions shall control. educed lump sum payment for unused leave in lieu of conver §2719. Eligibility ting it to retirement credit. A. Members who become eligible for retirement on or aft J. Anyone who elects to participate in DROP cannot ele er January 1, 1996 will only be eligible for the new DROP. ct the initial benefit option (lump sum provision). Members who were eligible for retirement on or prior to Dec AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ember 31, 1995 will have the option of joining either DROP, 515. unless they have been eligible for regular retirement in exces HISTORICAL NOTE: Promulgated by the Department of Trea s of three years and 60 days. sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 §2723. Initial Benefit Option 515. HISTORICAL NOTE: Promulgated by the Department of Trea A. This option will be available on January 1, 1996. Onl sury, Board of Trustees of the State Employees' Retirement System, y members who have not participated in DROP can select thi LR 22:373 (May 1996). s option. Disability retirees cannot select this option. §2721. Participation in New DROP B. This option may be selected at the time of retirement A. A member will be eligible for DROP as soon as he is and will pay the retiree a lump sum amount at the time of ret eligible for retirement. irement, and the future monthly retirement benefit will be re duced on an actuarial basis. B. DROP participation will be limited to three years. C. The retiree must select the retirement option first. He C. The member must enter DROP within a "window" of cannot select Option 1. He can then elect to receive part of hi time. If he does not enter DROP within the window, he loses s future retirement benefits in an actuarially reduced lump su his right to enter DROP. m payment. The value of the lump sum cannot exceed 36 mo nths of the maximum monthly retirement benefit. The retiree D. The "window" begins 60 calendar days after his earlie may elect to receive the maximum lump sum amount or any st date of eligibility for retirement and continues for three ye smaller amount. ars and 60 days from the date of eligibility. In effect, the win dow sets an ending date for DROP participation. Eligibility t D. The retiree may also elect to receive unused leave in a o participate in DROP must end no later than three years and lump sum payment rather than converting it to retirement cre 60 days after the first retirement eligibility date. A member dit. This election must be made by the retiree before the initi may enter DROP on the date he is eligible for regular retire al benefit option can be calculated. ment, without waiting 60 days to start DROP; however, he m E. The monthly retirement benefit of both the retiree and ay only participate in DROP for three years. beneficiary will be actuarially reduced to offset the cost of th E. If a member waits to enter DROP at some point after e initial benefit. If the retiree retires under the special provisi eligibility, the length of time he may participate in DROP is r ons for wildlife agents or judges and he selects the initial ben educed. For example, if he enters DROP one year after first

17 Louisiana Administrative Code October 2017 efit option, his monthly benefit will also be actuarially reduc b. a notarized affidavit signed by the member statin ed. g that the spouse has abandoned him or her and outlining the steps that the member has taken to locate the spouse and obt F. The retiree can receive the "initial benefit" in a lump s ain his or her signature; or um payment, or it can be deposited in an account like the DR OP accounts. The interest earnings and withdrawals will be t c. a certified copy of a court order indicating that th he same as for DROP accounts. The main difference is that it e spouse is an absentee or has abandoned the member; will be created at the time of retirement with a lump sum inst 4. the spouses have entered into a matrimonial agreem ead of accumulated over a DROP participation period. The a ent establishing a regime of separation of property pursuant t ccount will begin accumulating interest at the time it is set u o La. C.C. Art. 2328 between them which remains in effect a p. t the time of retirement, in which case LASERS needs: G. If a retiree selects the initial benefit and later changes, a. a certified copy of the agreement; and the retirement option to the maximum due to divorce or deat h of the beneficiary, the maximum benefit will be actuarially b. a notarized affidavit signed by the spouses affirm reduced at that time. ing the existence of a matrimonial agreement as required by this rule. H. A retiree who elects this option and later returns to wo rk will be governed by the same rehired retiree provisions as AUTHORITY NOTE: Promulgated in accordance with R.S. 11 other retirees. 515. HISTORICAL NOTE: Promulgated by the Department of Trea I. Future COLAs will be based on the amount of the mo sury, Board of Trustees of the State Employees' Retirement System, nthly reduced benefit. LR 22:373 (May 1996), amended LR 26:1490 (July 2000), LR 34:1 048 (June 2008). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 515. Chapter 31. Excess Benefit Arrangem HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, ent LR 22:373 (May 1996). §3101. Participation Chapter 29. Spousal Consent A. All retired members and beneficiaries of the system w §2901. Spousal Consent to Retirement Option hose retirement or survivor or beneficiary benefits from the s A. If a member is married and wishes to elect to retire un ystem for a plan year have been limited by IRC §415 are par der either the maximum plan, Option I, or else choose from ticipants in this plan. Participation in the plan is determined f Options II, III or IV(B) while naming someone other than hi or each plan year. Participation in the plan will cease for any s spouse as his beneficiary, he must obtain the consent of his plan year in which the retirement benefit of a member of the spouse in writing on a form provided by LASERS executed system or a survivor or beneficiary is not limited by IRC §41 before a notary public. 5. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 446, R.S. 11:477 and R.S. 11:515. 511 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, sury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 33:2469 (November 2007). LR 26:1490 (July 2000). §2903. Instances Where Spousal Consent Is Not Requir §3103. Benefit ed A. A participant in the plan shall receive a monthly benef A. The following list sets out those instances where spou it equal to the difference between the participant's monthly r sal consent is not necessary and will not be required: etirement benefit otherwise payable from the system prior to 1. the spouses are divorced, in which case LASERS n any reduction or limitation of IRC §415 and the actual mont eeds a certified copy of a judgment of divorce; hly retirement benefit payable from the system as limited by IRC §415. The monthly benefit shall be subject to withholdi 2. the spouse is legally incompetent to give consent, in ng for any applicable income or employment taxes. The for which case the spouse's legal guardian may give consent, ev m of the benefit paid to a participant from the plan shall be t en if the guardian is the member, in which case LASERS nee he same as otherwise selected by the participant and payable ds a certified copy of the court order appointing the guardian; by the system. 3. the spouse has abandoned the member, in which cas AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e the following shall be required: 511 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea a. a certificate by the local newspaper certifying tha sury, Board of Trustees of the State Employees' Retirement System, t a legal notice has been run for at least three days requesting LR 26:1490 (July 2000). information from anyone knowing the whereabouts of the sp ouse; and

Louisiana Administrative Code August 2013 18 §3105. Contributions HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, A. The system shall determine the required contribution t LR 26:1491 (July 2000). o pay plan benefits for each plan year. The required contribut §3115. Retirement Benefit ion for each plan year shall be the total amount of benefits p ayable to all participants and their survivors or beneficiaries A. Any and all payments made pursuant to this plan shall and such amount as determined by the system to pay the ad be considered part of a retirement benefit as provided for an ministrative expenses of the plan and the employer's share of y member, survivor or beneficiary of the system. any employment taxes on the benefits paid from the plan. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 B. The required contributions as determined in the prece 511 and R.S. 11:515. ding Subsection shall be paid into the plan fund from an allo HISTORICAL NOTE: Promulgated by the Department of Trea cation of the employer contributions paid to the system. sury, Board of Trustees of the State Employees' Retirement System, LR 26:1491 (July 2000). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 §3117. DROP Benefits 511 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea A. The DROP benefit of any member may not exceed the sury, Board of Trustees of the State Employees' Retirement System, annual benefit authorized by Section 415(b) of the Internal LR 26:1491 (July 2000). Revenue Code. For purposes of determining whether a mem §3107. Excess Plan Fund ber's benefit exceeds the limitations of this Subsection, the f ollowing shall apply: A. Contributions to the plan shall be deposited on a mont hly basis in a separate fund established and administered by t 1. Adjustment if benefit not a straight life annuity. he system. This fund is intended to be exempt from federal i a. If the form of benefit is other than a straight life a ncome tax under IRC §§115 and 415(m)(1). nnuity, such benefit shall be adjusted actuarially to the equiv AUTHORITY NOTE: Promulgated in accordance with R.S. 11 alent of a straight life annuity to determine whether the limit 511 and R.S. 11:515. ations set forth in this Subsection are met. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, b. For the purposes of this Subsection, no adjustmen LR 26:1491 (July 2000). t shall be taken into account for any ancillary benefit which i §3109. Funding Assets s not directly related to retirement income benefits. A. The benefit liabilities of the plan shall be funded on a 2. Adjustment if benefit commences before age 62. month to month basis. The fund established hereunder shall a. If the benefit distribution commences before age not be accumulated to pay benefits payable in future months. 62, the actual retirement benefit shall not exceed the adjuste Any assets of the fund not used for paying benefits for a curr d dollar limitation. The adjusted dollar limitation shall be the ent month shall be used, as determined by the system, for the equivalent, determined in a manner consistent with reduction payment of administrative expenses of the plan for future mo of benefits for early retirement under Section 415(b)(2)(E) o nths or paid to the system as an additional employer contribu f the Internal Revenue Code, of $160,000, as of January 1, 2 tion. 002, adjusted annually pursuant to Section 415(d) of the Inte AUTHORITY NOTE: Promulgated in accordance with R.S. 11 rnal Revenue Code, commencing at age 62. For purposes of 511 and R.S. 11:515. this adjustment, survivor benefits, that portion of a joint and HISTORICAL NOTE: Promulgated by the Department of Trea survivor annuity which is the survivor benefit, and any other sury, Board of Trustees of the State Employees' Retirement System, ancillary benefits shall not be taken into account. LR 26:1491 (July 2000). b. No adjustment shall be required under this Subse §3111. Non-Assignability of Benefits ction if the member is a "qualified participant" as that term is A. The benefits payable under the plan may not be assign defined in Section 415(b)(2)(H) of the Internal Revenue Cod ed or alienated by a participant, except as otherwise permitte e. d for benefits payable by the system. c. No adjustment shall be required under this Subse AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ction if the benefit is payable due to the member's disability 511 and R.S. 11:515. or preretirement death. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, 3. If the benefit distribution commences after age 65, t LR 26:1491 (July 2000). he adjusted dollar limitation shall be the equivalent, determi §3113. Plan Administration ned in a manner consistent with the adjustments under Sectio n 415(b)(2)(E) of the Internal Revenue Code, of $160,000, a A. The system shall have the authority to administer the s of January 1, 2002, adjusted annually pursuant to Section 4 plan as provided at R.S. 11:454. 15(d) of the Internal Revenue Code, commencing at age 65. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 For purposes of this adjustment, survivor benefits, that porti 511 and R.S. 11:515. on of a joint and survivor annuity which is the survivor bene

19 Louisiana Administrative Code October 2017 fit, and any other ancillary benefits shall not be taken into ac HISTORICAL NOTE: Promulgated by the Department of Trea count. sury, Board of Trustees of the State Employees' Retirement System, LR 26:1491 (July 2000), amended LR 29:1121 (July 2003). B. The maximum retirement benefit payable under this S §3507. Employee Contributions ection to any member who has completed less than 10 years of credited service shall be the number determined under Su A. Each participant in the ORP shall contribute monthly t bsection A multiplied by a fraction, the numerator of which s he same amount that a regular member would have contribut hall be the number of years of service, and the denominator ed under R.S. 11:62(5)(e). This amount shall be forwarded to of which shall be 10. the ORP provider, less an administrative cost that shall be est ablished by LASERS. The initial administrative cost shall be C. Notwithstanding the foregoing, the benefit payable to set at 1 percent of employee earnings but may be adjusted an a member shall not be deemed to exceed the limits of Subsec nually in writing to reflect the actual cost incurred by LASE tion A if the total benefits payable to a member under all defi RS to perform this function, but shall not exceed 1 percent w ned benefit plans maintained by the state, its agencies, or its ithout an amendment to this rule. political subdivisions do not exceed $10,000 and the state, it s agencies, or its political subdivisions have never maintaine AUTHORITY NOTE: Promulgated in accordance with R.S. 11 d a defined contribution plan in which the member has partic 511 and R.S. 11:515. ipated. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, D. Any benefit that, as a result of an election made under LR 26:1491 (July 2000). R.S. 11:447(A), would exceed the limitations on benefits im §3509. Employer Contributions posed by Section 415(b) of the Internal Revenue Code shall be paid into the excess benefit arrangement established unde A. Each employer agency shall contribute to LASERS o r R.S. 11:454. n behalf of each participant in the ORP the same amount that would have been contributed to the defined benefit plan. LA AUTHORITY NOTE: Promulgated in accordance with R.S. 11 SERS shall pay over to the ORP provider an amount equal to 515. the employer's portion of the normal cost contributions as set HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, forth in the actuarial valuation of the retirement system. LAS LR 36:2050 (September 2010). ERS shall maintain that portion of the employer's contributio n, which applies to the unfunded accrued liability, which exc Chapter 35. Optional Retirement Pla eeds the employer's portion of the normal cost contribution. n LASERS may also retain an additional portion of the employ er contributions for any adverse actuarial impact as a result o §3501. Plan Year f employees participating in the ORP in accordance with R.S. A. The Plan Year for the Optional Retirement Plan (OR 11:502.3. B.(3). P) shall be July 1 through June 30. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 HISTORICAL NOTE: Promulgated by the Department of Trea 511 and R.S. 11:515. sury, Board of Trustees of the State Employees' Retirement System, HISTORICAL NOTE: Promulgated by the Department of Trea LR 26:1491 (July 2000). sury, Board of Trustees of the State Employees' Retirement System, LR 26:1491 (July 2000). §3511. ORP Provider §3503. Participation A. The system shall provide no more than three provider A. The following state employees shall be eligible to ma s, selected by a competitive process, for participants to utiliz ke an irrevocable election to participate in the optional retire e in selecting investment options for the employee and empl ment plan: oyer contributions that are provided for by the preceding Sec tions. 1. any unclassified state employee who is appointed b y a statewide elected official and whose appointment is subje AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. ct to confirmation by the Louisiana Senate; HISTORICAL NOTE: Promulgated by the Department of Trea 2. any unclassified state employee who is a member o sury, Board of Trustees of the State Employees' Retirement System, f the immediate staff of any such employee described in Para LR 26:1492 (July 2000). graph 1 of this Section; §3513. Investment Options 3. the chief executive officer of the State Employee Gr A. The investment options available to participants shall oup Benefits Program; be those as established by the ORP provider and selected by the ORP participant. 4. any member of the executive career service establis hment by the State Civil Service Commission. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 HISTORICAL NOTE: Promulgated by the Department of Trea 511 and R.S. 11:515. sury, Board of Trustees of the State Employees' Retirement System, LR 26:1492 (July 2000).

Louisiana Administrative Code August 2013 20 §3515. Benefit Obligations HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, A. All benefits payable to participants under the ORP sha LR 29:1122 (July 2003). ll be the sole obligation of the ORP provider to which contri §3705. Tax Liability butions are made, and shall not be the obligation of LASERS Payments to participants or their beneficiaries shall be made A. The employee requesting the lump sum cash conversi by the ORP provider and not LASERS in accordance with th on of leave shall be solely responsible for any tax consequen e contracts approved for use in the ORP. Participants in the ces of this decision, and the employee must acquire any tax a ORP shall not be entitled to any benefits under the defined b dvice from a private source (CPA or tax attorney) as LASER enefit plan, and once a choice is made by a participant to par S shall not be responsible for any tax liability that may impa ticipate in the ORP, that individual will be ineligible to partic ct the employee as a result of the decision to take a lump su ipate in the defined benefit plan. m cash distribution of leave in lieu of converting leave to reti rement credit. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 HISTORICAL NOTE: Promulgated by the Department of Trea 511 and R.S. 11:515. sury, Board of Trustees of the State Employees' Retirement System, HISTORICAL NOTE: Promulgated by the Department of Trea LR 26:1492 (July 2000). sury, Board of Trustees of the State Employees' Retirement System, §3517. Distribution LR 29:1122 (July 2003). A. Distribution from the ORP to participants shall only b Chapter 41. Self-Directed Plan e made after termination of employment with the state of Lo uisiana in accordance with applicable Internal Revenue Cod §4101. SDP Provider e provisions. A. System shall procure a single provider, selected by a c AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ompetitive process, for participants in the Self-Directed Plan 511 and R.S. 11:515. ("SDP") to utilize in providing investment options for the de HISTORICAL NOTE: Promulgated by the Department of Trea posits made during the accumulation period in the Deferred sury, Board of Trustees of the State Employees' Retirement System, Retirement Option Plan ("DROP") or funds acquired throug LR 26:1492 (July 2000). h the Initial Benefit Option ("IBO"). The investment options shall not be available to the participants until the DROP fund Chapter 37. Leave Conversion to Reti s are transferred to the SDP provider at the end of the accum rement Credit or Cash Payment ulation period, or until after the IBO funds are so transferred. §3701. Conversion of Leave to Retirement Credit AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. A. All annual and sick leave certified by the employee's HISTORICAL NOTE: Promulgated by the Department of Trea employing agency to be accrued in accordance with the leav sury, Board of Trustees of the State Employees' Retirement System, e accrual rates established by the Department of State Civil LR 30:1306 (June 2004). Service and for which payment cannot be made in accordanc §4103. Persons Vesting for DROP Prior to January 1, 2 e with law at the time of retirement shall be credited to the e 004 mployee and may be converted to retirement credit in accord A. Persons who became eligible for regular retirement pr ance with R.S. 11:424. ior to January 1, 2004 are eligible for participation in the SD AUTHORITY NOTE: Promulgated in accordance with R.S. 11 P. Those persons may make an irrevocable election to transfe 511 and R.S. 11:515. r their DROP funds into the SDP. The DROP or IBO particip HISTORICAL NOTE: Promulgated by the Department of Trea ants electing to transfer their funds into the SDP must transfe sury, Board of Trustees of the State Employees' Retirement System, r their entire DROP or IBO balance. LR 29:1122 (July 2003). §3703. Lump Sum Payment of Leave AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. A. An employee, in lieu of conversion of leave to retirem HISTORICAL NOTE: Promulgated by the Department of Trea ent credit, may request in writing that he be paid the actuaria sury, Board of Trustees of the State Employees' Retirement System, l value of such leave, as determined by the retirement syste LR 30:1306 (June 2004). m's actuary, in a lump sum cash payment. The employee shal §4105. Eligibility for Transfer of Funds into SDP l be paid the actuarial value of the conversion of leave to cas A. The only funds which may be transferred into the SD h. This lump sum cash payment shall be paid to the employe P are LASERS DROP or IBO funds. Transfers or rollovers fr e on the first of the month after all pertinent documentation i om other sources shall not be allowed. s received from the employee's employing agency needed to finalize the employee's retirement benefit. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 HISTORICAL NOTE: Promulgated by the Department of Trea 511 and R.S. 11:515. sury, Board of Trustees of the State Employees' Retirement System, LR 30:1307 (June 2004).

21 Louisiana Administrative Code October 2017 §4107. Rollovers Out of SDP to Other Providers 30 days prior to that date. Failure to submit this form could r esult in delaying access to DROP funds. A. At all times after becoming eligible to withdraw funds from the SDP, DROP participants may elect to rollover funds AUTHORITY NOTE: Promulgated in accordance with R.S. 11 to eligible providers. Such rollovers shall be subject to appli 511 and R.S. 11:515. cable federal laws and the terms of the SDP. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, AUTHORITY NOTE: Promulgated in accordance with R.S. 11 LR 30:1307 (June 2004). 511 and R.S. 11:515. §4117. Distributions HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, A. Distributions shall be in accordance with the provisio LR 30:1307 (June 2004). ns of Title 58, Part I, Chapter 27 of the Louisiana Administra §4109. Right to Recover Overpayments tive Code. A. In the event of overpayment of funds are made by LA AUTHORITY NOTE: Promulgated in accordance with R.S. 11 SERS, then LASERS retains the ability at all times to recall 511 and R.S. 11:515. funds from member at provider or to reduce future benefits p HISTORICAL NOTE: Promulgated by the Department of Trea ursuant to R.S. 11:192 to recover any such overpayment. sury, Board of Trustees of the State Employees' Retirement System, LR 30:1307 (June 2004). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 §4119. No In-Service Distribution 511 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea A. Distributions prior to the date of termination from em sury, Board of Trustees of the State Employees' Retirement System, ployment with the state of Louisiana are strictly prohibited i LR 30:1307 (June 2004). n accordance with applicable Internal Revenue Code Provisi §4111. Time to Transfer Funds ons. The selected provider shall not make a distribution with out a verification of termination from LASERS. A. Except in emergency circumstances as determined by the executive director: AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. 1. LASERS shall forward the entire deposit balance HISTORICAL NOTE: Promulgated by the Department of Trea of a participant to the third party administrator within sury, Board of Trustees of the State Employees' Retirement System, 10 working days from the end of the DROP accumulation pe LR 30:1307 (June 2004). riod. LASERS may supplement or otherwise correct balance §4121. Civil Service Reinstatement s forwarded in those instances where there are errors, missin g documents or incomplete reports submitted by agencies re A. DROP participants who have been removed from stat porting earnings for the participant; e employment, then reinstated pursuant to a ruling by the Ci vil Service board, shall immediately notify LASERS in writi 2. for participants in the Initial Benefit Option ("IB ng of their reinstatement, along with a projected date of retir O") or for those DROP participants whose accumulation peri ement. od is less than six months, LASERS shall transfer 80 percent of the DROP/IBO balance within 45 days from th AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e date of initial transfer into the SDP. 511 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea AUTHORITY NOTE: Promulgated in accordance with R.S. 11 sury, Board of Trustees of the State Employees' Retirement System, 511 and R.S. 11:515. LR 30:1307 (June 2004). HISTORICAL NOTE: Promulgated by the Department of Trea §4123. Beneficiary sury, Board of Trustees of the State Employees' Retirement System, LR 30:1307 (June 2004), amended LR 32:1070 (June 2006). A. Each participant shall initially designate a beneficiary §4113. Spousal Consent or beneficiaries to receive any amounts which may be distrib uted in the event of the death of the participant prior to the c A. LASERS may halt the processing of a participant's re omplete distribution of benefits. A participant may change th quest to enter the SDP until any spousal consent form requir e designation of beneficiaries at any time by filing a written ed by law or proof of divorce has been presented to the syste notice on a form approved by LASERS. If no such designati m. on is in effect at the time of participant's death, or if the desi AUTHORITY NOTE: Promulgated in accordance with R.S. 11 gnated beneficiary does not survive the participant by 30 day 511 and R.S. 11:515. s, his beneficiary shall be his surviving spouse, if any, and th HISTORICAL NOTE: Promulgated by the Department of Trea en his estate. sury, Board of Trustees of the State Employees' Retirement System, LR 30:1307 (June 2004). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. §4115. Completion of Notification Form HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the State Employees' Retirement System, A. All DROP participants shall complete and submit a fo LR 30:1307 (June 2004). rm (#9-2 or #9-2a) to inform LASERS that they are ending t he accumulation period. This form shall be submitted at least

Louisiana Administrative Code August 2013 22 §4125. Investment Options C. Neither the state of Louisiana, LASERS, the administ rator, nor any other person shall be liable for any losses incur A. LASERS shall in its sole discretion select certain inve red by virtue of following the participant's directions or with stment options to be used to determine income to be accrued any reasonable administrative delay in implementing such di on deferrals. These investment options may include specified rections. life insurance policies, annuity contracts, or investment medi a issued by an insurance company. In any event, it shall be th AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e sole responsibility of LASERS to ensure that all investmen 511 and R.S. 11:515. t options offered under the plan are appropriate and in compl HISTORICAL NOTE: Promulgated by the Department of Trea iance with any and all state laws pertaining to such investme sury, Board of Trustees of the State Employees' Retirement System, LR 30:1308 (June 2004). nts. §4129. Distributions from the Plan B. In the absence of a written directive from the participa nt, the provider shall automatically invest the participant's D A. The payment of benefits in accordance with the terms ROP funds in its discretion in an appropriate interim investm of the plan may be made by the trustee, or by any custodian ent until specific investment directions are received. Such in or other person so authorized by LASERS to make such distr structions regarding the delegation of investment responsibil ibution. Neither LASERS, the trustee nor any other person s ity shall remain in force until revoked or amended in writing hall be liable with respect to any distribution from the plan by the participant. LASERS shall not be responsible for the made at the direction of the employer or a person authorized propriety of any directed investment. by the employer to give disbursement direction. C. LASERS may, from time to time, change the investm AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ent options under the plan. If LASERS eliminates a certain i 511 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea nvestment option, all participants who had chosen that invest sury, Board of Trustees of the State Employees' Retirement System, ment shall select another option. If no new option is selected LR 30:1308 (June 2004). by the participant, money remaining in the eliminated invest §4131. Domestic Relations Orders ment option shall be moved at the direction of LASERS. The participants shall have no right to require LASERS to select A. In all instances wherein a person participating in the S or retain any investment option. To the extent permitted by a DP is a party to a Domestic Relations Order ("DRO"), prope nd subject to any rules or procedures adopted by the adminis rly worded and approved by LASERS, and such DRO is to d trator, a participant may, from time to time, change his choic ivide DROP funds with the participant's former spouse, LAS e of investment option. Any change with respect to investme ERS shall establish a means whereby the former spouse may nt options made by LASERS or a participant, however, shall choose the investment options for his or her portion of the S be subject to the terms and conditions (including any rules or DP. Until such time as the portion belonging to the former sp procedural requirements) of the affected investment options ouse is placed in a separate SDP account in that person's na and may affect only income to be accrued after that change. me, those funds shall remain in a conservative fixed income AUTHORITY NOTE: Promulgated in accordance with R.S. 11 investment vehicle within the SDP such as a stable value fun 511 and R.S. 11:515. d. HISTORICAL NOTE: Promulgated by the Department of Trea B. The selection of investment options shall be in accord sury, Board of Trustees of the State Employees' Retirement System, ance with §4125 of this Chapter. LR 30:1307 (June 2004). §4127. Participant Investment Direction C. Withdrawals from the SDP by either the member spou se (under whom all service credit accumulated) or the former A. Participants shall have the option to direct the investm spouse are prohibited until such time as the member spouse t ent of their personal contributions and their share of any emp erminates state employment. loyer contributions among alternative investment options est ablished as part of the overall SDP, unless otherwise specifie AUTHORITY NOTE: Promulgated in accordance with R.S. 11 d by LASERS. A participant's right to direct the investment 451.4 and 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea of any contribution shall apply only to making selections am sury, Board of Trustees of the State Employees' Retirement System, ong the options made available under the SDP. LR 30:1308 (June 2004), amended LR 33:1150 (June 2007). B. Each participant shall designate on the proper form or §4133. Disclaimer via website or telephone direction the investment that shall b A. LASERS makes no endorsement, guarantee or any ot e used to determine the income to be accrued on amounts de her representation and shall not be liable to the plan or to an posited. If the investment chosen by the participant experien y participant, beneficiary, or any other person with respect to: ces a gain, the participant's benefits under the SDP likewise s hall reflect income for that period. If the investment chosen 1. the financial soundness, investment performance, fi by a participant experiences a loss, or if charges are made un tness, or suitability (for meeting a participant's objectives, fu der such investment, the participant's benefits under the SDP ture obligations under the plan, or any other purpose) of any likewise shall reflect such loss or charge for that period. investment option in which amounts deferred under the plan are actually invested; or

23 Louisiana Administrative Code October 2017 2. the tax consequences of the plan to any participant, Chapter 45. Effects of Act 75 of the 20 beneficiary or any other person. 05 Regular Session AUTHORITY NOTE: Promulgated in accordance with R.S. 11 511 and R.S. 11:515. §4501. Members Affected HISTORICAL NOTE: Promulgated by the Department of Trea A. This Chapter concerns those members of LASERS aff sury, Board of Trustees of the State Employees' Retirement System, ected by Act 75 of the 2005 Regular Session of the Louisian LR 30:1308 (June 2004). a Legislature. §4135. No DROP Interest AUTHORITY NOTE: Promulgated in accordance with R.S. 11 A. Participants in the SDP shall not receive interest paid 515 and R.S. 11:537. by LASERS on traditional DROP/IBO accounts under the pr HISTORICAL NOTE: Promulgated by the Board of Trustees o ovisions of LAC 58:I.2715. f the State Employees' Retirement System, LR 33:113 (January 200 7). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 §4503. Vesting Because of Prior State Employment 511 and R.S. 11:515. HISTORICAL NOTE: Promulgated by the Department of Trea A. Members whose first employment making them eligib sury, Board of Trustees of the State Employees' Retirement System, le for membership in the system began on or before June 30, LR 32:1070 (June 2006). 2006 and who subsequent to that date cease such employme Chapter 43. Actuarial Calculations nt shall remain vested under the retirement eligibility provisi ons existing on that date, but only so long as they do not rece §4301. Charges for Actuarial Calculations ive a refund of their accumulated employee contributions on A. The system shall collect a fee of $150 from those pers or after July 1, 2006. ons requesting certain actuarial calculations which must be o B. Upon application for and acceptance of a refund of ac btained from the actuarial firm with whom LASERS contrac cumulated contributions, all rights in the system are cancelle ts actuarial services. Except as otherwise provided in R.S. 11: d. For the purposes of this Section, a refund shall be consider 446.E, the fee must be payable to LASERS and will be forw ed accepted by the member upon the cashing or negotiating arded to the actuarial firm. of a check or deposit by electronic funds transfer of an amou AUTHORITY NOTE: Promulgated in accordance with nt representing the bulk of the employee contributions depos R.S. 11:515. ited in his or her LASERS account based upon the period of HISTORICAL NOTE: Promulgated by the Department of Trea their employment. sury, Board of Trustees of the State Employees' Retirement System, AUTHORITY NOTE: Promulgated in accordance with R.S. 11 LR 32:265 (February 2006). 515 and R.S. 11:537. HISTORICAL NOTE: Promulgated by the Board of Trustees o f the State Employees' Retirement System, LR 33:113 (January 200 7).

Louisiana Administrative Code August 2013 24 Title 58 RETIREMENT Part III. Teachers' Retirement System of Louisiana

Chapter 1. General Provisions 2. Employers who have data that meets Teachers' Reti rement System of Louisiana's definition of unusual, as defin §101. Mandatory Submission of Monthly Salaries and ed in Teachers’ Retirement System of Louisiana's employer Contributions Reports, Contributions Correctio procedures manual, must certify/correct the data by submitti n Reports (Form 4B), and Prior Years Certificati ng a written statement to Teachers' Retirement System of Lo on/Correction of Member Data uisiana signed by an authorized representative of the employ er. A. Monthly Salaries and Contributions Reports. Each mo nth all employers shall certify to the Board of Trustees, by m AUTHORITY NOTE: Promulgated in accordance with R.S. 11 eans of file transfer protocol, diskette, or by on-line web bas 873(2). ed reporting, the amounts of each employee's salary, and the HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers' Retirement System of L amounts of deductions from the employee's salary to be paid ouisiana, LR 22:1242 (December 1996), repromulgated to the annuity savings fund and then credited to the individu LR 24:499 (March 1998), amended LR 33:1151 (June 2007), effect al accounts of the employee from whose compensation the d ive July 1, 2007, amended LR 34:1048 (June 2008), effective July 1, eductions were made. All file transfer protocol, diskette, and 2008. web based reporting formats must be in compliance with crit eria established by Teachers' Retirement System of Louisian Chapter 2. Earnable Compensation A a as provided in the Employer Procedures Manual. All certifi ccounts ed monthly salaries and contributions reports must be submit ted by the fifteenth day of the month following the month co §201. Earnable Compensation Accounts vered by the report. A. Earnable compensation shall not include compensatio 1. All employers with 25 or more employees being re n paid to an active member or to an inactive member of Teac ported must submit monthly salaries and contributions report hers' Retirement System of Louisiana (TRSL) if the compen s by file transfer protocol or by diskette. sation is paid by a secondary employer and is reported to the Internal Revenue Service (IRS) on a Form 1099, but only if 2. All employers reporting fewer than 25 employees both the following occur. must submit monthly salaries and contributions reports by fil e transfer protocol, diskette, or Teachers' Retirement System 1. The individual contract is for $1,000 or less, and a of Louisiana's secure on-line web-based inquiry system. Form 1099 is issued. B. Contributions Correction Reports (Form 4B) 2. The cumulative amount of the Form 1099 payments issued by a single secondary employer to that member does 1. All employers must submit Contributions Correctio not exceed $15,000 in a fiscal year. n Reports (Form 4B) using Teachers' Retirement System of Louisiana's secure on-line web-based inquiry system. B. If an individual contract is for more than $1,000, then that entire payment is earnable compensation subject to TRS C. Prior Years Certification/Correction of Member Data. L employer and employee contributions. Member data previously submitted by employers through the monthly salaries and contributions reports, and contributions C. If the cumulative amount of the Form 1099 payments correction reports determined to be questionable or inaccurat issued by a single secondary employer to that member excee e must be certified as correct or must be corrected by the em ds $15,000 in a fiscal year, then all Form 1099 payments in e ployer. xcess of $15,000 in that TRSL fiscal year are earnable comp ensation subject to TRSL employer and employee contributi 1. All employers must submit prior year certifications/ ons. corrections (with certain exceptions as provided for in C.2) u NOTE: A secondary employer is one who does not report W-2 sing Teachers' Retirement System of Louisiana's secure onlin earnings on this member. e web-based inquiry system. Data that is to be certified/corre cted via the on-line web-based inquiry system are as follows: D. Earnable compensation shall include any and all com pensation paid to a retiree of this system by a a. full-time rate of pay only correction; TRSL-covered employer regardless of IRS reporting. b. actual earnings and contribution corrections; AUTHORITY NOTE: Promulgated in accordance with R.S. 11 c. service credit; 701(10). HISTORICAL NOTE: Promulgated by the Department of Trea d. identified "questionable year" data. sury, Board of Trustees of the Teachers' Retirement System of Loui siana, LR 30:273 (February 2004).

25 Louisiana Administrative Code October 2017 Chapter 3. Re-Employment of Retire 5. Payments to purchase service and salary credit cann ot be made in advance. For example, an invoice issued in De es cember 2005 for the January 2006's service and salary credit §301. Retirees Returning to Work at Charter Schools cannot be paid in December 2005. A. Any retiree receiving a retirement benefit from Teach 6. DROP and Active-DROP members are not allowed ers' Retirement System of Louisiana (TRSL), who subseque to purchase service credit in accordance with R.S. 11:728(A). ntly returns to work at a school chartered under the provision 7. Members may purchase all credit or partial credit w s of R.S. 17:3971-3982, shall be governed by the return-to-w hile on involuntary furlough or LWOP. ork provisions contained in R.S. 11:707, 737, 738, 739, 780. 1, 783.A, or 791, whichever is applicable. B. Methods of Payment B. Local school systems granting charters will be respon 1. Members may make payment on a month-by-month sible for reporting to TRSL, in accordance with R.S. 11:707, basis or make a lump sum payment. the employment of any TRSL retiree by the charter school. F 2. Payments may be in the form of a direct payment fr ailure to report this information will result in penalties assess om the member or a direct trustee-to-trustee transfer from a ed in accordance with R.S. 11:737. qualified plan or IRA. AUTHORITY NOTE: Promulgated in accordance with R.S. 17 3. Should a member elect to make payments through h 3971-3982 and R.S. 11:707, 737, 738, 739, 780.1, 783.A, and 791. is employer, the employer is required to remit the payments t HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of Teachers' Retirement System of Louis o TRSL, along with a report of members purchasing declare iana, LR 22:290 (April 1996), repromulgated LR 24:499 (March 19 d disaster/emergency leave. This separate report must includ 98). e the member's name, Social Security number, the month/yea r being purchased, the full-time monthly salary rate, the mon Chapter 4. Purchase of Service Credit ths of contract, employee contributions and interest, employe §401. Purchase of Service Credit for Involuntary Furl r contributions and interest, and the date the member made p ough or Leave without Pay (LWOP) Due to Gub ayment to the employer. ernatorially Declared Disaster/Emergency 4. Employers who do not remit the employee and emp loyer contributions paid by the member in accordance with A. General Provisions. If a TRSL member is on involunt R.S. 11:281 will be liable for any delinquent interest. ary furlough or LWOP anytime during the period of August 29, 2005 through June 30, 2006, due to a gubernatorially dec AUTHORITY NOTE: Promulgated in accordance with R.S. 11 lared disaster or emergency, he may purchase service and sal 163 (A)(2)(a) and (C)(2). ary credit for each day of service he was on involuntary furlo HISTORICAL NOTE: Promulgated by the Department of the T ugh or LWOP during this period under this provision if such reasury, Board of Trustees of Teachers' Retirement System of Louis service is not credited to his account. iana, LR 32:867 (May 2006). 1. TRSL members eligible to purchase service and sal Chapter 5. Deferred Retirement Opti ary credit under this rule must make application to TRSL pri on Plan (DROP) or to remitting any funds. §501. Service Requirements 2. TRSL must receive certification from the member's employer as follows: A. Members of the Teachers' Retirement System of Loui siana (TRSL), in lieu of terminating employment and accepti a. the member was or is on involuntary furlough or ng a retirement allowance, may elect to participate in the def on LWOP due to a gubernatorially declared disaster or emer erred retirement option plan (DROP) in accordance with R.S. gency; 11:786-791 when the following eligibility requirements for b. the period of time during which the member was plan participation are met. or is on involuntary furlough or LWOP due to a gubernatoria 1. Regular plan members: lly declared disaster or emergency; and a. 30 years of service credit at any age; c. the member's full time salary as of August 29, 20 05. b. 25 years of service credit and at least age 55; 3. Invoices calculated under this provision will includ c. 20 years of service credit and at least age 65 (excl e interest charges at 15 day intervals should the payment bec uding military service); ome delinquent in accordance with R.S. 11:281. d. 10 years of service credit and at least age 60 (excl 4. Monthly payments must be paid after the close of m uding military service); onth being purchased. For example: payments due for the m e. those members with 10 years of service credit an onth of February 2006 must be paid after February 28, 2006. d who are at least age 60 will have retirement benefits calcul ated using a 2 percent benefit formula.

Louisiana Administrative Code August 2013 26 2. School food service plan a members: b. members eligible to enter DROP on or after January 1, 2004, will have their DROP funds transferred to a Liquid a. 30 years of service credit at any age; Asset Money Market Account after the termination of DROP b. 25 years of service credit and at least age 55; and participation. Interest will be deposited monthly based on the interest earned on the Liquid Asset Money Market Account l c. 10 years of service credit and at least age 60 (excl ess an administrative fee. Final payouts of DROP accounts w uding military service). ill have interest posted through the date of the payment. Qua 3. School food service plan B members: rterly statements issued will reflect the interest earned and p osted; a. 30 years of service credit and at least age 55; and 4. withdrawal payments from DROP accounts will be b. 10 years of service credit and at least age 60 (excl issued on the fifteenth day of each month. uding military service). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 B. DROP participation may begin or end any day of the 739 and R.S. 11:786-791. month. The effective date for participation in DROP will be t HISTORICAL NOTE: Promulgated by the Department of the T he date a properly executed DROP application, including the reasury, Board of Trustees of the Teachers' Retirement System of L designation of a DROP account beneficiary(ies), is filed in th ouisiana, LR 18:621 (June 1992), repromulgated LR 24:500 (Marc e office of TRSL or the stated effective date on the properly h 1998), amended LR 25:1655 (September 1999), LR 30:100 (Janu executed DROP application, whichever is later. In the event ary 2004). an employer fails to submit the application in a timely fashio §505. Duration of DROP Participation n, the provisions of R.S. 11:761 shall apply. A. Participation in DROP may not exceed a period of thr AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ee consecutive years. In order to participate for the maximu 739 and R.S. 11:786-791. m three consecutive years, the member must begin DROP pa HISTORICAL NOTE: Promulgated by the Department of the T rticipation within 60 calendar days after the first possible eli reasury, Board of Trustees of the Teachers' Retirement System of L gibility requirement for participation is met (refer to §501.A). ouisiana, LR 18:621 (June 1992), amended LR 18:1419 (December The participation period must end not more than three years 1992), LR 19:1601 (December 1993), repromulgated LR 24:500 (March 1998). and 60 calendar days from the date the member first became eligible to participate. The participation period may only be s §503. Management of DROP Accounts hortened by the participant's termination of employment or d A. Deposits to DROP accounts will be effective on the fi eath. rst day of each month of participation in the plan. 1. In lieu of a participation period not to exceed the re B. DROP account statements will be furnished on a quart mainder of the three consecutive year period from date of fir erly basis as follows: st eligibility, a member who became eligible for DROP on or before January 1, 1994 may, at any time, select a participatio 1. statements issued during DROP participation will re n period which may not exceed two consecutive years. flect all account deposits for a quarterly period; 2. Notwithstanding any other provision of law to the c 2. statements issued after completion of DROP partici ontrary, any member who is participating in the three-year D pation and termination of employment will reflect all accoun eferred Retirement Option Plan, as set forth in t withdrawals for a quarterly period; and R.S. 11:786.B, may continue to participate in the plan for an 3. interest earnings will begin accruing the day after te additional period of time which equals the difference betwee rmination of DROP participation and will be compounded da n the actual participation of that member in that plan and the ily; three-year maximum term of participation, provided the me mber satisfies all of the following. a. members eligible to enter DROP prior to January 1, 2004, will have interest deposited to their DROP accounts a. On January 1, 1994, the member was not eligible once a year when the actuarially realized rate of return is app for the full three-year period because of years of service cred roved by the Public Retirement System's Actuarial Committe it or age requirements, or both. e. This interest will be equal to the approved actuarially reali b. The member chose to participate in the three-year zed rate of return less an administrative fee. Interest deposits plan for the maximum period available. will reflect the interest earned on the account during the prev ious fiscal year and will be entered on quarterly statements is c. The member is participating in the three-year pla sued after this approval is obtained. No interest will accrue o n on June 30, 1995. n the DROP account after the date the account has been liqui d. The member furnishes written notice to the syste dated. No interest is paid on any interest only balance. Liqui m prior to December 31, 1995 or the end of the participation dated means all funds have been withdrawn from the DROP period that the member initially selected, whichever date occ account except for the possible final interest earnings due bu urs first. t not yet posted; 3. Any member of the Teachers' Retirement System of Louisiana who meets the criteria in §505, including the requi

27 Louisiana Administrative Code October 2017 red written notice, will be allowed to extend their period of ect the month in which the annual payment is to be made, an DROP participation through December 31, 1996. d the first payment must be made within the 12-month period immediately following DROP participation AUTHORITY NOTE: Promulgated in accordance with R.S. 11 739 and R.S. 11:791. and termination of employment (refer to §511.A); HISTORICAL NOTE: Promulgated by the Department of the T 5. annual withdrawals based upon an amount to be wit reasury, Board of Trustees of the Teachers' Retirement System of L hdrawn each year, as specified by the participant. This perio ouisiana, LR 18:621 (June 1992), amended LR 19:1601 (December 1993), LR 21:1267 (November 1995), repromulgated LR 24:500 dic payment shall not vary from year to year, and the amount (March 1998). of the withdrawal must be greater than the amount necessary to liquidate the total account balance within the participant's §507. Retirement Benefits life expectancy. The participant shall select the month in whi A. Retirement benefits shall begin on the first day of the ch the annual payment is to be made, and the first payment month immediately following termination of DROP in all of must be made within the 12-month period immediately follo the following cases: wing DROP participation and termination of employment (re fer to §511.A); and 1. voluntary termination―the participant, for any reas on, elects to withdraw from DROP prior to completing the se 6.a. one-time partial account balance withdrawal at the lected participation period and also terminates employment; beginning of, or during the term of, monthly or annual withd rawals selected in accordance with §509.A.2, 3, 4, or 5. If th 2. involuntary termination―the participant is terminat e one-time partial account balance withdrawal is made befor ed by the employer prior to completing the selected participa e any other withdrawals, the balance of the account will be p tion period and is not rehired by another TRSL employer on aid as determined by the withdrawal method selected in acco the following day; and rdance with §509.A.2, 3, 4, or 5. If withdrawals have already 3. completion of selected DROP participation period a begun, the duration of the remaining monthly and or annual nd termination of employment, except when the DROP parti withdrawals will be redetermined and the appropriate federal cipation period is completed on any day other than the last d tax laws will be applied. If the one-time partial account bala ay of any month. In such cases, the DROP account deposit s nce withdrawal is to be made after the monthly or annual wit hall be prorated to coincide with the date of completion of D hdrawals have begun, the retiree must meet one of the follow ROP participation and termination of employment. Retireme ing conditions: nt benefits shall begin the day after completion of the DROP i. one must have been at least age 55 on the date participation period and termination of employment. of his retirement; or AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ii. one must be at least 59 1/2 at the time he choos 739 and R.S. 11:786-791. HISTORICAL NOTE: Promulgated by the Department of the T es the one-time single lump sum withdrawal; reasury, Board of Trustees of the Teachers' Retirement System of L b. changes to the monthly or annual withdrawals ma ouisiana, LR 18:621 (June 1992), amended LR 18:1419 (December y only be made in accordance §511.A; 1992), LR 19:1602 (December 1993), repromulgated LR 24:501 (March 1998). c. if a member is 70 1/2 or older when he chooses a §509. Withdrawal of Funds from a DROP Account partial single sum after withdrawals have begun, even thoug h he retired at a younger age, he will have the required mini A. Withdrawals from a DROP account are not permitted mum distribution calculated using the "Single Life Table" (S prior to the termination of DROP participation or during em LT), or he may choose the "Uniform Lifetime Table" (ULT), ployment which continues immediately following the DROP or the "Joint and Last Survivor Table" (JLST), whichever ap participation period and shall be limited to the following met plies. The result of using one of these tables may allow a me hods: mber to lower his monthly or annual withdrawal; 1. withdrawal of the total DROP account balance at th 7. total DROP account balance withdrawal at any time e termination of DROP participation and employment; after monthly or annual withdrawals have begun. 2. monthly withdrawals in an amount to be determine AUTHORITY NOTE: Promulgated in accordance with R.S. 11 d by the life expectancy of the participant. This periodic pay 786-791. ment shall not vary from month to month (refer to §511.A); HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers' Retirement System of L 3. monthly withdrawals based upon an amount to be ouisiana, LR 18:621 (June 1992), repromulgated LR 24:501 (Marc withdrawn each month, as specified by the participant. This h 1998), amended LR 28:1031 (May 2002), LR 28:2569 (Decembe periodic payment shall not vary from month to month, and th r 2002). e amount of the withdrawal must be greater than the amount §510. Distributions Provided for by Gulf Opportunity necessary to liquidate the total account balance within the pa Zone Act of 2005 rticipant's life expectancy (refer to §511.A); A. If a participant was impacted by Hurricanes Katrina, 4. annual withdrawals in an amount to be determined Rita, or Wilma they may be able to withdraw funds from thei by the life expectancy of the participant. This periodic paym r DROP/ILSB account in addition to those normally allowed ent shall not vary from year to year. The participant shall sel

Louisiana Administrative Code August 2013 28 under §509. In order to receive an additional distribution, the B. When the life expectancy of the participant governs th participant must have retired prior to the special withdrawal e selected periodic withdrawal method, disbursements from t request. he DROP account shall be made in accordance with the "Sin gle Life Table" (SLT) for participants first eligible to begin B.1. A qualified hurricane distribution must be made on o withdrawing on or after January 1, 2003. Exception: if a retir r after: ee is 70 1/2 or older, he must meet a required minimum distr a. August 25, 2005 and before January 1, 2007, to a ibution (RMD) and may request the use of the "Single Life T n individual whose principal place of residence on August 28, able" (SLT), "Uniform Lifetime Table" (ULT) or the "Joint a 2005 was located in the Hurricane Katrina disaster area, and nd Last Survivor Table" (JLST), whichever applies. Once th who sustained economic loss due to Hurricane Katrina; e election has been made he cannot elect to make a change at a later date. b. September 23, 2005 and before January 1, 2007, t o an individual whose principal place of residence on Septe C. The selection of a withdrawal method and the amount mber 23, 2005 was located in the Hurricane Rita disaster are of the periodic payment must be designated by the participan a, and who sustained an economic loss due to Hurricane Rita t 30 days prior to completion of DROP participation and ter (but is not a distribution described in Subparagraph B.1.a); mination of employment on the form prescribed by the TRS L. Should a participant fail to choose a withdrawal method, c. October 23, 2005 and before January 1, 2007, to or to notify TRSL that employment will continue, TRSL will an individual whose principal place of residence on October consider the participant still employed. No benefit will be pa 23, 2005 was located in the Hurricane Wilma disaster area, a yable to the participant until official notification of terminati nd who sustained an economic loss due to Hurricane Wilma on of employment, on the prescribed form, is received in the (but is not a distribution described in Subparagraphs office of TRSL. B.1.a or b). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 2. The aggregate amount of eligible distributions cann 739 and R.S. 11:786-791. ot exceed $100,000 in any tax year. No distribution is allowa HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers' Retirement System of L ble greater than the participant's account balance. A qualified ouisiana, LR 18:621 (June 1992), repromulgated LR 24:502 (Marc distribution is not subject to any penalty that would normally h 1998), amended LR 24:961 (May 1998), LR 28:1031 (May 2002) be imposed because of the participant's age, and the distribut LR 28:2569 (December 2002). ion is not subject to any mandatory federal income tax withh §513. Termination of DROP Participation olding. A. When termination of the DROP participation period o C. Participants eligible to receive funds under this provis ccurs because of the death of the participant, or if the death o ion must complete a notarized Hurricane Affidavit attesting t f the participant occurs in the absence of an executed Affidav o their eligibility. it of Plan Election, the provisions of R.S. 11:783 shall apply. D. If the participant is married, consent of the participan B. In the event of the death of the DROP participant/retir t's spouse is required to receive a Hurricane Katrina, Hurrica ee, a spousal beneficiary shall select a withdrawal method fr ne Rita, or Hurricane Wilma distribution. om the options listed in §509.A, and may make changes in a ccordance with §511. If the disbursements from the account AUTHORITY NOTE: Promulgated in accordance with R.S. 11 786-791 and the U. S. Gulf Opportunity Zone Act of 2005. began prior to the participant's death, the spousal beneficiary HISTORICAL NOTE: Promulgated by the Department of the T may make changes in accordance with §511. reasury, Board of Trustees of the Teachers' Retirement System, LR C. In the event of the death of the participant during DR 32:867 (May 2006). OP participation, or after the end of the period of participatio §511. Change of DROP Withdrawal Method n, but before total distribution of the DROP account balance, a beneficiary(ies) other than the participant's surviving spous A. The participant will have one opportunity per e shall immediately receive a lump sum equal to the particip 12-month period to change the chosen withdrawal method a ant's balance in the DROP account. nd/or amount if the original method selected was either §509. A.2, 3, 4, or 5. Any change must be made in accordance with AUTHORITY NOTE: Promulgated in accordance with R.S. 11 the life expectancy of the participant. 786-791. HISTORICAL NOTE: Promulgated by the Department of the T 1. For participants under age 70 1/2, any change in the reasury, Board of Trustees of the Teachers' Retirement System of L withdrawal method must be made in accordance with the life ouisiana, LR 18:622 (June 1992), amended LR 18:1419 (December expectancy of the participant at the time of his retirement, an 1992), LR 19:1602 (December 1993), repromulgated LR 24:502 d at no time may the disbursement from the account be less t (March 1998), amended LR 28:1032 (May 2002). han the amount of the originally selected periodic payment. §515. Death of Beneficiary 2. For participants over age 70 1/2 at the time of the c A. In the event of the death of a surviving spousal or non hange, the change in the withdrawal method may allow the p spousal beneficiary, any remaining DROP account balance w articipant to reduce the disbursement only if the participant ill be paid to the estate of the beneficiary. was not age 70 1/2 at the time he began withdrawals. Otherw B. DROP accounts will be subject to all Louisiana laws g ise the rule under §511.A.1 will apply. overning community property, inheritance, and estate matter

29 Louisiana Administrative Code October 2017 s and will be administered in accordance with applicable stat AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e laws and orders of the court. 739 and R.S. 11:786-791. HISTORICAL NOTE: Promulgated by the Department of the T AUTHORITY NOTE: Promulgated in accordance with R.S. 11 reasury, Board of Trustees of the Teachers' Retirement System of L 739 and R.S. 11:786-791. ouisiana, LR 21:1267 (November 1995), amended LR 23:85 (Janua HISTORICAL NOTE: Promulgated by the Department of the T ry 1997), repromulgated LR 24:502 (March 1998). reasury, Board of Trustees of the Teachers' Retirement System of L ouisiana LR 18:622 (June 1992), repromulgated LR 24:502 (March Chapter 7. Renunciation of Benefits 1998). §517. Affidavit of Plan Election §701. General A. If a member fails to return a completely executed and A. Any person eligible to receive, or receiving, a benefit notarized Affidavit of Plan Election to choose a retirement b from the Teachers' Retirement System of Louisiana (TRSL), enefit option by 90 calendar days after his/her receipt of the may renounce such benefits on the following terms and cond unsigned affidavit or by 90 calendar days after the beginning itions. of his/her DROP participation, whichever is later, he/she will 1. The renunciation shall be unconditional and irrevoc be deemed not to have elected to participate in DROP. Empl able. Once a benefit is renounced, TRSL shall have no furthe oyee and employer contributions and appropriate interest or r obligation or liability with respect to that benefit, and the p actuarial cost must then be remitted to TRSL for the prior pe erson renouncing the benefit shall, under no circumstances, riod of TRSL employment in order to receive service credit f be eligible to receive that benefit. or that period. 2. A base benefit may only be renounced in its entirety. B. For purposes of §517.A, the signed affidavit must be If a base benefit is renounced, there shall be no eligibility fo postmarked no later than 90 calendar days after receipt by m r later adjustment of benefits of any kind. An adjustment to a ember of the unsigned affidavit or by 90 days after the begin base benefit (cost-of-living adjustment or adjustment for infl ning of his/her DROP participation, whichever is later. ation) may only be renounced in its entirety. If an adjustment AUTHORITY NOTE: Promulgated in accordance with R.S. 11 is renounced, the base benefit need not be renounced. 739 and R.S. 11:786-791. HISTORICAL NOTE: Promulgated by the Department of the T 3. A benefit may be renounced before or after paymen reasury, Board of Trustees of the Teachers' Retirement System of L t begins. If the renunciation is after the start of payments, an ouisiana, LR 18:622 (June 1992), amended LR 20:1020 (September y payments received prior to the effective date of the renunci 1994), repromulgated LR 24:502 (March 1998). ation are not affected. §519. Application for DROP 4. If the party making the renunciation is married, the A. A member shall not begin his DROP participation unti spouse must join in the renunciation. l TRSL has received a fully completed, signed, and witnesse 5. If the person making the renunciation is subject to a d application for DROP, Form 11F. TRSL must receive both court order or community property settlement submitted to a sides of the Form 11F. nd approved by TRSL, in accordance with R.S. 11:291, only AUTHORITY NOTE: Promulgated in accordance with R.S. 11 that portion of the benefit due the person making the renunci 786-791. ation may be renounced, except as provided for in R.S. 11:7 HISTORICAL NOTE: Promulgated by the Department of the T 83.D. reasury, Board of Trustees of the Teachers' Retirement System of L ouisiana, LR 18:621 (June 1992), amended LR 20:1020 (September 6. If the person making the renunciation is legally sep 1994), repromulgated LR 24:502 (March 1998), amended LR 24:96 arated or divorced but is not subject to a court order or com 2 (May 1998), LR 28:1032 (May 2002). munity property settlement submitted to and approved by TR §521. Teaching Experience SL, in accordance with R.S. 11:291, the renunciation must b e approved by the court having jurisdiction over the separati A. Retirees who return to work under the provisions of R. on or divorce. S. 11:739 shall be governed by the following definition of te aching experience. Any work experience which would have 7. If the person making the renunciation is retired and qualified the member for TRSL membership under the provi has named a joint and survivor beneficiary, the renunciation sions of R.S. 11:701(23) if the experience had been gained in cannot affect the joint and survivor beneficiary or benefit, in the Louisiana public education system will be considered tea cluding adjustments to the joint and survivor benefit. ching experience. Teaching experience will include qualifyin 8. A renunciation must be made on a form provided b g work (including work during DROP) in any recognized ed y TRSL and must be executed before a notary public and tw ucation setting, whether public or private, including both in- o witnesses, neither of whom may be a spouse nor presently state and out-of-state locations. If the experience is not docu named beneficiary. The renunciation is effective and irrevoc mented in the member's file, the member will be responsible able when received by TRSL and may not be retroactive. for providing documentation from his/her previous employer in a timely manner. Teaching experience will not include unu 9. A person revoking, or participating in revocation of sed leave, furlough, strike time, or unpurchased leave withou a benefit, must hold TRSL harmless from such action. t pay.

Louisiana Administrative Code August 2013 30 10. A revocation may not be used to terminate active pa HISTORICAL NOTE: Promulgated by the Department of the T rticipation in TRSL. reasury, Board of Trustees of the Teachers' Retirement System of L ouisiana, LR 22:1243 (December 1996), repromulgated LR 24:503 11. Amounts credited to a DROP account cannot be ren (March 1998). ounced. §1103. Application Process 12. TRSL makes no representation with respect to the e A. Application for participation in the program must be ffect of a revocation on a person's eligibility for receipt of an made by the insurance carrier, bank, or credit union which is y state or federal benefits or for participation in any private, l the provider of the coverage, product, service, or depositor o ocal, state, or federal program. Eligibility for or participation f monies and shall be signed by two officers of the company, in such programs or eligibility for or receipt of such benefits bank, or credit union. The completed application must be su is an issue for which the person making the revocation is sol bmitted to TRSL for approval prior to any deductions being ely responsible. Ineligibility for or termination of participati withheld from the retiree's monthly benefit. on in such programs or benefits shall not affect the irrevocab le character of the renunciation. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 821. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 HISTORICAL NOTE: Promulgated by the Department of the T 826. reasury, Board of Trustees of the Teachers' Retirement System of L HISTORICAL NOTE: Promulgated by the Department of the T ouisiana, LR 22:1243 (December 1996), repromulgated LR 24:503 reasury, Board of Trustees of the Teachers' Retirement System of L (March 1998). ouisiana, LR 19:1602 (December 1993), repromulgated LR 24:503 (March 1998). §1105. Requirements Chapter 9. Computation of Final Ave A. Domestic companies shall: rage Compensation 1. have been licensed to do business in the state of Lo uisiana for not less than five years; §901. Time Frames for Computation 2. have a current rating in A.M. Best of "B" or better; A. Members of the Teachers' Retirement System of Loui siana (TRSL) retiring on or after July 1, 1995 will have their 3. have been doing business under the same name for average compensation (highest 36 consecutive or joined mon not less than three years; ths of earnable salary) computed as follows. 4. provide a like product, service, or coverage to citize 1. Full 12-month periods beginning before July 1, 199 ns of Louisiana; 5 will be calculated using the law in effect on the day the 12- 5. be in compliance with all procedural, accounting, a month period begins. nd reporting requirements governing employee deductions. 2. Full 12-month periods beginning on or after July 1, B. Foreign companies shall: 1995 will be calculated using the law in effect on July 1, 199 5. 1. have been licensed to do business in the state of Lo uisiana for not less than five years; B. A full 12-month period of the highest 36 consecutive or joined months of earnable salary is defined to be months 2. have a current rating in A.M. Best of "B+" or better; 1 through 12, or months 13 through 24, or months 25 throug 3. have been doing business under the same name for h 36. not less than three years; AUTHORITY NOTE: Promulgated in accordance with R.S. 11 4. offer a like product, service, or coverage to citizens 701(5). of Louisiana; HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers' Retirement System of L 5. be in compliance with all procedural, accounting, a ouisiana, LR 21:1266 (November 1995), repromulgated LR 24:503 nd reporting requirements governing employee deductions. (March 1998). C. Companies/credit unions must be regulated by the De Chapter 11. Voluntary Deductions fro partment of Insurance or the Office of Financial Institutions. m Retiree Benefits Payroll D. Companies/credit unions are responsible for submittin §1101. General g a computer diskette of monthly deductions to TRSL by the twelfth day of the month preceding the month for which the A. Any TRSL retiree, beneficiary, or survivor is eligible t deduction will be made, using the format and specifications o participate in a program established for the voluntary dedu established by TRSL. Diskettes received after the twelfth da ction from his/her retirement benefit for life, health, supplem y will not be processed. Magnetic tapes will be accepted onl ental, dental, cancer, or other insurance premiums and for de y under certain conditions. All deductions for a single vendo ductions for savings, loans, or other payments to be sent to b r shall be submitted on one monthly diskette, and the retiree anks and credit unions. will be allowed only one monthly deduction per vendor. This AUTHORITY NOTE: Promulgated in accordance with R.S. 11 deduction may cover more than one product for a single ven 821.

31 Louisiana Administrative Code October 2017 dor. Only deductions received on computer tape/diskette will e the date of transmittal. In the event of computer/technical p be processed. roduction problems beyond the control of TRSL, it is possibl e that transmittal of funds would not be made on the tenth da E. Companies/credit unions shall be responsible for obtai y of the month. ning and maintaining appropriate deduction authorization fro m individual retirees. Copies shall be made available to TRS B. TRSL will provide the company/credit union a compu L upon request. ter printout of the names of individuals, Social Security num bers, and the amounts withheld. F. Companies/credit unions are responsible for contract/l oan terms between companies/credit unions and retirees. TR C. TRSL may adjust printout totals by amounts owed TR SL assumes no responsibility for the contract or terms of agr SL due to death of an individual. These individuals will be id eement. entified by name and Social Security number. G. Retirees may discontinue any voluntary payroll deduc AUTHORITY NOTE: Promulgated in accordance with R.S. 11 tion from their monthly benefit check by providing written n 821. otification to the vendor. HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers' Retirement System of L H. A retiree cannot authorize total deductions which wou ouisiana, LR 22:1243 (December 1996), repromulgated LR 24:504 ld cause the net amount of the benefit to fall below $5. (March 1998). I. Companies/credit unions must have a minimum of §1111. Termination of Payroll Deduction 50 TRSL retirees to participate in the program; however, co A. The board of trustees may terminate the voluntary pay mpanies will be allowed six months after initial approval to roll deduction program by providing the company/credit uni meet the minimum participation requirements. on with at least 30 days written notice. J. TRSL will not deduct monthly premium amounts for B. Immediately upon notice from TRSL individual comp any retiree who owes monies to TRSL or has his/her benefit any/credit unions may be terminated for unethical conduct or suspended. practices. K. Companies/credit unions shall notify TRSL immediat AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ely upon learning of the death of a retiree. In the event that T 821. RSL has remitted funds to the company/credit union after th HISTORICAL NOTE: Promulgated by the Department of the T e death of a retiree and these funds were not due the retiree, reasury, Board of Trustees of the Teachers' Retirement System of L company/credit union shall refund said monies to TRSL afte ouisiana, LR 22:1243 (December 1996), repromulgated LR 24:504 r notification. (March 1998). L. Upon learning of the death of a retiree, even if not not Chapter 13. Cost-of-Living ified by the company/credit union, TRSL shall be refunded a §1301. Cost-of-Living Adjustment―July 2, 1995 ny monies transmitted, but not due, after notification. The co mpany/credit union will accept the certification of TRSL as t A. Effective July 2, 1995, the Board of Trustees of the Te o date of death of retiree as sufficient evidence of date of dea achers' Retirement System of Louisiana shall increase the ret th in regard to any funds owed to TRSL. irement benefit or other benefit of each retiree, or the benefic iary or survivor of any member eligible to receive benefits o AUTHORITY NOTE: Promulgated in accordance with R.S. 11 n account of the death of the member or retiree. This increas 821. e in benefit shall be provided from the Employee Experience HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers' Retirement System of L Account held at the Teachers' Retirement System of Louisian ouisiana, LR 22:1243 (December 1996), repromulgated LR 24:503 a. (March 1998). B. The increase in benefit granted from the Employee Ex §1107. Disclaimer perience Account shall be a monthly increase in the benefit o f each eligible recipient, as determined in accordance with th A. The company/credit union is prohibited from stating t e formula, X (A + B + C), where: hat any product offered has been endorsed or approved by T RSL. 1. A = the number of years of credited service accrued at the time of retirement or death of the member or retiree; AUTHORITY NOTE: Promulgated in accordance with R.S. 11 821. 2. B = the number of years since retirement or since d HISTORICAL NOTE: Promulgated by the Department of the T eath of the member or retiree to July 1, 1994; reasury, Board of Trustees of the Teachers' Retirement System of L 3. C = the number of years of service credit greater th ouisiana, LR 22:1243 (December 1996), repromulgated LR 24:504 (March 1998). an 30 years; and §1109. Transmittal of Withheld Amounts 4. X = $1. A. Amounts will normally be transmitted to company/cre C. No increase in benefit shall be paid to any retiree, ben dit union by wire transfer by the tenth of each month. If the t eficiary, or survivor unless such person was receiving benefit enth is a weekend, the first working day after the tenth will b s on, or prior to, July 1, 1994. In addition, no increase in ben efits shall be paid to any former participant of the Deferred

Louisiana Administrative Code August 2013 32 Retirement Option Plan unless both plan participation and e lan. The following sub-accounts shall be maintained by the mployment were terminated by the plan participant on, or pri ORP providers: an employer account to which employer con or to, July 1, 1994. tributions shall be credited; and an employee account to whi AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ch employee contributions shall be credited. The ORP provid 787.D and 11:883. er shall maintain such other accounts as determined by the O HISTORICAL NOTE: Promulgated by the Department of the T RP provider and the plan administrator. reasury, Board of Trustees of the Teachers' Retirement System of L ouisiana, LR 21:473 (May 1995), repromulgated LR 24:504 (Marc Alternate Payee—a person who is an alternate payee un h 1998). der an order directed to the plan that the plan administrator o r ORP provider has determined to be a domestic relations or §1303. Cost-of-Living Adjustment―July 1, 1998 der. A. Effective July 1, 1998, the Board of Trustees of the Te Applicable Form—a form prescribed by the plan admini achers' Retirement System of Louisiana shall increase the ret strator or an ORP provider. irement benefit or other benefit of each retiree, or the benefic iary or survivor of any member eligible to receive benefits, o Applicable Law—the law of the state of Louisiana or, w n account of the death of the member or retiree. This increas here required, federal law, including the Internal Revenue C e in benefit shall be provided from the Employee Experience ode. Account held at the Teachers' Retirement System of Louisian Beneficiary—the eligible recipient of an annuity or othe a. r benefit provided by the plan. A beneficiary shall be a natur B. The increase in benefit granted from the Employee Ex al person or the succession of a natural person. perience Account shall be a monthly increase in the benefit o Board of Trustees—the board provided for by retirement f each eligible recipient as determined in accordance with th system law to administer the plan. e formula: $10 + W + 2X + Y + 2Z, where: Contributions—contributions under the provisions of th 1. W = $1 per year since retirement or death of the me is plan, including employee contributions and employer cont mber or retiree to June 30, 1997; ributions. 2. X = $1 per year since retirement or death of the me Distributee—any participant or beneficiary who receive mber or retiree in excess of 10 years as of June 30, 1997; s, or but for his/her instruction to the plan administrator or O 3. Y = $1 per year of credited service at the time of ret RP provider is entitled to receive, a distribution. A distribute irement or death of the member or retiree; e includes an alternate payee to whom the plan administrator or ORP provider is directed to make a payment under a dom 4. Z = $1 per year of credited service greater than 25.0 estic relations order. years at the time of retirement or death of the member or reti ree. Distribution—as appropriate in the context, any kind of distribution or the particular kind of distribution provided by C. No increase in benefit shall be paid to any retiree, ben the plan. eficiary or survivor unless such person was receiving benefit s on or prior to June 30, 1997. In addition, no increase in ben Distribution Commencement Date—the first date on wh efits shall be paid to any former participant of the Deferred ich a distribution (or any payment under a distribution) is pai Retirement Option Plan unless both plan participation and e d or becomes payable. mployment were terminated by the plan participant on or pri Domestic Relations Order or DRO—a domestic relation or to June 30, 1997. s order directed to the plan that creates or recognizes the exi AUTHORITY NOTE: Promulgated in accordance with R.S. 11 stence of the right of an alternate payee to receive all or a po 787.D and 11:883.1. rtion of any benefit payable to a participant under the plan an HISTORICAL NOTE: Promulgated by the Department of the T d that further meets all requirements for a domestic relations reasury, Board of Trustees of the Teachers' Retirement System of L order as applied to a governmental plan. ouisiana, LR 24:1138 (June 1998). DRO Distribution—a distribution to an alternate payee r Chapter 15. Optional Retirement Plan equired or permitted following a DRO. (ORP) Earnable Compensation—the compensation earned by a §1501. Definitions n employee during the full normal working time as a teacher as defined in R.S. 11:701. Earnable compensation shall incl A. Terms not otherwise defined in this Chapter shall hav ude any differential wage payment as defined by 26 U.S.C. § e the meaning given by the Internal Revenue Code. 3401(h)(2) that is made by an employer to any individual per B. Whenever used in the plan, each of the following term forming qualified military service. Earnable compensation s s has the meaning stated below. hall not include per diem, post allowances, payment in kind, hazardous duty pay, or any other allowance for expense auth Account—the total of the individual sub-account(s) mai orized and incurred as an incident to employment, nor paym ntained on behalf of each participant, beneficiary, or alternat ents in lieu of unused sick or annual leave, nor retroactive sa e payee under the investment option(s) held pursuant to the p

33 Louisiana Administrative Code October 2017 lary increases unless such an increase was granted by legislat the participant that grants the person the authority to receive ive act or by a city or parish system wide salary increase, nor the property of the deceased participant and to act as the per payment for discontinuation of contractual services, unless t sonal representative of the participant’s probate estate. he payment is made on a monthly basis. If an employee is gr Plan or ORP—the Louisiana optional retirement plan pr anted an official leave and he or she makes contributions for ovided by R.S. 11:921 et seq., and applicable regulations. the period of leave, earnable compensation shall not include compensation paid for other employment which would not h Plan Administrator—consistent with R.S. 11:923 and R. ave been possible without the leave. The board of trustees sh S. 11:924, the Teachers' Retirement System of Louisiana Bo all determine whether or not any other payments are to be cl ard of Trustees or any successor. assified as earnable compensation. Plan Sponsor—the state of Louisiana. Effective Date—July 1, 1990, which is the effective date Regular Retirement Plan—the defined benefit pension p of the plan. The implementation of the plan for academic an lan administered by the Teachers’ Retirement System of Lou d administrative employees of public institutions of higher e isiana. ducation occurred on July 1, 1990. The implementation of th e plan for employees of constitutionally established higher e Retirement System Law—those provisions of title 11 of t ducation boards occurred on July 1, 1998. he Revised Statutes of Louisiana that apply generally to the management or administration of this plan or the regular reti Eligible Employee—has the meaning provided in R.S. 1 rement plan of the Teachers' Retirement System of Louisiana. 1:921 and 11:928. Rollover Distribution—any eligible rollover distributio Employee Contribution—contributions required from th n that is to be paid directly into an eligible retirement plan as e participant under R.S. 11:927. a rollover under IRC §§401(a)(31) and 402. Employer—any employer of an employee who makes ir R.S.—Louisiana Revised Statutes. revocable election to be in the plan which includes employee s of the Board of Regents, Board of Supervisors of the Unive SEC—the Securities and Exchange Commission, an age rsity of Louisiana System, Board of Supervisors of Louisian ncy of the government of the United States of America, estab a State University and Agricultural and Mechanical College, lished by §4(a) of the federal Securities Exchange Act of 193 and Board of Supervisors of Southern University and Agricu 4. ltural and Mechanical College, or their successors, any other constitutionally established board which manages institution Severance from Employment—the date the participant te s of higher education, public institutions of higher education, rminates employment with an employer with no obligation f or any other TRSL-covered employer with an employee requ or future services to be performed for an employer in the pla ired to continue participation in the ORP as provided in R.S. n by the participant. 11:928. Spouse—except for the purposes of IRC §§401(a)(9) an Employer Contributions—contributions made by the em d 401(a)(31), the individual that is the participant's spouse u ployer under R.S. 11:927. nder applicable law. Enabling Statute—R.S. 11:921 et seq. State—the state of Louisiana unless the context clearly i ndicates otherwise. Internal Revenue Code or IRC—the Internal Revenue C ode of 1986, as amended, and including any regulations and TRSL—Teachers’ Retirement System of Louisiana. rulings (or other guidance of general applicability) under the Trust—the legal entity and the legal relationship created IRC, as applicable to a governmental plan as defined by IRC by state law. Consistent with IRC §401(a)(2), the trust must §414(d). be solely for the purposes of the plan. Investment Option—any investment option offered by th AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e ORP provider. 921-929. HISTORICAL NOTE: Promulgated by the Department of the T ORP Provider—a company designated by the Board of reasury, Board of Trustees of the Teachers’ Retirement System of L Trustees of the Teachers' Retirement System of Louisiana un ouisiana, LR 40:2272 (November 2014). der R.S. 11:924. §1503. Plan Year Participant—the eligible employee who has irrevocably A. The plan year for the plan shall be the fiscal year com elected to participate in the plan. mencing July 1 through June 30. The limitation year is the ca Payout Option—any of the annuity options or other opti lendar year. ons for payment that is provided in R.S. 11:929. A payout op B. The plan administrator and ORP provider shall be enti tion must satisfy all applicable provisions of the plan. tled to rely on the assumption that a participant's taxable yea Personal Representative—the person duly appointed by r is the calendar year. an order of the court (or of a registrar or administrator under AUTHORITY NOTE: Promulgated in accordance with R.S. 11 the court’s supervision) having jurisdiction over the estate of 921-929.

Louisiana Administrative Code August 2013 34 HISTORICAL NOTE: Promulgated by the Department of the T r, ORP provider, or any employer, or to be used for any purp reasury, Board of Trustees of the Teachers’ Retirement System of L ose other than providing benefits to participants and benefici ouisiana, LR 40:2273 (November 2014). aries and defraying reasonable expenses of administering the §1505. Establishment of Plan plan and trust. A. The plan sponsor and plan administrator intend that th F. The plan is established for the exclusive benefit of par e plan conform to the Internal Revenue Code of 1986 require ticipants and their beneficiaries. Consistent with IRC §401 ments for favorable federal tax treatment under IRC §401(a) (a)(2), no amount held under the plan will ever inure to the b and is a governmental plan within the meaning of IRC §414 enefit of the plan sponsor, any employer, the plan administra (d), with employee contributions picked up under an arrange tor, the ORP provider or any successor of any of them, and al ment consistent with IRC §414(h)(2). Therefore, the plan ad l plan investments and amounts will be held for the exclusiv ministrator will construe and interpret the plan to state provis e purpose of providing benefits to the plan's participants and ions that conform to the requirements of IRC §401, as applic their beneficiaries. Notwithstanding anything in the plan to t able to a governmental plan under IRC §414(d). When the I he contrary, plan assets shall not be used for or diverted to p nternal Revenue Code is amended through subsequent legisl urposes other than for the exclusive benefit of participants, b ation, or interpreted through revenue rulings, the plan admini eneficiaries, and alternate payees before the satisfaction of al strator will construe and interpret the plan as stating provisio l liabilities to participants, beneficiaries, and alternate payees, ns consistent with such amendment of relevant law. except that payment of taxes and administration expenses m ay be made from the plan assets as provided by the plan or p B. To the extent required for this plan to qualify under IR ermitted by applicable law. C §401(a), the provisions of this plan shall be construed, con sistent with treasury reg. §1.401-1(b)(1)(i), to provide: G. Plan contributions are invested, at the direction of eac h participant, in one or more funding vehicles provided by O 1. a definite pre-determined formula for allocating con RP providers to participants under the plan. Required partici tributions and a definite pre-determined formula for allocatin pant plan contributions are designated picked up so as not to g investment earnings (and losses) among accounts; be included in participants' gross income for federal income t 2. periodic valuation of plan assets (including investm ax purposes as provided by IRC §414(h)(2). ent options) and trust assets at least once each year; H. At no time shall the plan assets be used for, or diverte 3. periodic valuation of accounts at least once each ye d to, any person other than for the exclusive benefit of the e ar; and mployees and their beneficiaries and defraying reasonable ex penses of administering the plan, except that contributions m 4. distribution of plan accounts after severance from e ade by the employer may be returned to the employer if the c mployment or the occurrence of some event. ontribution was made due to a mistake of fact. C. This Chapter states the provisions of an optional retire I. The plan, and all acts and decisions taken under it, is ment plan for the classes of employees covered by R.S. 11:9 binding and conclusive, for all purposes, upon every particip 21 et seq. The purpose of the optional retirement plan is set o ant, beneficiary, alternate payee, any person claiming throug ut by R.S. 11:922. The provisions of R.S. 11:921 et seq., are h a participant or beneficiary or alternate payee, all other inte incorporated as if fully set out in this Louisiana Administrati rested persons, and upon the personal representatives, execut ve Code. ors, administrators, heirs, successors and assigns of any and D. The plan is established and maintained with the intent all such persons. The plan shall not affect contracts or other that the plan conforms to the applicable requirements of the r dealings with a person who is not an interested person, unles etirement system law. The provisions of the plan shall be int s a written agreement executed by that person expressly so p erpreted whenever possible to state provisions that conform t rovides. o the applicable requirements of the enabling statute. When t J. For purposes of the IRC, the plan is a defined contrib he enabling statute is amended or interpreted through subseq ution money purchase retirement plan under IRC §401(a). uent legislation or regulations or an attorney general opinion, the plan should be construed as stating provisions consistent K. The plan is an individual account plan which provides with such amendment or interpretation of the applicable law. for an individual account for each participant and for benefit In the event of a conflict between the Louisiana Administrati s based solely upon the amount of contributions, investment ve Code and the enabling statute, the enabling statute will su gains and losses, fees, and expenses allocated to the participa persede. nt's account. E. Subject only to the Constitution of Louisiana, the Lou L. The United States Code provisions created by title I o isiana legislature has the right to amend the plan at any time. f the Employee Retirement Income Security Act of 1974 ("E To the extent consistent with the retirement system law, the p RISA") do not apply to this plan. lan administrator has the right to amend the plan to impleme M. The plan is a governmental plan within the meaning o nt applicable federal and state law at any time. Any amendm f 29 USC 1002(32) and IRC §414(d). ent of the plan and trust shall not be effective to the extent th at the amendment has the effect of causing any plan assets to N. The Teachers' Retirement System of Louisiana as the be diverted to or inure to the benefit of the plan administrato plan administrator provides for the administration and maint

35 Louisiana Administrative Code October 2017 enance of the ORP pursuant to R.S. 11:921 et seq. The plan a ke an irrevocable election to participate in the ORP and trans dministrator may delegate duties to ORP providers to the ext fer his accumulated employee contributions to the ORP unde ent permitted by applicable law. r the provisions of R.S. 11:926(A). This election can only be made by a member prior to attainment of five years of credit AUTHORITY NOTE: Promulgated in accordance with R.S. 11 921-929. able service in the TRSL. HISTORICAL NOTE: Promulgated by the Department of the T E. Elections must be made in writing and filed with the a reasury, Board of Trustees of the Teachers’ Retirement System of L ppropriate officer of the employer institution or board, who s ouisiana, LR 40:2273 (November 2014). hall forward a copy of the completed election to the TRSL. §1507. Eligibility and Election to Participate F. The election of employees making an election to parti A. Academic and administrative employees of public inst cipate in ORP as provided in Subsection A of this Section wi itutions of higher education and employees of the Board of ll be effective as of the date they are filed. Elections of eligib Regents, Board of Supervisors for the University of Louisian le employees hired on or after the implementation date of the a System, Board of Supervisors of Louisiana State Universit optional retirement plan at their institution or board as provi y and Agricultural and Mechanical College, and Board of Su ded in Subsection B of this Section will be effective as of the pervisors of Southern University and Agricultural and Mech date of their employment. If an eligible employee fails to ma anical College, or their successors, and any other constitutio ke the election provided for in this Section, he shall become nally established board which manages institutions of higher a member of the regular retirement plan of the TRSL in acco education who are current employees in the regular retireme rdance with R.S. 11:721. nt plan of the TRSL may make an irrevocable election to par ticipate in the ORP within 180 days after the implementation G. Any person electing to participate in the ORP shall al date of the ORP at their employer institution or board. ways be ineligible for membership in the regular retirement plan of the TRSL even if he is employed in a position covere B. Academic and administrative employees of public inst d by the TRSL, as prescribed by R.S. 11:928. itutions of higher education and employees of the Board of Regents, Board of Supervisors for the University of Louisian AUTHORITY NOTE: Promulgated in accordance with R.S. 11 a System, Board of Supervisors of Louisiana State Universit 921-929. HISTORICAL NOTE: Promulgated by the Department of the T y and Agricultural and Mechanical College, and Board of Su reasury, Board of Trustees of the Teachers’ Retirement System of L pervisors of Southern University and Agricultural and Mech ouisiana, LR 40:2274 (November 2014). anical College, or their successors, and any other constitutio §1509. Employee Contributions nally established board which manages institutions of higher education who are initially employed on or after the implem A. Each participant shall contribute a mandatory monthly entation date at their employer institution or board may mak employee contribution percentage into the plan, as provided e an irrevocable election to participate in the ORP within 60 by law. Each employer shall pick-up employee contributions days after their employment date. for all earnable compensation paid after the effective date. T he employee contributions so picked up shall be treated as e C. Any academic or administrative employee of a public mployer contributions pursuant to IRC §414(h)(2). The empl institution of higher education or employee of the Board of oyer shall remit the picked up contributions to the TRSL for Regents, Board of Supervisors for the University of Louisian direct transfer to the ORP provider, instead of paying such a a System, Board of Supervisors of Louisiana State Universit mounts to the participants, and such contributions shall be pa y and Agricultural and Mechanical College, or Board of Sup id from the same funds that are used in paying salaries to par ervisors of Southern University and Agricultural and Mecha ticipants. Such contributions, although designated as employ nical College, or their successors, and any other constitution ee contributions, shall be paid by the employer in lieu of con ally established board which manages institutions of higher e tributions by participants. Participants may not elect to recei ducation who is a part-time, seasonal, or temporary employe ve such contributions directly instead of having them paid by e as defined in 26 CFR 31:3121(b)(7)-2, or in any successor the employer to the plan. Employer contributions so picked regulation shall be eligible to participate in the ORP upon ele up shall be treated for all purposes of the plan and state law, ction by such employee. other than federal tax law, in the same manner as employee c D. Notwithstanding the provisions of Subsections A and ontributions made without a pick-up. See PLR 8633052. B of this Section, any academic or administrative employee B. The entirety of each participant's contribution, less an of a public institution of higher education and any employee y monthly fee established by the board of trustees to cover th of the Board of Regents, Board of Supervisors for the Univer e cost of administration and maintenance of the plan, will be sity of Louisiana System, Board of Supervisors of Louisiana remitted to the ORP provider for application to the participa State University and Agricultural and Mechanical College, a nt's account. nd Board of Supervisors of Southern University and Agricult ural and Mechanical College, or their successors, and any ot C. If a participant first became eligible for membership i her constitutionally established board which manages institut n the TRSL, or the plan, on or after July 1, 1996, the employ ions of higher education who is an active contributing memb ee contributions remitted by the TRSL to any ORP provider er in the regular retirement plan of the TRSL and who has le shall not be based on compensation in excess of the annual li ss than five years of creditable service in the TRSL, may ma

Louisiana Administrative Code August 2013 36 mit of IRC §401(a)(17) as amended and revised pursuant to I 1. direct transfers by and between OPR providers; RC §401(a)(17)(B). 2. death benefits. D. A participant who attains his or her eligibility for a dis 3. an initial benefit payable upon retirement, provided tribution and continues to be an employee will continue to m such benefit is approved by the ORP provider. The initial be ake employee contributions, and will continue to participate nefit shall not exceed an amount equal to the participant's m under the plan until his or her severance from employment o onthly benefit, payable as a single-life annuity with no guara r the occurrence of some other event. Further, a participant's ntees, times 36. and spouse's right to his/her account is non-forfeitable as of his/her eligibility for a distribution. C. Minimum Distribution AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1. For purposes of this Section, the following definitio 921-929. ns shall apply. HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers’ Retirement System of L Designated Beneficiary—the individual who is design ouisiana, LR 40:2275 (November 2014). ated as the beneficiary under the plan and is thedesignated b §1511. Employer Contributions eneficiary under IRC §401(a)(9) and treasury regulations sec tion 1.401(a)(9)-1, Q&A-4. A. Each employer shall contribute a mandatory monthly employer contribution percentage into the plan, as provided Required Beginning Date—the April 1 of the calendar by law. Upon receipt of the employer contribution, the TRSL year following the later of: will promptly forward the amount established in compliance i. the calendar year in which the participant attain with law to the ORP provider. Such amount paid over to the s age 70 1/2 ; or ORP provider shall be credited to the participant’s account. The TRSL shall retain the balance of the employer contributi ii. the calendar year in which the participant retire on for application to the unfunded accrued liability of the TR s. SL. (a). The participant, alternate payee, or beneficia B. If a participant first became eligible for membership i ry may elect on the applicable form whether to recalculate lif n the Teachers' Retirement System of Louisiana, or the ORP, e expectancy (or any element of it) to the fullest extent permi on or after July 1, 1996, the employer contributions remitted tted by IRC §401(a)(9)(D). If the participant, alternate payee, by the Teachers' Retirement System of Louisiana to any ORP or beneficiary does not timely make this election, the partici provider shall not be based on compensation in excess of the pant, alternate payee, or beneficiary is deemed to have electe annual limit of IRC §401(a)(17) as amended and revised pur d the "default" method specified by the applicable investmen suant to IRC §401(a)(17)(B). t option(s), or to the extent that no method is so specified, th at no recalculation shall apply with respect to any individua C. A participant who attains his eligibility for a distributi l's life expectancy. on and continues to be an employee will continue to receive employer contributions, and will continue to participate unde 2. The requirements of this Section will take preceden r the plan until his or her severance from employment or the ce over any inconsistent provisions of the plan. All distributi occurrence of some other event. Further, a participant's and s ons required under this Section will be determined and made pouse's right to his/her account is non-forfeitable as of his/he in accordance with IRC §401(a)(9) and the treasury regulatio r eligibility for a distribution. ns under IRC §401(a)(9). Distributions to a participant and h is/her beneficiaries shall only be made in accordance with th AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e incidental death benefit requirements of IRC §401(a)(9)(G) 921-929. and the treasury regulations thereunder. HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers’ Retirement System of L 3. The participant's entire interest will be distributed, ouisiana, LR 40:2275 (November 2014). or begin to be distributed, to the participant no later than the §1513. Distributions participant's required beginning date. If the participant dies b efore distributions begin, the participant's entire interest will A. Retirement benefits shall be payable to plan participa be distributed, or begin to be distributed, no later than as foll nts or their beneficiaries by the ORP providers. Subject to th ows. e provisions of the contract, retirement benefits shall be paid in the form of a lifetime income, unless the participant or be a. If the participant's surviving spouse is the particip neficiary requests a trustee-to-trustee single-sum cash rollov ant's sole designated beneficiary, then distributions to the sur er payment between qualified plans, or payment made directl viving spouse will begin by December 31 of the calendar ye y to an individual retirement account, but death benefits may ar immediately following the calendar year in which the part be paid in the form of a single-sum cash payment paid direct icipant died, or by December 31 of the calendar year in whic ly to the beneficiary or estate, whichever is applicable. h the participant would have attained age 70 1/2, if later. B. The ORP provider shall offer ORP participants the fol b. If the participant's surviving spouse is not the par lowing singe-sum cash payments: ticipant's sole designated beneficiary, then distributions to th e designated beneficiary will begin by December 31 of the c

37 Louisiana Administrative Code October 2017 alendar year immediately following the calendar year in whi d 2009 RMDs"), will not receive those 2009 distributions un ch the participant died. less the participant or beneficiary elects to receive such distri bution. Participants and beneficiaries described in the preced c. If there is no designated beneficiary as of Septem ing sentence will be given the opportunity to elect to receive ber 30 of the year following the year of the participant's deat the distributions described in the preceding sentence. Howev h, the participant's entire interest will be distributed by Dece er, those participants and beneficiaries who receive required mber 31 of the calendar year containing the fifth anniversary minimum distributions though the automatic payment syste of the participant's death. m will continue to receive 2009 RMDs unless he or she elect d. If the participant's surviving spouse is the particip s not to receive the 2009 RMDs. ant's sole designated beneficiary and the surviving spouse di 2. Notwithstanding any other provisions of the plan, a es after the participant but before distributions to the survivi nd solely for purposes of applying the rollover provisions of ng spouse begin, this Subparagraph, rather than Subparagrap the plan, 2009 RMDs [amounts that would have been require h 3.a, will apply as if the surviving spouse were the participa d minimum distributions for 2009 but for the enactment of I nt. RC §401(a)(9)(H)] and extended 2009 RMDs (one or more p 4. For purposes of this Section, unless Subparagraph 3. ayments in a series of substantially equal distributions (that i a applies, distributions are considered to begin on the partici nclude the 2009 RMDs) made at least annually and expected pant's required beginning date. If Subparagraph 3.a applies, to last for the life (or life expectancy) of the participant’s des distributions are considered to begin on the date distributions ignated beneficiary, or for a period of at least 10 years), will are required to begin to the surviving spouse under Subparag be treated as eligible rollover distributions. raph 3.a. If distributions under an annuity purchased from an E. Claim for Distribution insurance company irrevocably commence to the participant before the participant's required beginning date (or to the par 1. Any distribution shall be paid only upon a claim ma ticipant's surviving spouse) before the date distributions are r de on the applicable form, and submission of additional infor equired to begin to the surviving spouse under Subparagraph mation requested by the ORP provider, including but not lim 3.a, the date distributions are considered to begin is the date ited to: distributions actually commence. a. if the distribution is made, appropriate evidence t 5. If the participant's interest is distributed in the form hat the participant has a severance from employment; of an annuity purchased from an insurance company, distribu b. if the distribution is an eligible rollover distributi tions thereunder will be made in accordance with the require on, the distributee's instruction as to whether the distribution ments of IRC §401(a)(9) and the treasury regulations thereu (or a portion of the distribution) is to be paid directly to an el nder. igible retirement plan, and if any amount is to be paid directl 6. If a distribution is required to begin to a beneficiary y to an eligible retirement plan, the name and address of the t and the beneficiary has not filed a claim by the date that is 9 rustee or administrator of that eligible retirement plan togeth 0 days before the date required by IRC §401(a)(9) (or if the er with any other information that the plan administrator, OR ORP provider has denied a claim and an acceptable claim ha P provider, or the eligible retirement plan administrator reaso s not been filed before the applicable date), the ORP provide nably requests pursuant to treas. reg. §1.401(a)(31)-1; r shall direct payment (or, if provided by the investment opti c. if the distribution is made on account of the parti on, the ORP provider may without instruction make paymen cipant's death, appropriate evidence of the participant's death; t) according to the automatic payout option provided by the applicable investment option(s), or, to the extent not so provi d. whenever required by the ORP provider, the date- ded, as a lump sum distribution. of-birth of any distributee as relevant to the distribution; 7. If a participant has not furnished evidence of his or e. if the account consists of more than one investme her spouse's date of birth, the ORP provider will use the emp nt option, the order in which any investment options are to b loyee's age in determining the minimum distribution period a e charged or redeemed to pay the distribution; and ccording to treasury reg. §1.401(a)(9)-5/Q&A-4(a) without r f. any other evidence or information that the ORP p egard to treasury reg. §1.401(a)(9)-5/Q&A-4(b). rovider finds is relevant to administer a provision of the plan D. Required Minimum Distribution Waiver of 2009 in the participant's or beneficiary's and the distributee's circu mstances. 1. Notwithstanding any other provisions of this Sectio n, a participant or beneficiary who would have been required AUTHORITY NOTE: Promulgated in accordance with R.S. 11 to receive required minimum distributions for 2009 but for t 921-929. he enactment of IRC §401(a)(9)(H) ("2009 RMDs"), and wh HISTORICAL NOTE: Promulgated by the Department of the T o would have satisfied that requirement by receiving distribu reasury, Board of Trustees of the Teachers’ Retirement System of L ouisiana, LR 40:2275 (November 2014). tions that are: equal to the 2009 RMDs; or one or more paym ents in a series of substantially equal distributions (that inclu §1515. Rollover Distribution de the 2009 RMDs) made at least annually and expected to l A. For purposes of this Section, the following definitions ast for the life (or life expectancy) of the participant’s design shall apply. ated beneficiary, or for a period of at least 10 years ("extende

Louisiana Administrative Code August 2013 38 Direct Rollovera payment by the plan to the eligible r ually) made for the life (or life expectancy) of the distributee etirement plan specified by the distributee. or the joint lives (or joint life expectancies) of the participant and the participant's designated beneficiary, or for a specifie Distributeeincludes a participant or former participant d period of 10 years or more; It also includes the participant's or former participant's survi ving spouse and the employee's or former employee's spouse ii. any distribution to the extent such distribution i or former spouse who is the alternate payee under a domesti s required under IRC §401(a)(9); or c relations order. It also includes the participant's or former p iii. the portion of any distribution that is not includ articipant's nonspouse beneficiary who is a designated benefi ible in gross income, provided that any portion of any distrib ciary as defined by IRC §401(a)(9)(E). Effective January 1, ution that is not includible in gross income may be an eligibl 2007, and notwithstanding anything in the plan to the contrar e rollover distribution for purposes of a rollover to either: y that otherwise would limit a distributee's election under thi s Section, and to the extent allowed under the applicable pro (a). a traditional individual retirement account or visions of the IRC and the treasury regulations, a distributee individual retirement annuity under IRC §§408(a) or 408(b); who is a designated beneficiary, but not a surviving spouse, s or pouse or former spouse alternate payee may elect, at the time (b). a qualified trust which is part of a plan which and in the manner prescribed by the plan administrator, to ha is a defined contribution plan or a defined benefit under IRC ve all or any part of the account that qualifies as an eligible r §§401(a) or 403(a) or to an annuity contract described in IR ollover distribution paid in a direct trustee-to-trustee transfer C §403(b), and such trust or annuity contract separately acco to an eligible retirement plan that is an individual retirement unts for amounts so transferred, including separate accountin plan described in Clause (i) or (ii) of the IRC §402(c)(8)(B). g for the portion of such distribution that is includible in gros If such a transfer is made: s income and the portion of such distribution that is not inclu a. the transfer shall be treated as an eligible rollover dible. distribution; b. a qualified rollover contribution to a Roth IRA wi b. the individual retirement plan shall be treated as a thin the meaning of IRC §408A. n inherited individual retirement account or individual retire B. Consistent with IRC §401(a)(31), for any distribution ment annuity (within the meaning of IRC §408(d)(3)(C); and that is an eligible rollover distribution, the distributee may el c. IRC §401(a)(9)(B) (other than clause (iv) thereo ect, at the time and in the manner prescribed by the ORP pro f) shall apply to such individual retirement plans. vider, to instruct the ORP provider to have any portion of an eligible rollover distribution paid directly to an eligible retire Eligible Retirement Planany program defined in IRC ment plan specified by the distributee. The ORP provider sha §§401(a)(31) and 402(c)(8)(B), that accepts the distributee's ll provide written information to the distributee regarding eli eligible rollover distribution, and any of the following: gible rollover distributions no more than 180 days prior to pa a. an individual retirement account under IRC §408 yment of the eligible rollover distribution, to the extent requi (a); red by IRC §402(f). b. an individual retirement annuity under IRC §408 C. A current employee in the TRSL who elects participat (b); ion in the plan shall have the right to have his or her accumul ated employee contributions transferred to the plan to purcha c. a qualified trust as described in IRC §401(a), pro se benefits thereunder in accordance with R.S. 11:926. A cur vided that such trust accepts the employee's eligible rollover rent vested employee in the TRSL or an employee with suffi distribution; cient years of service credit but who is not old enough to rec d. an annuity plan as described in IRC §403(a); eive a benefit and who elects participation in the plan will ha ve the same rights and privileges accorded by R.S. 11:726. e. an eligible deferred compensation plan described in IRC §457(b) which is maintained by an eligible governme D. The ORP provider may (but is not required to) comme ntal employer under IRC §457(e)(1)(A) (provided the plan c nce the distribution less than 30 days after giving an eligible ontains provisions to account separately for amounts transfer rollover distribution notice only if the following requirement red into such plan); s are met. To the extent required by IRC §402(f) and treasury reg. §1.402(c)-2, the ORP provider must inform the distribut f. an annuity contract under IRC §403(b); or ee in an eligible rollover distribution notice or otherwise that g. a Roth IRA as described under IRC §408A. the distributee has a right to a period of at least 30 days after receiving the eligible rollover distribution notice to consider Eligible Rollover Distribution the decision of whether to elect a distribution and any availa a. the distribution of all or any portion of the balanc ble payout option, and the distributee after receiving the eligi e to the credit of an employee from a qualified plan, except t ble rollover distribution notice must affirmatively elect a dist hat an eligible rollover distribution does not include: ribution. i. any distribution that is one of a series of substa AUTHORITY NOTE: Promulgated in accordance with R.S. 11 921-929. ntially equal periodic payments (not less frequently than ann

39 Louisiana Administrative Code October 2017 HISTORICAL NOTE: Promulgated by the Department of the T ce from employment, even if they are paid within two and o reasury, Board of Trustees of the Teachers’ Retirement System of L ne-half months following severance from employment, exce ouisiana, LR 40:2277 (November 2014). pt for payments to the individual who does not currently perf §1517. Benefit Limitation orm services for the employer by reason of qualified military service [within the meaning of IRC §414(u)(1)] to the extent A. Annual additions with respect to a member shall not e these payments do not exceed the amounts the individual wo xceed the lesser of $40,000 (as adjusted pursuant to IRC §41 uld have received if the individual had continued to perform 5(d) or 100 percent of the member's compensation. services for the employer rather than entering qualified milit 1. For purposes of this Section, the following definitio ary service. n shall apply. D. An employee who is in qualified military service [wit Annual Additions—the sum (for any year) of employe hin the meaning of IRC §414(u)(1)] shall be treated as receiv r contributions to a defined contribution plan, member contri ing compensation from the employer during such period of q butions, and forfeitures credited to a member's individual acc ualified military service equal to: ount. Member contributions are determined without regard t 1. the compensation the employee would have receive o rollover contributions and to picked-up employee contribut d during such period if the employee were not in qualified m ions that are paid to a defined benefit plan. ilitary service, determined based on the rate of pay the emplo 2. For purposes of applying IRC §415(c) and for no ot yee would have received from the employer but for the abse her purpose, the definition of compensation where applicabl nce during the period of qualified military service; or e will be compensation actually paid or made available durin 2. if the compensation the employee would have recei g a limitation year, except as noted below and as permitted b ved during such period was not reasonably certain, the empl y treasury regulation §1.415(c)-2, or successor regulation; pr oyee's average compensation from the employer during the t ovided, however, that member contributions picked up under welve month period immediately preceding the qualified mil IRC §414(h) shall not be treated as compensation. itary service (or, if shorter, the period of employment immed 3. Compensation will be defined as wages within the iately preceding the qualified military service). meaning of IRC §3401(a) and all other payments of compen E. Back pay, within the meaning of treasury regulation § sation to an employee by an employer for which the employ 1.415(c)-2(g)(8), shall be treated as compensation for the lim er is required to furnish the employee a written statement un itation year to which the back pay relates to the extent the ba der IRC §§6041(d), 6051(a)(3) and 6052 and will be determi ck pay represents wages and compensation that would other ned without regard to any rules under IRC §3401(a) that limi wise be included under this definition. t the remuneration included in wages based on the nature or l ocation of the employment or the services performed [such a F. If the annual additions for any member for a plan year s the exception for agricultural labor in IRC §3401(a)(2)]. exceed the limitation under IRC §415(c), the excess annual a ddition will be corrected as permitted under the employee pl a. However, for limitation years beginning after De ans compliance resolution system (or similar IRS correction cember 31, 1997, compensation will also include amounts th program). at would otherwise be included in compensation but for an el ection under IRC §§125(a), 402(e)(3), 402(h)(1)(B), 402(k), G. For limitation years beginning on or after January 1, 2 or 457(b). 009, a member's compensation for purposes of this Paragrap h shall not exceed the annual limit under IRC §401(a)(17). b. For limitation years beginning after December 31 2000, compensation shall also include any elective amounts AUTHORITY NOTE: Promulgated in accordance with R.S. 11 that are not includible in the gross income of the member by 921-929. reason of IRC §132(f)(4). HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers’ Retirement System of L B. For limitation years beginning on and after January 1, ouisiana, LR 40:2278 (November 2014). 2009, compensation for the limitation year shall also include §1519. Annual Compensation Limitation compensation paid by the later of two and one-half months a fter a member's severance from employment or the end of th A. In addition to other applicable limits stated by the pla e limitation year that includes the date of the member's sever n and notwithstanding any other provision of the plan to the ance from employment if the payment is regular compensati contrary, the amount of earnable compensation determined f on for services during the member's regular working hours, o or the purposes of the contributions to the plan shall not exce r compensation for services outside the member's regular wo ed the limit prescribed by IRC §401(a)(17) as adjusted each rking hours (such as overtime or shift differential), commissi year according to IRC §401(a)(17)(B). ons, bonuses or other similar payments, and, absent a severa B. For purposes of this Section, the following definition nce from employment, the payments would have been paid t shall apply. o the member while the member continued in employment w ith the employer. Annual Compensation—earnable compensation during t he plan year or such other consecutive 12-month period over C. Any payments not described in Subsection B of this S which compensation is otherwise determined under the plan ection are not considered compensation if paid after severan (the determination period). The cost-of-living-adjustment in

Louisiana Administrative Code August 2013 40 effect for a calendar year applies to annual compensation for §1527. Governing Law the determination period that begins with or within such cale A. The plan, and actions under or relating to the plan, an ndar year. d the statute of limitations for such actions shall be governed C. If the plan year or applicable period for determining a by and enforced by the laws of the state of Louisiana and sha nnual compensation contains fewer than 12 calendar months, ll be construed, to the extent that any construction beyond th then this compensation limit is the amount equal to the annu e written plan is necessary, according to the laws of the state al IRC §401(a)(17) limit for the applicable calendar year dur of Louisiana or the Internal Revenue Code or other federal la ing which the compensation period begins multiplied by the w, where applicable. ratio that is obtained by dividing the number of full months i B. If, under any application filed by or on behalf of the p n the period by 12. lan, the IRS determines that the plan as amended and restate AUTHORITY NOTE: Promulgated in accordance with R.S. 11 d does not qualify under IRC §401(a), and the determination 921-929. is not contested, or if contested, is finally upheld (or otherwi HISTORICAL NOTE: Promulgated by the Department of the T se finally determined), the plan administrator may retroactiv reasury, Board of Trustees of the Teachers’ Retirement System of L ely amend the plan to the earliest date permitted by treasury ouisiana, LR 40:2279 (November 2014). regulations to the fullest extent that the plan administrator co §1521. Fiduciary Responsibility nsiders necessary to obtain an IRS determination that the pla A. Any person electing to participate in the plan shall agr n qualifies under IRC §401(a). Such actions may be taken wi ee to the provisions of the plan in accordance with R.S. 11:9 thout further authorization or consent from the plan sponsor, 29. provided amendments are not contrary to state law. B. The ORP providers may not engage in any prohibited C. If any contribution (or any portion of a contribution) i transactions. s made by the employer by a good faith mistake of fact, upo n receipt in good order of a proper request, the plan administ AUTHORITY NOTE: Promulgated in accordance with R.S. 11 rator or the ORP provider shall return the amount of the mist 921-929. aken contribution(s), except as limited below, to the employe HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers’ Retirement System of L r in accordance with rev. rul. 91-4. The amount of any contri ouisiana, LR 40:2279 (November 2014). bution returned may not exceed the difference between the a mount actually contributed and the amount which would hav §1523. Plan Assets e been contributed had there been no mistake of fact and ma A. Except as provided in Subsection B of this Section, pl y not include the earnings attributable to such contribution. T an assets shall be held by the ORP providers in an individual he amount of the contributions returned must be reduced by or group annuity contract, or custodial account which meets any losses attributable to the contribution, and no participant the requirements of IRC §401(f) in order to be treated as a q may have his benefit payable hereunder reduced by the retur ualified trust. n of the contribution to less than such benefit would have be en had the returned contribution never been made. The amou B. A separate trust is hereby established under state law f nt of the erroneous contributions will be corrected and return or the purpose of segregating fees to be used for the payment ed no later than 30 days after notification of the error if such of reasonable plan expenses. This trust shall be administered correction and return can be completed within one year of th by the board of trustees. e erroneous contributions. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:9 D. In any event, any correction under this section shall b 21-929. HISTORICAL NOTE: Promulgated by the Department of the Tr e made in accordance with the Internal Revenue Service emp easury, Board of Trustees of the Teachers’ Retirement System of Lo loyee plans compliance resolution system (or similar IRS cor uisiana, LR 40:2279 (November 2014). rection program). §1525. Vesting AUTHORITY NOTE: Promulgated in accordance with R.S. 11 921-929. A. A participant's interest in his/her account shall immedi HISTORICAL NOTE: Promulgated by the Department of the T ately become and shall at all times remain fully vested and n reasury, Board of Trustees of the Teachers’ Retirement System of L on-forfeitable. ouisiana, LR 40:2279 (November 2014). B. The plan shall be construed consistently with IRC §§4 §1529. USERRA 01(a)(4) and 401(a)(7) as in effect on September 1, 1974. A. Notwithstanding any provisions of this plan to the con AUTHORITY NOTE: Promulgated in accordance with R.S. 11 trary, contributions, benefits, and service credits with respect 921-929. to qualified military service shall be provided in accordance HISTORICAL NOTE: Promulgated by the Department of the T with the Uniformed Services Employment and Reemployme reasury, Board of Trustees of the Teachers’ Retirement System of L nt Rights Act of 1994 ("USERRA") and the Heroes Earnings ouisiana, LR 40:2279 (November 2014). Assistance and Relief Tax Act of 2008 ("HEART"), IRC §40 1(a)(37), and IRC §414(u).

41 Louisiana Administrative Code October 2017 B. For purposes of this Section, the following definition or ORP provider receives the participant's request. If the part shall apply. icipant's interest in the plan is invested in more than one of t he separate investment options maintained under the plan, a Qualified Military Service (as defined by in chapter 43, t withdrawal of less than the complete balance of the interest s itle 38, United States Code)—the performance of duty on a v hall be withdrawn pro rata from each applicable investment oluntary or involuntary basis in a uniformed service under co option. mpetent authority and includes active duty, active duty traini ng, initial active duty for training, inactive duty training, ful AUTHORITY NOTE: Promulgated in accordance with R.S. 11 l-time National Guard duty, a period for which a person is ab 921-929. sent from a position of employment for the purposes of an ex HISTORICAL NOTE: Promulgated by the Department of the T amination to determine the fitness of the person to perform a reasury, Board of Trustees of the Teachers’ Retirement System of L ouisiana, LR 40:2279 (November 2014). ny such duty, and a period for which a person is absent from employment for the purposes of performing funeral honors d §1531. ORP Providers uty as authorized by 10 U.S.C. §12503 or 32 U.S.C. §115 if A. In the selection of ORP provider(s) as required by law, such individual is entitled to reemployment rights under US the board of trustees will, at a minimum, consider the follow ERRA with respect to such service. ing criteria in the selection process: Uniformed Service—the Armed Forces, the Army Natio 1. portability of the contracts offered or to be offered b nal Guard and the Air National Guard when engaged in activ y the company, based on the number of states in which the d e duty for training, inactive duty training, or full-time Nation esignated company provides contracts under similar plans; al Guard duty, the commissioned corps of Public Health Ser vice, and any other category of persons designated by the Pr 2. efficacy of the contracts in the recruitment and rete esident of the U.S. in the time of war or national emergency. ntion of employees for the various state public institutions of higher education and higher education boards; C. An eligible employee whose employment is interrupte d by qualified military service under IRC §414(u) or who is 3. nature and extent of the rights and benefits to be pr on a leave of absence for qualified military service under IR ovided by the contracts for participating employees and their C §414(u) shall be entitled to receive any employer contribut beneficiaries; ions that he failed to receive under the plan as a result of his 4. relation of the rights and benefits to the amount of t military service, provided he returns to employment with the he contributions to be made pursuant to the provisions of the employer upon receiving an honorable discharge from milita plan; ry service and there is no intervening employment outside of the employment with the employer. 5. suitability of the rights and benefits to the needs an d interests of participating employees and employers; and D. Effective January 1, 2009, an eligible employee whos e employment is interrupted by qualified military service or 6. ability of the designated company or companies to who is on a leave of absence for qualified military service an provide the rights and benefits under such contracts. d who receives a differential wage payment within the meani B. The TRSL will enter into a contract with each ORP pr ng of IRC §414(u)(12)(D) from the employer will be treated ovider. Effective July 1, 2015, each ORP provider contract s as an eligible employee of the employer and the differential hall include the “operational guide for ORP providers” devel wage payment will be treated as compensation for purposes oped by the TRSL. of applying the limits on annual additions under IRC §415(c). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 E. Effective January 1, 2007, death benefits payable und 921-929. er the plan shall be paid in accordance with IRC §401(a)(37) HISTORICAL NOTE: Promulgated by the Department of the T which provides that in the case of an eligible employee who reasury, Board of Trustees of the Teachers’ Retirement System of L dies while performing qualified military service (as defined i ouisiana, LR 40:2280 (November 2014). n IRC §414(u)), the survivors of the eligible employee are en Chapter 17. Defined Benefit Plan Inte titled to any additional benefits (other than benefit accruals r elating to the period of qualified military service) provided u rnal Revenue Code Provisions nder the plan had the eligible employee resumed and then ter §1701. Use of Plan Assets minated employment with the employer on account of death. A. At no time shall it be possible for the plan assets to be F. Notwithstanding anything in the plan to the contrary, used for, or diverted to, any person other than for the exclusi a participant who is a reservist or national guardsman (as def ve benefit of the members and their beneficiaries, except that ined in 37 U.S.C. §101(24), and who was ordered or called t contributions made by the employer may be returned to the e o active duty, after September 11, 2001, for a period in exces mployer if the contribution was made due to a mistake of fac s of 179 days or for an indefinite period may request, during t as permitted by revenue ruling 91-4. the period beginning on the date of the order or call to duty a nd ending at the close of the active duty period, a distributio AUTHORITY NOTE: Promulgated in accordance with R.S. 11 n of all or part of his or her account attributable to salary def 826. erral contributions. The distribution shall be paid to the parti cipant as promptly as practicable after the plan administrator

Louisiana Administrative Code August 2013 42 HISTORICAL NOTE: Promulgated by the Department of the T e annuity starting date or adjusting the form of benefit to an reasury, Board of Trustees of the Teachers’ Retirement System of L actuarially equivalent amount [determined using the assumpt ouisiana, LR 41:397 (February 2015). ions specified in treasury regulation section 1.415(b)-1(c)(2) §1703. Heroes Earnings Assistance and Relief Tax Act o (ii)] that takes into account the additional benefits under the f 2008 form of benefit as described in Subparagraphs A.1.a and b be low, as applicable. A. Effective January 1, 2007, 26 U.S.C. 401(a)(37), as en acted by the Heroes Earnings Assistance and Relief Tax Act a. For a benefit paid in a form to which section 417 of 2008, shall apply to the retirement system as provided her (e)(3) of the Internal Revenue Code does not apply (generall ein. Effective with respect to deaths occurring on or after Jan y, a monthly benefit), the actuarially equivalent straight life a uary 1, 2007, while a member is performing qualified militar nnuity benefit that is the greater of: y service (as defined in chapter 43 of title 38, United States i. the annual amount of the straight life annuity (i Code), to the extent required by section 401(a)(37) of the Int f any) payable to the member under the plan commencing at ernal Revenue Code, survivors of a member in a state or loca the same annuity starting date as the form of benefit to the m l retirement or pension system, are entitled to any additional ember; or benefits that the system would provide if the member had res umed employment and then died, such as accelerated eligibil ii. the annual amount of the straight life annuity c ity or survivor benefits that are contingent on the member's d ommencing at the same annuity starting date that has the sa eath while employed. In any event, a deceased member's peri me actuarial present value as the form of benefit payable to t od of qualified military service must be counted for eligibilit he member, computed using a 5 percent interest assumption y purposes. (or the applicable statutory interest assumption) and: B. Effective January 1, 2009, 26 U.S.C. 3401(h)(2), as e (a). for years prior to January 1, 2009, the applic nacted by the Heroes Earnings Assistance and Relief Tax Act able mortality tables described in treasury regulation section of 2008, shall apply to the retirement system as provided her 1.417(e)-1(d)(2) (revenue ruling 2001-62 or any subsequent ein. Beginning January 1, 2009, to the extent required by sec revenue ruling modifying the applicable provisions of reven tion 414(u)(12) of the Internal Revenue Code, an individual ue rulings 2001-62); and receiving differential wage payments (as defined under secti (b). for years after December 31, 2008, the applic on 3401(h)(2) of the Internal Revenue Code) from an emplo able mortality tables described in section 417(e)(3)(B) of the yer shall be treated as employed by that employer, and the di Internal Revenue Code (Notice 2008-85 or any subsequent I fferential wage payment shall be treated as compensation for nternal Revenue Service guidance implementing section 417 purposes of applying the limits on annual additions under se (e)(3)(B) of the Internal Revenue Code). ction 415(c) of the Internal Revenue Code. This provision sh all be applied to all similarly situated individuals in a reason b. For a benefit paid in a form to which section 417 ably equivalent manner. (e)(3) of the Internal Revenue Code applies (generally, a lum AUTHORITY NOTE: Promulgated in accordance with R.S. 11 p sum benefit), the actuarially equivalent straight life annuity 826. benefit that is the greatest of: HISTORICAL NOTE: Promulgated by the Department of the T i. the annual amount of the straight life annuity c reasury, Board of Trustees of the Teachers’ Retirement System of L ommencing at the annuity starting date that has the same act ouisiana, LR 41:397 (February 2015). uarial present value as the particular form of benefit payable, §1705. Domestic Relations Orders computed using the interest rate and mortality table, or tabul A. If benefits are payable pursuant to a domestic relation ar factor, specified in the plan for actuarial experience; s order that meets the requirements of section 414(p) of the I ii. the annual amount of the straight life annuity c nternal Revenue Code, then the applicable requirements of s ommencing at the annuity starting date that has the same act ection 414(p) of the Internal Revenue Code will be followed uarial present value as the particular form of benefit payable, by the retirement system. computed using a five and one-half percent interest assumpti AUTHORITY NOTE: Promulgated in accordance with R.S. 11 on (or the applicable statutory interest assumption); and 826. (a). for years prior to January 1, 2009, the applic HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Teachers’ Retirement System of L able mortality tables for the distribution under treasury regul ouisiana, LR 41:397 (February 2015). ation section 1.417(e)-1(d)(2) (the mortality table specified i n revenue ruling 2001-62 or any subsequent revenue ruling §1707. Limitations on Contributions and Benefits modifying the applicable provisions of revenue ruling 2001- A. Adjustments for Form of Benefit 62); and 1. If the form of benefit without regard to the automati (b). for years after December 31, 2008, the applic c benefit increase feature is not a straight life annuity or a qu able mortality tables described in section 417(e)(3)(B) of the alified joint and survivor annuity, then the adjustment under Internal Revenue Code (notice 2008-85 or any subsequent In R.S. 11:784.1(B)(3)(a) is applied by either reducing the secti ternal Revenue Service guidance implementing section 417 on 415(b) of the Internal Revenue Code limit applicable at th (e)(3)(B) of the Internal Revenue Code); or

43 Louisiana Administrative Code October 2017 iii. the annual amount of the straight life annuity c n 1.415(c)-2, or successor regulation; provided, however, tha ommencing at the annuity starting date that has the same act t member contributions picked up under section 414(h) of th uarial present value as the particular form of benefit payable e Internal Revenue Code shall not be treated as compensatio (computed using the applicable interest rate for the distributi n. on under treasury regulation section 1.417(e)-1(d)(3) (using t c. Compensation will be defined as wages within th he rate in effect for the November prior to the one-year stabil e meaning of section 3401(a) of the Internal Revenue Code a ization period, which is the limitation year); and nd all other payments of compensation to an employee by an (a). for years prior to January 1, 2009, the applic employer for which the employer is required to furnish the e able mortality tables for the distribution under treasury regul mployee a written statement under sections 6041(d), 6051(a) ation section 1.417(e)-1(d)(2) (the mortality table specified i (3) and 6052 of the Internal Revenue Code and will be deter n revenue ruling 2001-62 or any subsequent revenue ruling mined without regard to any rules under section 3401(a) of t modifying the applicable provisions of revenue ruling 2001- he Internal Revenue Code that limit the remuneration includ 62); and ed in wages based on the nature or location of the employme nt or the services performed (such as the exception for agric (b). for years after December 31, 2008, the applic ultural labor in section 3401(a)(2) of the Internal Revenue C able mortality tables described in section 417(e)(3)(B) of the ode). Internal Revenue Code (Notice 2008-85 or any subsequent I nternal Revenue Service guidance implementing section 417 i. However, for limitation years beginning after (e)(3)(B) of the Internal Revenue Code), divided by 1.05. December 31, 1997, compensation will also include amounts that would otherwise be included in compensation but for an c. The actuary may adjust the Section 415(b) of the election under section 125(a), 402(e)(3), 402(h)(1)(B), 402 Internal Revenue Code limit at the annuity starting date in ac (k), or 457(b) of the Internal Revenue Code. cordance with Subparagraphs A.1.a and b above. ii. For limitation years beginning after December d. Benefits For Which No Adjustment of the 415(b) 31, 2000, compensation shall also include any elective amou Limit is Required nts that are not includible in the gross income of the member i. For purposes of this Section, the following ben by reason of section 132(f)(4) of the Internal Revenue Code. efits shall not be taken into account in adjusting these limits: iii. For limitation years beginning on and after Jan (a). any ancillary benefit which is not directly rel uary 1, 2009, compensation for the limitation year shall also ated to retirement income benefits; include compensation paid by the later of two and one-half months after a member's severance from employment or the (b). that portion of any joint and survivor annuity end of the limitation year that includes the date of the memb that constitutes a qualified joint and survivor annuity; and er's severance from employment if the payment is regular co (c). any other benefit not required under section mpensation for services during the member's regular workin 415(b)(2) of the Internal Revenue Code and treasury regulati g hours, or compensation for services outside the member's r ons thereunder to be taken into account for purposes of the li egular working hours (such as overtime or shift differential), mitation of section 415(b)(1) of the Internal Revenue Code. commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have bee B. Section 415(c) Limitations on Contributions and Othe n paid to the member while the member continued in employ r Additions ment with the employer. 1. After-tax member contributions or other annual add (a). Any payments not described in Clause B.1.c. itions with respect to a member may not exceed the lesser of iii above are not considered compensation if paid after sever $40,000 (as adjusted pursuant to section 415(d) of the Intern ance from employment, even if they are paid within two and al Revenue Code) or 100 percent of the member's compensat one-half months following severance from employment, exc ion. ept for payments to the individual who does not currently pe a. For the purposes of this Section, the following de rform services for the employer by reason of qualified milita finition shall apply. ry service (within the meaning of section 414(u)(1) of the In ternal Revenue Code) to the extent these payments do not ex Annual Additions—the sum (for any year) of employer contr ceed the amounts the individual would have received if the i ibutions to a defined contribution plan, member contribution ndividual had continued to perform services for the employe s, and forfeitures credited to a member's individual account. r rather than entering qualified military service. Member contributions are determined without regard to rollo ver contributions and to picked-up employee contributions th (b). An employee who is in qualified military ser at are paid to a defined benefit plan. vice (within the meaning of section 414(u)(1) of the Internal Revenue Code) shall be treated as receiving compensation fr b. For purposes of applying section 415(c) of the In om the employer during such period of qualified military ser ternal Revenue Code and for no other purpose, the definition vice equal to: of compensation where applicable will be compensation actu ally paid or made available during a limitation year, except a (i). the compensation the employee would s noted below and as permitted by treasury regulation sectio have received during such period if the employee were not

Louisiana Administrative Code August 2013 44 in qualified military service, determined based on the rate of ii. which such member has not received under the pay the employee would have received from the employer system; and but for the absence during the period of qualified military iii. which such member may receive only by maki service; or ng a voluntary additional contribution, in an amount determi (ii). if the compensation the employee would ned under the system, which does not exceed the amount nec have received during such period was not reasonably certain, essary to fund the benefit attributable to such service credit. the employee's average compensation from the employer b. Effective for permissive service credit contributio during the twelve month period immediately preceding the ns made in limitation years beginning after December 31, 19 qualified military service (or, if shorter, the period of 97, such term may include service credit for periods for whic employment immediately preceding the qualified military h there is no performance of service, and, notwithstanding Cl service). ause C.3.a.ii above, may include service credited in order to iv. Back pay, within the meaning of treasury regul provide an increased benefit for service credit which a memb ation section 1.415(c)-2(g)(8), shall be treated as compensati er is receiving under the system. on for the limitation year to which the back pay relates to the 4. The system will fail to meet the requirements of thi extent the back pay represents wages and compensation that s Subsection if: would otherwise be included under this definition. a. more than five years of nonqualified service credi d. If the annual additions for any member for a plan t are taken into account for purposes of this Subsection; or year exceed the limitation under section 415(c) of the Intern al Revenue Code, the excess annual addition will be correcte b. any nonqualified service credit is taken into acco d as permitted under the employee plans compliance resoluti unt under this Subsection before the member has at least five on system (or similar IRS correction program). years of participation under the system. e. For limitation years beginning on or after January 5. For purposes of Paragraph C.4 above, effective for 1, 2009, a member's compensation for purposes of this Subs permissive service credit contributions made in limitation ye ection shall not exceed the annual limit under section 401(a) ars beginning after December 31, 1997, the following definit (17) of the Internal Revenue Code. ion shall apply. C. Service Purchases under Section 415(n) a. Nonqualified Service Credit—permissive service credit other than that allowed with respect to: 1. Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, i. service (including parental, medical, sabbatical, if a member makes one or more contributions to purchase pe and similar leave) as an employee of the Government of the rmissive service credit under the plan, then the requirements United States, any state or political subdivision thereof, or an of section 415(n) of the Internal Revenue Code will be treate y agency or instrumentality of any of the foregoing (other th d as met only if: an military service or service for credit which was obtained a s a result of a repayment described in section 415(k)(3) of th a. the requirements of section 415(b) of the Internal e Internal Revenue Code); Revenue Code are met, determined by treating the accrued b enefit derived from all such contributions as an annual benef ii. service (including parental, medical, sabbatical, it for purposes of section 415(b) of the Internal Revenue Co and similar leave) as an employee (other than as an employe de; or e described in Clause C.5.a.i above) of an education organiza tion described in section 170(b)(1)(A)(ii) of the Internal Rev b. the requirements of section 415(c) of the Internal enue Code which is a public, private, or sectarian school whi Revenue Code are met, determined by treating all such contri ch provides elementary or secondary education (through gra butions as annual additions for purposes of section 415(c) of de 12), or a comparable level of education, as determined un the Internal Revenue Code. der the applicable law of the jurisdiction in which the service 2. For purposes of applying this section, the system wi was performed; ll not fail to meet the reduced limit under section 415(b)(2) iii. service as an employee of an association of em (C) of the Internal Revenue Code solely by reason of this Su ployees who are described in Clause C.5.a.i above; or bsection and will not fail to meet the percentage limitation u nder section 415(c)(1)(B) of the Internal Revenue Code solel iv. military service (other than qualified military s y by reason of this Subsection. ervice under section 414(u) of the Internal Revenue Code) re cognized by the system. 3. For purposes of this Subsection, the following defin ition shall apply. b. In the case of service described in Clause C.5.a.i, ii or iii above, such service will be nonqualified service if re a. Permissive Service Credit—service credit: cognition of such service would cause a member to receive a i. recognized by the system for purposes of calcu retirement benefit for the same service under more than one lating a member's benefit under the system; plan.

45 Louisiana Administrative Code October 2017 6. In the case of a trustee-to-trustee transfer after Dece 1. Reduction of benefits and/or contributions to all def mber 31, 2001, to which section 403(b)(13)(A) of the Intern ined benefit plans sponsored by the state in which the memb al Revenue Code or section 457(e)(17)(A) of the Internal Re er participated, where required, shall be accomplished by firs venue Code applies (without regard to whether the transfer is t reducing the member's benefit under the defined benefit pla made between plans maintained by the same employer): n in which the member most recently accrued benefits and th ereafter in such priority as shall be determined by the plan an a. the limitations of Paragraph C.4 above will not a d the plan administrator of such other plans. Necessary reduc pply in determining whether the transfer is for the purchase tions may be made in a different manner and priority pursua of permissive service credit; and nt to the agreement of the plan and the plan administrator of b. the distribution rules applicable under federal law all other plans covering such member. to the system will apply to such amounts and any benefits att G. Limitation Year ributable to such amounts. 1. For purposes of applying the limitations of section 7. For an eligible member, the limitation of section 41 415 of the Internal Revenue Code, the limitation year shall b 5(c)(1) of the Internal Revenue Code shall not be applied to r e the calendar year. educe the amount of permissive service credit which may be purchased to an amount less than the amount which was allo AUTHORITY NOTE: Promulgated in accordance with R.S. 11 wed to be purchased under the terms of a Plan as in effect on 826. August 5, 1997. For purposes of this Paragraph, an eligible HISTORICAL NOTE: Promulgated by the Department of the T member is an individual who first became a member in the s reasury, Board of Trustees of the Teachers’ Retirement System of L ouisiana, LR 41:398 (February 2015). ystem before January 1, 1998. §1709. Group Trust Participation D. Modification of Contributions for 415(c) and 415(n) P urposes A. The board of trustees may, unless restricted by law, tr ansfer assets of the plan to a collective or common group tru 1. Notwithstanding any other provision of law to the c st, as permitted under revenue ruling 81-100 and revenue rul ontrary, the system may modify a request by a member to m ing 2011-1 (or subsequent guidance), that is operated or mai ake a contribution to the system if the amount of the contribu ntained exclusively for the commingling and collective inves tion would exceed the limits provided in section 415 of the I tment of monies, provided that the funds in the group trust c nternal Revenue Code by using the following methods. onsist exclusively of trust assets held under plans qualified u a. If the law requires a lump sum payment for the p nder section 401(a) of the Internal Revenue Code, individual urchase of service credit, the system may establish a periodic retirement accounts that are exempt under section 408(e) of t payment plan for the member to avoid a contribution in exce he Internal Revenue Code, eligible governmental plans that ss of the limits under section 415(c) or 415(n) of the Internal meet the requirements of section 457(b) of the Internal Reve Revenue Code. nue Code, and government plans under section 401(a)(24) of the Internal Revenue Code. For this purpose, a trust includes b. If payment pursuant to Subparagraph a. of this Pa a custodial account that is treated as a trust under section 401 ragraph will not avoid a contribution in excess of the limits i (f) or under section 457(g)(3) of the Internal Revenue Code. mposed by section 415(c) or 415(n) of the Internal Revenue Code, the system may either reduce the member's contributio B. For purposes of valuation, the value of the interest ma n to an amount within the limits of those sections or refuse t intained by the plan in such group trust shall be the fair mark he member's contribution. et value of the portion of the group trust held for the plan, de termined in accordance with generally recognized valuation E. Repayments of Cashouts procedures. 1. Any repayment of contributions (including interest C. The board of trustees may adopt one or more group tr thereon) to the plan with respect to an amount previously ref ust(s) as part of the plan, by executing appropriate participati unded upon a forfeiture of service credit under the plan or an on and/or adoption agreements with the group trust's trustee. other governmental plan maintained by the retirement syste m shall not be taken into account for purposes of section 415 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 of the Internal Revenue Code, in accordance with applicable 826. HISTORICAL NOTE: Promulgated by the Department of the T treasury regulations. reasury, Board of Trustees of the Teachers’ Retirement System of L F. Limitation of Benefits Priority ouisiana, LR 41:400 (February 2015).

Louisiana Administrative Code August 2013 46 Title 58 RETIREMENT Part V. Firefighters' Pension and Relief Fund for the City of New Orleans and Vicinity

Chapter 1. Qualified Domestic Relati he trustees shall not recognize the entitlement of any alternat e payee, even if specified in a domestic relations order, if the ons Orders benefits assigned therein have already been assigned by reas §101. Determining Qualified Status of Domestic Relati on of an earlier QDRO validly served upon the fund. ons Orders Domestic Relations Order―any judgment, decree, or or A. Intent and Construction. These procedural rules are ad der (including approval of a property settlement or communi opted in order to satisfy the requirements of R.S. 11:291, and ty property partition) that: shall be construed consistently with this purpose. a. relates to the provision of child support, alimony B. The purpose of these rules is to establish the trustees’ payments, or marital property rights to a spouse, former spou willingness to recognize and enforce any QDRO that meets t se, child, or other dependent of a participant; and he requirements set forth herein. b. is made pursuant to a state domestic relations law C. It is further intended that the provisions of R.S. 11:29 (including a community property law); 1 and 292 be strictly observed. Therefore, the trustees shall n i. a state court shall actually issue an order, or for ot honor the terms of any QDRO: mally approve a proposed property settlement, in order for it 1. that purports to require the fund to provide any type to be recognized by the trustees as a domestic relations order or benefits, or any option, not otherwise provided under the f A property settlement or community property partition signe und; d by a participant and the participant's former spouse, or a dr aft order to which both parties consent, shall not be consider 2. that requires the fund to provide increased benefits ed a domestic relations order until the state authority has ado (determined on the basis of actuarial value); pted it as an order or formally approved it and made it part o 3. that requires payment of benefits to an alternate pay f the domestic relations proceeding. ee that are required to be paid to another alternate payee und Participant―any employee or former employee of an e er another order previously determined to be a QDRO; mployer in relation to the fund, who is or may become eligib 4. that requires the payment of benefits to an alternate le to receive a benefit of any type from the fund, and who is t payee prior to the date the participant terminates employmen he individual whose benefits under the fund are being divide t and his retirement benefits commence; or d by the QDRO. 5. that allow the alternate payee to elect a form of ben Qualified Domestic Relations Order―a domestic relatio efit payable in any manner other than over the life of the part ns order that creates or recognizes the existence of an alterna icipant when the order is presented to the fund after the parti te payee's right (or assigns to an alternate payee the right) to cipant has already begun receiving pension benefits. receive all or a portion of the benefits payable with respect t o a participant in the fund, provided that the order: AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363. a. clearly specifies: HISTORICAL NOTE: Promulgated by the Board of Trustees o i. the name and last known mailing address (if an f the Firefighters' Pension and Relief Fund for the City of New Orle ans, LR 16:501 (June 1990), amended by the Firefighters' Pension a y) of the participant and the name and mailing address of eac nd Relief Fund for the City of New Orleans and Vicinity, LR 23:13 h alternate payee covered by the order or, in the event the alt 04 (October 1997), LR 30:1685 (August 2004), LR 38:796 (March ernate payee is a minor or legally incompetent, the name and 2012). address of the alternate payee's legal representative; §103. Definitions ii. the amount or percentage of the participant's be A. As used in these procedural rules, unless the context i nefits to be paid by the fund to each alternate payee, or the m ndicates otherwise, the following terms shall have the follow anner in which such amount or percentage is to be determine ing meanings. d; Alternate Payee―the participant's spouse (or former sp iii. the number of payments or the period to which ouse, child, or other dependent) who is entitled to receive so such order applies; and me or all of the fund's benefit payments with respect to the p iv. the name and identity of the fund; articipant under the terms of the QDRO. The same QDRO m ay identify more than one alternate payee, and several altern b. does not require: ate payees may be identified in multiple QDROs. However, t

47 Louisiana Administrative Code October 2017 i. the fund to provide any type or form of benefit s's booklet entitled Divorce Orders and PBGC, which discus s, or any option, not otherwise provided under the fund; ses the special QDRO rules that apply for plans that have be en terminated and are trusteed by PBGC, and provides mode ii. the fund to provide increased benefits (determi l QDROs for use with those plans. The publication may be o ned on the basis of actuarial value); btained by calling PBGC's Customer Service Center at 1-80 iii. the payment of benefits to an alternate payee th 0-400-PBGC or electronically via the PBGC Internet site at at are required to be paid to another alternate payee under an "http://www.pbgc.gov." However, some or all of the princip other order previously determined to be a qualified domestic als there set forth may not apply to this fund by reason of its relations order; status as a statutory governmental plan and/or the types of be nefits payable under R.S. 11:3361 et seq. Thus the rules and iv. the payment of benefits to an alternate payee pr regulations shall supersede the provisions of the IRS Bulleti ior to the date the participant terminates employment and be n. gins receiving pension benefits from the fund; or AUTHORITY NOTE: Promulgated in accordance with R.S. 11 v. the payment of benefits to an alternate payee in 3363. any manner other than over the life of the participant when t HISTORICAL NOTE: Promulgated by the Board of Trustees o he order is presented to the fund after the participant has alre f the Firefighters' Pension and Relief Fund for the City of New Orle ady begun receiving pension benefits. ans, LR 16:501 (June 1990), amended by the Firefighters' Pension a nd Relief Fund for the City of New Orleans and Vicinity, LR 23:13 Trustees―the Board of Trustees for the Firefighters' Pen 05 (October 1997), LR 30:1685 (August 2004). sion and Relief Fund for the City of New Orleans, or such pe §107. Notice rson or entity to whom the board has delegated responsibility to make determinations on its behalf under these rules. A. Upon the fund's receipt of a domestic relations order with respect to a participant, the trustees shall promptly give AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363. notice of these procedural rules to the participant and to each HISTORICAL NOTE: Promulgated by the Board of Trustees o person specified in the order as entitled to payment of any fu f the Firefighters' Pension and Relief Fund for the City of New Orle nd benefits under the order, at the address the order specifies. ans, LR 16:501 (June 1990), amended by the Firefighters' Pension a AUTHORITY NOTE: Promulgated in accordance with R.S. 11 nd Relief Fund for the City of New Orleans and Vicinity, LR 23:13 3363. 04 (October 1997), LR 30:1685 (August 2004). HISTORICAL NOTE: Promulgated by the Board of Trustees o §105. QDRO Language f the Firefighters' Pension and Relief Fund for the City of New Orle ans, LR 16:501 (June 1990), amended by the Firefighters' Pension a A. Many factors should be taken into account by the draf nd Relief Fund for the City of New Orleans and Vicinity, LR 23:13 ters of a QDRO in determining which benefits to assign to a 05 (October 1997). n alternate payee and how these benefits are to be assigned. §109. Determination Because of the complexity and variety of the factors that sho uld be considered and the need to tailor the assignment of be A. The trustees shall determine whether a domestic relati nefits under a QDRO to the individual circumstances of the ons order is a qualified domestic relations order within a reas parties, it would be inappropriate for the trustees to propose onable time after it is received and shall have the right to req specific sample language for inclusion in a QDRO. Instead, i uire such evidence as they may reasonably need to make the ndividual participants and alternate beneficiaries, and their r determination. espective attorneys, are directed to collaborate jointly upon t B. The trustees shall notify the participant and the alterna he drafting of orders that meet their individual needs. Nevert te payee of the determination no less than 30 days before ma heless, if so requested, the trustees shall review any propose king any payment pursuant to the order, if it is determined to d order submitted to the fund prior to its submission to the a be a qualified order, or within a reasonable time if it is deter ppropriate court for execution and entry, with a view to indic mined not to be a qualified order. ating the trustees' probable determination concerning its stat us as a QDRO. The trustees are required by law to honor and C. The participant may appeal such a determination to th enforce the terms of any QDRO which meets the conditions e trustees upon written application to the trustees. The partici specified in these rules and as may subsequently be determin pant may review any documents pertinent to the appeal and ed by the applicable statutes and the courts' interpretations th may submit issues and comments, in writing, to the trustees. ereof. No appeal shall be considered unless it is received by the tru stees within 90 days after receipt by the participant of writte B. For further guidance concerning those matters that sh n notice of the determination. ould be considered when drafting a QDRO (e.g., types of be nefits, approaches to dividing retirement benefits, form and c D. The trustees shall decide the appeal within 60 days aft ommencement of payment to alternate payees, and tax treat er it is received. If special circumstances require an extensio ment of benefits payments made pursuant to a QDRO) the p n of time for processing, however, a decision shall be render arties are encouraged to consult Notice 97-11 issued by the I ed as soon as possible but not later than 120 days after the ap nternal Revenue Service and appearing in Internal Revenue peal is received. If such an extension of time for deciding the Bulletin 199702 dated January 13, 1997. Additional guidanc appeal is required, written notice of the extension shall be fu e may be found in the Pension Benefit Guaranty Corporation

Louisiana Administrative Code August 2013 48 rnished to the participant prior to the commencement of the HISTORICAL NOTE: Promulgated by the Board of Trustees o extension. f the Firefighters' Pension and Relief Fund for the City of New Orle ans, LR 16:501 (June 1990), amended by the Firefighters' Pension a E. The trustees' decision shall be in writing and shall incl nd Relief Fund for the City of New Orleans and Vicinity, LR 23:13 ude specific reasons for the decision, expressed in a manner 06 (October 1997). calculated to be understood by the participant and the alterna te payee. Chapter 3. Procedural Rules and Reg AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ulations of the Board of Trustees 3363. HISTORICAL NOTE: Promulgated by the Board of Trustees o §301. Definitions f the Firefighters' Pension and Relief Fund for the City of New Orle Applicant or Claimant―an individual participant applying ans, LR 16:501 (June 1990), amended by the Firefighters' Pension a nd Relief Fund for the City of New Orleans and Vicinity, LR 23:13 for a pension, or a surviving spouse or child applying for a s 05 (October 1997). urvivor pension or death benefit. §111. Payments Pending Determination Board―the Board of Trustees of the Firefighters' Pension A. During any period in which the issue whether a dome and Relief Fund for the City of New Orleans. stic relations order is a qualified domestic relations order is b Committee―the Pension and Relief Committee. eing determined (by the trustees, by a court of competent juri sdiction, or otherwise), the trustees shall segregate in a separ Participant―an employee of the New Orleans Fire Depart ate account in the fund the amounts that would have been pa ment who is eligible to and does participate in the Pension a yable to the alternate payee during such period if the order h nd Relief Fund in accordance with R.S. 33:3361 and 3365. ad been determined to be a qualified domestic relations order. Secretary-Treasurer―secretary-treasurer of the Board of 1. To the extent that the domestic relations order is det Trustees. ermined to be qualified, the fund shall pay the segregated am AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ounts, plus any interest on them, to the person or persons ent 3363. itled to them according to the terms of the order. In the case HISTORICAL NOTE: Promulgated by the Board of Trustees o of determinations appealed under these procedural rules, the f the Firefighters' Pension and Relief Fund for the City of New Orle payment shall be made not less than 10 days nor more than 3 ans, LR 16:685 (August 1990). 0 days after the issuance of the trustees' disposition of the ap §303. Organization, Rules, and Procedures of the Boar peal. d 2. To the extent that the domestic relations order is det A. Organization of the Board ermined not to be qualified, the fund shall pay the segregated amounts, plus any interest on them, to the person or persons 1. Election of President. The board shall, at the regular who would have been entitled to such amounts without regar meeting held after the election of members to the board as se d to the terms of the order. In the case of determinations app t forth in R.S. 33:3362, elect from its members a president fo ealed under these procedures, the payment shall take place n r the term of two years, or until a successor is duly elected. If, ot less than 10 days nor more than 30 days after the issuance because of death, resignation or otherwise, the office of pres of the trustees' disposition of the appeal. ident is vacated before the expiration of the term of office, th e board shall elect a successor at its next regular meeting. 3. To the extent that the issue whether the domestic rel ations order is qualified is not resolved within 18 months aft 2. Election of Secretary-Treasurer. The board shall, at er the fund receives notice of the order, the trustees shall pay the regular meeting held as set forth in §303.A.1, elect solely the segregated amounts, plus any interest on them, to the per from the elected members of the board [as set forth in R.S. 3 son or persons who would have been entitled to these amoun 3:3363(c)] a secretary-treasurer for a term of two years or un ts without regard to the terms of the order. til a successor is duly elected. If, because of death, resignatio n or otherwise, the office of secretary-treasurer is vacated be AUTHORITY NOTE: Promulgated in accordance with R.S. 11 fore the expiration of the term of office, the board shall elect 3363. a successor at its next regular meeting. HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Firefighters' Pension and Relief Fund for the City of New Orle 3. There is established, in accordance with R.S. 33:33 ans, LR 16:501 (June 1990), amended by the Firefighters' Pension a 63, a Pension and Relief Committee consisting of the secreta nd Relief Fund for the City of New Orleans and Vicinity, LR 23:13 ry-treasurer and one or more other members elected from the 05 (October 1997). board. §113. Representative of Alternate Payee 4. Rules of Order. The board and the committee shall A. An alternate payee, by written notice to the trustees, not be bound by any rules of order, evidence, or procedure at may designate a representative for receipt of copies of notice its meetings, hearings or investigations, except such as it ma s that are sent to the alternate payee with respect to a domest y itself establish. ic relations order. B. Rules AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363.

49 Louisiana Administrative Code October 2017 1. Adoption of Amendment. These rules may be adopt to assist the board in making an initial determination, all sur ed or amended by the board only after public hearing, as set viving spouses who apply for pension benefits shall do so on forth in R.S. 49:953. a form furnished by the Board of Trustees of the Firefighters' Pension and Relief Fund. A copy of said form follows and is 2. Effective Date of Amendments. An amendment to t made part hereof and is adopted as the official form of the bo he rule shall become effective on the first day of the month f ard of trustees. In addition, surviving spouses shall furnish th ollowing the date of adoption by the board, unless otherwise e board with a certified copy of the member's death certificat specifically provided. e and a notarized affidavit to the effect that the surviving spo C. Meetings use was married to the decedent at the time of his death and has not remarried, and also listing the names of any and all s 1. At least one regular meeting of the board shall be h urviving children under 18 years of age. Accompanying this eld each month. affidavit shall be a certified copy of the marriage certificate 2. Special meetings may be held at times and places s of the decedent and surviving spouse, and birth certificates o pecified by call of the president, or three other members of t f all children under 18 years of age. he board. 6. Any applicant for a death benefit or survivor pensio 3. Regular meetings may be held on any day of the m n shall be awarded benefits in accordance with any other rul onth as determined by the board. Notice of the time and plac es and regulations adopted by the board from time to time co e of all regular meetings shall be given in writing to each me ncerning entitlement thereto, and shall abide by any addition mber of the board by the secretary-treasurer. al requirements set forth thereunder, as applicable. 4. Five elected members of the board shall constitute a B. Initial Determination quorum for the transaction of business. 1. The board of trustees shall meet and make an initial 5. The board shall maintain its records at the fund offi determination on any application filed in accordance with th ce. ese rules based upon the evidence that is presented by the cla imant in support of that application. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3362 and 3363. 2. After the board makes its initial determination, the HISTORICAL NOTE: Promulgated by the Board of Trustees o applicant shall be notified of the board's determination by ce f the Firefighters' Pension and Relief Fund for the City of New Orle rtified mail, return receipt requested, as to what action the bo ans, LR 16:685 (August 1990). ard has taken. In the event the application or any part of it is §305. Application Procedure, Initial Determination, an denied, the member shall be advised of his right to appeal th d Notice e initial determination of the board of trustees by filing such A. Application a request, in writing, within 30 days of the claimant's receipt of the advice of initial determination. 1. All applications for disability pension and relief ben efits must be made 45 days in advance of the regular monthl 3. If a member files such an appeal, the board shall sc y meeting at which the application is to be heard. hedule a hearing within 60 days thereof before the Pension a nd Relief Committee, established pursuant to these rules. 2. Application shall be made on a form made availabl AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e by the board of trustees. A copy of said form follows these 3363. rules and is approved as the official form of the Board of Tru HISTORICAL NOTE: Promulgated by the Board of Trustees o stees of the Firefighters' Pension and Relief Fund for the Cit f the Firefighters' Pension and Relief Fund for the City of New Orle y of New Orleans. ans, LR 16:686 (August 1990). 3. Documentary Evidence. Documentary evidence in s §307. Hearing Procedures, Appeal, Oath, Testimony, P upport of disability applications shall be submitted in additio roduction of Records and Depositions n to the application, and may be in the form of doctors' repor A. Hearings before the Pension and Relief Committee ts, medical reports, or any other medical evidence or stateme nts acceptable to the board which the claimant wishes to pres 1. The Pension and Relief Committee shall conduct a ent to assist the board in making its initial determination of b hearing in accordance with R.S. 49:956 et seq. and these rule enefits payable in accordance with R.S. 33:3361 et seq. Said s. The applicant may represent himself or may be represente documentary evidence shall include a medical report from th d by an attorney or any other person he may designate. e department physician. 2. Depositions may be used at the hearing conducted b 4. Application for death benefits shall be made on a fo y the Pension and Relief Committee, in accordance with R.S. rm provided for by the Board of Trustees of the Firefighters' 49:956(6). Pension and Relief Fund for the City of New Orleans. A cop 3. The Pension and Relief Committee, after hearing al y of said form follows and is adopted as the official form of t l of the evidence and considering all of the facts presented, s his board of trustees. hall then prepare a recommended decision which shall be su 5. Surviving Spouses' Applications. In addition to pro bmitted to the Board of Trustees of the Firefighters' Pension viding medical evidence and any other statements presented and Relief Fund of the City of New Orleans.

Louisiana Administrative Code August 2013 50 4. The recommended decision of the Pension and Reli Chapter 5. Direct Rollovers ef Committee shall be submitted to the board within 60 days after the close of the hearing, unless, in the committ §501. Requirements ee's determination, intervening circumstances preclude such A. Notwithstanding any provision to the contrary, the fun prompt determination. The board of trustees shall meet to co d shall permit a direct rollover of an eligible rollover distribu nsider said recommendation, and all facts and evidence offer tion to an eligible retirement plan in accordance with section ed in support thereof, and shall either adopt said recommend 401(a)(31) of the Internal Revenue Code of 1986 and the ter ation as its own or shall take such other action as it shall dete ms set forth herein, upon properly completing and filing the rmine. Said decision shall be decided within 30 days after th appropriate administrative forms. e Pension and Relief Committee submits its report, except w here further documentation or evidence is required by the bo B. Definitions ard to enable it to reach a decision, or due to any other unfor eseeable circumstances. The applicant shall be notified of th Direct Rollovera payment by this fund to the eligible e decision of the board of trustees by certified mail, return re retirement plan specified by the distributee. ceipt requested. Distributeeincludes a member or former member. In a B. Oaths, Testimony, Production of Records and Deposit ddition, the member’s or former member’s surviving spouse ions and the member’s or former member’s spouse or former spo use who is the alternate payee under a qualified domestic rel 1. The Pension and Relief Committee and each memb ations order, as defined in section 414(p) of the code, are dist er thereof may administer oaths, subpoena witnesses, and co ributees with regard to the interest of the spouse or former sp mpel production of books and papers pertinent to any investi ouse. A distributee also includes, for distributions on and afte gation or hearing authorized by the board, pursuant to R.S. 4 r January 1, 2010, a non-spouse beneficiary properly designa 9:956. All applications by the claimant for the issuance of su ted by the member. bpoenas must be in the hands of the secretary-treasurer of th e board of trustees in sufficient time to permit service prior t Eligible Retirement Planan individual retirement acco o the date established for the hearing. unt described in section 408(a) of the code, an individual reti rement annuity described in section 408(b) of the code, an an 2. Whenever a party to a hearing now or hereafter pen nuity plan described in section 403(a) of the code, or a qualif ding before the board desires to take the testimony of a witne ied trust described in section 401(a) of the code, that accepts ss who resides outside of the state or who resides within the the distributee’s eligible rollover distribution. However, in th state but outside the parish of Orleans, or who is unable to at e case of an eligible rollover distribution to the surviving spo tend the hearing, the testimony of the witness, after due notic use, an eligible retirement plan is an individual retirement ac e in writing to the opposing counsel or his party, a copy of w count or individual retirement annuity. An eligible retirement hich said notice shall be furnished to the Pension and Relief plan also shall include an annuity contract described in code Committee, may be taken in a manner and form as clearly co §403(b) and an eligible plan under code §457(b), which is m nsonant as possible with the provisions of the Louisiana Cod aintained by a state, political subdivision of a state, or any ag e of Civil Procedure. ency or instrumentality of a state or political subdivision of a AUTHORITY NOTE: Promulgated in accordance with R.S. 11 state and which agrees to separately account for amounts tra 3363. nsferred into such plan from this plan. Effective for distributi HISTORICAL NOTE: Promulgated by the Board of Trustees o ons made after January 1, 2008, an eligible retirement plan s f the Firefighters' Pension and Relief Fund for the City of New Orle hall also include a Roth individual retirement account or Rot ans, LR 16:686 (August 1990). h individual retirement annuity described in section 408A of §309. Judicial Review the code. A. Judicial review of any final decision by the Pension a a. In the case of a non-spouse beneficiary, an eligibl nd Relief Committee and/or the full board of trustees shall b e retirement plan is an individual retirement account or annui e reviewable in the District Court of the domicile of the boar ty described in section 408(a) of the code, or section 408(b) d, as set forth in R.S. 49:964. No such petition for judicial re of the code (“IRA”) or, for distributions made after Decembe view shall be filed, however, unless and until the applicant s r 31, 2009, a Roth individual retirement account or annuity d hall have first exhausted all internal fund remedies available escribed in section 408A of the code, that is established on b hereunder, including the filing of an appeal contesting an ad ehalf of the designated beneficiary and that will be treated as verse determination by the board. an inherited IRA pursuant to the provisions of section 402(c) (11) of the code. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363. Eligible Rollover Distributionany distribution of all o HISTORICAL NOTE: Promulgated by the Board of Trustees o r any portion of the balance to the credit of the distributee, e f the Firefighters' Pension and Relief Fund for the City of New Orle xcept that an eligible rollover distribution does not include: ans, LR 16:686 (August 1990). a. any distribution that is one of a series of substanti ally equal periodic payments (not less frequently than annual ly) made for the life (or life expectancy) of the distributee or

51 Louisiana Administrative Code October 2017 the joint lives (or joint life expectancies) of the distributee an buy back amount by the number of years (a d the distributee’s designated beneficiary, or for a specified p 12-month consecutive period) the member wishes to buy bac eriod of 10 years or more; k. b. any distribution to the extent such distribution is r 3. A member may restore his total number of years of equired under section 401(a)(9) of the code; and forfeited credit on a piecemeal basis, provided the member r estores at least two or more years of forfeited credit, in incre c. any distribution totaling less than $200 during the ments of 12 consecutive months. A member is prohibited fro year. m restoring his forfeited credits of service on a monthly basi C. Notice. A distributee entitled to an eligible rollover di s and is prohibited from restoring less than two years, unless stribution must receive a written explanation of his/her right the restoration of credits is his final restoration request or the to a direct rollover, the tax consequences of not making a dir restoration request is for his total forfeited credits. ect rollover, and, if applicable, any available special income 4. A year of credit shall mean a 12-month consecutive tax elections and consequences. The notice must be provided period. within a reasonable period of time before the date of distribu 5. A member shall elect a partial buy back and partial tion of the pension benefit. The direct rollover notice must b restoration of forfeited credits of service by completing and f e provided to all distributees, unless the total amount of the d iling the applicable forms with the trustees. A member may r istribution during the calendar year is expected to be less tha evoke any election for a partial buy back and partial restorati n $200. on, provided such revocation is in writing and filed with the AUTHORITY NOTE: Promulgated in accordance with R.S. 11 trustees. 3363. HISTORICAL NOTE: Promulgated by the Board of Trustees o 6. The trustees shall adjust the member's years of cred f the Firefighters' Pension and Relief Fund for the City of New Orle it service as a result of the partial restoration of forfeited cre ans and Vicinity, LR 19:742 (June 1993), amended LR 22:708 (Aug dits upon receipt of the annual buy back amount for each yea ust 1996), LR 38:1011 (April 2012). r the member elects to restore. Until the full payment of the partial buy back amount is received by the board, no adjustm Chapter 7. Partial Buy Back and Part ent or restoration of the member's forfeited credits shall be m ial Restoration of Forfeited Credits of ade. Service 7. A member is strictly prohibited hereunder from rece iving his accumulated employee contributions upon his termi §701. Partial Buy Back and Partial Restoration of Forf nation of employment in a form other than a full and total lu eited Credits of Service mp sum payment. A. An old or new system member shall partially buy bac 8. Nothing contained herein shall be interpreted in vio k a portion of his forfeited credits of service and shall do so lation of R.S. 11:3365.C and R.S. 11:3363.C nor shall the pr by satisfying the following requirements, as set forth herein. ovisions hereunder be applied on a discriminatory basis. 1. A member must have returned to employment with AUTHORITY NOTE: Promulgated in accordance with R.S. 11 the fire department and remain in such employment for a per 3363 and 3365. iod of four years or more. HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Firefighters' Pension and Relief Fund for the City of New Orle 2. The amount of a partial buy back, and accordingly ans and Vicinity, LR 19:743 (June 1993). a partial restoration of forfeited credits, shall be determined by calculating the amount the member withdrew of his accu Chapter 9. Death Benefits mulated employee contributions on his initial termination of employment, plus 3 1/2 percent of interest, compounded ann §901. Definitions ually, for each calendar year the member retained his withdr A. In accordance with R.S. 11:3378, 3381, and related pr awn accumulated employee contributions, which total amou ovisions and/or when used in these rules and regulations, the nt shall be referred to as the "total buy back amount" (interes following terms shall have the following meanings. t shall be prorated for any period less than a calendar year pe riod). Accumulated Contributions―contributions made by an active firefighter through monthly salary deductions. Interest a. The "total buy back amount" shall be prorated by shall accrue as determined by the board. months based on the total years of forfeited credits as follow s. Active Firefighter―one who is still actively employed a nd has not yet retired. Total Buy Back Amount Monthly Buy Back Amount Actuarial Equivalent of the Participant's Benefit―the a Total Number of Months = for Each Month of Forfeited ctuarial cost of furnishing a single life benefit to the particip of Forfeited Credits Credit ant based on his years of service and salary, as defined in R. S. 11:3384 and other applicable statutory provisions. b. The annual buy back amount for each forfeited y ear of credit shall be determined by multiplying the monthly

Louisiana Administrative Code August 2013 52 Children―children of the participant or of the surviving E. Any such designation of beneficiary may be changed spouse who are dependent upon the firefighter for support [R. at any time prior to retirement but such change shall have no S. 11:3378(D)]. effect until deposited, in writing, with the board of trustees. Deferred Vested Firefighter―one who is vested by year F. If a firefighter dies without having designated a benefi s of service but is no longer employed as a firefighter and is ciary, in accordance with the statute, and a benefit is payable not yet receiving retirement benefits, whether or not he is yet thereunder, the applicable death benefit shall be paid to the fi eligible by age to retire. refighter's legal representatives, as defined herein, in the ord er defined herein. Dependent or Dependent upon the Firefighter for Suppo rt―prior to the firefighter's death, he or she contributed 50 p AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ercent or more to the support of said dependent. 3361 and R.S. 11:3378 et seq. HISTORICAL NOTE: Promulgated by the Board of Trustees o Legal Representatives―the person or persons designate f the Firefighters' Pension and Relief Fund for the City of New Orle d in the first of the following classes which is applicable to t ans and Vicinity, LR 20:183 (February 1994). he deceased firefighter in question: §905. Calculation of Death Benefits a. the surviving spouse; A. If a death benefit is payable as a result of the death of b. the surviving children; an eligible participant prior to retirement, the present value o f his benefit shall be calculated as if he had retired on the da c. the surviving parents; y before he died, except where otherwise indicated in the stat d. if a succession has been opened, the firefighter's ute or herein. estate or succession; B. The fund's actuary shall be required and authorized to e. the heirs. calculate all benefits payable, in accordance with such assum ptions as he shall have incorporated into the fund's actuarial Vested Firefighter―person who has accumulated at leas valuations and reports; and the trustees' reliance upon his cal t 20 years of continuous service under the new system, in ac culations of the amounts of retirement and death benefits pay cordance with R.S. 33:3381. able shall be conclusive proof of the reasonableness of the tr Widow―the surviving spouse to whom the firefighter is ustees' decisions in this regard. married at the time of death. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3361 and R.S. 11:3378 et seq. Widowed Mother―a parent of either sex who has surviv HISTORICAL NOTE: Promulgated by the Board of Trustees o ed the deaths of both the firefighter and the other parent. (R. f the Firefighters' Pension and Relief Fund for the City of New Orle S. 11:3390). ans and Vicinity, LR 20:183 (February 1994). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 §907. Preretirement Death Benefits 3361 and R.S. 11:3378 et seq. HISTORICAL NOTE: Promulgated by the Board of Trustees o A. Nonduty Deaths f the Firefighters' Pension and Relief Fund for the City of New Orle 1. If an actively employed firefighter in the new syste ans and Vicinity, LR 20:183 (February 1994). m or one in the old system electing coverage under the new s §903. Beneficiary Designations and Election of Retire ystem, who is eligible by age and service to retire, should die ment and Death Benefits a nonduty death, and if he had been married for two years or A. At the time a firefighter elects to retire, his spouse, if more at the time of his death, the surviving spouse may elect any, shall be furnished a copy of his retirement application a one of the following death benefits: nd any beneficiary designation attendant thereto. a. the surviving spouse shall receive an annuity pay B. Any designation of beneficiary made by a firefighter able for the duration of her life and calculated as if the empl pursuant to the statute shall be made, in writing, by completi oyee had retired prior to death (R.S. 11:3385, Option 2, penu ng the applicable beneficiary designation form required by t ltimate paragraph); or he board. b. the surviving spouse may alternatively receive a r C. Whenever a retirement benefit election includes a sur efund of the employee's accumulated contributions, in lump vivor annuity in any amount, a certified copy of the said surv sum. ivor's birth certificate shall be furnished as proof of age. The 2. If an actively employed firefighter in the new syste retiree shall keep the board advised at all times of all change m or one in the old system electing coverage under the new s s of address of himself and said beneficiary. ystem, who is eligible by age and service to retire, should die D. Each firefighter in the new system and any employee a nonduty death, and if the firefighter had been married for l in the old system electing coverage in the new system shall d ess than two years or was unmarried at the time of his death, esignate a beneficiary, in writing, and deposit it with the boa the designated beneficiary may elect one of the following de rd of trustees. ath benefits:

53 Louisiana Administrative Code October 2017 a. the designated beneficiary shall receive an annuit b. the surviving spouse may alternatively receive a r y payable for the duration of his or her life and calculated as efund of the employee's accumulated contributions, in lump if the employee had retired prior to death (R.S. 11:3385, Opt sum. ion 2, penultimate paragraph); or 2. If an actively employed firefighter in the new syste b. the designated beneficiary may alternatively recei m, or one in the old system electing coverage under the new ve a refund of the employee's accumulated contributions, in l system, whether or not he is eligible by age and service to ret ump sum. ire when he suffers death in the line of duty, and if the emplo yee is unmarried at the time of death, his designated benefici 3. If an actively employed firefighter in the new syste ary may elect one of the following death benefits: m or one in the old system electing coverage under the new s ystem, who is eligible by age and service to retire, should die a. the designated beneficiary shall receive an annuit a nonduty death, and if the firefighter had been married for l y payable for the duration of her life and calculated as if the ess than two years or was unmarried at the time of his death, participant had survived till he had 20 years service at the sa and if the firefighter has failed to designate a beneficiary to r me salary and elected to retire under R.S. 11:3385, Option 2 eceive any death benefits payable, a refund of the employe with no reduction for age at the date of retirement. The Optio e's accumulated contributions, in lump sum, shall be paid to t n 2 calculation shall be based on his age and the age of his d he person or persons who meet the trustees' definition of Leg esignated beneficiary at the date of death (R.S. 11:3385, last al Representatives, as defined in Article I.5 hereof. paragraph); or NOTE: Where no beneficiary has been designated, the legal b. the designated beneficiary may elect to receive a representative will receive a refund of the employee's refund of the employee's accumulated contributions, in lump contributions plus interest earned thereon. sum. 4. If an actively employed firefighter in the new syste m, or one in the old system electing coverage under the new 3. If an actively employed firefighter in the new syste system, who is not eligible by age and service to retire when m, or one in the old system electing coverage under the new he suffers a nonduty death, his designated beneficiary may el system, whether or not he is eligible by age and service to ret ect payment to the statutory beneficiaries of the benefits set f ire when he suffers death in the line of duty, and is unmarrie orth in R.S. 11:3378.A(2) and R.S. 11:3378.B or may elect t d at the time of death but has failed to designate a beneficiar o receive a refund of the employee's contributions. y, a refund of the employee's accumulated contributions, in l ump sum, shall be payable to the person or persons who mee 5. If an actively employed firefighter in the new syste t the trustees' definition of Legal Representatives, as defined m, or one in the old system electing coverage under the new in Article I.5 hereof. system, who is not eligible by age and service to retire when NOTE: Where no beneficiary has been designated, the legal he suffers a nonduty death, and he fails to designate a benefi representative shall receive a refund of the employee's ciary to receive any death benefits payable, a refund of the e contribution plus interest earned thereon. mployee's accumulated contributions, in lump sum, shall be AUTHORITY NOTE: Promulgated in accordance with R.S. 11 paid to the person or persons who meet the definition of Leg 3361 and R.S. 11:3378 et seq. al Representatives, as defined in Article I.5 hereof. HISTORICAL NOTE: Promulgated by the Board of Trustees o 6. If an actively employed firefighter in the new syste f the Firefighters' Pension and Relief Fund for the City of New Orle ans and Vicinity, LR 20:184 (February 1994). m, or one in the old system electing coverage under the new system, who is not eligible by age and service to retire when §909. General he suffers a nonduty death, and the firefighter is survived by A. A spouse or parent may receive only one pension [R.S. dependent minor children or physically or mentally handicap 11:3378.A(1)(2)]. ped dependent children, each child will receive a death benef it set forth in R.S. 11:3378.A(2). B. Neither a retiree nor a surviving spouse shall receive a pension less than $300 per month (R.S. 11:3383). B. On-Duty Deaths C. Once a firefighter has retired and elected an optional 1. If an actively employed firefighter in the new syste benefit under R.S. 11:3385, neither the designated joint annu m, or one in the old system electing coverage under the new itant nor the optional form of benefit may be changed. When system, whether or not he is eligible by age and service to ret the survivor designated as a joint annuitant dies, no further s ire when he suffers death in the line of duty, the surviving sp urvivor benefit shall be payable. ouse shall elect one of the following death benefits: D. No benefit or joint annuity payable under R.S. 11:338 a. the surviving spouse shall receive an annuity pay 5 shall exceed the actuarial value of the participant's benefit. able for the duration of her life and calculated as if the partic ipant had survived till he had 20 years service at the same sal E. Unless the benefit payable is a refund of the participa ary and elected to retire under R.S. 33:2117.4, Option 2 with nt's own contributions together with any interest payable ther no reduction for age at the date of retirement. The Option 2 c eon or is payable under R.S. 11:3378.B, no lump sum benefit alculation shall be based on his age and the age of his widow s shall be payable by this fund (R.S. 11:155). at the date of death (R.S. 11:3385, last paragraph); or

Louisiana Administrative Code August 2013 54 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ear of service, and in R.S. 11:3377.A(1), (2), and (3) [former 3361 and R.S. 11:3378 et seq. ly R.S. 33:2113.1.A(1), (2), and (3)], for purposes of calculat HISTORICAL NOTE: Promulgated by the Board of Trustees o ing the benefit attributable to the last year of service, shall b f the Firefighters' Pension and Relief Fund for the City of New Orle e the sum of the following components: ans and Vicinity, LR 20:184 (February 1994). 1. if the year under review for purposes of calculating Chapter 11. Calculation of Benefits the firefighter's retirement benefit is a split year: §1101. Definitions a. base pay (including regularly paid millage), overt A. The term year when appearing in the term best year o ime, and state supplemental pay earned in the year under rev f service, R.S. 11:3386 (formerly R.S. 33:2117.5) shall mean iew, irrespective of date of payment; plus either §1105A.1.b. any 12-consecutive month period commencing on any day a i. or ii., as applicable: nd date preceding the firefighter's retirement that results in th b.i. if the excess millage for the last complete calenda e highest average compensation, as defined in §1105.A hereo r year included in the year under review has not yet been pai f. d to the firefighter, the higher of the two excess millage amo B. The term years when appearing in the term highest fo unts already paid to him for the two consecutive calendar ye ur consecutive years of service,. R S. 11:3384 (formerly R.S. ars immediately prior thereto, irrespective of the date of pay 33:2117.3) shall mean any four consecutive years ending on ment. Provided, however, that if the excess millage amount e any day and date preceding the firefighter's last day of servic ventually paid to the firefighter for the last such complete cal e that results in the highest four consecutive years of service. endar year is higher than the excess millage figure utilized in the benefit calculation, the firefighter's retirement benefit sha C. The term year when appearing in the term last year of ll subsequently be adjusted to reflect the higher figure; or service,. R.S. 11:3377.A(1), (2), and (3) [formerly R.S. 33:2 113.1.A(1), (2), and (3)], shall mean the consecutive ii. if the excess millage for the last complete calen 12-month period ending with the day and date of the firefigh dar year included in the year under review has already been ter's last day of service prior to retirement. paid, the highest of the three excess millage amounts paid to the firefighter for the three consecutive calendar years endin D. The term split when utilized herein in regard to year s g with the last complete calendar year included in the year u hall mean that the year in question is not a calendar year and nder review, irrespective of the date of payment; therefore ends on a day and date other than December 31. 2. if the year under review for purposes of calculating AUTHORITY NOTE: Promulgated in accordance with R.S. 11 a firefighter's retirement benefit is a calendar year: 3363, 3377, and 3384. HISTORICAL NOTE: Promulgated by the Board of Trustees o a. base pay (including regularly paid millage) overti f the Firefighters' Pension and Relief Fund for the City of New Orle me, and state supplemental pay earned in the current calenda ans and Vicinity, LR 20:785 (July 1994). r year under review, irrespective of the date of payment, plus §1103. General either §1105.A.2.b.i. or ii., as applicable: A. Under no circumstances shall the terms average comp b.i. if the excess millage for the calendar year und ensation and average salary be interpreted to include more t er review has not yet been paid to the firefighter, the higher han one annual excess millage payment in any given year. of the two excess millage amounts already paid to him for th e two calendar years immediately preceding that year, irresp B. Under no circumstances shall a different year be utiliz ective of the date of payment. Provided, however, that if the ed for purposes of calculating the value of the different comp excess millage amount eventually paid to the firefighter for t onents included in average compensation or average salary, he calendar year under review is higher than the excess milla except in regard to excess millage payments, as specified her ge figure utilized in the benefit calculation, the firefighter's r ein. etirement benefit shall subsequently be adjusted to reflect th C. Under no circumstances shall excess millage paid to a e higher figure; or firefighter for any period less than a full calendar year be an ii. if the excess millage for the calendar year unde nualized for purposes of calculating a retirement benefit, nor r review has already been paid to the firefighter, the highest shall excess millage paid to the firefighter in the calendar ye of the three excess millage amounts paid to the firefighter fo ar of his retirement be utilized in his benefit calculation unle r the three consecutive calendar years ending with the calend ss that calendar year is also a benefit year. ar year under review, irrespective of the date of payment. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 B. The term average salary when appearing in R.S. 11:3 3363, 3381, 3385, and 3386. HISTORICAL NOTE: Promulgated by the Board of Trustees o 384 (formerly R.S. 33:2117.3), for purposes of calculating th f the Firefighters' Pension and Relief Fund for the City of New Orle e highest four consecutive years of service, shall mean: ans and Vicinity, LR 20:785 (July 1994). 1. if the four years under review for purposes of calcul §1105. Calculation of Benefit Amount ating the firefighter's retirement benefit begin and end with a split year: A. Average compensation, as appearing in R.S. 11:3386 (formerly R.S. 33:2117.5), for purposes of identifying best y

55 Louisiana Administrative Code October 2017 a. base pay (including regularly paid millage), overt Chapter 13. Service Credit ime, and state supplemental pay earned in the four years und er review, irrespective of the date of payment; plus either §1 §1301. Reciprocal Recognition of Credited Service―Re 105.B.1.b.i. or ii., as applicable: ciprocal Benefit b.i. if the excess millage payable for the last compl A. In accordance with R.S. 11:142, an employee shall co ete calendar year included in the four years under review has mbine his credited service accrued under a public retirement not yet been paid to the firefighter, the sum of the excess mil system with his credited service accrued under the Firefighte lage amounts already paid for the four consecutive calendar rs' Pension and Relief Fund for the City of New Orleans (fun years ending with the last complete calendar year included in d) to receive a reciprocal benefit from the public retirement s the four years under review, irrespective of the date of paym ystem and this fund, provided the provisions under R.S. 11:1 ent. Provided, however, that if the excess millage amount ev 42 and these rules and regulations are satisfied. entually paid to the firefighter for the last complete calendar 1. Definitions year included in the four years under review is higher than th Employee―a firefighter eligible under the Firefighter at paid for the first complete calendar year utilized in the ben s' Pension and Relief Fund for the City of New Orleans. efit calculation, the firefighter's retirement benefit shall subs equently be adjusted to reflect the higher figure; or Fund―the Firefighters' Pension and Relief Fund for t he City of New Orleans. ii. if the excess millage amount payable for the las t complete calendar year included in the four years under rev Public Retirement System―any state, municipal, or p iew has already been paid, the sum of the excess millage am arochial retirement or pension system, fund, or program offe ounts paid to the firefighter for any four consecutive calenda red within the state of Louisiana, other than this fund, that of r years of the five consecutive calendar years ending with th fers regular retirement, disability retirement, or death and sur e last complete calendar year included in the four years unde vivor benefits. r review, irrespective of the date of payment; Reciprocal Benefit―the prorated retirement, disabilit 2. if the four years under review for purposes of calcul y, death, or survivor benefit from this fund and a public retir ating a firefighter's retirement benefit are calendar years: ement system, based on the employee's membership service credit actually accrued and credited under each respective ret a. base pay (including regularly paid millage), overt irement system equal to the full benefit payable from each sy ime, and state supplemental pay earned in the four years und stem had the employee satisfied the minimum eligibility con er review, irrespective of the date of payment; plus either §1 ditions under each system for such benefit. The terms and co 105.B.2.b.i or ii: nditions of each retirement system shall apply to determine t b.i. if the excess millage payable for the last calend he employee's reciprocal benefit. ar year included in the four consecutive calendar years under Reciprocal Benefit Application―the application form review has not yet been paid to the firefighter, the sum of the approved by the board of trustees of this fund. The applicatio excess millage amounts already paid for the four consecutive n form may be obtained from the fund office. calendar years ending with the last calendar year included in the four years under review, irrespective of date of payment 2. Eligibility Provided, however, that if the excess millage amount eventu a. In order to file a reciprocal benefit application wi ally paid to the firefighter for the last calendar year included th the board of trustees of this fund, the employee must be an in the four calendar years under review is higher than that pa active member of this fund currently making contributions to id for the first calendar year included in the benefit calculati this fund. A former employee of this fund may file a reciproc on, the firefighter's retirement benefit shall subsequently be a al benefit application with this fund provided he is not active djusted to reflect the higher figure; or ly contributing to this fund or to any public retirement syste ii. if the excess millage amount payable for the las m at the time of the filing of the application, and that this fun t calendar year included in the four calendar years under revi d is the last system to which he contributed. However, an em ew has already been paid, the sum of the excess millage amo ployee shall not be eligible to receive any reciprocal benefit unts paid to the firefighter for any four consecutive calendar from this fund or from a public retirement system so long as years of the five consecutive calendar years ending with the the employee continues to contribute to this fund or another final calendar year under review, irrespective of the date of p public retirement system. ayment. b. To receive a reciprocal benefit, the employee mus AUTHORITY NOTE: Promulgated in accordance with R.S. 11 t satisfy the following conditions. 3363-3381, 3385, and 3386. HISTORICAL NOTE: Promulgated by the Board of Trustees o i. The employee must satisfy the eligibility requir f the Firefighters' Pension and Relief Fund for the City of New Orle ements of the public retirement system. ans and Vicinity, LR 20:785 (July 1994). ii. The employee must satisfy the eligibility requir ements of this fund and must accumulate at least six months of credited service under this fund.

Louisiana Administrative Code August 2013 56 iii. The employee must not have previously receiv by the minimum years of service required under that system ed a refund of his employee contributions from this fund or a to receive a benefit. ny public retirement system. If an employee has received a r b. The amount of the employee's reciprocal benefit f efund of his employee contributions, he may repay his empl rom both this fund and the public retirement system shall not oyee contributions plus compounded interest at the actuarial exceed: rate approved by the board of trustees, from the date of the r efund of his employee contributions until the date of repaym i. 100 percent of the highest average compensatio ent. n on which the benefit is based under both plans; and iv. The employee must file a reciprocal benefit ap ii. the highest benefit under either this fund or the plication with the board of trustees of this fund. Any other ap public retirement system, if all years of service credit accrue plication form or document shall be unacceptable and void. d under both systems were considered in calculating such be An employee may rescind, cancel, or withdraw his reciproca nefit under each respective system. l benefit application any time by notifying the board of truste c. If the reciprocal benefit exceeds the above limitat es, in writing, of his rescission, cancellation, or withdrawal o ion under §1301.A.3.b.i. or ii., then this fund or the public re f his application. tirement system, if applicable, shall reduce the reciprocal be 3. Calculation of Reciprocal Benefit nefit in proportion to the total reciprocal benefit paid from b oth systems. a. The employee's reciprocal benefit from the publi c retirement system and from this fund shall be calculated as 4. Coordination of Reciprocal Benefit between This F follows. und and Other Public Retirement Systems i. The terms and conditions of this fund and the p a. The trustees' approval of an application submitte ublic retirement system shall apply as of the date of the empl d to this fund for payment of a reciprocal benefit shall be in oyee's date of retirement, disability, or death. compliance with R.S. 11:142 and these rules and regulations. Upon approval of the reciprocal benefit application by the tr ii. The benefit formula used to calculate the empl ustees, the trustees shall forward the approved application to oyee's reciprocal benefit from each system shall be the benef the appropriate public retirement system in question. The tru it formula in effect under this fund and under the public retir stees shall coordinate the payment of the reciprocal benefit ement system on the employee's date of retirement, disability with the public retirement system in which the employee has or death. accumulated service credit and shall notify the public retire iii. The employee's compensation earned and accr ment system when the covered member ceases to be an activ ued under this fund shall be used to calculate his reciprocal b e member under this fund and is thus entitled to receive a rec enefit from this fund. The employee's compensation earned a iprocal benefit due to retirement, disability, or death. The tru nd accrued under the public retirement system shall be used t stees of this fund shall notify all public retirement systems of o calculate his reciprocal benefit from the public retirement s the amount of the reciprocal benefit payable from this fund a ystem. nd the calculation of such benefit. iv. The employee's years of service credit accrued b. The trustees of this fund, in their sole and absolut and earned under this fund shall be used to calculate his reci e discretion, may agree with the trustees of the public retire procal benefit from this fund. The employee's years of servic ment system that the payment of the total reciprocal benefit s e credit accrued and earned under the public retirement syste hall be made by one system and that the other system shall m shall be used to calculate his reciprocal benefit from the p make appropriate reimbursement to the system making the t ublic retirement system. The following shall apply to determ otal reciprocal benefit payment. ine the years of service credit: c. If the reciprocal benefit is payable from both this (a). years of service credit shall not be duplicated; fund and the public retirement system in a lump sum form of payment, the additional lump sum benefit shall be paid in pr (b). an employee shall not receive more than one oportion to the years of credited service accrued under each year of service credit during a single calendar or fiscal year; system that represents the total years of credited service und and er both this fund and the public retirement system. The total l (c). an employee shall not accrue more than four ump sum benefit under both systems shall not be less than th years of military credit as service credit under this fund and e greatest lump sum benefit payable under either this fund or no more than five years of military credit as service credit un the public retirement system. If the total lump sum benefit is der both this fund and the public retirement system. less than the greatest lump sum benefit payable, the system h aving the greatest lump sum benefit shall pay the difference. v. If the employee fails to accumulate the require d minimum years of service under either this fund or the pub AUTHORITY NOTE: Promulgated in accordance with R.S. 11 lic retirement system, the employee's reciprocal benefit paid 142, 143, and 3363. by that system shall be prorated accordingly. The prorated re HISTORICAL NOTE: Promulgated by the Board of Trustees o ciprocal benefit shall be calculated based on the employee's f the Firefighters' Pension and Relief Fund of the City of New Orle ans and Vicinity, LR 21:566 (June 1995). years of service actually accrued under that system, divided

57 Louisiana Administrative Code October 2017 §1303. Transfer of Service Credits nsferring system or the receiving system. If an employee has received a refund of his employee contributions from this fu A. In accordance with R.S. 11:143, an employee shall tra nd, he may repay his employee contributions plus compound nsfer any service credits accumulated under a public retirem ed interest at the actuarial rate approved by the board of trust ent system to the Firefighters' Pension and Relief Fund for th ees from the date of the refund of his employee contributions e City of New Orleans (fund), including all employee and e until the date of repayment. mployer contributions and interest accrued thereon, at the rat e specified herein; or shall transfer any service credits accum iv.(a). If this fund is the receiving system, the empl ulated under this fund to a public retirement system, includin oyee must file an application with this fund requesting this f g all employee and employer contributions and interest accru und to receive his service credits accumulated under the tran ed thereon, at the rate specified herein. sferring system. An application to transfer credits to this fun d shall be made on the application form approved by the boa 1. Definitions rd of trustees. Any other application form or document shall Employee―a firefighter eligible under the Firefighter be unacceptable and void. s' Pension and Relief Fund for the City of New Orleans. (b). If this fund is the transferring system, the em Fund―the Firefighters' Pension and Relief Fund for t ployee must file an application with this fund requesting this he City of New Orleans. fund to transfer the employee's service credits accumulated u nder this fund to the receiving system designated by the emp Public Retirement System―the following: loyee. An application to transfer credits from this fund shall i. any public retirement or pension system, fund, be made on the application form approved by the board of tr or program offered within the state of Louisiana; ustees. The trustees shall accept, in lieu thereof, any similar written application from the receiving system designated by ii. any retirement or pension plan, fund, or progra the employee, provided the requisite information is containe m maintained primarily for officers and employees of the sta d therein. te of Louisiana; (c). At any time prior to completing the transfer iii. any retirement or pension plan, fund, or progra of credit to the receiving system the employee may rescind, m maintained primarily for officers and employees of any po cancel, or withdraw his application by notifying the board of litical subdivision of the state of Louisiana, or any district, b trustees, in writing, of his rescission, cancellation, or withdra oard, commission, agency, or any other such public entity of wal. the state of Louisiana. 3. Transfer of Credits from a Transferring System to T Receiving System― his Fund as the Receiving System i. this fund when it receives service credits accu a. If an employee transfers accumulated service cre mulated by an employee under another public retirement sys dits from a transferring system to this fund (receiving fund), tem; or the following information with regard to the employee must ii. the public retirement system when it receives s be furnished to this fund from the transferring system: ervice credits accumulated by an employee under this fund. i. the total number of credits accumulated by the Transferring System― employee under the transferring system and dates of service, including prior years of service, military service, or any othe i. this fund when it transfers service credits accu r credit accumulated under the transferring system; mulated by the employee under this fund to another public re tirement system; or ii. the amount of contributions accumulated under the transferring system attributable to: ii. the public retirement system when it transfers s ervice credits accumulated by the employee under that publi (a). employer contributions; and c retirement system to this fund. (b). employee contributions; 2. Eligibility iii. an amount of interest equal to the actuarial valu a. An employee may transfer credits from the transf ation rate approved by the board of the transferring system, c erring system to the receiving system upon satisfying the foll ompounded annually, calculated from the year of contributio owing conditions. n to the date of the desired transfer of credits attributable to: i. The employee must have been a member of the (a). employer contributions; and transferring system for at least six months. (b). employee contributions; ii. The employee must have membership credit in iv. the total of all contributions accumulated by th the receiving system at the time the receiving system receive e employee under the transferring system, plus interest attrib s the transferred service credit. utable thereto as specified herein. If the employer contributio iii. The employee must not have previously receiv ns referred to under §1303.A.3.a.ii.(a) and §1303.A.3.a.iii. ed a refund of his employee contributions from either the tra (a) are not at least a fixed percentage of the employee's earni

Louisiana Administrative Code August 2013 58 ngs, the amount of employer contributions shall equal the a es shall approve any such application if the employee pays t mount of employee contributions; he difference in said accrued liability. v. the job classification, grade, and salary earned f. Credits transferred to this fund in accordance wit under the transferring system as of the date of the last contri h §1303.A.3 shall be counted toward the eligibility requirem bution to the transferring system, together with all job classif ent of 20 years of service under R.S. 11:3381 and R.S. 11:33 ications and grades held during the time any and all service c 84 to entitle the employee to a retirement benefit from this fu redit was earned and accrued under the transferring system. nd. b. Upon receipt of the appropriate information from g. If an employee accumulates a combined total of 2 the transferring system, as set forth above, the following calc 0 or more years of service credit after the transfer of service ulations shall be performed: credits to this fund from a transferring system, and at such ti me the employee is continuing to make employee contributi i. the amount that would have been contributed b ons in accordance with the law governing employee contribu y the employee, together with a duplicate amount designated tions to this fund under R.S. 11:3365.A, the employee shall n as an employer contribution, including interest equal to the a o longer be subject to R.S. 11:3365.A pertaining to employee ctuarial valuation rate approved by the board of trustees of th contributions through salary deductions and shall not be requ is fund, compounded annually, from the date of the contribut ired to submit employee contributions to this fund thereafter. ion until the date of transfer, just as if all of the employee's s An employee who accumulates more than a combined total o ervice credit had originally been accrued and contributions h f 20 years of service credit after the transfer of credits to this ad been made in accordance with the law governing contribu fund from a transferring system shall not be entitled to apply tions to this fund; any excess employee contributions resulting therefrom as a c ii. the total amount that would be transferred to th redit, refund, or offset against any deficiency or disparity tha is fund from the transferring system based on the total amou t may result under §1303.A.3, even though the combined tot nt of all contributions and interest earned thereon, as further al years of service credit, after the transfer of credit to this fu provided under §1303.A.3.a. nd, exceed 20 years of service credit. c. If the total of the amount determined under §130 h. If the employee had accumulated under the transf 3.A.3.b.ii is equal to or greater than the amount determined u erring system any free service credit, he may transfer said cr nder §1303.A.3.b.i, the trustees shall approve the transfer of edit to this fund only upon payment to this fund of the emplo the employee's service credit upon payment of the amount ca yee and employer contributions that would have been earned lculated under §1303.A.3.b.ii from the transferring system to during the same period had the employee been a member of t this fund. his fund, plus interest compounded thereon, equal to the actu arial valuation rate approved by the board of trustees of this f d. If the total amount determined under §1303.A.3.b. und from the date the contributions would have been due unt i is greater than the amount determined under §1303.A.3.b.ii, il the date paid. Said payment must be made at the time of tr the trustees shall not approve said transfer of service credit u ansfer. nless: i. In calculating the retirement benefit of an employ i. the employee pays to this fund the deficit or dif ee who transfers service credit to this fund from a transferrin ference between the sums calculated under §1303.A.3.b.i an g system, in accordance with R.S. 11:143 and these rules and d §1303.A.3.b.ii, including both employer and employee con regulations, the trustees and their consulting actuary shall us tributions, plus interest compounded thereon, equal to the act e the retirement percentage factor of the transferring system, uarial valuation rate approved by the board of trustees of this based on the number of years of service credit transferred. fund; or j. In the event an employee should die after filing w ii. in lieu of paying said deficit or difference, the e ith this fund his written application for transfer of credits fro mployee, at his option, may elect to have his transferred serv m the transferring system to this fund, the trustees shall com ice credit prorated under this fund, as calculated by the truste plete the transfer of service credit provided, however, that th es, based on the amount of funds that would be transferred to e application complies with R.S. 11:143 and with these rules this fund from the transferring system, including the amount and regulations. The trustees shall consider the application c of all contributions and interest earned thereon, as further pr ompleted as of the day before the death of the employee. ovided under §1303.A.3.a. Said election may be made only a 4. Transfer of Credits from This Fund as the Transferri t the time of transfer. ng System to the Receiving System e. Notwithstanding the above provisions, the trustee a. If an employee transfers accumulated service cre s shall not approve any application for transfer of credits to t dits from this fund (transferring system) to the receiving syst his fund from a transferring system unless the assets transfer em designated by the employee, the following information w red, as determined under §1303.A.3.b.ii, amount to at least 1 ith regard to the employee shall be furnished to the receiving 00 percent of the increase in accrued liability that is occasion system from this fund: ed by the employee's transfer to this fund, as calculated by th e trustees and their consulting actuaries. However, the truste

59 Louisiana Administrative Code October 2017 i. the number of credits accumulated under this f rement system, and subsequently becomes employed in empl und and dates of service, including prior years of service, mi oyment that would otherwise render him eligible to participa litary service, or any other service credit; te in a public retirement system which has previously transfe ii. the amount of contributions accumulated under rred credit, he shall not be permitted, under R.S. 11:143.H, t this fund as the transferring system attributable to: o become a member of said public retirement system. Accor dingly, the trustees shall not permit membership in this fund (a). employer contributions; and of any employee who has retired with a benefit or has taken (b). employee contributions; a deferred benefit from any other public retirement system if this fund has previously transferred credits for that employee. iii. the amount of interest equal to the actuarial val uation rate approved by the board of trustees of this fund, co d. The trustees, in their sole and absolute discretion, mpounded annually, calculated from the year of contribution shall assess an actuarial transfer fee in such amount as they to the date of the desired transfer of credits attributable to: may deem fit and appropriate. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 (a). employer contributions; and 142, 143, and 3363. (b). employee contributions; HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Firefighters' Pension and Relief Fund of the City of New Orle iv. the total of all contributions accumulated under ans and Vicinity, LR 21:566 (June 1995). this fund as the transferring system, plus interest attributable §1305. Sick and Annual Leave thereto, as specified herein. If the employer contributions ref erenced in §1303.A.4.a.ii.(a) and §1303.A.4.a.iii.(a) are not a A. A member may elect to utilize any sick and annual lea t least a fixed percentage of the employee's earnings, the am ve he has accrued for purposes of obtaining additional pensi ount of employer contributions shall equal the amount of em on credits. ployee contributions; B. A member may also elect at any time prior to retireme nt to utilize annual leave in excess of the "use it or lose it" le v. the job classification, grade, and salary earned ave limitations established by rules of the New Orleans City under the transferring system at the date of the last contributi Civil Service Commission during any period of time allowed on to the transferring system, together with all job classificat by City Civil Service Commission action for the "rolling ove ions and grades held during the time any and all service cred r" of such excess annual leave to avoid forfeiture. Such exce it was earned and accrued under the transferring system. ss leave may be used to obtain additional pension credits. b. If the trustees should receive notification from th AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e receiving system that it has approved said transfer of servic 3363 and 3385.1. e credits, the trustees shall transfer to the receiving system th HISTORICAL NOTE: Promulgated by the Board of Trustees o e total contributions and interest accumulated thereon, as spe f the Firefighters' Pension and Relief Fund for the City of New Orle cified herein. ans and Vicinity, LR 26:294 (February 2000), amended LR 33:1343 (July 2007). c. In the event an employee should die after filing h is written application with this fund or the receiving system Chapter 15. Deferred Retirement Opt designated by the employee for transfer of service credits fro ion Plan m this fund to the receiving system, the trustees shall comple §1501. Definitions te the transfer of service credit provided, however, that the a pplication complies with R.S. 11:143 and with these rules an A. In connection with R.S. 11:3385.1 and when used in t d regulations. The trustees shall consider the application com hese rules and regulations, the following terms shall have the pleted as of the day before the death of the employee. following meanings. 5. General Provisions Board or Board of Trustees―the Board of Trustees of th e Firefighters' Pension and Relief Fund for the City of New a. After an application is completed, this fund, as th Orleans. e transferring system, shall have no future liability with resp ect to any employee who elects to have his service credits tra Covered Employment―service pursuant to R.S. 11:3361 nsferred from this fund to a receiving system. Similarly, any as a firefighter employed by the fire department of the city o transferring system transferring service credits to this fund, a f New Orleans actively engaged in the extinguishment of fire s the receiving system, shall have no future liability with res s. pect to any employee who elects to transfer credits to this fu Creditable Service―pension credits accrued in the fund nd. by a member on the basis of services rendered in covered em b. The trustees shall not consider any request for tra ployment. Solely for purposes of eligibility in the DROP, cre nsfer of a deceased employee's credits if the request is made ditable service shall include service credit reciprocally recog by his survivor, heir, or estate. nized under R.S. 11:142. c. In the event an employee completes a transfer of DROP―established in R.S. 11:3385.1 for eligible mem service credit in accordance with R.S. 11:143 and these rules bers of the Firefighters' Pension and Relief Fund for the City and regulations, and either retires with a benefit or takes a de of New Orleans. ferred retirement from this fund or from any other public reti

Louisiana Administrative Code August 2013 60 DROP Account―an individual member's accumulation 5. By submitting a DROP enrollment application, the of monthly service retirement benefits payable to him by the member shall automatically elect to participate in the DROP fund during a period of DROP participation in accordance w for the full five-year period. Nonetheless, the member may e ith the member's service retirement benefit election. xit the DROP at any time by filing with the board an applicat ion to withdraw from the DROP, effective upon the board's a Fund―the Firefighters' Pension and Relief Fund for the pproval. City of New Orleans. Fund DROP Account―the bank account held by the fun B. A member may participate in the DROP only once, ex d on behalf of all participating DROP members in which are cept as otherwise provided in §1505.T. deposited the monthly payments payable on behalf of each C. The member's application to enter the DROP shall req member for his individual DROP account during his particip uest retirement on the first day of a calendar month and shall ation in the DROP. specify a requested effective date no earlier than the first day Member―a firefighter employed by the fire department of the second calendar month following the calendar month i of the city of New Orleans who is actively engaged in exting n which the DROP enrollment application is submitted. The uishing fires, or is otherwise eligible pursuant to R.S. 11:336 service retirement application and the DROP enrollment app 1 to participate in the fund. lication shall not be submitted to the board for consideration and approval until such time as all required and requested da Qualified Domestic Relations Order or QDRO―an orde ta, documentation, and information have been submitted to t r issued by a court of competent jurisdiction recognized and he board in order to complete both the service retirement and approved by the board pursuant to its rules and regulations r the DROP enrollment applications. Such participation shall b elating to QDROs as requiring the board to make payment of e limited to a maximum period of five years, i.e., 60 calendar a part or all of a member's retirement benefit to an alternate months, as to each individual. beneficiary. Retired Member―a former member receiving retiremen AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363, and 3385.1. t benefits from the fund, but not including a DROP participa HISTORICAL NOTE: Promulgated by the Board of Trustees o nt who is not yet eligible to receive a distribution from his D f the Firefighters' Pension and Relief Fund for the City of New Orle ROP Account. ans and Vicinity, LR 22:703 (August 1996), amended LR 26:290 (F ebruary 2000). Service Retirement Benefit―the vested benefit of a me mber payable from the new system under R.S.11:3384 or fro §1505. Participation in and Withdrawal from the DRO m the old system under R.S. 11:3381. P Year of Creditable Service―a period of 12 consecutive A. The effective date of a member's entry into the DROP months of pension credit accrued in the fund by a member o shall be the first day of the second calendar month following n the basis of services rendered in covered employment. the calendar month in which the member initially files his D ROP enrollment application, providing, however, that: AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363, and 3385.1. 1. the member has completed submission of any and a HISTORICAL NOTE: Promulgated by the Board of Trustees o ll requested data, documentation, and information to the boar f the Firefighters' Pension and Relief Fund for the City of New Orle d in connection with the DROP enrollment application and t ans and Vicinity, LR 22:703 (August 1996), amended LR 26:290 (F he service retirement application no later than the seventh of ebruary 2000). the first calendar month (or the first work day following this §1503. Eligibility date if the seventh of the first calendar month falls on a holid A. In order to satisfy eligibility to participate in the DRO ay or weekend) following the submission date; and P, the member shall satisfy the following conditions. 2. the board has considered and formally approved sai 1. The member shall have accrued not less than d applications prior to the requested effective date. 20 years of creditable service, including not less than B. Upon the effective date of the member's DROP partici 15 years of creditable service accrued in this fund, plus any r pation, the fund shall distribute monthly benefit payments pu eciprocal credit reciprocally recognized by the board under rsuant to the member's service retirement award into the me R.S. 11:142. mber's DROP account. 2. The member shall satisfy all eligibility requirement C. Upon a member's commencement of participation in t s for a service retirement benefit. he DROP, his membership in the fund shall terminate and he 3. The member shall file with the board and the board shall accrue no additional creditable service during DROP pa shall approve the member's service retirement benefit applic rticipation. ation. D. No employer contributions shall be made to the fund 4. The member shall file and the board shall approve t on behalf of a member participating in the DROP, nor shall t he member's DROP enrollment application. he member be required to make employee contributions to th e fund.

61 Louisiana Administrative Code October 2017 E. A member's compensation and creditable service shall ployment after the effective date of his DROP completion, th be frozen when the member enters participation in the DRO e board shall notify the member, in writing, at his last known P and shall thereafter remain as they existed on the effective address, that the fund has ceased monthly payments into his date of the member's commencement of participation in the DROP account. DROP. M. If the member should die during his period of particip F. A member participating in the DROP shall not be eligi ation in the DROP, a lump sum payment of the balance in th ble to receive the cost-of-living adjustments awarded by the e member's DROP account shall be paid to his designated be fund from time to time to retired members. Eligibility for cos neficiary, or if none, to his estate upon written application to t-of-living adjustments shall not commence until the member the fund office. Any additional survivor and/or death benefit has been separated from covered employment for one full ye s payable to the member's beneficiary or beneficiaries, in acc ar. ordance with the member's individual retirement election, all applicable statutory provisions, and the board's rules and reg G. A member's DROP account shall not be charged, debit ulations pertaining to death benefits, shall also be subject to ed, or assessed any fees, charges or similar expenses of any distribution. kind for any purpose, nor shall the account be subject to dim inution based on valuation or earnings losses of any kind dur N. No distribution shall be made from a member's DROP ing the member's participation in the DROP. In addition, no s account until the member's covered employment has been fu uch fees, charges, losses, or other similar charges shall be ch lly terminated. A member's DROP account shall not be distri arged, debited, or assessed against the member indirectly, du butable at any time during the member's DROP participation ring the member's participation in the DROP. or at any time prior to the member's separation from covered employment, even if the member has exited from the DROP. H. A member's DROP account shall not earn or accrue an y interest, gains, or earnings of any kind, nor shall the memb O. Upon termination of covered employment, distributio er accrue such earnings indirectly, during his DROP particip n of the member's DROP account may be made as a one-tim ation. Upon completion of participation in the DROP, and re e lump sum payment, in a series of periodic or non-periodic gardless of whether the member terminates employment wit payments, or as a partial lump sum payment with periodic di h the fire department, the DROP account will earn interest ea stributions of the balance, all as allowed herein. Allowable di ch year based on a five-year rolling average of the composite stributions vary depending upon whether the member retires rate of return of the pension fund, minus an administrative fe before, during or after the calendar year in which the membe e of no more than 2 percent, to be deducted from the membe r reaches age 55. Direct rollovers are subject to the fund's cu r's DROP account each year. rrent rules and regulations and IRS guidelines. I. Pursuant to R.S. 29:415.1, a member shall not accrue 1. Members Retiring before the Calendar Year in whic any military service credit or pension credit based on militar h the Member Reaches Age 55 y service performed during a member's participation in the D a. A member who does not rollover his DROP acco ROP. unt may withdraw 100 percent of his account balance at any J. The duration of participation in the DROP shall time after termination of covered employment upon written not exceed a period of five consecutive years, i.e., notice to the fund office. For a member who retired before th 60 consecutive calendar months, measured from the effectiv e calendar year in which the member reached age 55, and wh e date of commencement of participation in the DROP. o is at the time of the distribution under age 59 1/2, the distribution of the member's taxable portion of hi K. A member may terminate his participation in the DRO s account balance will be subject to an early distribution pen P to be effective as of the last day of any calendar month pri alty of the IRS equal to 10 percent of the taxable distribution. or to the end of the maximum five-year period by filing with the board of trustees of the fund a DROP withdrawal applica b. A member may elect to receive his DROP accoun tion, providing the DROP withdrawal application is submitte t balance (including both taxable and non-taxable portions), d to the board no later than the last day of the previous calen as a series of equal periodic (at least annual) payments over t dar month. Nevertheless, in the event the board determines, he life (or life expectancy) of the member or the joint lives based on all facts and circumstances at issue, that justice so r (or joint life expectancies) of the member and his designated equires and equity so warrants, the board shall be fully autho beneficiary. Such periodic distributions over life expectancy rized, entirely in its discretion, to approve termination of a fi are not subject to the 10 percent early distribution penalty; h refighter's participation in the DROP effective upon a date ea owever, the distributions are subject to normal taxation on th rlier or later than would otherwise apply. e taxable portion. L. If a member participating in the DROP does not termi i. Upon the member's attainment of age 59 1/2 th nate his covered employment upon completion of five years e equal periodic distributions may be terminated, and the me of participation in the DROP or upon the effective date of his mber may elect to receive any form of distribution without i approved withdrawal prior thereto, payment of the member's ncurrence of the 10 percent early distribution penalty until th service retirement benefit into the member's DROP account s e member reaches age 70 1/2 at which time mandatory distri hall automatically cease. In the event the member has failed t butions over the member's and/or beneficiary's life expectan o notify the board of his intent to continue in his covered em cy must commence, as provided in Subsection P herein.

Louisiana Administrative Code August 2013 62 c. A member may elect to receive 100 percent of th ng the mandatory distributions, subject to fund's current rule e non-taxable portion of his DROP account in one lump sum s. payment, and the balance of the DROP account as a series of P. Members and their beneficiaries may defer receipt of equal periodic payments (at least annual) over the life (or lif a distribution from the DROP account indefinitely, subject to e expectancy) of the member or the joint lives (or joint life e the Internal Revenue Service's mandatory distribution rules. xpectancies) of the member and his designated beneficiary. No 10 percent penalty is assessed on this type of distribution. Q. Upon termination of covered employment, the membe r may file an application with the board requesting distributi i. Upon the member's attainment of age 59 1/2 th on of his DROP Account on the first day of any calendar mo e equal periodic distributions may be terminated, and the me nth following the calendar month of termination. Provided, h mber may elect to receive any form of distribution without i owever, that the requested distribution date shall be no earlie ncurrence of the 10 percent early distribution penalty until th r than the second calendar month following the calendar mo e member reaches age 70 1/2, at which time mandatory distri nth of termination. butions over the member's and/or beneficiary's life expectan cy must commence, as provided in Subsection P herein. R. In the event a member validly elects to rollover all or any part of his DROP distribution to a qualified plan or an in d. A member may elect to receive his distribution in dividual retirement account, said distribution shall not be ma a manner other than a series of equal periodic payments base de until at least 30 days after the member has acknowledged, d upon his and/or his beneficiary's life expectancy; however, in writing, receipt of the applicable explanation to employee if the member is under age 59 1/2 at the time of such a non-p s and notice relating to rollover, direct rollover, income aver eriodic distribution of a taxable amount of the DROP accoun aging treatment, and tax consequences upon distribution, or t, any such distribution will be subject to a compliance with any timeliness requirement subsequently es 10 percent early distribution penalty, as well as a recapture p tablished by applicable law, if different. Any such election sh enalty. The recapture penalty provides for a 10 percent additi all be made in compliance with the board's rules and regulati onal tax on all taxable distributions received by the member ons of direct rollovers and all applicable provisions of the In since retirement, inclusive of monthly retirement benefits an ternal Revenue Code then effective. d any prior distributions from the member's DROP account. S. Upon termination of covered employment, the monthl i. Non-periodic distributions may be made no mo y benefits that were formerly paid into the member's DROP re than four times in a calendar year, and then only on the fir account during his period of participation shall be paid direct st day of each fiscal quarter (March 1, June 1, September 1 a ly to the retired member. nd December 1). All non-periodic distributions must be a mi nimum of $1,000. For any distribution, the member must pro T. The member shall not be permitted to change, revoke vide the fund office with written notice no later than or rescind the retirement benefit distribution option selected 30 days prior to the first business day of the fiscal quarter. and/or the beneficiary or beneficiaries he designated upon en tering into the DROP regarding his service retirement benefit 2. Members Retiring during or after the Calendar Year nor shall any such change be permitted at the time the DROP in which the Member Reaches Age 55 account is distributed. However, a member who is participati a. Any member terminating covered employment d ng or has participated in the three-year DROP and has contin uring or after the calendar year in which the member reaches ued in active employment with the fire department, may elec age 55 may elect any of the options available under Subpara t, on or before December 31, 1999, either to extend his partic graph O.1 above without being subject to the ipation in the DROP for the remainder of the five-year perio 10 percent early distribution penalty or recapture penalty. All d beginning on the date he entered the DROP, or to revoke hi other rules regarding non-periodic payments apply. In order f s participation in the DROP. In the event the member elects t or the fund to comply with federal law regarding the mandat o extend his participation in the DROP, any period of time h ory commencement of retirement benefits, distributions from e has been out of the three-year DROP will be included in ca a member's DROP account must commence no later than Ap lculating the five-year DROP period. In the event the membe ril 1 of the calendar year following the calendar year in whic r elects to revoke his three-year DROP participation, the me h the member reaches age 70 1/2. These minimum distributi mber's entire DROP account, including any interest earned, ons are accomplished by a monthly DROP distribution whic will be returned to the fund, and the member will be placed i h is calculated to distribute the entire balance of a member's n the same position as if he had never elected to participate i DROP account over a period not extending beyond the life e n the DROP. The member will be considered to have been an xpectancy of the member or the joint life expectancy of the active employee in the system, and all creditable service and member and his designated beneficiary. Distributions above compensation earned during the period of the revoked DRO those which are mandatory are allowable, subject to the fun P participation will be credited toward the member's new be d's current rules. nefit calculation. If the member chose any option other than t he single life annuity when he originally entered the DROP, i. Members terminating covered employment dur his spouse must consent to the revocation and any subsequen ing or after the calendar year in which the member reaches a t election, other than a joint and survivor annuity option. Ho ge 55, who are now over age 70 1/2, are eligible to receive di wever, no action by the member nor decision by the board m stribution of all or any portion of the DROP account exceedi ay circumvent a previously approved QDRO.

63 Louisiana Administrative Code October 2017 U. If the member does not terminate his covered employ ulate the additional benefit shall be based on the member's c ment upon completion of the maximum five-year participati ompensation during the period of additional service. on period or upon such earlier date as the member has specif 3. If the member was first employed before December ied for withdrawal: 31, 1967 but originally elected to retire from the new system 1. monthly service retirement benefit payments into th that election shall also apply to and determine the additional e DROP account shall cease; and benefits accrued for post-DROP service. 2. the member shall resume active membership in the B. The distribution option under R.S. 11:3385 originally system; and selected by the new system member upon entering into the D ROP shall also apply to any additional benefits accrued duri 3. the member shall commence accrual of additional c ng the period of additional covered employment. reditable service under the system; and C. The beneficiary designated by the member upon entry 4. the member's DROP account will begin to earn inte into the DROP shall also be the beneficiary or beneficiaries rest each year based on a five-year rolling average of the co designated in connection with the additional benefits accrued; mposite rate of return of the pension fund, minus an administ however, in the event the member's designated beneficiary h rative fee of no more than 2 percent, which will be deducted as predeceased the member, the member may designate a ne from the member's DROP account each year. The interest rat w beneficiary or beneficiaries for purposes of the additional e will be determined by the fund actuary at the end of each c retirement benefit only. alendar year, but will be effective beginning the subsequent f iscal year (July 1). D. If, following a period of additional covered employme nt performed after leaving the DROP, the board determines t AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363 and 3385.1. hat the member is disabled pursuant to R.S. 11:3376 and is t HISTORICAL NOTE: Promulgated by the Board of Trustees o herefore eligible to receive a service-connected disability be f the Firefighters' Pension and Relief Fund for the City of New Orle nefit, the following terms and conditions shall apply. ans and Vicinity, LR 22:704 (August 1996), amended LR 23:1145 (September 1997), LR 26:293 (February 2000). 1. The amount of the service-connected disability ben efit shall be in the same amount and calculated as a service r §1507. Post-DROP Accruals and Retirement Benefits etirement benefit based only on the credited service accrued A. If a member continues in covered employment after te subsequent to the date of the member's termination of partici rmination of his participation in the DROP, the member shall pation in the DROP. accrue a second retirement benefit based on his additional co 2. The fund shall distribute to the member, upon his w vered employment performed following the date of terminati ritten application to the fund office, a lump sum payment in on of his DROP participation, using the normal method of co an amount specified by the member. Provided, however, that mputation of benefits, subject to the following conditions. the member may not elect to withdraw an amount less than $ 1. New System Member 1,000, or more than the balance in his DROP account at the t ime the application is filed with the board of trustees. a. If the member originally retired from the new sys 3. The member's monthly benefit payments attributabl tem, and his period of additional covered employment after t e to both the original and the additional benefits shall be paid ermination of DROP participation is less than directly to the retiree. 48 months, the average compensation figure used to calculat e the additional benefit accruals shall be that used to calculat 4. All monthly benefits paid and payable to the memb e the member's original benefit. er, as well as his DROP account balance, shall be classified b y the fund as service-connected disability benefits and shall b. If the member originally retired from the new sys be so reported on all necessary filings made by the fund to th tem, and his period of additional covered employment after t e Internal Revenue Service. ermination of DROP participation is 48 months or more, the average compensation figure used to calculate the additional 5. Under no circumstances shall the original benefit a benefit accruals shall be based on the member's compensatio mount or the DROP account balance be recalculated, for any n earned during the period of post-DROP service. purpose. 2. Old System Member E. In no event shall the member's additional retirement b enefit exceed an amount which, when combined with the ori a. If the member originally retired from the old syst ginal benefit, equals 100 percent of the average of any three em and his period of additional covered employment is less t highest consecutive years of compensation earned by han 12 months, the average compensation figure used to calc a member who elected to retire under the old system, or ulate the additional benefit shall be that used to calculate the 100 percent of the average of any four highest consecutive y member's original benefit. ears of compensation earned by a member who elected to ret b. If the member originally retired from the old syst ire under the new system, both during participation and after em and his period of additional covered employment is 12 m withdrawal from the DROP. onths or more, the average compensation figure used to calc AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363 and 3385.1.

Louisiana Administrative Code August 2013 64 HISTORICAL NOTE: Promulgated by the Board of Trustees o E. The board shall maintain complete accounting records f the Firefighters' Pension and Relief Fund for the City of New Orle documenting all payments, receipts, and distributions to and ans and Vicinity, LR 22:705 (August 1996), amended LR 26:294 (F from the fund's excess DROP account, as well as a detailed r ebruary 2000). ecord of the amount held and accumulated in each member's §1509. Trustees' Procedures Applicable to Payments to individual DROP account on behalf of each individual partic DROP Accounts ipant in the DROP, and the dates of all transactions related th A. The procedures herein set forth shall govern the mont ereto. Nevertheless, all payments to the excess DROP accou hly payments owed by the fund to each member's DROP acc nt for the benefit of DROP participants shall be maintained i ount during his participation in the DROP. n a joint account for all members, and the board shall not ma intain individual or segregated bank accounts on behalf of ea B. The board shall maintain a detailed accounting of eac ch member. h individual DROP account on behalf of each member curre ntly participating in the DROP. Each month that a payment i F. The fund's actuary shall record in his annual actuarial s due on behalf of the member, the board shall show a credit valuation performed on behalf of the fund relative to the old to the member's account and shall maintain a current balance and the new systems the amount of assets held each year in t showing the total credit to each member's account. At such ti he excess DROP account for the benefit of all members curr me as the balance maintained in an individual member's DR ently participating. OP account shall exceed $95,000, the board shall make all su G. On an annual basis, or more frequently should the boa bsequent monthly payments directly to a separate fund bank rd so determine, all earnings accrued in the excess DROP ac account to be known as the excess DROP account to be esta count shall be transferred from the excess DROP account to t blished at a bank other than the fund's then current custodian he fund's general bank account, to be invested or utilized as bank in order to preserve full FDIC pass-through insurance f a general asset of the fund. However, an accounting of all int or all participating members. An accounting of all such depo erest earned by the DROP account of any member whose D sits exceeding $95,000 per member and the balance to the cr ROP participation has terminated, but who has not yet receiv edit of each such individual DROP participant in the separat ed a distribution of the full amount of his DROP account, sh e excess DROP account shall be maintained. The sum of the all be made no less frequently than annually. participant's balances in both banks, plus any accrued earnin H. No payments, disbursements, or deductions of any kin gs, less any applicable administrative fee, shall be the total t d shall be made from the assets held in the excess DROP acc o be distributed to the Participant at such time as a distributi ount other than distributions owed to individual members or on is due. their beneficiaries and the transfer of earnings held in the ex C.1. Old System. At such time as the board furnishes to t cess DROP account to the fund's general assets, as described he city of New Orleans the required annual report, pursuant t in §1509.G. o R.S. 11:3375, of projected retirements, distributions, and o I. All costs, expenses and fees payable in connection wit ther data necessary for the council to appropriate a budget all h DROP participation and/or maintenance of excess DROP a ocation for each subsequent year, the board shall include in s ccount during a member's DROP participation, including any uch projections all benefit obligations projected by the board bank charges associated with the maintenance thereof, shall relative to members retiring from the old system and enterin be paid, if an when due, only from the fund's general assets a g or remaining in the DROP and shall include the projected nd from bank accounts other than the excess DROP account. monthly payments payable to fund DROP accounts for the b However, upon a member's completion of DROP participatio enefit of all DROP participants. n, regardless of whether he terminates employment with the 2. New System. In regard to those members retiring u fire department, his DROP account, if left with the fund, will nder the new system, at such time as the fund's actuary certif be charged an administrative fee of up to 2 percent per year. ies, pursuant to R.S. 11:3363.D, the annual amount of contri J. All assets held either in the fund's general account or i butions required to be paid by the city of New Orleans for th n the excess DROP account on behalf of DROP participants e subsequent year in order to maintain the new system on an shall be held, recognized, and treated as fund assets until suc actuarial basis, the fund actuary shall include therein actuaria h time as distributions approved by the board are made there l projections relative to all anticipated benefit obligations pro from. No individual member participating in the DROP, or a jected for members retiring from the new system and enterin ny person claiming through him, shall have any personal ow g or remaining in the DROP and shall include the projected nership, interest, or entitlement in any fund account, includin monthly payments payable to fund DROP accounts for the b g the excess DROP account, until such time as a distribution enefit of all DROP participants. is made to or on his behalf by the board. D. When a member enters the DROP, a book transfer sha K. All DROP assets held in the fund's general account or ll be made each month of the payment owed by the fund to e in the excess DROP account shall be exempt from seizure, le ach DROP participant until such time as the balance in the m vy, sale, garnishment, attachment, or any other process what ember's DROP account reaches $95,000. Thereafter, the boar soever, and shall be exempt from state and municipal taxes, d shall cause a payment to be made each month from regular except as follows. fund assets to the excess DROP account on behalf of that me 1. The board shall honor all QDROs recognized by th mber, representing the amount of his monthly service retire e board as valid pursuant to its procedural rules and regulatio ment award. ns for determining status of qualified domestic relations orde

65 Louisiana Administrative Code October 2017 rs, in accordance with the terms, conditions, and effective da advice, counseling, or information concerning taxability and tes specified in each such individual order. tax consequences, or financial information pertaining to DR 2. The board shall honor any such levy, garnishment, OP distributions, other than the general summation reflected or other process validly served upon it in the event the board in the fund's explanation and notice to employees. Instead, th determines, based on advice of its counsel, that the process i e fund and the board shall advise the member that the rules a n question is based on statutory, administrative, judicial, or o pplicable to distributions of lump sum amounts for a membe ther authority or precedent that preempts and/or supersedes t r's DROP account are complex and confusing and may prom he provisions of R.S. 11:3389. pt the member, in his individual discretion, to seek advice fr L. At such time as distributions are made by the fund to om a competent professional tax advisor or from the membe participants, beneficiaries, or other persons claiming through r's local Internal Revenue Service office, which, from time to them, the payments shall be subject to federal, state, and mu time, may distribute publications relative to retirement distri nicipal taxation, and to levy, garnishment, seizure, sale, attac butions and related matters. hment, or any other process whatsoever that is applicable to AUTHORITY NOTE: Promulgated in accordance with R.S. 11 any other distribution or payment made to a retired member. 3363, and 3385.1. However, any distribution of the balance contained in a mem HISTORICAL NOTE: Promulgated by the Board of Trustees o ber's DROP account shall also be subject to federal income t f the Firefighters' Pension and Relief Fund for the City of New Orle ax and withholding treatment under the rollover provisions o ans and Vicinity, LR 22:706 (August 1996), amended LR 26:294 (F ebruary 2000). f the Internal Revenue Code, the regulations issued thereund er by the Internal Revenue Service, and the board's rules and §1511. General regulations of direct rollovers, in the event the member or a A. Consistent with the provisions of R.S. 11:3361 et seq., qualified beneficiary should elect rollover treatment. the board shall have full and complete authority and discreti M. In the event a DROP participant has failed to keep the on to determine the eligibility of any member to enter the D fund advised of his current address and whereabouts at a tim ROP and to receive a DROP distribution and to make any ot e when a distribution is due from the member's DROP accou her determinations pertaining thereto, consistent with all app nt, the fund shall forward the distribution to the member's las licable statutory provisions, applicable jurisprudence publish t known address, via certified mail. If said mailing is returne ed thereunder, and all rules and regulations adopted by the b d to the fund, the fund shall hold said mailing and check in t oard from time to time, including these rules and regulations he participant's file until such time as the board receives addi pertaining to the DROP. tional information sufficient to permit distribution. Any such B. Should the board determine that a member is ineligibl distribution shall be made as a direct payment to the individu e to participate in the DROP or should it make any other dete al member, unless the member shall have validly elected to rmination pertaining to the DROP that is considered by the make a direct rollover to a qualified plan or a financial instit member, a beneficiary, legal representative, or other person c ution, in which event said election shall be honored. laiming through the member to be adverse or in any way prej N. If the board is unable to effect the required distributio udicial, the injured person shall be entitled to pursue an appe n because of the member's failure to advise the fund of his c al before the board in accordance with the appeal procedures urrent address, or for any other reason not directly attributabl set forth in the fund's summary plan description. At the time e to the fund's intentional action or inaction, neither the fund any decision is issued to the board member, whether or not t nor the board shall be responsible or liable for any loss, prej he board considers it to be adverse to the claimant, the claim udice, expense, or other consequences, including tax liability ant shall be advised, in writing, of such entitlement to reques or consequences, attributable to the fund's inability to distrib t rehearing and of the time delays and other requirements to ute. No matter how long the board is required to hold the dist be observed in connection therewith. ribution due to such member failure, no interest, gains, or ear nings of any kind shall be payable thereon. C. No member, beneficiary, legal representative, or other person claiming through the member shall be entitled to purs O. At such time as a participant requests or the fund is re ue judicial review of any board determinations reached in re quired to effect any distribution of a member's DROP accou gard to DROP entitlement and other issues pertaining to DR nt balance, the board shall furnish to the member the applica OP participation, exit from the DROP, benefit distributions fr ble notice and explanation to employees relating to direct rol om the DROP, and related matters unless the claimant shall f lover, income averaging treatment and tax consequences upo irst have exhausted all internal fund appellate and review pro n distribution required under Internal Revenue Code §402(F) cedures and the board has issued a final decision, and then o and Internal Revenue Service Notice Number 92-48, such no nly in accordance with applicable provisions of the Louisian tice to be furnished in accordance with the time delays and o a Administrative Procedure Act, R.S. 49:950 et seq. ther requirements therein specified, as amended from time to time. Currently said statutory provisions and Internal Reven AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ue Service Notice require that the notice and explanation to e 3363 and 3385.1. HISTORICAL NOTE: Promulgated by the Board of Trustees o mployees be furnished no later than 30 days prior to the date f the Firefighters' Pension and Relief Fund for the City of New Orle the DROP account is distributable. ans and Vicinity, LR 22:707 (August 1996). P. Neither the board nor the fund shall give, distribute, o r offer to any member or participant on the fund's behalf any

Louisiana Administrative Code August 2013 66 Chapter 17. Election Rules 1. Ballots will be verified for eligibility by pension off ice staff daily. §1701. Nominations 2. The election committee will have authority to check A. Election for positions on the board of trustees as descr for eligibility prior to counting of ballots. ibed in R.S. 11:3362(A)(2) and (3) will be held in the second 3. A current account of envelopes returned will be pre week of December every two years on odd numbered years. served. Elected members will be seated on the second Wednesday in January of the following year. 4. Ballots will be placed in two secured ballot boxes at the pension office. Separate boxes will be maintained for acti B. Notices for nomination will be carried in monthly fun ve and retired members. d minutes, beginning in August of any election year. 5. Each ballot box will be secured with two different l C. Nominations for vacant positions will be accepted fro ocks. The election committee will designate two incumbent m eligible members in writing during the second week in No members and two non-incumbent member nominees to contr vember (Monday-Friday, 9 a.m.-4 p.m.) in the fund office. T ol the keys to all four locks. he fund office will forthwith notify all nominees of these rul es. C. The following voting instructions and procedures shal l apply. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1. Each member will receive an official ballot with vot 3362 and 3363. HISTORICAL NOTE: Promulgated by the Board of Trustees o ing instructions. f the Firefighters' Pension and Relief Fund for the City of New Orle 2. A blank security envelope and a self-addressed sta ans and Vicinity, LR 24:1927 (October 1998). mped envelope addressed to: §1703. Election Committee Firefighters' Pension and Relief Fund 329 South Dorgenois Street A. All members nominated for the board will automatica New Orleans, LA 70119 lly become members of the election committee for the electi on in which they have been nominated. The committee will s 3. Members must vote for only the specified number o erve until the next election is held. On the Wednesday follow f candidates in the appropriate sections. Members may vote f ing the close of nominations, the election committee will me or less than the specified number, however, voting in excess et to review all the rules of the election. The committee can of the specified number, in the appropriate section, will spoil discuss procedures but will not have the authority to change the ballot for that section. any rules for any election. Any committee member may offer 4. Members should place their ballot in the security en recommendations or rule changes for any subsequent electio velope, then seal the envelope. The security envelope should n, which shall be recorded in the minutes of the committee o then be placed inside the self-addressed, stamped envelope. r a special report. 5. Members must sign the self-addressed envelope in t AUTHORITY NOTE: Promulgated in accordance with R.S. 11 he upper left corner in the space provided. A member's signa 3362 and 3363. ture shall serve as proof of eligibility. Any envelopes not sig HISTORICAL NOTE: Promulgated by the Board of Trustees o ned will be rejected. f the Firefighters' Pension and Relief Fund for the City of New Orle ans and Vicinity, LR 24:1927 (October 1998). 6. All ballots must be returned signed, to the fund offi §1705. Ballot Procedure ce, no later than 4 p.m. on the second Wednesday in Decemb er. A. Ballots with security envelopes and return envelopes will be mailed out on the fourth Monday in November, subje D. All ballots will be counted at the fund office at 9 a.m. ct to the following controls. on the Thursday following the deadline for ballots to be retur ned, subject to the following conditions. 1. Outgoing postage receipt of total mailing will be ke pt at the pension office. 1. The election committee shall report to the pension o ffice no later than 8:30 a.m. 2. The listing of all members mailed ballots will be ke pt at the pension office. Any member may inspect, but not co 2. The election committee is to oversee the counting o py, the voter mailing list. f ballots. 3. The election committee will make available to mem 3. The election committee is responsible for accuracy bers with the number of names added to the list after the initi of votes counted. al mailing and the number of duplicate ballots mailed to me E. Envelopes and ballots will be maintained and preserv mbers who did not receive the original ballot. ed at the pension office for three months following any electi 4. The election committee will account for all ballots on. (used and unused). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 B. All ballots must be returned, signed, no later than 3362 and 3363. 4 p.m. on the second Wednesday in December, subject to the HISTORICAL NOTE: Promulgated by the Board of Trustees o following controls. f the Firefighters' Pension and Relief Fund for the City of New Orle ans and Vicinity, LR 24:1927 (October 1998).

67 Louisiana Administrative Code October 2017 §1707. Installation of Elected Members HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Firefighters' Pension and Relief Fund for the City of New Orle A. Newly elected board members will be seated at the m ans and Vicinity, LR 26:291 (February 2000), repromulgated LR 26: eeting held on the second Wednesday in January of the follo 1610 (August 2000), amended LR 30:1684 (August 2004). wing year. §1903. Distributions from Partial Lump-Sum Option P AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ayment 3362 and 3363. HISTORICAL NOTE: Promulgated by the Board of Trustees o A. Distributions from the partial lump-sum option payme f the Firefighters' Pension and Relief Fund for the City of New Orle nt (PLOP) elected by the member are eligible for rollover as ans and Vicinity, LR 24:1928 (October 1998). is the case with DROP accounts. Similarly, any amount of th §1709. Election Inquiries e partial lump-sum option payment left with the fund shall b e subject to the rules applicable to distribution of DROP acc A. Any questions from members regarding the election s ounts. hould be directed to the election committee, in writing, addre ssed care of the fund secretary-treasurer. 1. As detailed in those rules applicable to DROP acco unts, allowable distributions vary depending upon whether t B. The election committee may propose comments, sugg he member retires before, during or after the calendar year in estions and recommendations on any changes for the next el which the member reaches age 55. ection to be held following the election under its supervision. B. A member who retires before the calendar year in whi AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ch the member reaches age 55 may receive distribution of hi 3362 and 3363. s PLOP at retirement and avoid incurrence of the HISTORICAL NOTE: Promulgated by the Board of Trustees o 10 percent early distribution penalty. In the event any PLOP f the Firefighters' Pension and Relief Fund for the City of New Orle remains on deposit with the fund, all distribution rules applic ans and Vicinity, LR 24:1928 (October 1998). able to DROP accounts apply, including the 10 percent early §1711. Special Elections distribution penalty or recapture penalty, if applicable. A. Special elections must be called within 30 days of any C. A member who retires during or after the calendar yea vacancy on the board, caused by death, resignation or otherw r in which the member reaches age 55 may receive distributi ise. The foregoing rules for regular elections shall apply to al on of his PLOP account in accordance with rules applicable t l special elections. o DROP accounts, will not be subject to the AUTHORITY NOTE: Promulgated in accordance with R.S. 11 10 percent early distribution penalty or recapture penalty, but 3362 and 3363. will be subject to those DROP rules requiring mandatory dist HISTORICAL NOTE: Promulgated by the Board of Trustees o ributions of the account. f the Firefighters' Pension and Relief Fund for the City of New Orle ans and Vicinity, LR 24:1928 (October 1998). AUTHORITY NOTE: Promulgated in accordance with R.S. 11 3363, and 3385.2. Chapter 19. Partial Lump-Sum Optio HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Firefighters' Pension and Relief Fund for the City of New Orle n Payment ans and Vicinity, LR 26:291 (February 2000), repromulgated LR 26: §1901. General Rules for Participation 1610 (August 2000), amended LR 30:1684 (August 2004). A. Upon application for retirement, a participant may ele Chapter 20. Tax Qualification Provisio ct to receive the actuarial equivalent of his retirement benefit ns as a reduced monthly benefit, payable for life, plus an initial lump-sum benefit. The amount of the initial EDITOR’S NOTE: Section 2005 below references section lump-sum benefit, as determined by the member, shall not e 401(a)(37) of the Internal Revenue Code: (37) Death benefits under userra-qualified active military xceed an amount equal to the member's normal monthly retir service.— A trust shall not constitute a qualified trust ement benefit times 60. unless the plan provides that, in the case of a participant who dies while performing qualified military service (as B. The member's monthly retirement will be actuarially r defined in section 414(u)), the survivors of the participant educed based on the lump-sum amount withdrawn and the m are entitled to any additional benefits (other than benefit ember's age at retirement. The partial lump-sum benefit, toge accruals relating to the period of qualified military service) provided under the plan had the participant resumed and ther with the member's reduced normal retirement benefit, m then terminated employment on account of death. ust be actuarially equivalent to the member's normal retirem ent benefit as set forth in R.S. 11:3384. §2001. General Provisions C. The cost of living adjustment (COLA) granted by the A. The New Orleans Firefighters Pension and Relief Fun board of trustees to retirees who elect to receive a reduced re d shall be a tax-qualified governmental plan as provided in t tirement benefit and a partial lump-sum benefit shall be base he Internal Revenue Code of 1986, as amended. In accordan d only on the reduced retirement benefit and shall not be bas ce with the requirements of the Internal Revenue Code, the f ed on the partial lump-sum benefit. ollowing provisions shall apply to the fund. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1. The assets of the fund shall be held for the exclusiv 3363, and 3385.2. e benefit of the members of the fund, the retirees thereof, an

Louisiana Administrative Code August 2013 68 d the survivors and beneficiaries of the retirees and members. §2003. Actuarial Equivalence No part of the funds held by the trustees of the fund shall be A. The New Orleans Firefighters Pension and Relief Fun used or diverted for any reason, including any contingency o d shall be a tax-qualified governmental plan as provided in t r event or by any other means, to other purposes, including b he Internal Revenue Code of 1986, as amended. In accordan ut not limited to reversion to any employer. ce with the requirements of the Internal Revenue Code, the f 2. The retirement benefit of a member shall be fully v ollowing provisions shall apply to the fund. ested and nonforfeitable no later than the date on which he b 1. The term actuarial equivalence or terms of similar i ecomes eligible to retire. Benefits of members shall also bec mport, wherever used, means a benefit of equivalent actuaria ome vested and nonforfeitable upon the termination of the fu l value determined by using the mortality assumptions and in nd or the complete discontinuance of contributions to the sys terest rates described herein. tem. a. The mortality assumptions will be based upon the 3. Forfeitures shall not be used to increase the benefits 1971 Group Annuity Mortality Table for males, with male ra of the remaining members of the fund. This shall specifically tes set back six years in age for females, at 7 percent interest. not preclude any increase in benefits by amendment to the b enefit formula made possible by a change in contribution rat b. If payment is in the form of a lump sum distributi e, favorable investment results, or other means. on or other similar form of distribution for a period less than the life expectancy, the amount of the distribution shall be ca 4. A member’s benefit shall begin to be distributed not lculated based on the 1994 UP at 7.5 percent interest. later than the latest date provided for the commencement of benefits for governmental plans under section 401(a)(9)(C) o c. For purposes of determining actuarial equivalenc f the Internal Revenue Code of 1986, as amended. Distributi e, the assumptions used as the basis for actuarial equivalence ons to a surviving spouse, dependent, successor and/or benef shall be reviewed periodically by the Board of Trustees and iciary of a member shall be made at least as soon as distribut updated and amended if appropriate. ions are required to be made by qualified governmental plan AUTHORITY NOTE: Promulgated in accordance with R.S. 11 s under the Internal Revenue Code of 1986, as amended. Be 3363. nefits payable shall be limited in accordance with IRC sectio HISTORICAL NOTE: Promulgated by the Board of Trustees o n 415 and applicable Treasury Regulations as applied to gov f the Firefighters’ Pension and Relief Fund for the City of New Orle ernmental plans. ans and Vicinity, LR 38:1012 (April 2012). 5. In computing benefit accruals, there shall not be tak §2005. Military Service en into account compensation in excess of the limitations spe A. Notwithstanding any provision of this plan to the cont cified in section 401(a)(17) of the Internal Revenue Code, as rary, contributions, benefits and service credit with respect to amended. Such compensation limit was $200,000 for tax yea qualified military service will be provided in accordance wit rs beginning after December 31, 2001. h section 414(u) of the Internal Revenue Code. To the extent 6. The fund, its trustees, consultants, and advisors shal applicable, the provisions of IRC section 401(a)(37) shall ap l not engage in any prohibited transactions as that term is def ply. (See Editor’s Note.) ined in section 503 of the Internal Revenue Code of 1986, as AUTHORITY NOTE: Promulgated in accordance with R.S. 11 amended. 3363. AUTHORITY NOTE: Promulgated in accordance with R.S. 11:3 HISTORICAL NOTE: Promulgated by the Board of Trustees o 363. f the Firefighters’ Pension and Relief Fund for the City of New Orle HISTORICAL NOTE: Promulgated by the Board of Trustees o ans and Vicinity, LR 38:1012 (April 2012). f the Firefighters’ Pension and Relief Fund for the City of New Orle ans and Vicinity, LR 37:1392 (May 2011).

69 Louisiana Administrative Code October 2017 Title 58 RETIREMENT Part VII. School Employees' Retirement System

Chapter 1. Administration of Act 416 HISTORICAL NOTE: Promulgated by the Board of Trustees o f the School Employees Retirement System, LR 3:76 (February 197 of 1976 7). §101. Rules for the Administration of Act 416 of 1976 Chapter 3. Interest Rates A. This system will recognize only that retirement servic §301. Interest Rates Charged on Purchases of Service e credit in those state, municipal, and parochial retirement sy Credit stems domiciled in the state of Louisiana and which were cre ated under the laws of the state of Louisiana or created by th A. All cost computations on and after July 20, 1985 for a e Louisiana Legislature for employees covered under these s ll active members to gain retirement credit will be done on a ystems. n 8 percent compound interest rate. B. Withdrawal of funds from any system voids the recipr B. The only exceptions to the 8 percent compound intere ocal recognition of service agreement. st rate will be credit for active military service, which has a 5 percent compound interest rate in the legislative provision. C. Withdrawal from any system where the recognized se rvice in another system was necessary to make an individual C. A review of the interest rate being used will be made i eligible for membership voids the membership of such indivi n January of each year. Should a change of rate be agreed on dual, as well as the reciprocal recognition of service agreeme after the review, the new rate will become effective July 1 of nt. that same year. D. Repayment of refunds, and interest thereon, to reestab AUTHORITY NOTE: Promulgated in accordance with R.S. 11 lish service credit must be paid in full to all systems named i 1165. n the application before the application for reciprocal recogn HISTORICAL NOTE: Promulgated by the Department of Trea ition of service credit will be accepted as a valid application, sury, School Employees' Retirement System, LR 11:705 (July 198 regardless of when submitted. 5). E. Recognition of creditable service for the purposes of t Chapter 4. Internal Revenue Code Pr his Act does not include recognition or acceptance for any ot ovisions her purpose than those enumerated and specified in Act 416 of 1976 Regular Session. §401. Limitation on Benefits F. Lump sum benefit, as used in this Act, shall refer to th A. The limitations of this Chapter shall apply in limitatio e supplementary allowance provided in R.S. 17:913C. n years beginning on or after July 1, 2007, except as otherwi G. The last beneficiary designation on file in this agency se provided herein. will be the beneficiary of record for this system, whether file B The annual benefit otherwise payable to a member un d before or after the repayment of a refund or a reciprocal re der the plan at any time shall not exceed the maximum permi cognition of service agreement. ssible benefit. If the benefit the member would otherwise acc H. Recognized creditable service from other systems and rue in a limitation year would produce an annual benefit in e creditable service in this system will be converted to whole y xcess of the maximum permissible benefit, the benefit shall ears and partial years, with partial years expressed as a perce be limited (or the rate of accrual reduced) to a benefit that do ntage of a year. es not exceed the maximum permissible benefit. I. The service referred to in Paragraph F(2) refers only t C. If the member is, or has ever been, a member in anoth o those systems where the years of service determines the pe er qualified defined benefit plan (without regard to whether t rcentage benefit (e.g., after 20 years a person may retire with he plan has been terminated) maintained by the employer or 60 percent of his best three years, or after 25 years a person a predecessor employer, the sum of the member’s annual ben may retire with 75 percent of his best three years, etc.), and t efits from all such plans may not exceed the maximum perm herefore, is not applicable to benefits or computations of ben issible benefit. efits from this system. D. The application of the provisions of this chapter shall J. Pro rata portion and proportion used in this Act shall not cause the maximum permissible benefit for any member be based on the maximum benefit in each system. to be less than the member’s accrued benefit under all the de fined benefit plans of the employer or a predecessor employe AUTHORITY NOTE: Promulgated in accordance with R.S. 11 r as of the end of the last limitation year beginning before Jul 1165. y 1, 2007 under provisions of the plans that were both adopt

Louisiana Administrative Code August 2013 70 ed and in effect before April 5, 2007. The preceding sentence c. Except as provided herein, for limitation years be applies only if the provisions of such defined benefit plans th ginning after December 31, 1991, compensation for a limitat at were both adopted and in effect before April 5, 2007 satisf ion year is the compensation actually paid or made available ied the applicable requirements of statutory provisions, regul during such limitation year. ations, and other published guidance relating to section 415 d. For limitation years beginning on or after July 1, of the Internal Revenue Code in effect as of the end of the la 2007, compensation for a limitation year shall also include c st limitation year beginning before July 1, 2007, as described ompensation paid by the later of 2 1/2 months after an memb in section 1.415(a)-1(g)(4) of the income tax regulations. er’s severance from employment with the employer maintain E. The limitations of this chapter shall be determined an ing the plan or the end of the limitation year that includes the d applied taking into account the rules in Section G. date of the member’s severance from employment with the e mployer maintaining the plan, if: F. Definitions i. the payment is regular compensation for servic 415 Safe-Harbor Compensation es during the member’s regular working hours, or compensat a. Compensation is defined as wages, salaries, and f ion for services outside the employee’s regular working hour ees for professional services and other amounts received (wit s (such as overtime or shift differential), commissions, bonus hout regard to whether or not an amount is paid in cash) for es, or other similar payments, and, absent a severance from e personal services actually rendered in the course of employ mployment, the payments would have been paid to the mem ment with the employer maintaining the plan to the extent th ber while the member continued in employment with the em at the amounts are includible in gross income (including, but ployer; not limited to, commissions paid salespersons, compensation ii. the payment is for unused accrued bona fide sic for services on the basis of a percentage of profits, commissi k, vacation or other leave that the member would have been ons on insurance premiums, tips, bonuses, fringe benefits, an able to use if employment had continued; or d reimbursements, or other expense allowances under a nona ccountable plan (as described in section 1.62-2(c) of the inco iii. the payment is received by the member pursua me tax regulations), and excluding the following: nt to a nonqualified unfunded deferred compensation plan an d would have been paid at the same time if employment had i. employer contributions [other than elective con continued, but only to the extent includible in gross income. tributions described in section 402(e)(3), section 408(k)(6), s ection 408(p)(2)(A)(i), or section 457(b)] to a plan of deferre e. Any payments not described above shall not be c d compensation (including a simplified employee pension de onsidered compensation if paid after severance from employ scribed in section 408(k) or a simple retirement account desc ment, even if they are paid by the later of 2 1/2 months after ribed in section 408(p), and whether or not qualified) to the e the date of severance from employment or the end of the lim xtent such contributions are not includible in the member’s g itation year that includes the date of severance from employ ross income for the taxable year in which contributed, and an ment. Back pay, within the meaning of section 1.415(c)-2(g) y distributions (whether or not includible in gross income wh (8), shall be treated as compensation for the limitation year t en distributed) from a plan of deferred compensation (wheth o which the back pay relates to the extent the back pay repre er or not qualified); sents wages and compensation that would otherwise be inclu ded under this definition. ii. amounts realized from the exercise of a nonstat utory stock option (that is, an option other than a statutory st f. For limitation years beginning after December 31 ock option as defined in section 1.421-1(b) of the income tax 1997, compensation paid or made available during such limi regulations), or when restricted stock (or property) held by t tation year shall include amounts that would otherwise be in he member either becomes freely transferable or is no longer cluded in compensation but for an election under sections 12 subject to a substantial risk of forfeiture; 5(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). iii. amounts realized from the sale, exchange or ot g. For limitation years beginning after December 31 her disposition of stock acquired under a statutory stock opti 2000, compensation shall also include any elective amounts on; that are not includible in the gross income of the member by reason of section 132(f)(4). iv. other amounts that receive special tax benefits, such as premiums for group-term life insurance (but only to t h. For limitation years beginning after December 31 he extent that the premiums are not includible in the gross in 2008, compensation shall also include any differential wage come of the member and are not salary reduction amounts th payments as defined in code section 3401(h) which: at are described in section 125); i. is made by the employer to an individual with r v. other items of remuneration that are similar to espect to any period during which an individual is performin any of the items listed in Clauses i through iv above. g service in the uniformed services (as defined in chapter 43 of title 38, United States Code) while on active duty for a per b. For any self-employed individual, compensation iod of more than 30 days; and shall mean earned income.

71 Louisiana Administrative Code October 2017 ii. represents all or a portion of the remuneration s (a). a non-decreasing annuity (other than a straig uch individual would have received from the employer if he ht life annuity) payable for a period of not less than the life o or she was performing services for the employer. f the member (or, in the case of a qualified pre-retirement sur vivor annuity, the life of the surviving spouse); or Annual Benefita benefit that is payable annually in the form of a straight life annuity. Except as provided below, wh (b). an annuity that decreases during the life of th ere a benefit is payable in a form other than a straight life an e member merely because of: nuity, the benefit shall be adjusted to an actuarially equivale (i). the death of the survivor annuitant (but nt straight life annuity that begins at the same time as such ot only if the reduction is not below 50 percent of the benefit her form of benefit and is payable on the first day of each m payable before the death of the survivor annuitant); or onth, before applying the limitations of this article. For a me mber who has or will have distributions commencing at mor (ii). the cessation or reduction of Social e than one annuity starting date, the annual benefit shall be d Security supplements or qualified disability payments [as etermined as of each such annuity starting date (and shall sat defined in section 401(a)(11)]. isfy the limitations of this chapter as of each such date), actu ii. Limitation years beginning before July 1, 2007. arially adjusting for past and future distributions of benefits For limitation years beginning before July 1, 2007, the actua commencing at the other annuity starting dates. For this purp rially equivalent straight life annuity is equal to the annual a ose, the determination of whether a new starting date has occ mount of the straight life annuity commencing at the same a urred shall be made without regard to section 1.401(a)-20, Q nnuity starting date that has the same actuarial present value and A 10(d), and with regard to section 1.415(b)1(b)(1)(iii) as the member’s form of benefit computed using whichever (B) and (C) of the income tax regulations. of the following produces the greater annual amount: a. No actuarial adjustment to the benefit shall be ma (a). the interest rate specified in R.S. 11:1171 an de for: d the mortality table (or other tabular factor) specified in R.S i. survivor benefits payable to a surviving spouse 11:1171 for adjusting benefits in the same form; and under a qualified joint and survivor annuity to the extent suc (b). a 5 percent interest rate assumption and the a h benefits would not be payable if the member’s benefit wer pplicable mortality table for that annuity starting date. e paid in another form; iii. Limitation Years beginning on or after July 1, 2 ii. benefits that are not directly related to retireme 007. For limitation years beginning on or after July 1, 2007, nt benefits (such as a disability benefit, preretirement inciden the actuarially equivalent straight life annuity is equal to the tal death benefits, and postretirement medical benefits); or greater of: iii. the inclusion in the form of benefit of an autom (a). the annual amount of the straight life annuity atic benefit increase feature, provided the form of benefit is (if any) payable to the member under the plan commencing a not subject to section 417(e)(3) of the Internal Revenue Cod t the same annuity starting date as the member’s form of ben e and would otherwise satisfy the limitations of this chapter, efit; and and the plan provides that the amount payable under the for m of benefit in any limitation year shall not exceed the limits (b). the annual amount of the straight life annuity of this chapter applicable at the annuity starting date, as incr commencing at the same annuity starting date that has the sa eased in subsequent years pursuant to section 415(d). For thi me actuarial present value as the member’s form of benefit, s purpose, an automatic benefit increase feature is included i computed using a 5 percent interest rate assumption and the n a form of benefit if the form of benefit provides for automa applicable mortality table for that annuity starting date. tic, periodic increases to the benefits paid in that form. The d c. Benefit Forms Subject to Section 417(e)(3). The etermination of the annual benefit shall take into account soc straight life annuity that is actuarially equivalent to the mem ial security supplements described in section 411(a)(9) of the ber’s form of benefit shall be determined under this paragrap Internal Revenue Code and benefits transferred from another h if the form of the member’s benefit is other than a benefit f defined benefit plan, other than transfers of distributable ben orm described in §401.F.1.b. In this case, the actuarially equi efits pursuant section 1.411(d)-4, Q and A-3(c), of the incom valent straight life annuity shall be determined as follows: e tax regulations, but shall disregard benefits attributable to e mployee contributions or rollover contributions. Effective fo i. Annuity Starting Date in Plan Years Beginning r distributions in plan years beginning after December 31, 20 After 2005. If the annuity starting date of the member’s form 03, the determination of actuarial equivalence of forms of be of benefit is in a plan year beginning after 2005, the actuarial nefit other than a straight life annuity shall be made in accor ly equivalent straight life annuity is equal to the greatest of: dance with §§401.F.1.b. or 401.F.1.c. (a). the annual amount of the straight life annuity b. Benefit Forms Not Subject to Section 417(e)(3) commencing at the same annuity starting date that has the sa me actuarial present value as the member’s form of compute i. The straight life annuity that is actuarially equi d using the interest rate specified in R.S. 11:1171 and the mo valent to the member’s form of benefit shall be determined u rtality table (or other tabular factor) specified in R.S. 11:117 nder this Subparagraph F.1.b, if the form of the member’s be 1 for adjusting benefits in the same form; nefit is either:

Louisiana Administrative Code August 2013 72 (b). the annual amount of the straight life annuity 0 percent of the member’s high three-year average compensa commencing at the same annuity starting date that has the sa tion, as determined after the severance from employment un me actuarial present value as the member’s form of benefit, der §401.G. computed using a 5.5 percent interest rate assumption and th e applicable mortality table defined in. R.S. 11:1171; and Defined Benefit Dollar Limitationeffective for limitati on years ending after December 31, 2001, the defined benefi (c). the annual amount of the straight life annuity t dollar limitation is $160,000, automatically adjusted under commencing at the same annuity starting date that has the sa section 415(d) of the Internal Revenue Code, effective Janua me actuarial present value as the member’s form of benefit, ry 1 of each year, as published in the Internal Revenue Bulle computed using the applicable interest rate defined in. R.S. 1 tin, and payable in the form of a straight life annuity. The ne 1:1171 and the applicable mortality table defined, divided by w limitation shall apply to limitation years ending with or wi 1.05. thin the calendar year of the date of the adjustment, but a me mber’s benefits shall not reflect the adjusted limit prior to Ja ii. Annuity Starting Date in Plan Years Beginning nuary 1 of that calendar year. in 2004 or 2005. If the annuity starting date of the member’s form of benefit is in a plan year beginning in 2004 or 2005, t Employerfor purposes of this chapter, employer shall he actuarially equivalent straight life annuity is equal to the a mean the employer that adopts this plan, and all members of nnual amount of the straight life annuity commencing at the a controlled group of corporations, as defined in section 414 same annuity starting date that has the same actuarial present (b) of the Internal Revenue Code, as modified by section 415 value as the member’s form of benefit, computed using whic (h), all commonly controlled trades or businesses [as defined hever of the following produces the greater annual amount: in section 414(c), as modified, except in the case of a brothe (a). the interest rate specified in R.S. 11:1171 an r-sister group of trades or businesses under common control, d the mortality table (or other tabular factor) specified in R.S by section 415(h)], or affiliated service groups [as defined in 11:1171 for adjusting benefits in the same form; and section 414(m)] of which the adopting employer is a part, an d any other entity required to be aggregated with the employ (b). a 5.5 percent interest rate assumption and the er pursuant to section 414(o) of the Internal Revenue Code. applicable mortality table. If the annuity starting date of the member’s benefit is on or after the first day of the first plan Formerly Affiliated Plan of the Employera plan that, i year beginning in 2004 and before December 31, 2004, the a mmediately prior to the cessation of affiliation, was actually pplication of this §401.F.1.c. shall not cause the amount paya maintained by the employer and, immediately after the cessa ble under the member’s form of benefit to be less than the be tion of affiliation is not actually maintained by the employer. nefit calculated under the plan, taking into account the limita For this purpose, cessation of affiliation means the event that tions of this Chapter, except that the actuarially equivalent st causes an entity to no longer be considered the employer, su raight life annuity is equal to the annual amount of the straig ch as the sale of a member controlled group of corporations, ht life annuity commencing at the same annuity starting date as defined in section 414(b) of the Internal Revenue Code, as that has the same actuarial present value as the member’s for modified by section 415(h), to an unrelated corporation, or t m of benefit, computed using whichever of the following pro hat causes a plan to not actually be maintained by the emplo duces the greatest annual amount: yer, such as transfer of plan sponsorship outside a controlled group. (i). the interest rate specified in R.S. 11:1171 and the mortality table (or other tabular factor) specified in High Three-Year Average Compensationthe average c R.S. 11:1171 for adjusting benefits in the same form; ompensation for the three consecutive years of service (or, if the member has less than three consecutive years of service, (ii). the applicable interest rate defined in R.S. the member’s longest consecutive period of service, includin 11:1171 and the applicable mortality table; and g fractions of years, but not less than one year) with the empl (iii).the applicable interest rate defined in R.S. oyer that produces the highest average. A year of service wit 11:1171 (as in effect on the last day of the last plan year h the employer is the 12 consecutive month period defined i beginning before January 1, 2004, under provisions of the n R.S. 11:1131. In the case of a member who is rehired by th plan then adopted and in effect) and the applicable mortality e employer after a severance from employment, the member’ table. s high three-year average compensation shall be calculated b y excluding all years for which the member performs no serv Applicable Mortality Tablethe applicable mortality ta ices for and receives no compensation from the employer (th ble within the meaning of section 417(e)(3)(B) of the Intern e break period) and by treating the years immediately preced al Revenue Code. ing and following the break period as consecutive. A membe r’s compensation for a year of service shall not include comp Defined Benefit Compensation Limitation100 percent ensation in excess of the limitation under section 401(a)(17) of a member’s high three-year average compensation, payabl of the Internal Revenue Code that is in effect for the calenda e in the form of a straight life annuity. In the case of a memb r year in which such year of service begins. er who is rehired after a severance from employment, the def ined benefit compensation limitation is the greater of 100 per Limitation Yeara fiscal year, from July 1 to June 31. A cent of the member’s high three-year average compensation, ll qualified plans maintained by the employer must use the s as determined prior to the severance from employment or 10 ame limitation year. If the limitation year is amended to a dif

73 Louisiana Administrative Code October 2017 ferent 12-consecutive month period, the new limitation year (i). Plan Does Not Have Immediately must begin on a date within the limitation year in which the Commencing Straight Life Annuity Payable at Both Age 62 amendment is made. and the Age of Benefit Commencement. If the annuity starting date for the member’s benefit is prior to age 62 and Maximum Permissible Benefitthe lesser of the defined occurs in a limitation year beginning on or after July 1, benefit dollar limitation or the defined benefit compensation 2007, and the plan does not have an immediately limitation (both adjusted where required, as provided below). commencing straight life annuity payable at both age 62 and a. Adjustment for Less than 10 Years of Participatio the age of benefit commencement, the defined benefit dollar n or Service. If the member has less than 10 years of particip limitation for the member’s annuity starting date is the ation in the plan, the defined benefit dollar limitation shall b annual amount of a benefit payable in the form of a straight e multiplied by a fraction: life annuity commencing at the member’s annuity starting date that is the actuarial equivalent of the defined benefit i. the numerator of which is the number of years dollar limitation (adjusted under Subparagraph a of this (or part thereof, but not less than one year) of participation i Paragraph for years of participation less than 10, if required) n the plan; and with actuarial equivalence computed using a 5 percent ii. the denominator of which is 10. In the case of a interest rate assumption and the applicable mortality table member who has less than 10 years of service with the empl for the annuity starting date as defined in R.S. 11:1171 (and oyer, the defined benefit compensation limitation shall be m expressing the member’s age based on completed calendar ultiplied by a fraction: months as of the annuity starting date). (a). the numerator of which is the number of year (ii). Plan Has Immediately Commencing s (or part thereof, but not less than one year) of Service with Straight Life Annuity Payable at Both Age 62 and the Age of the employer; and Benefit Commencement. If the annuity starting date for the member’s benefit is prior to age 62 and occurs in a limitation (b). the denominator of which is 10. year beginning on or after July 1, 2007, and the plan has an b. Adjustment of Defined Benefit Dollar Limitation immediately commencing straight life annuity payable at for Benefit Commencement before Age 62 or after Age 65. E both age 62 and the age of benefit commencement, the ffective for benefits commencing in limitation years ending a defined benefit dollar limitation for the member’s annuity fter December 31, 2001, the defined benefit dollar limitation starting date is the lesser of the limitation determined under shall be adjusted if the annuity starting date of the member’s Division b.i.(b).(i) of this Paragraph and the defined benefit benefit is before age 62 or after age 65. If the annuity startin dollar limitation (adjusted under Subparagraph a of this g date is before age 62, the defined benefit dollar limitation s Paragraph for years of participation less than 10, if required) hall be adjusted under Clause b.i of this Paragraph, as modifi multiplied by the ratio of the annual amount of the ed by Clause b.iii of this Paragraph. If the annuity starting da immediately commencing straight life annuity under the plan te is after age 65, the defined benefit dollar limitation shall b at the member’s annuity starting date to the annual amount e adjusted under Clause b.ii of this Paragraph, as modified b of the immediately commencing straight life annuity under y Clause b.iii of this Paragraph. the plan at age 62, both determined without applying the limitations of this article. i. Adjustment of Defined Benefit Dollar Limitati on for Benefit Commencement before Age 62 ii. Adjustment of Defined Benefit Dollar Limitati on for Benefit Commencement after Age 65 (a). Limitation Years Beginning before July 1, 20 07. If the annuity starting date for the member’s benefit is pri (a). Limitation Years Beginning Before July 1, 2 or to age 62 and occurs in a limitation year beginning before 007. If the annuity starting date for the member’s benefit is a July 1, 2007, the defined benefit dollar limitation for the me fter age 65 and occurs in a limitation year beginning before J mber’s annuity starting date is the annual amount of a benefi uly 1, 2007, the defined benefit dollar limitation for the mem t payable in the form of a straight life annuity commencing a ber’s annuity starting date is the annual amount of a benefit t the member’s annuity starting date that is the actuarial equi payable in the form of a straight life annuity commencing at valent of the defined benefit dollar limitation (adjusted under the member’s annuity starting date that is the actuarial equiv §401.F.10.a. for years of participation less than 10, if require alent of the defined benefit dollar limitation (adjusted under d) with actuarial equivalence computed using whichever of t Subparagraph a of this Paragraph for years of participation le he following produces the smaller annual amount: ss than 10, if required) with actuarial equivalence computed using whichever of the following produces the smaller annua (i). the interest rate specified in R.S. 11:1171 l amount: and the mortality table (or other tabular factor) specified in R.S. 11:1171; or (i). the interest rate specified in R.S. 11:1171 and the mortality table (or other tabular factor) specified in (ii). a 5 percent interest rate assumption and R.S. 11:1171; or the applicable mortality table as defined in R.S. 11:1171. (ii). a 5-percent interest rate assumption and (b). Limitation Years Beginning on or After July the applicable mortality table as defined in R.S. 11:1171. 1, 2007

Louisiana Administrative Code August 2013 74 (b). Limitation Years Beginning Before July 1, 2 ll be treated as occurring upon the member’s death if the pla 007 n does not charge members for providing a qualified preretir ement survivor annuity, as defined in section 417(c) of the I (i). Plan Does Not Have Immediately nternal Revenue Code, upon the member’s death. Commencing Straight Life Annuity Payable at Both Age 65 and the Age of Benefit Commencement. If the annuity c. Minimum Benefit Permitted. Notwithstanding an starting date for the member’s benefit is after age 65 and ything else in this section to the contrary, the benefit otherwi occurs in a limitation year beginning on or after July 1, se accrued or payable to a member under this plan shall be d 2007, and the plan does not have an immediately eemed not to exceed the maximum permissible benefit if: commencing straight life annuity payable at both age 65 and i. the retirement benefits payable for a limitation the age of benefit commencement, the defined benefit dollar year under any form of benefit with respect to such member limitation at the member’s annuity starting date is the annual under this plan and under all other defined benefit plans (wit amount of a benefit payable in the form of a straight life hout regard to whether a plan has been terminated) ever mai annuity commencing at the member’s annuity starting date ntained by the employer do not exceed $10,000 multiplied b that is the actuarial equivalent of the defined benefit dollar y a fraction: limitation (adjusted under Subparagraph a of this Paragraph for years of participation less than 10, if required), with (a). the numerator of which is the member’s num actuarial equivalence computed using a 5 percent interest ber of years (or part thereof, but not less than one year) of se rate assumption and the applicable mortality table for that rvice (not to exceed 10) with the employer; and annuity starting date as defined in R.S. 11:1171 (and (b). the denominator of which is 10; and expressing the member’s age based on completed calendar months as of the annuity starting date). ii. the employer (or a predecessor employer) has n ot at any time maintained a defined contribution plan in whic (ii). Plan Has Immediately Commencing h the member participated (for this purpose, mandatory empl Straight Life Annuity Payable at Both Age 65 and the Age of oyee contributions under a defined benefit plan, individual m Benefit Commencement. If the annuity starting date for the edical accounts under section 401(h), and accounts for postre member’s benefit is after age 65 and occurs in a limitation tirement medical benefits established under section 419A(d) year beginning on or after July 1, 2007, and the plan has an (1) are not considered a separate defined contribution plan). immediately commencing straight life annuity payable at both age 65 and the age of benefit commencement, the Predecessor Employerif the employer maintains a pla defined benefit dollar limitation at the member’s annuity n that provides a benefit which the member accrued while pe starting date is the lesser of the limitation determined under rforming services for a former employer, the former employ §401.F.10.b.ii.(b).(i). and the defined benefit dollar er is a predecessor employer with respect to the member in t limitation (adjusted under §401.F.10.a. for years of he plan. A former entity that antedates the employer is also a participation less than 10, if required) multiplied by the ratio predecessor employer with respect to a member if, under the of the annual amount of the adjusted immediately facts and circumstances, the employer constitutes a continuat commencing straight life annuity under the plan at the ion of all or a portion of the trade or business of the former e member’s annuity starting date to the annual amount of the ntity. adjusted immediately commencing straight life annuity under the plan at age 65, both determined without applying Severance from Employmentan employee has a severa the limitations of this article. For this purpose, the adjusted nce from employment when the employee ceases to be an e immediately commencing straight life annuity under the plan mployee of the employer maintaining the plan. An employee at the member’s annuity starting date is the annual amount of does not have a severance from employment if, in connectio such annuity payable to the member, computed disregarding n with a change of employment, the employee’s new employ the member’s accruals after age 65 but including actuarial er maintains the plan with respect to the employee. adjustments even if those actuarial adjustments are used to Year of Participationthe member shall be credited wit offset accruals; and the adjusted immediately commencing h a year of participation (computed to fractional parts of a ye straight life annuity under the plan at age 65 is the annual ar) for each accrual computation period for which the follow amount of such annuity that would be payable under the plan ing conditions are met: to a hypothetical member who is age 65 and has the same accrued benefit as the member. a. the member is credited with at least the number o f hours of service (or period of service if the elapsed time me iii. Notwithstanding the other requirements of this thod is used) for benefit accrual purposes, required under the Subparagraph F.10.b., no adjustment shall be made to the def terms of the plan in order to accrue a benefit for the accrual c ined benefit dollar limitation to reflect the probability of a m omputation period; and ember’s death between the annuity starting date and age 62, or between age 65 and the annuity starting date, as applicabl b. the member is included as a member under the eli e, if benefits are not forfeited upon the death of the member gibility provisions of the plan for at least one day of the accr prior to the annuity starting date. To the extent benefits are f ual computation period. If these two conditions are met, the orfeited upon death before the annuity starting date, such an portion of a year of participation credited to the member shal adjustment shall be made. For this purpose, no forfeiture sha l equal the amount of benefit accrual service credited to the

75 Louisiana Administrative Code October 2017 member for such accrual computation period. A member wh 3. Formerly Affiliated Plans of the Employer. A forme o is permanently and totally disabled within the meaning of s rly affiliated plan of an employer shall be treated as a plan m ection 415(c)(3)(C)(i) of the Internal Revenue Code for an a aintained by the employer, but the formerly affiliated plan sh ccrual computation period shall receive a year of participatio all be treated as if it had terminated immediately prior to the n with respect to that period. In addition, for a member to rec cessation of affiliation with sufficient assets to pay members’ eive a year of participation (or part thereof) for an accrual co benefit liabilities under the plan and had purchased annuities mputation period, the plan must be established no later than t to provide benefits. he last day of such accrual computation period. In no event s 4. Plans of a Predecessor Employer. If the employer m hall more than one year of participation be credited for any 1 aintains a defined benefit plan that provides benefits accrued 2-month period. by a member while performing services for a predecessor em Year of Servicefor purposes of Section 401.G., the me ployer, the member’s benefits under a plan maintained by th mber shall be credited with a year of service (computed to fr e predecessor employer shall be treated as provided under a actional parts of a year) for each accrual computation period plan maintained by the employer. However, for this purpose, for which the member is credited with at least the number of the plan of the predecessor employer shall be treated as if it hours of service (or period of service if the elapsed time met had terminated immediately prior to the event giving rise to t hod is used) for benefit accrual purposes, required under the he predecessor employer relationship with sufficient assets t terms of the plan in order to accrue a benefit for the accrual c o pay members’ benefit liabilities under the plan, and had pu omputation period, taking into account only service with the rchased annuities to provide benefits; the employer and the p employer or a predecessor employer. redecessor employer shall be treated as if they were a single employer immediately prior to such event and as unrelated e G. Other Rules mployers immediately after the event; and if the event giving 1. Benefits under Terminated Plans. If a defined benef rise to the predecessor relationship is a benefit transfer, the tr it plan maintained by the employer has terminated with suffi ansferred benefits shall be excluded in determining the benef cient assets for the payment of benefit liabilities of all plan its provide under the plan of the predecessor employer. members and a member in the plan has not yet commenced b 5. Special Rules. The limitations of this chapter shall enefits under the plan, the benefits provided pursuant to the a be determined and applied taking into account the rules in se nnuities purchased to provide the member’s benefits under th ction 1.415(f)-1(d), (e) and (h) of the income tax regulations. e terminated plan at each possible annuity starting date shall be taken into account in applying the limitations of this articl AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e. If there are not sufficient assets for the payment of all me 2225(B). mbers’ benefit liabilities, the benefits taken into account shal HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Louisiana School Employees’ Retirement System, LR 38:3241 l be the benefits that are actually provided to the member un (December 2012), amended by the Department of the Treasury, Boa der the terminated plan. rd of Trustees of the School Employees’ Retirement System, LR 43 2. Benefits Transferred from the Plan. If a member’s b 1187 (June 2017). enefits under a defined benefit plan maintained by the emplo §403. Required Minimum Distributions yer are transferred to another defined benefit plan maintaine A.1. Unless the member has elected otherwise on or bef d by the employer and the transfer is not a transfer of distrib ore December 31, 1983, the entire benefit of a member shall utable benefits pursuant section 1.411(d)-4, Q and A-3(c), of be distributed over a period not longer than the longest of the the income tax regulations, the transferred benefits are not tr following periods: eated as being provided under the transferor plan (but are tak en into account as benefits provided under the transferee pla a. the member's life; n). If a member’s benefits under a defined benefit plan maint b. if the member is married, the life of the member's ained by the employer are transferred to another defined ben designated beneficiary; efit plan that is not maintained by the employer and the trans fer is not a transfer of distributable benefits pursuant section c. the member's life expectancy; 1.411(d)-4, Q and A-3(c), of the income tax regulations, the t ransferred benefits are treated by the employer’s plan as if su d. the joint life and last survivor life expectancy of t ch benefits were provided under annuities purchased to provi he member and his designated beneficiary. de benefits under a plan maintained by the employer that ter 2. If the member is married and his spouse survives hi minated immediately prior to the transfer with sufficient asse m, the designated beneficiary for at least a qualified joint an ts to pay all members’ benefit liabilities under the plan. If a d survivor annuity and 50 percent of his deferred retirement member’s benefits under a defined benefit plan maintained b option plan account shall be his spouse, unless such spouse h y the employer are transferred to another defined benefit pla as consented to the contrary in writing before a notary public n in a transfer of distributable benefits pursuant section 1.41 For purposes of this Paragraph, spouse shall mean that perso 1(d)-4, Q and A-3(c), of the income tax regulations, the amo n who is married to the member under a legal regime of com unt transferred is treated as a benefit paid from the transferor munity of acquets and gains on his effective date of retireme plan. nt or effective date of participation in the deferred retirement option plan, whichever is earlier.

Louisiana Administrative Code August 2013 76 3. If the member was a member on or before Decembe F. This Section shall be effective for members of the sys r 31, 1983, he shall be deemed to have made the election ref tem who complete any service under the system on or after J erred to herein. If a member dies after the commencement of uly 1, 1992, with employers contributing to the system. his benefits, the remaining portion of his benefit shall be dist G. Distributions from the system shall be made in accord ributed at least as rapidly as before his death. Payment of sur ance with the requirements set forth in Internal Revenue Co vivor benefits shall not be considered to violate this provisio de section 401(a)(9), including the minimum distribution inc n. idental benefit rules applicable thereunder. B.1. If the member dies before his benefit has commenc H.1. A member's benefits shall commence to be paid on ed the remainder of such interest shall be distributed to the m or before the required beginning date. ember's beneficiary within five years after the date of such m ember's death. 2. The required beginning date shall be April 1 of the calendar year following the later of the calendar year in whic 2. Paragraph 1 of this Subsection shall not apply to an h the member attains 70 1/2 years of age, or the calendar yea y portion of a member's benefit which is payable to or for th r in which the employee retires. Effective for plan years begi e benefit of a designated beneficiary or beneficiaries, over th nning on or after January 1, 1998, the required beginning dat e life of or over the life expectancy of such beneficiary, so lo e shall be April 1 of the year following the later of the year t ng as such distributions begin not later than one year after th he member attained 70 1/2 or the year he terminated employ e date of the member's death, or, in the case of the member's ment. surviving spouse, the date the member would have attained t he age of 70 years and six months. If the designated benefici AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ary is a child of the member, for purposes of satisfying the re 1302.1. quirement of Paragraph 1 of this Subsection, any amount pai HISTORICAL NOTE: Promulgated by the Board of Trustees o d to such child shall be treated as if paid to the member's sur f the Louisiana School Employees Retirement System, LR 38:3247 (December 2012). viving spouse if such amount would become payable to such surviving spouse, if alive, upon the child's reaching age eight §405. Direct Rollovers een or, if later, upon the child's completing a designated even A. Notwithstanding any other provision of law to the con t. For purposes of the preceding sentence, a designated event trary that would otherwise limit a distributee's election under shall be the later of the date the child is no longer disabled, o this Section, a distributee may elect, at the time and in the m r the date the child ceases to be a full-time student or attains anner prescribed by the board of trustees, to have any portio age 23, if earlier. n of an “eligible rollover distribution”, as specified by the di 3. Paragraph 1 of this Subsection shall not apply if the stributee, paid directly to an “eligible retirement plan”, as th distribution of the member's interest has commenced and is f ose terms are defined below. or a term certain over a period permitted in Subsection A of t B. The following definitions shall apply. his Section. Eligible Rollover Distributionany distribution of all o 4. Paragraph 1 of this Subsection shall not apply if the r any portion of the balance to the credit of the distributee, e member has elected otherwise on or before December 31, 19 xcept that an eligible rollover distribution does not include: 83, or such later date to which such election period shall be s ubject under Internal Revenue Code section 401(a). a. any distribution that is one of a series of substanti ally equal periodic payments, not less frequently than annual C. As to any benefit payable by the retirement system w ly, made for the life or life expectancy of the member, or the hich is not optional as of December 31, 1983, the member sh joint lives or joint life expectancies of the member and the m all be considered to have made the election referred to in Su ember's designated beneficiary, or for a specified period of te bsections A and B of this Section, if he was a member on or n years or more; before such time. b. any distribution to the extent that such distributio D. If by operation of law or by action of the board of trus n is required under section 401(a)(9) of the United States Int tees, a survivor benefit is payable to a specified person or pe ernal Revenue Code; and rsons, the member shall be considered to have designated su ch person as an alternate beneficiary hereunder. If there is m c. any distribution which is made upon hardship of t ore than one such person, then the youngest disabled child sh he employee. all be considered to have been so designated, or, if none, the Eligible Retirement Planany of the following: n the youngest person entitled to receive a survivor benefit s hall be considered to have been so designated. The designati a. an individual retirement account described in sect on of a designated beneficiary hereunder shall not prevent pa ion 408(a) of the Internal Revenue Code; yment to multiple beneficiaries but shall only establish the p b. an individual retirement annuity described in sect ermitted period of payments. ion 408(b) of the Internal Revenue Code; E. Payment in accordance with the survivor benefit provi c. an annuity plan described in section 403(a) of the sions of R.S. 11:1151 shall be deemed not to violate Subsecti Internal Revenue Code; ons A and B of this Section.

77 Louisiana Administrative Code October 2017 d. a qualified trust as described in section 401(a) of 1. The employee's accrued benefit determined with res the Internal Revenue Code, provided that such trust accepts t pect to the benefit formula applicable for the plan year begin he member's eligible rollover distribution; ning on or after January 1, 1996, as applied to the employe e's total years of service taken into account for purposes of b e. an eligible deferred compensation plan described enefit accruals. in section 457(b) of the Internal Revenue Code that is mainta ined by an eligible governmental employer, provided the pla 2. The sum of: n contains provisions to account separately for amounts trans a. the employee's accrued benefit as of the last day ferred into such plan; and of the last plan year beginning before January 1, 1996, froze f. an annuity contract described in section 403(b) of n in accordance with the provisions of section 1.401(a)(4)-1 the Internal Revenue Code. through 1.401(a)(4)-13 of the Code of Federal Regulations; Distributeeshall include: b. the employee's accrued benefit determined under the benefit formula applicable for the plan year beginning on a. a member or former member; or after January 1, 1996, as applied to the employee's years o b. the member's or former member's surviving spou f service credited to the employee for plan years beginning o se, or the member's or former member's former spouse with n or after January 1, 1996, for purposes of benefit accruals. whom a benefit or a return of employee contributions is to b B. A section 401(a)(17) employee shall mean any emplo e divided pursuant to R.S. 11:291(B), with reference to an in yee whose current accrued benefit, as of a date on or after th terest of the member or former spouse; e first day of the first plan year beginning on or after January c. the member's or former member's non-spouse be 1, 1996, is based on compensation for a year beginning prior neficiary, provided the specified distribution is to an eligible to the first day of the first plan year beginning on or after Jan retirement plan as defined in Subparagraphs a and b of the d uary 1, 1996, that exceeded $150,000. efinition of eligible retirement plan in this Section. C. If an employee is not a “Section 401(a)(17) employe Direct Rollovera payment by the system to the eligibl e”, his accrued benefit in this system shall not be based upon e retirement plan specified by the distributee. compensation in excess of the annual limit of Section 401(a) (17) of the United States Internal Revenue Code as amended AUTHORITY NOTE: Promulgated in accordance with R.S. 11 and revised. 1302.1. HISTORICAL NOTE: Promulgated by the Board of Trustees o AUTHORITY NOTE: Promulgated in accordance with R.S. 11 f the Louisiana School Employees Retirement System, LR 38:3248 1302.1. (December 2012). HISTORICAL NOTE: Promulgated by the Board of Trustees o §407. Annual Compensation Limitation f the Louisiana School Employees Retirement System, LR 38:3248 (December 2012). A. Unless otherwise provided in this Chapter, the accrue d benefit of each section 401(a)(17) employee as that term is defined below shall be the greater of the following:

Louisiana Administrative Code August 2013 78 Title 58 RETIREMENT Part IX. State Police Retirement System

Chapter 1. Service Credit E. The limitations of this Chapter shall be determined an d applied taking into account the rules in Subsection G. §101. Military Service Credit A. The Board of Trustees of the Louisiana State Police R F. Definitions etirement System will grant military service credit for active Annual Benefita benefit that is payable annually in the duty service spent in the United States Reserves or the Natio form of a straight life annuity. Except as provided below, wh nal Guard. Such credit will be granted only for active duty se ere a benefit is payable in a form other than a straight life an rvice prior to September 9, 1977. Any active duty service in t nuity, the benefit shall be adjusted to an actuarially equivale he U.S. Reserves or National Guard after September 9, 1977 nt straight life annuity that begins at the same time as such ot may be purchased in accordance with R.S. 40:142(B)2.b and her form of benefit and is payable on the first day of each m c. onth, before applying the limitations of this article. For a me AUTHORITY NOTE: Promulgated in accordance with R.S. 40 mber who has or will have distributions commencing at mor 142(B)2.b and c. e than one annuity starting date, the annual benefit shall be d HISTORICAL NOTE: Promulgated by the Department of Trea etermined as of each such annuity starting date (and shall sat sury, State Police Retirement System, LR 7:122 (March 1981). isfy the limitations of this Chapter as of each such date), actu arially adjusting for past and future distributions of benefits Chapter 2.Internal Revenue Code Pro commencing at the other annuity starting dates. For this purp visions ose, the determination of whether a new starting date has occ urred shall be made without regard to section 1.401(a)-20, Q §201. Limitation on Benefits and A 10(d), and with regard to section 1.415(b)1(b)(1)(iii) A. The limitations of this Chapter shall apply in limitatio (B) and (C) of the income tax regulations. n years beginning on or after July 1, 2007, except as otherwi a. No actuarial adjustment to the benefit shall be ma se provided herein. de for: B. The annual benefit otherwise payable to a member un i. survivor benefits payable to a surviving spouse der the plan at any time shall not exceed the maximum permi under a qualified joint and survivor annuity to the extent suc ssible benefit. If the benefit the member would otherwise acc h benefits would not be payable if the member’s benefit wer rue in a limitation year would produce an annual benefit in e e paid in another form; xcess of the maximum permissible benefit, the benefit shall be limited (or the rate of accrual reduced) to a benefit that do ii. benefits that are not directly related to retireme es not exceed the maximum permissible benefit. nt benefits (such as a disability benefit, preretirement inciden tal death benefits, and postretirement medical benefits); or C. If the member is, or has ever been, a member in anoth er qualified defined benefit plan (without regard to whether t iii. the inclusion in the form of benefit of an autom he plan has been terminated) maintained by the employer or atic benefit increase feature, provided the form of benefit is a predecessor employer, the sum of the member’s annual ben not subject to section 417(e)(3) of the Internal Revenue Cod efits from all such plans may not exceed the maximum perm e and would otherwise satisfy the limitations of this Chapter, issible benefit. and the plan provides that the amount payable under the for m of benefit in any limitation year shall not exceed the limits D. The application of the provisions of this Chapter shall of this Chapter applicable at the annuity starting date, as incr not cause the maximum permissible benefit for any member eased in subsequent years pursuant to section 415(d). For thi to be less than the member’s accrued benefit under all the de s purpose, an automatic benefit increase feature is included i fined benefit plans of the employer or a predecessor employe n a form of benefit if the form of benefit provides for automa r as of the end of the last limitation year beginning before Jul tic, periodic increases to the benefits paid in that form. The d y 1, 2007 under provisions of the plans that were both adopt etermination of the annual benefit shall take into account soc ed and in effect before April 5, 2007. The preceding sentence ial security supplements described in section 411(a)(9) of the applies only if the provisions of such defined benefit plans th Internal Revenue Code and benefits transferred from another at were both adopted and in effect before April 5, 2007 satisf defined benefit plan, other than transfers of distributable ben ied the applicable requirements of statutory provisions, regul efits pursuant to section 1.411(d)-4, Q and A-3(c), of the inc ations, and other published guidance relating to section 415 ome tax regulations, but shall disregard benefits attributable of the Internal Revenue Code in effect as of the end of the la to employee contributions or rollover contributions. Effectiv st limitation year beginning before July 1, 2007, as described e for distributions in plan years beginning after December 31, in section 1.415(a)-1(g)(4) of the income tax regulations. 2003, the determination of actuarial equivalence of forms of

79 Louisiana Administrative Code October 2017 benefit other than a straight life annuity shall be made in acc of benefit is in a plan year beginning after 2005, the actuarial ordance with §201.F.1.b or F.1.c. ly equivalent straight life annuity is equal to the greatest of: b. Benefit Forms Not Subject to Section 417(e)(3) (a). the annual amount of the straight life annuity commencing at the same annuity starting date that has the sa i. The straight life annuity that is actuarially equi me actuarial present value as the member’s form of compute valent to the member’s form of benefit shall be determined u d using the interest rate and the mortality table (or other tabu nder this Subparagraph b, if the form of the member’s benefi lar factor) specified in the plan for adjusting benefits in the s t is either: ame form; and (a). a non-decreasing annuity (other than a straig (b). the annual amount of the straight life annuity ht life annuity) payable for a period of not less than the life o commencing at the same annuity starting date that has the sa f the member (or, in the case of a qualified pre-retirement sur me actuarial present value as the member’s form of benefit, vivor annuity, the life of the surviving spouse); or computed using a 5.5 percent interest rate assumption and th (b). an annuity that decreases during the life of th e applicable mortality table; and e member merely because of: (c). the annual amount of the straight life annuity (i). the death of the survivor annuitant (but commencing at the same annuity starting date that has the sa only if the reduction is not below 50 percent of the benefit me actuarial present value as the member’s form of benefit, payable before the death of the survivor annuitant); or computed using the applicable interest rate and the applicabl e mortality table, divided by 1.05. (ii). the cessation or reduction of Social Security supplements or qualified disability payments [as ii. Annuity Starting Date in Plan Years Beginning defined in section 401(a)(11)]. in 2004 or 2005. If the annuity starting date of the member’s form of benefit is in a plan year beginning in 2004 or 2005, t ii. Limitation Years Beginning before July 1, 2007 he actuarially equivalent straight life annuity is equal to the a For limitation years beginning before July 1, 2007, the actua nnual amount of the straight life annuity commencing at the rially equivalent straight life annuity is equal to the annual a same annuity starting date that has the same actuarial present mount of the straight life annuity commencing at the same a value as the member’s form of benefit, computed using whic nnuity starting date that has the same actuarial present value hever of the following produces the greater annual amount: as the member’s form of benefit computed using whichever of the following produces the greater annual amount: (a). the interest rate and the mortality table (or ot her tabular factor) specified in the plan for adjusting benefits (a). the interest rate and the mortality table (or ot in the same form; and her tabular factor) specified in the plan for adjusting benefits in the same form; and (b). a 5.5 percent interest rate assumption and the applicable mortality table. If the annuity starting date of the (b). a 5 percent interest rate assumption and the a member’s benefit is on or after the first day of the first plan pplicable mortality table for that annuity starting date. year beginning in 2004 and before December 31, 2004, the a iii. Limitation Years Beginning on or after July 1, pplication of this §201.F.1.c. shall not cause the amount paya 2007. For limitation years beginning on or after July 1, 2007, ble under the member’s form of benefit to be less than the be the actuarially equivalent straight life annuity is equal to the nefit calculated under the plan, taking into account the limita greater of: tions of this Chapter, except that the actuarially equivalent st raight life annuity is equal to the annual amount of the straig (a). the annual amount of the straight life annuity ht life annuity commencing at the same annuity starting date (if any) payable to the member under the plan commencing a that has the same actuarial present value as the member’s for t the same annuity starting date as the member’s form of ben m of benefit, computed using whichever of the following pro efit; and duces the greatest annual amount: (b). the annual amount of the straight life annuity (i). the interest rate and the mortality table (or commencing at the same annuity starting date that has the sa other tabular factor) specified in the plan for adjusting me actuarial present value as the member’s form of benefit, benefits in the same form; computed using a 5 percent interest rate assumption and the applicable mortality table for that annuity starting date. (ii). the applicable interest rate and the applicable mortality table; and c. Benefit Forms Subject to Section 417(e)(3). The straight life annuity that is actuarially equivalent to the mem (iii).the applicable interest rate (as in effect on ber’s form of benefit shall be determined under this Paragrap the last day of the last plan year beginning before January 1, h if the form of the member’s benefit is other than a benefit f 2004, under provisions of the plan then adopted and in orm described in §201.F.1.b. In this case, the actuarially equi effect) and the applicable mortality table. valent straight life annuity shall be determined as follows. Applicable Interest Ratethe rate of interest on 30 year i. Annuity Starting Date in Plan Years Beginning Treasury securities (or any subsequent rate used under sectio After 2005. If the annuity starting date of the member’s form n 417(e) of the Internal Revenue Code) as specified by the In

Louisiana Administrative Code August 2013 80 ternal Revenue Service for the lookback month. The lookbac ion year is the compensation actually paid or made available k month applicable to the stability period is the second calen during such limitation year; dar month preceding the first day of the stability period. The d. for limitation years beginning on or after July 1, stability period is the plan year that contains the annuity start 2007, compensation for a limitation year shall also include c ing date for the distribution and for which the applicable int ompensation paid by the later of 2 1/2 months after an memb erest rate remains constant. er’s severance from employment with the employer maintain Applicable Mortality Tablethe applicable mortality ta ing the plan or the end of the limitation year that includes the ble within the meaning of section 417(e)(3)(B) of the Intern date of the member’s severance from employment with the e al Revenue Code. mployer maintaining the plan, if: 415 Safe-Harbor Compensation i. the payment is regular compensation for servic es during the member’s regular working hours, or compensa a. compensationwages, salaries, and fees for prof tion for services outside the employee’s regular working hou essional services and other amounts received (without regard rs (such as overtime or shift differential), commissions, bonu to whether or not an amount is paid in cash) for personal ser ses, or other similar payments, and, absent a severance from vices actually rendered in the course of employment with the employment, the payments would have been paid to the me employer maintaining the plan to the extent that the amounts mber while the member continued in employment with the e are includible in gross income (including, but not limited to, mployer; commissions paid salespersons, compensation for services o n the basis of a percentage of profits, commissions on insura ii. the payment is for unused accrued bona fide sic nce premiums, tips, bonuses, fringe benefits, and reimburse k, vacation or other leave that the member would have been ments, or other expense allowances under a nonaccountable able to use if employment had continued; or plan (as described in section 1.62-2(c) of the income tax reg iii. the payment is received by the member pursua ulations), and excluding the following: nt to a nonqualified unfunded deferred compensation plan an i. employer contributions [other than elective con d would have been paid at the same time if employment had tributions described in section 402(e)(3), section 408(k)(6), s continued, but only to the extent includible in gross income; ection 408(p)(2)(A)(i), or section 457(b)] to a plan of deferre e. any payments not described above shall not be co d compensation (including a simplified employee pension de nsidered compensation if paid after severance from employ scribed in section 408(k) or a simple retirement account desc ment, even if they are paid by the later of 2 1/2 months after ribed in section 408(p), and whether or not qualified) to the e the date of severance from employment or the end of the lim xtent such contributions are not includible in the member’s g itation year that includes the date of severance from employ ross income for the taxable year in which contributed, and an ment. Back pay, within the meaning of section 1.415(c)-2(g) y distributions (whether or not includible in gross income wh (8), shall be treated as compensation for the limitation year t en distributed) from a plan of deferred compensation (wheth o which the back pay relates to the extent the back pay repre er or not qualified); sents wages and compensation that would otherwise be inclu ii. amounts realized from the exercise of a nonstat ded under this definition; utory stock option (that is, an option other than a statutory st f. for limitation years beginning after December 31, ock option as defined in section 1.421-1(b) of the income tax 1997, compensation paid or made available during such limit regulations), or when restricted stock (or property) held by t ation year shall include amounts that would otherwise be inc he member either becomes freely transferable or is no longer luded in compensation but for an election under sections 125 subject to a substantial risk of forfeiture; (a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b); iii. amounts realized from the sale, exchange or ot g. for limitation years beginning after December 31, her disposition of stock acquired under a statutory stock opti 2000, compensation shall also include any elective amounts t on; hat are not includible in the gross income of the member by r iv. other amounts that receive special tax benefits, eason of section 132(f)(4). such as premiums for group-term life insurance (but only to t Defined Benefit Compensation Limitation100 percent he extent that the premiums are not includible in the gross in of a member’s high three-year average compensation, payabl come of the member and are not salary reduction amounts th e in the form of a straight life annuity. In the case of a memb at are described in section 125); er who is rehired after a severance from employment, the def v. other items of remuneration that are similar to ined benefit compensation limitation is the greater of 100 per any of the items listed in Clauses i-iv above; cent of the member’s high three-year average compensation, as determined prior to the severance from employment or 10 b. for any self-employed individual: 0 percent of the member’s high three-year average compensa i. compensationearned income; tion, as determined after the severance from employment un der §201.G. c. except as provided herein, for limitation years be ginning after December 31, 1991, compensation for a limitat Defined Benefit Dollar Limitationeffective for limitati on years ending after December 31, 2001, the defined benefi

81 Louisiana Administrative Code October 2017 t dollar limitation is $160,000, automatically adjusted under Maximum Permissible Benefitthe lesser of the defined section 415(d) of the Internal Revenue Code, effective Janua benefit dollar limitation or the defined benefit compensation ry 1 of each year, as published in the Internal Revenue Bulle limitation (both adjusted where required, as provided below). tin, and payable in the form of a straight life annuity. The ne w limitation shall apply to limitation years ending with or wi a. Adjustment for Less than 10 Years of Participatio thin the calendar year of the date of the adjustment, but a me n or Service. If the member has less than 10 years of particip mber’s benefits shall not reflect the adjusted limit prior to Ja ation in the plan, the defined benefit dollar limitation shall b nuary 1 of that calendar year. e multiplied by a fraction: i. the numerator of which is the number of years Employer (for purposes of this Chapter)the employer (or part thereof, but not less than one year) of participation i that adopts this plan, and all members of a controlled group n the plan; and of corporations, as defined in section 414(b) of the Internal Revenue Code, as modified by section 415(h), all commonly ii. the denominator of which is 10. In the case of a controlled trades or businesses [as defined in section 414(c), member who has less than 10 years of service with the empl as modified, except in the case of a brother-sister group of tr oyer, the defined benefit compensation limitation shall be m ades or businesses under common control, by section 415 ultiplied by a fraction: (h)], or affiliated service groups [as defined in section 414 (a). the numerator of which is the number of year (m)] of which the adopting employer is a part, and any other s (or part thereof, but not less than one year) of Service with entity required to be aggregated with the employer pursuant t the employer; and o section 414(o) of the Internal Revenue Code. (b). the denominator of which is 10. Formerly Affiliated Plan of the Employera plan that, i mmediately prior to the cessation of affiliation, was actually b. Adjustment of Defined Benefit Dollar Limitation maintained by the employer and, immediately after the cessa for Benefit Commencement before Age 62 or after Age 65. E tion of affiliation is not actually maintained by the employer. ffective for benefits commencing in limitation years ending a For this purpose: fter December 31, 2001, the defined benefit dollar limitation shall be adjusted if the annuity starting date of the member’s a. cessation of affiliationthe event that causes an benefit is before age 62 or after age 65. If the annuity startin entity to no longer be considered the employer, such as the s g date is before age 62, the defined benefit dollar limitation s ale of a member controlled group of corporations, as defined hall be adjusted under Clause b.i of this Paragraph, as modifi in section 414(b) of the Internal Revenue Code, as modified ed by Clause b.iii of this Paragraph. If the annuity starting da by section 415(h), to an unrelated corporation, or that causes te is after age 65, the defined benefit dollar limitation shall b a plan to not actually be maintained by the employer, such as e adjusted under Clause b.ii of this Paragraph, as modified b transfer of plan sponsorship outside a controlled group. y Clause b.iii of this Paragraph. High Three-Year Average Compensationthe average c i. Adjustment of Defined Benefit Dollar Limitati ompensation for the three consecutive years of service (or, if on for Benefit Commencement before Age 62 the member has less than three consecutive years of service, the member’s longest consecutive period of service, includin (a). Limitation Years Beginning before July 1, 20 g fractions of years, but not less than one year) with the empl 07. If the annuity starting date for the member’s benefit is pri oyer that produces the highest average. In the case of a mem or to age 62 and occurs in a limitation year beginning before ber who is rehired by the employer after a severance from e July 1, 2007, the defined benefit dollar limitation for the me mployment, the member’s high three-year average compens mber’s annuity starting date is the annual amount of a benefi ation shall be calculated by excluding all years for which the t payable in the form of a straight life annuity commencing a member performs no services for and receives no compensat t the member’s annuity starting date that is the actuarial equi ion from the employer (the break period) and by treating the valent of the defined benefit dollar limitation (adjusted under years immediately preceding and following the break period §201.F.11.a. for years of participation less than 10, if require as consecutive. A member’s compensation for a year of servi d) with actuarial equivalence computed using whichever of t ce shall not include compensation in excess of the limitation he following produces the smaller annual amount: under section 401(a)(17) of the Internal Revenue Code that i (i). the interest rate and the mortality table (or s in effect for the calendar year in which such year of service other tabular factor) specified in the plan for adjusting begins. benefits in the same form; or Limitation Yeara fiscal year, from July 1 to June 31. A (ii). a 5 percent interest rate assumption and ll qualified plans maintained by the employer must use the s the applicable mortality table. ame limitation year. If the limitation year is amended to a dif ferent 12-consecutive month period, the new limitation year (b). Limitation Years Beginning on or After July must begin on a date within the limitation year in which the 1, 2007 amendment is made. (i). Plan Does Not Have Immediately Commencing Straight Life Annuity Payable at Both Age 62 and the Age of Benefit Commencement. If the annuity

Louisiana Administrative Code August 2013 82 starting date for the member’s benefit is prior to age 62 and (i). Plan Does Not Have Immediately occurs in a limitation year beginning on or after July 1, Commencing Straight Life Annuity Payable at Both Age 65 2007, and the plan does not have an immediately and the Age of Benefit Commencement. If the annuity commencing straight life annuity payable at both age 62 and starting date for the member’s benefit is after age 65 and the age of benefit commencement, the defined benefit dollar occurs in a limitation year beginning on or after July 1, limitation for the member’s annuity starting date is the 2007, and the plan does not have an immediately annual amount of a benefit payable in the form of a straight commencing straight life annuity payable at both age 65 and life annuity commencing at the member’s annuity starting the age of benefit commencement, the defined benefit dollar date that is the actuarial equivalent of the defined benefit limitation at the member’s annuity starting date is the annual dollar limitation (adjusted under Subparagraph a of this amount of a benefit payable in the form of a straight life Paragraph for years of participation less than 10, if required) annuity commencing at the member’s annuity starting date with actuarial equivalence computed using a 5 percent that is the actuarial equivalent of the defined benefit dollar interest rate assumption and the applicable mortality table limitation (adjusted under Subparagraph a of this Paragraph for the annuity starting date (and expressing the member’s for years of participation less than 10, if required), with age based on completed calendar months as of the annuity actuarial equivalence computed using a 5 percent interest starting date). rate assumption and the applicable mortality table for that annuity starting date (and expressing the member’s age (ii). Plan Has Immediately Commencing based on completed calendar months as of the annuity Straight Life Annuity Payable at Both Age 62 and the Age of starting date). Benefit Commencement. If the annuity starting date for the member’s benefit is prior to age 62 and occurs in a limitation (ii). Plan Has Immediately Commencing year beginning on or after July 1, 2007, and the plan has an Straight Life Annuity Payable at Both Age 65 and the Age of immediately commencing straight life annuity payable at Benefit Commencement. If the annuity starting date for the both age 62 and the age of benefit commencement, the member’s benefit is after age 65 and occurs in a limitation defined benefit dollar limitation for the member’s annuity year beginning on or after July 1, 2007, and the plan has an starting date is the lesser of the limitation determined under immediately commencing straight life annuity payable at Division b.i.(b).(i) of this Paragraph and the defined benefit both age 65 and the age of benefit commencement, the dollar limitation (adjusted under Subparagraph a of this defined benefit dollar limitation at the member’s annuity Paragraph for years of participation less than 10, if required) starting date is the lesser of the limitation determined under multiplied by the ratio of the annual amount of the §201.F.11.b.ii.(b).(i) and the defined benefit dollar limitation immediately commencing straight life annuity under the plan (adjusted under §201.F.11.a for years of participation less at the member’s annuity starting date to the annual amount than 10, if required) multiplied by the ratio of the annual of the immediately commencing straight life annuity under amount of the adjusted immediately commencing straight the plan at age 62, both determined without applying the life annuity under the plan at the member’s annuity starting limitations of this article. date to the annual amount of the adjusted immediately commencing straight life annuity under the plan at age 65, ii. Adjustment of Defined Benefit Dollar Limitati both determined without applying the limitations of this on for Benefit Commencement after Age 65 article. For this purpose, the adjusted immediately (a). Limitation Years Beginning Before July 1, 2 commencing straight life annuity under the plan at the 007. If the annuity starting date for the member’s benefit is a member’s annuity starting date is the annual amount of such fter age 65 and occurs in a limitation year beginning before J annuity payable to the member, computed disregarding the uly 1, 2007, the defined benefit dollar limitation for the mem member’s accruals after age 65 but including actuarial ber’s annuity starting date is the annual amount of a benefit adjustments even if those actuarial adjustments are used to payable in the form of a straight life annuity commencing at offset accruals; and the adjusted immediately commencing the member’s annuity starting date that is the actuarial equiv straight life annuity under the plan at age 65 is the annual alent of the defined benefit dollar limitation (adjusted under amount of such annuity that would be payable under the plan Subparagraph a of this Paragraph for years of participation le to a hypothetical member who is age 65 and has the same ss than 10, if required) with actuarial equivalence computed accrued benefit as the member. using whichever of the following produces the smaller annua iii. Notwithstanding the other requirements of this l amount: Subparagraph F.10.b., no adjustment shall be made to the def (i). the interest rate and the mortality table (or ined benefit dollar limitation to reflect the probability of a m other tabular factor) specified in the plan for adjusting ember’s death between the annuity starting date and age 62, benefits in the same form; or or between age 65 and the annuity starting date, as applicabl e, if benefits are not forfeited upon the death of the member (ii). a 5 percent interest rate assumption and prior to the annuity starting date. To the extent benefits are f the applicable mortality table. orfeited upon death before the annuity starting date, such an (b). Limitation Years Beginning Before July 1, 2 adjustment shall be made. For this purpose, no forfeiture sha 007 ll be treated as occurring upon the member’s death if the pla n does not charge members for providing a qualified preretir

83 Louisiana Administrative Code October 2017 ement survivor annuity, as defined in section 417(c) of the I ection 415(c)(3)(C)(i) of the Internal Revenue Code for an a nternal Revenue Code, upon the member’s death. ccrual computation period shall receive a year of participati on with respect to that period. In addition, for a member to r c. Minimum Benefit Permitted. Notwithstanding an eceive a year of participation (or part thereof) for an accrual ything else in this Section to the contrary, the benefit otherwi computation period, the plan must be established no later tha se accrued or payable to a member under this plan shall be d n the last day of such accrual computation period. In no even eemed not to exceed the maximum permissible benefit if: t shall more than one year of participation be credited for an i. the retirement benefits payable for a limitation y 12-month period. year under any form of benefit with respect to such member Year of Servicefor purposes of Subsection G of this S under this plan and under all other defined benefit plans (wit ection, the member shall be credited with a year of service (c hout regard to whether a plan has been terminated) ever mai omputed to fractional parts of a year) for each accrual comp ntained by the employer do not exceed $10,000 multiplied b utation period for which the member is credited with at least y a fraction: the number of hours of service (or period of service if the ela (a). the numerator of which is the member’s num psed time method is used) for benefit accrual purposes, requi ber of years (or part thereof, but not less than 1 year) of servi red under the terms of the plan in order to accrue a benefit fo ce (not to exceed 10) with the employer; and r the accrual computation period, taking into account only se rvice with the employer or a predecessor employer. (b). the denominator of which is 10; and G. Other Rules ii. the employer (or a predecessor employer) has n ot at any time maintained a defined contribution plan in whic 1. Benefits under Terminated Plans. If a defined benef h the member participated (for this purpose, mandatory empl it plan maintained by the employer has terminated with suffi oyee contributions under a defined benefit plan, individual m cient assets for the payment of benefit liabilities of all plan edical accounts under section 401(h), and accounts for postre members and a member in the plan has not yet commenced b tirement medical benefits established under section 419A(d) enefits under the plan, the benefits provided pursuant to the a (1) are not considered a separate defined contribution plan). nnuities purchased to provide the member’s benefits under th e terminated plan at each possible annuity starting date shall Predecessor Employerif the employer maintains a pla be taken into account in applying the limitations of this articl n that provides a benefit which the member accrued while pe e. If there are not sufficient assets for the payment of all me rforming services for a former employer, the former employ mbers’ benefit liabilities, the benefits taken into account shal er is a predecessor employer with respect to the member in t l be the benefits that are actually provided to the member un he plan. A former entity that antedates the employer is also a der the terminated plan. predecessor employer with respect to a member if, under the facts and circumstances, the employer constitutes a continuat 2. Benefits Transferred from the Plan. If a member’s b ion of all or a portion of the trade or business of the former e enefits under a defined benefit plan maintained by the emplo ntity. yer are transferred to another defined benefit plan maintaine d by the employer and the transfer is not a transfer of distrib Severance from Employmentan employee has a sever utable benefits pursuant section 1.411(d)-4, Q and A-3(c), of ance from employment when the employee ceases to be an e the income tax regulations, the transferred benefits are not tr mployee of the employer maintaining the plan. An employee eated as being provided under the transferor plan (but are tak does not have a severance from employment if, in connection en into account as benefits provided under the transferee pla with a change of employment, the employee’s new employer n). If a member’s benefits under a defined benefit plan maint maintains the plan with respect to the employee. ained by the employer are transferred to another defined ben Year of Participationthe member shall be credited wit efit plan that is not maintained by the employer and the trans h a year of participation (computed to fractional parts of a y fer is not a transfer of distributable benefits pursuant section ear) for each accrual computation period for which the follo 1.411(d)-4, Q and A-3(c), of the income tax regulations, the t wing conditions are met: ransferred benefits are treated by the employer’s plan as if su ch benefits were provided under annuities purchased to provi a. the member is credited with at least the number o de benefits under a plan maintained by the employer that ter f hours of service (or period of service if the elapsed time me minated immediately prior to the transfer with sufficient asse thod is used) for benefit accrual purposes, required under the ts to pay all members’ benefit liabilities under the plan. If a terms of the plan in order to accrue a benefit for the accrual c member’s benefits under a defined benefit plan maintained b omputation period; and y the employer are transferred to another defined benefit pla b. the member is included as a member under the eli n in a transfer of distributable benefits pursuant section 1.41 gibility provisions of the plan for at least one day of the accr 1(d)-4, Q and A-3(c), of the income tax regulations, the amo ual computation period. If these two conditions are met, the unt transferred is treated as a benefit paid from the transferor portion of a year of participation credited to the member sha plan. ll equal the amount of benefit accrual service credited to the 3. Formerly Affiliated Plans of the Employer. A forme member for such accrual computation period. A member wh rly affiliated plan of an employer shall be treated as a plan m o is permanently and totally disabled within the meaning of s aintained by the employer, but the formerly affiliated plan sh

Louisiana Administrative Code August 2013 84 all be treated as if it had terminated immediately prior to the his benefits, the remaining portion of his benefit shall be dist cessation of affiliation with sufficient assets to pay members’ ributed at least as rapidly as before his death. Payment of sur benefit liabilities under the plan and had purchased annuities vivor benefits shall not be considered to violate this provisio to provide benefits. n. 4. Plans of a Predecessor Employer. If the employer m B.1. If the member dies before his benefit has commence aintains a defined benefit plan that provides benefits accrued d the remainder of such interest shall be distributed to the me by a member while performing services for a predecessor em mber's beneficiary within five years after the date of such me ployer, the member’s benefits under a plan maintained by th mber's death. e predecessor employer shall be treated as provided under a 2. Paragraph 1 of this Subsection shall not apply to an plan maintained by the employer. However, for this purpose, y portion of a member's benefit which is payable to or for th the plan of the predecessor employer shall be treated as if it e benefit of a designated beneficiary or beneficiaries, over th had terminated immediately prior to the event giving rise to t e life of or over the life expectancy of such beneficiary, so lo he predecessor employer relationship with sufficient assets t ng as such distributions begin not later than one year after th o pay members’ benefit liabilities under the plan, and had pu e date of the member's death, or, in the case of the member's rchased annuities to provide benefits; the employer and the p surviving spouse, the date the member would have attained t redecessor employer shall be treated as if they were a single he age of 70 years and 6 months. If the designated beneficiar employer immediately prior to such event and as unrelated e y is a child of the member, for purposes of satisfying the req mployers immediately after the event; and if the event giving uirement of Paragraph 1 of this Subsection, any amount paid rise to the predecessor relationship is a benefit transfer, the tr to such child shall be treated as if paid to the member's survi ansferred benefits shall be excluded in determining the benef ving spouse if such amount would become payable to such s its provide under the plan of the predecessor employer. urviving spouse, if alive, upon the child's reaching age eight 5. Special Rules. The limitations of this Chapter shall een or, if later, upon the child's completing a designated even be determined and applied taking into account the rules in se t. For purposes of the preceding sentence, a designated event ction 1.415(f)-1(d), (e) and (h) of the income tax regulations. shall be the later of the date the child is no longer disabled, o r the date the child ceases to be a full-time student or attains AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1302.1. age 23, if earlier. HISTORICAL NOTE: Promulgated by the Department of the T 3. Paragraph 1 of this Subsection shall not apply if the reasury, Board of Trustees of the Louisiana State Police Retirement distribution of the member's interest has commenced and is f System, LR 39:1286 (May 2013). or a term certain over a period permitted in Subsection A of t §202. Required Minimum Distributions his Section. A.1. Unless the member has elected otherwise on or befor 4. Paragraph 1 of this Subsection shall not apply if the e December 31, 1983, the entire benefit of a member shall be member has elected otherwise on or before December 31, 19 distributed over a period not longer than the longest of the fo 83, or such later date to which such election period shall be s llowing periods: ubject under Internal Revenue Code section 401(a). a. the member's life; C. As to any benefit payable by the retirement system w b. if the member is married, the life of the member's hich is not optional as of December 31, 1983, the member sh designated beneficiary; all be considered to have made the election referred to in Su bsections A and B of this Section, if he was a member on or c. the member's life expectancy; before such time. d. the joint life and last survivor life expectancy of t D. If by operation of law or by action of the board of trus he member and his designated beneficiary. tees, a survivor benefit is payable to a specified person or pe 2. If the member is married and his spouse survives hi rsons, the member shall be considered to have designated su m, the designated beneficiary for at least a qualified joint an ch person as an alternate beneficiary hereunder. If there is m d survivor annuity and 50 percent of his deferred retirement ore than one such person, then the youngest disabled child sh option plan account shall be his spouse, unless such spouse h all be considered to have been so designated, or, if none, the as consented to the contrary in writing before a notary public n the youngest person entitled to receive a survivor benefit s For purposes of this Paragraph: hall be considered to have been so designated. The designati on of a designated beneficiary hereunder shall not prevent pa a. spousethat person who is married to the memb yment to multiple beneficiaries but shall only establish the p er under a legal regime of community of acquets and gains o ermitted period of payments. n his effective date of retirement or effective date of particip ation in the deferred retirement option plan, whichever is ear E. Payment in accordance with the survivor benefit provi lier. sions of R.S. 11:1316-1323.1 shall be deemed not to violate Subsections A and B of this Section. 3. If the member was a member on or before Decembe r 31, 1983, he shall be deemed to have made the election ref F. This Section shall be effective for members of the sys erred to herein. If a member dies after the commencement of tem who complete any service under the system on or after J uly 1, 1992, with employers contributing to the system.

85 Louisiana Administrative Code October 2017 G. Distributions from the system shall be made in accord e. an eligible deferred compensation plan described ance with the requirements set forth in Internal Revenue Co in section 457(b) of the Internal Revenue Code that is mainta de section 401(a)(9), including the minimum distribution inc ined by an eligible governmental employer, provided the pla idental benefit rules applicable thereunder. n contains provisions to account separately for amounts trans ferred into such plan; and H.1.A member's benefits shall commence to be paid on or before the required beginning date. f. an annuity contract described in section 403(b) of the Internal Revenue Code. 2. The required beginning date shall be April 1 of the calendar year following the later of the calendar year in whic Eligible Rollover Distributionany distribution of all o h the member attains 70 1/2 years of age, or the calendar yea r any portion of the balance to the credit of the distributee, e r in which the employee retires. Effective for plan years begi xcept that an eligible rollover distribution does not include: nning on or after January 1, 1998, the required beginning dat e shall be April 1 of the year following the later of the year t a. any distribution that is one of a series of substanti he member attained 70 1/2 or the year he terminated employ ally equal periodic payments, not less frequently than annual ment. ly, made for the life or life expectancy of the member, or the joint lives or joint life expectancies of the member and the m AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ember's designated beneficiary, or for a specified period of te 1302.1. n years or more; HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Louisiana State Police Retirement b. any distribution to the extent that such distributio System, LR 39:1292 (May 2013). n is required under section 401(a)(9) of the United States Int §203. Direct Rollovers ernal Revenue Code; and A. Notwithstanding any other provision of law to the con c. any distribution which is made upon hardship of t trary that would otherwise limit a distributee's election under he employee. this Section, a distributee may elect, at the time and in the m AUTHORITY NOTE: Promulgated in accordance with R.S. 11 anner prescribed by the board of trustees, to have any portio 1302.1. n of an “eligible rollover distribution,” as specified by the di HISTORICAL NOTE: Promulgated by the Department of the T stributee, paid directly to an “eligible retirement plan,” as th reasury, Board of Trustees of the Louisiana State Police Retirement ose terms are defined below. System, LR 39:1292 (May 2013). §204. Annual Compensation Limitation B. The following definitions shall apply. A. Unless otherwise provided in this Chapter, the accrue Direct Rollovera payment by the system to the eligibl d benefit of each section 401(a)(17) employee as that term is e retirement plan specified by the distributee. defined below shall be the greater of the following: Distributeeshall include: 1. the employee's accrued benefit determined with res a. a member or former member; pect to the benefit formula applicable for the plan year begin ning on or after January 1, 1996, as applied to the employe b. the member's or former member's surviving spou e's total years of service taken into account for purposes of b se, or the member's or former member's former spouse with enefit accruals; whom a benefit or a return of employee contributions is to b e divided pursuant to R.S. 11:291(B), with reference to an in 2. the sum of: terest of the member or former spouse; a. the employee's accrued benefit as of the last day c. the member's or former member's non-spouse benef of the last plan year beginning before January 1, 1996, froze iciary, provided the specified distribution is to an eligible reti n in accordance with the provisions of section 1.401(a)(4)-1 rement plan as defined in Subparagraphs a and b of the defin through 1.401(a)(4)-13 of the Code of Federal Regulations; ition of eligible retirement plan in this Section. b. the employee's accrued benefit determined under Eligible Retirement Planany of the following: the benefit formula applicable for the plan year beginning on or after January 1, 1996, as applied to the employee's years o a. an individual retirement account described in sect f service credited to the employee for plan years beginning o ion 408(a) of the Internal Revenue Code; n or after January 1, 1996, for purposes of benefit accruals. b. an individual retirement annuity described in sect B. A section 401(a)(17) employee shall mean any emplo ion 408(b) of the Internal Revenue Code; yee whose current accrued benefit, as of a date on or after th c. an annuity plan described in section 403(a) of the e first day of the first plan year beginning on or after January Internal Revenue Code; 1, 1996, is based on compensation for a year beginning prior to the first day of the first plan year beginning on or after Jan d. a qualified trust as described in section 401(a) of uary 1, 1996, that exceeded $150,000. the Internal Revenue Code, provided that such trust accepts t he member's eligible rollover distribution; C. If an employee is not a section 401(a)(17) employee, his accrued benefit in this system shall not be based upon co

Louisiana Administrative Code August 2013 86 mpensation in excess of the annual limit of section 401(a)(1 ebsite, such form to require applicant’s name, date started in 7) of the United States Internal Revenue Code as amended a system, and for which seat the applicant is qualifying. nd revised. B. Candidates shall submit in writing to the director their AUTHORITY NOTE: Promulgated in accordance with R.S. 11 intention to run for a specified office between in the followin 1302.1. g timeframe: HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Louisiana State Police Retirement 1. the fourth Monday in August and the second Mond System, LR 39:1293 (May 2013). ay in September, for a position with term ending December §205. General 31; and A. The assets of this system's pension plan shall be held f 2. the fourth Monday in February and the second Mon or the exclusive benefit of the employees who are or become day in March, for a position with term ending June 30. participating members of the system and their survivors and C. The board of trustees shall designate a qualifying for beneficiaries, and of retirees and their survivors and benefici m. The designated qualifying form shall be posted on the we aries. No part of the corpus, the system's pension plan assets bsite and/or mailed to the member. held in trust, or income of the system's pension plan shall be used for or diverted to purposes other than the exclusive ben AUTHORITY NOTE: Promulgated in accordance with R.S. 11 efit of such members and retirees, or their survivors or benef 1302(B). HISTORICAL NOTE: Promulgated by the Department of Trea iciaries, whether by operation or natural termination of the s sury, Board of Trustees for the State Police Retirement Fund, LR 42: ystem's pension plan, by power of revocation or amendment, 1961 (November 2016). by the happening of a contingency, by collateral assignment, §303. Ballots, Count, Tabulation, Posing, Oath of Offic or by any other means. e B. The retirement benefit earned by a member shall be fu lly vested and nonforfeitable no later than the date he becom A. The director shall compile a ballot for each office to b es eligible to retire. Benefits of affected members shall also e filled. Ballots shall be mailed to the membership at their ho become vested and nonforfeitable to the extent funded, upon me address in the following timeframe: the termination or partial termination of the system's pension 1. beginning the fourth Monday of September through plan or the complete discontinuance of contributions thereto. the second Monday of October, for a position with term endi C. Forfeitures resulting from a termination of employme ng December 31; nt or a withdrawal of a member's own contributions may not 2. beginning the fourth Monday of March through the be used to increase benefits to remaining members. This shal second Monday of April for a position with term ending Jun l not preclude an increase in benefits by amendment to the b e 30: enefit formula made possible by favorable investment results or for any other reason. a. the ballots shall be issued to members who are eli gible to vote for this particular candidate pursuant to R.S. 11: AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1302 (“qualified member”) as of September 1 of that year; a 1302.1. nd HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Louisiana State Police Retirement b. the member must be a qualified member as of the System, LR 39:1294 (May 2013). date the system counts the ballot in order for that member’s Chapter 3.Procedures for Election of ballot to be counted; Louisiana State Police Retirement Sys c. in addition to the ballot the director shall mail an envelope in which to enclose the ballot, on which the qualifi tem Trustees ed member must sign his or her name, and a return envelope §301. General Election Procedures for the sealed ballot to be returned to 9224 Jefferson Hwy, B aton Rouge, LA 70809 and instructions; A. The director shall issue to the Louisiana State Police Retirement System membership a notice of each trustee offic d. the director shall inform each member in this mai e to be filled in the following timeframe: ling that results of the vote shall be promulgated on the syste m’s website in late November or early December (for a posit 1. between the first Monday in August and the third M ion with term ending December 31) or late May or early Jun onday in August, for a position with term ending December e (for a position with term ending June 30); 31, via mail, with qualifying form attached and placed on the website, such form to require applicant’s name, date started i e. voted ballots shall be accepted through the fourth n system, and for which seat the applicant is qualifying; Monday in October at 4:30 p.m. (for a position with term en ding December 31) or through the fourth Monday in April at 2. between the first Monday in February and the third 4:30 p.m. (for a position with term ending June 30); Monday in February, for a position with term ending June 30 via mail, with qualifying form attached and placed on the w f. a date and time shall be placed on each ballot env elope received by the director across the envelope flap.

87 Louisiana Administrative Code October 2017 B. Ballots shall be held inviolate by the director. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1302(B). 1. The director shall call a special meeting of the retire HISTORICAL NOTE: Promulgated by the Department of Trea ment staff, and notify the public by placing notice on the LS sury, Board of Trustees for the State Police Retirement Fund, LR 42: PRS website that anyone may attend, at which time the retire 1961 (November 2016). ment staff shall count and tabulate ballots between Novembe §305. Vacancy r 1 and December 10 (for a position with term ending Decem ber 31) and between May 1 and June 10 (for a position with t A. Should a vacancy occur, the board shall hold a special erm ending June 30). election as soon as reasonably possible to fill this unexpired seat. 2. The director shall ensure that the board and the can didates are informed of the results of the vote thereafter. At n 1. If the unexpired term of office for this seat is less th ext board meeting, the board of trustees shall announce the r an two years from the date the election results are expected, t esults. he election shall be for the unexpired term of office and for t he next five-year term. C. The director shall issue to the elected trustee an oath o f office. 2. If the unexpired term of office for this seat is two y ears or greater from the date the election results are expected 1. The trustee shall take the oath at the first board mee then the election shall be for the unexpired term of office on ting of the year in which the trustee takes office. ly. a. The oath shall contain a term of office effective J AUTHORITY NOTE: Promulgated in accordance with R.S. 11 anuary 1 of this year for a position ending December 31 and 1302(B). effective July 1 for a position ending June 30. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees for the State Police Retirement Fund, LR 42: 1961 (November 2016).

Louisiana Administrative Code August 2013 88 Title 58 RETIREMENT Part XI. Parochial Employees' Retirement System

Chapter 1. General Provisions v. a hardship distribution. §103. Definitions b. A portion of a distribution shall not fail to be an e ligible rollover distribution merely because the portion consi A. The following definitions shall apply in this Part. sts of after-tax employee contributions which are not includi Direct Rollover―a payment by the plan to the eligible r ble in gross income. However, such portion may be paid onl etirement plan specified by the distributee. y to an individual retirement account or annuity described in Distributee―includes an employee or former employee. Section 408(a) or (b) of the Code, or to a qualified defined c In addition, the employee's or former employee's surviving s ontribution or qualified defined benefit plan described in Co pouse and the employee's or former employee's spouse or for de Section 401(a) or 403(a) that agrees to separately account mer spouse who is the alternative payee under a qualified do for amounts so transferred, including separately accounting f mestic relations order, as defined in Internal Revenue Code or the portion of such distribution which is includible in gros Section 414(p), are distributees with regard to the interest of s income and the portion of such distribution which is not so the spouse or former spouse. includible. Eligible Retirement Plan―an individual retirement acco AUTHORITY NOTE: Promulgated in accordance with R.S. 11 unt described in Internal Revenue Code Section 408(a), an in 1931. dividual retirement annuity described in Section 408(b), an a HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Parochial Employees' Retirement nnuity plan described in Internal Revenue Code Section 403 System, LR 30:508 (March 2004), amended LR 30:1491 (July 200 (a), or a qualified trust described in Internal Revenue Code S 4). ection 401(a), that accepts the distributee's eligible rollover d istributions. However, in the case of an eligible rollover distr Chapter 3. Eligibility ibution to the surviving spouse, an eligible retirement plan is §301. Persons Not Eligible for Membership; Leased E an Individual Retirement Account or individual retirement a mployees nnuity. An eligible retirement plan shall also mean an annuit y contract described in Internal Revenue Code Section 403 A. Leased employees or persons considered by the syste (b) and an eligible plan under Internal Revenue Code Sectio m as leased employees of an employer shall not be eligible t n 457(b) which is maintained by a state, political subdivision o participate. Leased employee shall mean any person who i of a state, or any agency or instrumentality of a state or politi s not employed by an employer and pursuant to an agreemen cal subdivision of a state and which agrees to separately acc t between the employer and any other person or entity ("leasi ount for amounts transferred into such plan from this system. ng organization") has performed services for the employer (o The definition of eligible retirement plan shall also apply in t r for related persons determined in accordance with Section he case of a distribution to a surviving spouse, or to a spouse 414(n)(6) of the Internal Revenue Code) on a substantially f or former spouse who is the alternate payee under a qualified ull-time basis for a period of at least one year, and such servi domestic relations order. ces are performed under primary direction or control by the Eligible Rollover Distribution― employer. a.i any distribution of all or any portion of the balan AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ce to the credit of the distributee, except that an eligible rollo 1931. ver distribution does not include: HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Parochial Employees' Retirement ii. any distribution that is one of a series of substa System, LR 30:1492 (July 2004). ntially equal periodic payments, not less frequently than ann §303. Creditable Service; Uniformed Services Employ ually, made for the life, or life expectancy, of the distributee ment and Reemployment Rights Act or the joint lives, or joint life expectancies, of the distributee and the distributee's designated beneficiary, or for a specified A. If a member takes a leave of absence to serve in the U period of 10 years or more; S. armed services, the terms of which are governed by the U niformed Services Employment and Reemployment Rights iii. any distribution to the extent such distribution i Act (USERRA), then upon the member's return to employm s required under Internal Revenue Code Section 401(a)(9); ent with the employer within five years from the leave of abs iv. the portion of any distribution that is not includ ence, the member shall be permitted to make the member co able in gross income, determined without regard to the exclu ntributions called for under the system as if the member had sion for net unrealized appreciation with respect to employer continued employment, and if so made, the member shall be securities; given creditable service under the system for that period of ti

89 Louisiana Administrative Code October 2017 me. The member contributions to the system as permitted un 3. Paragraph 1 shall not apply if the distribution of the der this Section shall be made ratably over a period of time e member's interest has commenced and is for a term certain o qualing the period the member was in the U.S. armed service ver a period permitted in Subsection B. s, but in no event shall such period exceed five years. If the r C. If a survivor benefit is payable to a specified person o eturning member makes the member contribution, the emplo r persons or if a benefit is payable at death under an option el yer shall be required to make an employer contribution to fu ected pursuant to R.S. 11:1932, the member shall be conside nd the employer's portion of the creditable service given to t red to have designated such person as a designated beneficia he returning member. The amount of the member's contributi ry hereunder. If there is more than one such person, then the on and the employer's contribution shall be determined by th oldest such person shall be considered to have been so desig e system's actuary. A member who does not return to employ nated, or, if none, then the oldest person entitled to receive a ment with his employer shall not be affected by this provisio survivor benefit shall be considered to have been so designat n. ed. The designation of a designated beneficiary hereunder sh AUTHORITY NOTE: Promulgated in accordance with R.S. 11 all not prevent payment to multiple beneficiaries but shall on 1931. ly establish the permitted period of payments. HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Parochial Employees' Retirement D. Distributions from the system shall be made in accord System, LR 30:1492 (July 2004). ance with the requirements set forth in Internal Revenue Co de Section 401(a)(9), including the minimum distribution inc Chapter 5. Scope of Benefits idental benefit rules applicable thereunder. §501. Limitation on Payment of Benefits E.1. A member's benefits shall commence to be paid on A.1. Unless the member has elected otherwise on or befo or before the required beginning date. re December 31, 1983, the entire benefit of a member shall b 2. The required beginning date shall be April 1 of the e distributed over a period not longer than the longest of the calendar year following the later of the calendar year in whic following periods: h the member attains 70 1/2 years of age, or the calendar yea a. the member's life; r in which the employee retires. Effective for plan years begi b. the life of the member's designated beneficiary or nning on or after January 1, 1998, the required beginning dat the joint and last survivor lives of the member and his design e shall be April 1 of the year following the later of the year t ated beneficiary; he member attained 70 1/2 or the year he terminated employ ment. c. the member's life expectancy; F. The provisions of this Section shall be effective July 1, d. the joint life and last survivor life expectancy of t 1987. he member and his designated beneficiary. 2. If the member is married and his spouse survives hi AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1931. m, the designated beneficiary shall be his spouse. If a memb HISTORICAL NOTE: Promulgated by the Department of the T er dies after the commencement of his benefits, the remainin reasury, Board of Trustees of the Parochial Employees' Retirement g portion of his benefit shall be distributed at least as rapidly System, LR 30:508 (March 2004), amended LR 30:1492 (July 200 as before his death. 4). B.1. If the member dies before his benefit has commence §503. Early Payment of Benefits d, the remainder of such interest shall be distributed to the m A. In the event of plan termination, the benefit of any hig ember's beneficiary within five years after the date of such m hly compensated employee including an active highly compe ember's death. nsated employee and a former employee who was a highly c 2. Paragraph 1 shall not apply to any portion of a mem ompensated employee, is limited to a benefit that is nondiscr ber's benefit which is payable to or for the benefit of a desig iminatory under Internal Revenue Code, Section 401(a)(4) (s nated beneficiary or beneficiaries, over the life of or over the ee 26 U.S.C. 401 et seq.) life expectancy of such beneficiary, so long as such distributi B.1. For plan years beginning on or after January 1, 199 ons begin not later than one year after the date of the membe 1, benefits distributed to any of the 25 most highly compensa r's death, or, in the case of the member's surviving spouse, th ted active and former highly compensated employees are res e date the member would have attained the age of 70 1/2 yea tricted such that the annual payments are no greater than an a rs. If the designated beneficiary is the member's surviving sp mount equal to the payment that would be made on behalf of ouse and if the surviving spouse dies before the distribution the employee under a single life annuity that is the actuarial of benefits commences, then Paragraph 1 shall be applied as equivalent of the sum of the employee's accrued benefit and if the surviving spouse were the member. If the designated b the employee's other benefits under the plan. eneficiary is a child of the member, for purposes of satisfyin g the requirement of Paragraph 1, any amount paid to such c 2. Subsection A of this Section shall not apply if: hild shall be treated as if paid to the member's surviving spo a. after the payment of the benefit to an employee d use if such amount would become payable to such surviving escribed in Paragraph 1 of this Subsection, the value of plan spouse, if alive, upon the child's reaching age 18. assets equals or exceeds 110 percent of the value of current l

Louisiana Administrative Code August 2013 90 iabilities as defined in Internal Revenue Code Section 412(1) unt in determining a member's benefits accruing in the curre (7); or nt plan year, the compensation for the prior period shall be s ubject to the compensation limit for the current year. b. the value of the benefits for an employee describe d above is less than 1 percent of the value of current liabilitie AUTHORITY NOTE: Promulgated in accordance with R.S. 11 s. 1931. HISTORICAL NOTE: Promulgated by the Department of the T 3. For purposes of this Section, benefit includes loans reasury, Board of Trustees of the Parochial Employees' Retirement in excess of the amount set forth in Internal Revenue Code S System, LR 30:510 (March 2004), amended LR 30:1492 (July 200 ection 72(p)(2)(A), any periodic income, any withdrawal val 4). ues payable to a living employee, and any death benefits not §507. Transfer of Benefits provided for by insurance on the employee's life. A. This Section applies to distributions made on or after AUTHORITY NOTE: Promulgated in accordance with R.S. 11 January 1, 1993. Notwithstanding any provisions of the plan 1931. to the contrary that would otherwise limit a distributee's elect HISTORICAL NOTE: Promulgated by the Department of the T ion under this Section, a distributee may elect, at the time an reasury, Board of Trustees of the Parochial Employees' Retirement System, LR 30:509 (March 2004). d in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution paid directly t §505. Compensation Limited o a retirement plan specified by the distributee in a direct roll A. In addition to other applicable limitations set forth in t over. he plan, and notwithstanding any other provisions of the pla B. If a distribution is one to which Sections 401(a)(11) a n to the contrary, for plan years beginning on or after Januar nd 417 of the Internal Revenue Code (see 26 U.S.C. 401 et s y 1, 1994 and before January 1, 2002, the annual compensati eq.) do not apply, such distribution may commence less than on of each employee taken into account under the plan shall 30 days after the notice required under Section 1.411(a)-11 not exceed the Omnibus Budget Reconciliation Act of 1993 (c) of the federal income tax regulations is given, provided t annual compensation limit. The Omnibus Budget Reconcilia hat: tion Act of 1993 annual compensation limit is $150,000, as a djusted by the commissioner of Internal Revenue for increas 1. the plan administrator clearly informs the participan es in the cost of living in accordance with Section 401(a)(17) t that the participant has a right to a period of at least 30 days (B) of the Internal Revenue Code (see 26 U.S.C. 401 et seq.). after receiving the notice to consider the decision of whether The cost-of-living adjustment in effect for a calendar year a or not to elect a distribution (and, if applicable, a particular d pplies to any period, not exceeding 12 months, over which c istribution option); and ompensation is determined (determination period) beginning 2. the participant, after receiving the notice, affirmativ in such calendar year. If a determination period consists of fe ely elects a distribution. wer than 12 months, the Omnibus Budget Reconciliation Act of 1993 annual compensation limit will be multiplied by a fr C. The following definitions shall apply. action, the numerator of which is the number of months in th Direct Rollover―a payment by the plan to the eligible r e determination period, and the denominator of which is 12. etirement plan specified by the distributee. B. For plan years beginning on or after January 1, 1994 a Distributee―includes an employee or former employee. nd before January 1, 2002, any reference in this plan to the li In addition, the employee's or former employee's surviving s mitations under Internal Revenue Code Section 401(a)(17) s pouse and the employee's or former employee's spouse or for hall mean the Omnibus Budget Reconciliation Act of 1993 a mer spouse who is the alternative payee under a qualified do nnual compensation limit set forth in this Section. mestic relations order, as defined in Internal Revenue Code C. If compensation for a prior determination period is tak Section 414(p), are distributees with regard to the interest of en into account in determining an employee's benefits accrui the spouse or former spouse. ng in the current plan year, the compensation for that prior d Eligible Retirement Plan―an individual retirement acco etermination period is subject to the Omnibus Budget Recon unt described in Internal Revenue Code Section 408(a), an in ciliation Act of 1993 annual compensation limit in effect for dividual retirement annuity described in Section 408(b), an a that prior determination period. For this purpose, for determi nnuity plan described in Internal Revenue Code Section 403 nation periods beginning before the first day of the first plan (a), or a qualified trust described in Internal Revenue Code S year beginning on or after January 1, 1994, the Omnibus Bu ection 401(a), that accepts the distributee's eligible rollover d dget Reconciliation Act of 1993 annual compensation limit i istributions. However, in the case of an eligible rollover distr s $150,000. ibution to the surviving spouse, an eligible retirement plan is D. For plan years beginning on or after January 1, 2002, t an individual retirement account or individual retirement ann he annual compensation limitation (Section 401(a)(17) of the uity. Internal Revenue Code) for the determination of a retirement Eligible Rollover Distribution―any distribution of all o allowance shall not exceed $200,000, as adjusted for cost-of- r any portion of the balance to the credit of the distributee, e living under Paragraph 401(a)(17)(B) of the Internal Revenu xcept that an eligible rollover distribution does not include: e Code. If compensation for a prior period is taken into acco

91 Louisiana Administrative Code October 2017 a. any distribution that is one of a series of substanti nefit may not exceed the lesser of $90,000 per year or 100 pe ally equal periodic payments, not less frequently than annual rcent of such member's average compensation for his highest ly, made for the life, or life expectancy, of the distributee or t three years. For purposes of determining whether a membe he joint lives, or joint life expectancies, of the distributee an r's benefit exceeds this limitation, the following shall apply. d the distributee's designated beneficiary, or for a specified p 1. Adjustment if Benefit Not Single Life Annuity eriod of 10 years or more; a. If the normal form of benefit is other than a singl b. any distribution to the extent such distribution is r e life annuity, such form shall be adjusted actuarially to the e equired under Internal Revenue Code Section 401(a)(9); quivalent of a single life annuity. This single life annuity sha c. the portion of any distribution that is not includab ll not exceed the maximum dollar or percent limitations outli le in gross income, determined without regard to the exclusi ned above. on for net unrealized appreciation with respect to employer s b. No adjustment is required for the following: ecurities. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 i. qualified joint and survivor annuity benefits; 1931. ii. pre-retirement disability benefits; HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Parochial Employees' Retirement iii. pre-retirement death benefits. System, LR 30:509 (March 2004), repromulgated LR 30:1046 (Ma y 2004). 2. A member's retirement allowance shall be limited to $160,000. The $160,000 amount shall be adjusted for memb §509. Computation of Retirement Benefits ers retiring before age 62 or after age 65 under Internal Reve A. This Section is intended to comply with Internal Reve nue Code Section 415(b)(2). The benefit limitation in the for nue Code Section 415. It shall cover only those who become egoing sentence shall be further adjusted by multiplying suc members for the first time on or after January 1, 1990, and th h limitation by the cost of living adjustment factor prescribe ose qualified participants for whom the benefit is increased a d by the secretary of the Treasury under Internal Revenue C fter October 14, 1987, to the extent of the benefit increase aft ode Section 415(d) in such manner as the secretary shall pres er October 14, 1987, including cost-of-living adjustments on cribe. The new limitation will apply to limitation years endin any such increase. g within the calendar year of the date of the adjustment. B. The normal retirement benefit of a member of Plan A 3. Adjustment for Less than 10 Years of Creditable Se shall not exceed the amount set forth in R.S. 11:1942, the no rvice rmal retirement benefit of a member of Plan B shall not exce a. If retirement benefits are payable under this retire ed the amount set forth in R.S. 11:1962, and the normal retir ment system to a member who has less than 10 years of cred ement benefit of a member of Plan C shall not exceed the am itable service in the retirement system, the dollar limitation r ount set forth in R.S. 11:1972. eferred to in the first Paragraph of this Subsection ($90,000) C.1. Qualified Participant shall mean a member of the sy will be multiplied by a fraction, the numerator of which is th stem who first became a member before January 1, 1990. In e member's number of years of creditable service in the syste the case of the merger of, or transfer of assets and benefits of m (not greater than 10), and the denominator of which is 10. a member or members from, another plan maintained by an e i. Effective for plan years beginning on or after J mployer which joins this system, the accrued benefit under s anuary 1, 2002, "$160,000" will be substituted for "$90,000" uch predecessor plan shall be the accrued benefit referred to above. above, and the member shall be considered a qualified partic ipant if his participation in such predecessor or merged plan 4. Annual Adjustment. The limitation provided in this commenced on or before January 1, 1990. Subsection shall be adjusted annually to the maximum dollar limits allowable by the secretary of the Treasury of the Unite 2. All employers contributing to the system on behalf d States under Internal Revenue Code Section 415(d), such a of their employees, and all employers who may join the syst djustments not to take effect until the first day of the fiscal y em, as a condition of such joining, shall elect, and such elect ear following December 31, 1987. The adjustment shall not ion is hereby implemented, to have the limitations of Interna exceed the adjustment in effect for the calendar year in whic l Revenue Code Section 415(b) other than Paragraph 2G ther h the fiscal year of the system begins. The adjusted earlier li eof applied without regard to Paragraph 2F thereof, which li mitation is applicable to employees who are members of the mitations are set forth in Subsection D. Such limitations shal system and to members who have retired or otherwise termin l apply to all members who are not qualified participants as d ated their service under the system with a nonforfeitable righ escribed herein and to qualified participants to the extent of t t to accrued benefits, regardless of whether they have actuall he benefit increase after October 14, 1987, including cost-of- y begun to receive benefits. This system shall be considered living adjustments on any such increase. specifically to provide for such post-retirement adjustments. D. The retirement benefit of any member of the retireme For any limitation year beginning after separation from servi nt system who is not a qualified participant, as defined in Par ce occurs, the annual adjustment factor is a fraction, the num agraph C.1 and which is not attributable to the member's afte erator of which is the adjusted dollar limitation for the limita r-tax employee contribution, when expressed as an annual be tion year in which the compensation limitation is being adjus

Louisiana Administrative Code August 2013 92 ted and the denominator of which is the adjusted dollar limit 8. Treasury Regulation Applicable. That portion of the ation for the limitation year in which the member separated f benefit designated herein which is attributable to member co rom service. No adjustment shall be permitted with respect t ntributions shall be determined in accordance with Treasury o limitations applicable after October 14, 1987. Regulations §1.415-3(d)(1). 5. Member or Participant in More than One Plan. If a E. All member contributions required to be made to this member is a member or participant in more than one defined system shall be considered for tax purposes as contributions benefit pension plan maintained by the state, its agencies, or made pursuant to Internal Revenue Code Section 414(h)(2). its political subdivisions, then such member's benefit, consid AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ered in the aggregate after taking into account the benefits pr 1931. ovided by all such retirement plans, shall not exceed the limi HISTORICAL NOTE: Promulgated by the Department of the T ts provided in this Subsection. reasury, Board of Trustees of the Parochial Employees' Retirement System, LR 30:510 (March 2004), amended LR 30:1493 (July 200 6. Total Annual Benefits Not in Excess of $10,000. No 4). twithstanding the preceding provisions of this Subsection, th e benefits payable with respect to a participant under any def Chapter 7.Terminations ined benefit plan shall be deemed not to exceed the limitatio ns of this Subsection if: §701. Procedures for Determination of the Unfunded Accrued Liability a. the retirement benefits payable with respect to su ch participant under such plan and under all other defined be A. Procedures for Determination of the Unfunded Accrue nefit plans of the employer do not exceed $10,000 for the pla d Liability under R.S. 11:1903(F) of Parochial Employees’ R n year, or for any prior plan year; and etirement System of Louisiana b. the employer has not at any time maintained a de 1. The unfunded accrued liability calculated pursuant t fined contribution plan in which the participant participated. o R.S. 11:1903(F) shall be determined in a manner consisten t with statement 68 of the Governmental Accounting Standar 7. Average Compensation ds Board. a. For purposes of R.S. 11:1942, 1962, and 1972, av 2. That is the following: the portion of the unfunded a erage compensation shall include any amounts properly cons ccrued liability attributable to the employer’s termination sh idered as the regular rate of pay of the member, as defined in all be a pro rata portion of the allocated share of the net pens R.S. 11:231 and unreduced by amounts excluded from inco ion liability (as per statement 68) for the prospective termina me for federal income tax purposes by reason of 26 U.S.C.A tion of the December 31 immediately preceding the date of t §§125, 132(f), 402(a)(8), 402(h)(1)(B), 403(b), 414(h), or 4 ermination. The pro rata share shall be determined as one mi 57 or any other provision of federal law of similar effect. nus the ratio of the present value of future salaries for the cur b. For purposes of Subsection D, average compensa rent active members of the terminating entity to the present v tion shall include total compensation payable by the employ alue of future salaries of the active group assuming replacem er and included in the employee's income for federal income ent of terminated employees based on a general increase in p tax purposes and shall exclude amounts not includable in the ayroll as a function of the inflation assumption implicit in th member's gross income by reason of 26 U.S.C.A. §§125, 13 e valuation assumptions. 2(f), 402(a)(8), 402(h)(1)(B), 403(b), 414(h) and 457 or any AUTHORITY NOTE: Promulgated in accordance with R.S. 11 other provision of federal law. A member's highest three year 1931. s shall be the period of consecutive calendar years (not more HISTORICAL NOTE: Promulgated by the Department of the T than three) during which the member both was an active part reasury, Board of Trustees of the Parochial Employees' Retirement icipant in the plan and had the greatest aggregate compensati System, LR 42:1691 (October 2016). on from the employer.

93 Louisiana Administrative Code October 2017 Title 58 RETIREMENT Part XIII. Firefighters' Retirement System

Chapter 1. General Provisions e cause of the member's death. The staff shall conduct that st udy and report its findings either verbally or in a written rep §101. Survivor Benefits; Procedures to Use When Dete ort, or both, to the board of trustees in an open public meetin rmining Whether Member's Death Occurred in t g wherein the subject matter of the surviving spouse's benefi he Line of Duty ts are placed before the board for discussion and action. Suc A. Pursuant to the provisions of R.S. 11:2256(B)(1)(a)(i), h report shall be furnished to the board within 30 days of the the surviving spouse of any active contributing member of th conclusion of the study, unless the application for benefits an e system who is killed in the line of duty, is authorized to be d case file is not otherwise complete and ready for board con paid, on a monthly basis, an annual benefit equal to two-thir sideration. Any motion that is made to approve survivor ben ds of the deceased member's average final compensation. efits of a member killed in the line of duty shall contain a su mmary recitation of the facts and circumstances leading up t B. Pursuant to the provisions of R.S. 11:2256(B)(1)(a)(i o and being the cause of the member's death. The board of tr i), the board of trustees must promulgate rules to provide a p ustees shall apply these procedures in a manner consistent wi rocedure for determining whether a member was killed in th th its fiduciary duty. The foregoing procedure shall be used i e line of duty. Thereafter, the board must use its discretion in n all similar cases and shall be known as the "Boler Act Rul applying the procedure. The application of the procedure mu e". st be in compliance with the fiduciary duty of such trustees a s such duty is set forth in Title 11 of the Revised Statutes of AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1950, as amended. 2256(B)(1)(a)(ii) and the Administrative Procedures Act, R.S. 49:9 50 et seq. C. The procedure used for determining whether or not a HISTORICAL NOTE: Promulgated by the Firefighters Retire member's death occurred in the line of duty shall be as follo ment System, LR 35:949 (May 2009). ws: The board of trustees shall direct its staff to conduct a st udy of the facts and circumstances leading up to and being th

Louisiana Administrative Code August 2013 94 Title 58 RETIREMENT Part XV. Sheriffs' Pension and Relief Fund

Chapter 1. General Provisions istant executive director of the fund shall provide a written e xplanation to the recipient of such a distribution explaining t §101. Court Order or Judgment he following: A. To be effective as to the Louisiana Sheriffs’ Pension a 1. the provisions under which the recipient may have nd Relief Fund, any court order or judgment issued upon or the distribution directly transferred to an eligible retirement after the termination of a community property regime which plan and that the automatic distribution by direct transfer app order or judgment recognizes the community interest of a sp lies to certain distributions in accordance with §401(a)(31) ouse or a former spouse of a member or retiree of the Louisi (B) of the Internal Revenue Code; ana Sheriffs’ Pension and Relief Fund and provides that a be nefit or return of employee contributions be divided by the L 2. the provision which requires the withholding of tax ouisiana Sheriffs’ Pension and Relief Fund with the spouse o on the distribution if it is not directly transferred to an eligibl e retirement plan; r former spouse, shall be: 1. considered to be received by the Louisiana Sheriffs’ 3. the provisions under which the distribution will not Pension and Relief Fund under R.S. 11:291(B) only if a certi be subject to tax if transferred to an eligible retirement plan fied copy of the order is served on the Executive Director or within 60 days after the date on which the recipient receives Assistant Executive Director of the Fund by the Sheriff of Ea the distribution; st Baton Rouge Parish; and 4. the provisions under which distributions from the el 2. specific to the Louisiana Sheriffs’ Pension and Reli igible retirement plan receiving the distribution may be subje ef Fund. ct to restrictions and tax consequences which are different fr om those applicable to distributions from the plan making su B. A court order purporting to divide a member’s or retir ch distribution. ee’s benefit s and/or employee contributions between the me mber/retiree and former spouse that does not specifically ide B. For the purposes of this rule, a "reasonable period of t ntify the Louisiana Sheriff’s Pension and Relief Fund by na ime" shall have the meaning assigned to it under §401(a)(31) me shall not be effective as to said fund. of the Internal Revenue Code and the regulations thereunder. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 2177. 291(B). HISTORICAL NOTE: Promulgated by the Office of the Gover HISTORICAL NOTE: Promulgated by the Louisiana Sheriff's nor, Sheriffs' Pension and Relief Fund, LR 36:2865 (December 201 Pension and Relief Fund, LR 36:2290 (October 2010). 0) §103. Eligible Rollover Distribution A. Within a reasonable period of time before making an eligible rollover distribution, the executive director or the ass

95 Louisiana Administrative Code October 2017 RETIREMENT

Title 58 RETIREMENT Part XVII. Registrars of Voters Employees' Retirement System

Chapter 1.Procedures for Election of d of trustees shall promulgate the returns and announce the r esults. Registrars of Voters Employees’ Retir 1. The director shall post the results of the promulgati ement System Trustees on on ROVERS’ website. The director shall email each regis §101. General Election Procedures trar notification of this posting and each registrar shall be req uired to download and print and post this notice in each of th A. The director shall issue to the Registrars of Voters Em e registrar’s offices. ployees’ Retirement System membership a notice of each tru stee office to be filled between the first Monday in July and t 2. The director shall issue to the elected trustee an oat he second Friday in July via email, with qualifying form atta h of office. The trustee shall take the oath in the month of De ched and placed on the website, such form to require applica cember and file a copy with their respective clerk of court. A nt’s name, parish, date started in system, and for which seat t copy of said oath shall be forwarded to the director. The oath he applicant is qualifying. shall contain a term of office effective January 1st of the foll owing year. B. Candidates shall submit in writing to the director their intention to run for a specified office between the third Mon AUTHORITY NOTE: Promulgated in accordance with R.S. 11 day and the fourth Friday of July. The board of trustees shall 2091(B) and (C) et seq. HISTORICAL NOTE: Promulgated by the Department of Trea designate a qualifying form. The designated qualifying form sury, Registrars of Voters Employees’ Retirement System, LR 38:1 shall be posted on the website and/or mailed to the member. 029 (April 2012). C. These July dates will differ only for the first year, 201 §105. Vacancy 1, in which the notice shall be issued as soon as reasonably p A. Should a vacancy occur, the board shall appoint a repl ossible and the notice shall adjust the time for qualifying onl acement member to serve until the next regularly scheduled y as minimally as possible in order to maintain the remainde election. The election to fill this seat will be to fill the unexpi r of the timetable below. red term of this office, unless the seat was expiring and was t AUTHORITY NOTE: Promulgated in accordance with R.S. 11 o be filled at the next election, in which case the election wil 2091(B) and (C) et seq. l be to fill the new term HISTORICAL NOTE: Promulgated by the Department of Trea sury, Registrars of Voters Employees’ Retirement System, LR 38:1 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 029 (April 2012). 2091(B) and (C) et seq. HISTORICAL NOTE: Promulgated by the Department of Trea §103. Ballots, Count, Tabulation, Posting, Oath of Offi sury, Registrars of Voters Employees’ Retirement System, LR 38:1 ce 029 (April 2012). A. The director shall compile a ballot for each office to b Chapter 2.Internal Revenue Code Pro e filled. Ballots shall be mailed to the membership at their ho me address beginning the first Tuesday through the second F visions riday of September. The ballots shall be issued to members §201. Limitation on Benefits who were active employees as of June 30 of that year and th e member must be an active employee as of the date the syst A. The limitations of this Chapter shall apply in limitatio em counts the ballot in order for that member’s ballot to be c n years beginning on or after July 1, 2007, except as otherwi ounted. In addition to the ballot the director shall mail an affi se provided herein. davit as specified by the board of trustees, a return envelope B. The annual benefit otherwise payable to a member un and instructions. The director shall inform each member in t der the plan at any time shall not exceed the maximum permi his mailing that results of the vote shall be promulgated on t ssible benefit. If the benefit the member would otherwise acc he system’s website in late November or early December. Vo rue in a limitation year would produce an annual benefit in e ted ballots shall be accepted through the first Friday in Octo xcess of the maximum permissible benefit, the benefit shall ber at 4:30 p.m. A date and time shall be placed on each ball be limited (or the rate of accrual reduced) to a benefit that do ot envelope received by the director across the envelope flap. es not exceed the maximum permissible benefit. B. Ballots shall be held inviolate by the director. The cha C. If the member is, or has ever been, a member in anoth irman of the board shall call a special meeting to count and t er qualified defined benefit plan (without regard to whether t abulate ballots between the first Monday in November and t he plan has been terminated) maintained by the employer or he last Friday in November. At this special meeting the boar a predecessor employer, the sum of the member’s annual ben

Louisiana Administrative Code August 2013 96 efits from all such plans may not exceed the maximum perm tic, periodic increases to the benefits paid in that form. The d issible benefit. etermination of the annual benefit shall take into account So cial Security supplements described in section 411(a)(9) of t D. The application of the provisions of this chapter shall he Internal Revenue Code and benefits transferred from anot not cause the maximum permissible benefit for any member her defined benefit plan, other than transfers of distributable to be less than the member’s accrued benefit under all the de benefits pursuant section 1.411(d)-4, Q and A-3(c), of the inc fined benefit plans of the employer or a predecessor employe ome tax regulations, but shall disregard benefits attributable r as of the end of the last limitation year beginning before Jul to employee contributions or rollover contributions. Effectiv y 1, 2007 under provisions of the plans that were both adopt e for distributions in plan years beginning after December 31, ed and in effect before April 5, 2007. The preceding sentence 2003, the determination of actuarial equivalence of forms of applies only if the provisions of such defined benefit plans th benefit other than a straight life annuity shall be made in acc at were both adopted and in effect before April 5, 2007 satisf ordance with §201.F.1.b or F.1.c. ied the applicable requirements of statutory provisions, regul ations, and other published guidance relating to section 415 b. Benefit Forms Not Subject to Section 417(e)(3) of the Internal Revenue Code in effect as of the end of the la i. The straight life annuity that is actuarially equi st limitation year beginning before July 1, 2007, as described valent to the member’s form of benefit shall be determined u in section 1.415(a)-1(g)(4) of the income tax regulations. nder this Subparagraph F.1.b, if the form of the member’s be E. The limitations of this Chapter shall be determined an nefit is either: d applied taking into account the rules in Subsection G. (a). a non-decreasing annuity (other than a straig F. Definitions ht life annuity) payable for a period of not less than the life o f the member (or, in the case of a qualified pre-retirement sur Annual Benefita benefit that is payable annually in the vivor annuity, the life of the surviving spouse); or form of a straight life annuity. Except as provided below, wh ere a benefit is payable in a form other than a straight life an (b). an annuity that decreases during the life of th nuity, the benefit shall be adjusted to an actuarially equivale e member merely because of: nt straight life annuity that begins at the same time as such ot (i). the death of the survivor annuitant (but her form of benefit and is payable on the first day of each m only if the reduction is not below 50 percent of the benefit onth, before applying the limitations of this article. For a me payable before the death of the survivor annuitant); or mber who has or will have distributions commencing at mor e than one annuity starting date, the annual benefit shall be d (ii). the cessation or reduction of Social etermined as of each such annuity starting date (and shall sat Security supplements or qualified disability payments [as isfy the limitations of this chapter as of each such date), actu defined in section 401(a)(11)]. arially adjusting for past and future distributions of benefits ii. Limitation Years beginning before July 1, 2007. commencing at the other annuity starting dates. For this purp For limitation years beginning before July 1, 2007, the actua ose, the determination of whether a new starting date has occ rially equivalent straight life annuity is equal to the annual a urred shall be made without regard to section 1.401(a)-20, Q mount of the straight life annuity commencing at the same a and A 10(d), and with regard to section 1.415(b)-1(b)(1)(iii) nnuity starting date that has the same actuarial present value (B) and (C) of the income tax regulations. as the member’s form of benefit computed using whichever a. No actuarial adjustment to the benefit shall be ma of the following produces the greater annual amount: de for: (a). the interest rate and the mortality table (or ot i. survivor benefits payable to a surviving spouse her tabular factor) specified in the plan for adjusting benefits under a qualified joint and survivor annuity to the extent suc in the same form; and h benefits would not be payable if the member’s benefit wer (b). a 5 percent interest rate assumption and the a e paid in another form; pplicable mortality table for that annuity starting date. ii. benefits that are not directly related to retireme iii. Limitation Years beginning on or after July 1, 2 nt benefits (such as a disability benefit, preretirement inciden 007. For limitation years beginning on or after July 1, 2007, tal death benefits, and postretirement medical benefits); or the actuarially equivalent straight life annuity is equal to the iii. the inclusion in the form of benefit of an autom greater of: atic benefit increase feature, provided the form of benefit is (a). the annual amount of the straight life annuity not subject to section 417(e)(3) of the Internal Revenue Cod (if any) payable to the member under the plan commencing a e and would otherwise satisfy the limitations of this Chapter, t the same annuity starting date as the member’s form of ben and the plan provides that the amount payable under the for efit; and m of benefit in any limitation year shall not exceed the limits of this Chapter applicable at the annuity starting date, as incr (b). the annual amount of the straight life annuity eased in subsequent years pursuant to section 415(d). For thi commencing at the same annuity starting date that has the sa s purpose, an automatic benefit increase feature is included i me actuarial present value as the member’s form of benefit, n a form of benefit if the form of benefit provides for automa

97 Louisiana Administrative Code October 2017 RETIREMENT computed using a 5 percent interest rate assumption and the (ii). the applicable interest rate and the applicable mortality table for that annuity starting date. applicable mortality table; and c. Benefit Forms Subject to Section 417(e)(3). The (iii).the applicable interest rate (as in effect on straight life annuity that is actuarially equivalent to the mem the last day of the last plan year beginning before January 1, ber’s form of benefit shall be determined under this paragrap 2004, under provisions of the plan then adopted and in h if the form of the member’s benefit is other than a benefit f effect) and the applicable mortality table. orm described in §201.F.1.b. In this case, the actuarially equi valent straight life annuity shall be determined as follows. Applicable Interest Ratethe rate of interest on 30 year Treasury securities (or any subsequent rate used under sectio i. Annuity Starting Date in Plan Years Beginning n 417(e) of the Internal Revenue Code) as specified by the In After 2005. If the annuity starting date of the member’s form ternal revenue service for the lookback month. The lookback of benefit is in a plan year beginning after 2005, the actuarial month applicable to the stability period is the second calenda ly equivalent straight life annuity is equal to the greatest of: r month preceding the first day of the stability period. The st ability period is the plan year that contains the annuity starti (a). the annual amount of the straight life annuity ng date for the distribution and for which the applicable inter commencing at the same annuity starting date that has the sa est rate remains constant. me actuarial present value as the member’s form of compute d using the interest rate and the mortality table (or other tabu Applicable Mortality Tablethe applicable mortality ta lar factor) specified in the plan for adjusting benefits in the s ble within the meaning of section 417(e)(3)(B) of the Intern ame form; and al Revenue Code. (b). the annual amount of the straight life annuity 415 Safe-Harbor Compensation commencing at the same annuity starting date that has the sa me actuarial present value as the member’s form of benefit, a. compensationwages, salaries, and fees for prof computed using a 5.5 percent interest rate assumption and th essional services and other amounts received (without regard e applicable mortality table; and to whether or not an amount is paid in cash) for personal ser vices actually rendered in the course of employment with the (c). the annual amount of the straight life annuity employer maintaining the plan to the extent that the amounts commencing at the same annuity starting date that has the sa are includible in gross income (including, but not limited to, me actuarial present value as the member’s form of benefit, commissions paid salespersons, compensation for services o computed using the applicable interest rate and the applicabl n the basis of a percentage of profits, commissions on insura e mortality table, divided by 1.05. nce premiums, tips, bonuses, fringe benefits, and reimburse ii. Annuity Starting Date in Plan Years Beginning ments, or other expense allowances under a nonaccountable in 2004 or 2005. If the annuity starting date of the member’s plan (as described in section 1.62-2(c) of the income tax reg form of benefit is in a plan year beginning in 2004 or 2005, t ulations), and excluding the following: he actuarially equivalent straight life annuity is equal to the a i. employer contributions [other than elective con nnual amount of the straight life annuity commencing at the tributions described in section 402(e)(3), section 408(k)(6), s same annuity starting date that has the same actuarial present ection 408(p)(2)(A)(i), or section 457(b)] to a plan of deferre value as the member’s form of benefit, computed using whic d compensation (including a simplified employee pension de hever of the following produces the greater annual amount: scribed in section 408(k) or a simple retirement account desc (a). the interest rate and the mortality table (or ot ribed in section 408(p), and whether or not qualified) to the e her tabular factor) specified in the plan for adjusting benefits xtent such contributions are not includible in the member’s g in the same form; and ross income for the taxable year in which contributed, and an y distributions (whether or not includible in gross income wh (b). a 5.5 percent interest rate assumption and the en distributed) from a plan of deferred compensation (wheth applicable mortality table. If the annuity starting date of the er or not qualified); member’s benefit is on or after the first day of the first plan year beginning in 2004 and before December 31, 2004, the a ii. amounts realized from the exercise of a nonstat pplication of this §201.F.1.c. shall not cause the amount paya utory stock option (that is, an option other than a statutory st ble under the member’s form of benefit to be less than the be ock option as defined in section 1.421-1(b) of the income tax nefit calculated under the plan, taking into account the limita regulations), or when restricted stock (or property) held by t tions of this chapter, except that the actuarially equivalent str he member either becomes freely transferable or is no longer aight life annuity is equal to the annual amount of the straigh subject to a substantial risk of forfeiture; t life annuity commencing at the same annuity starting date t iii. amounts realized from the sale, exchange or ot hat has the same actuarial present value as the member’s for her disposition of stock acquired under a statutory stock opti m of benefit, computed using whichever of the following pro on; duces the greatest annual amount: iv. other amounts that receive special tax benefits, (i). the interest rate and the mortality table (or such as premiums for group-term life insurance (but only to t other tabular factor) specified in the plan for adjusting he extent that the premiums are not includible in the gross in benefits in the same form;

Louisiana Administrative Code August 2013 98 come of the member and are not salary reduction amounts th er who is rehired after a severance from employment, the def at are described in section 125); ined benefit compensation limitation is the greater of 100 per cent of the member’s high three-year average compensation, v. other items of remuneration that are similar to as determined prior to the severance from employment or 10 any of the items listed in Clauses i-iv above. 0 percent of the member’s high three-year average compensa b. For any self-employed individual, compensation tion, as determined after the severance from employment un shall mean earned income. der §201.G. c. Except as provided herein, for limitation years be Defined Benefit Dollar Limitationeffective for limitati ginning after December 31, 1991, compensation for a limitat on years ending after December 31, 2001, the defined benefi ion year is the compensation actually paid or made available t dollar limitation is $160,000, automatically adjusted under during such limitation year. section 415(d) of the Internal Revenue Code, effective Janua ry 1 of each year, as published in the Internal Revenue Bulle d. For limitation years beginning on or after July 1, tin, and payable in the form of a straight life annuity. The ne 2007, compensation for a limitation year shall also include c w limitation shall apply to limitation years ending with or wi ompensation paid by the later of 2 1/2 months after an memb thin the calendar year of the date of the adjustment, but a me er’s severance from employment with the employer maintain mber’s benefits shall not reflect the adjusted limit prior to Ja ing the plan or the end of the limitation year that includes the nuary 1 of that calendar year. date of the member’s severance from employment with the e mployer maintaining the plan, if: Employerfor purposes of this chapter, employer shall i. the payment is regular compensation for servic mean the employer that adopts this plan, and all members of a controlled group of corporations, as defined in section 414 es during the member’s regular working hours, or compensat ion for services outside the employee’s regular working hour (b) of the Internal Revenue Code, as modified by section 415 (h), all commonly controlled trades or businesses [as defined s (such as overtime or shift differential), commissions, bonus es, or other similar payments, and, absent a severance from e in section 414(c), as modified, except in the case of a brothe r-sister group of trades or businesses under common control, mployment, the payments would have been paid to the mem ber while the member continued in employment with the em by section 415(h)], or affiliated service groups [as defined in section 414(m)] of which the adopting employer is a part, an ployer; d any other entity required to be aggregated with the employ ii. the payment is for unused accrued bona fide sic er pursuant to section 414(o) of the Internal Revenue Code. k, vacation or other leave that the member would have been able to use if employment had continued; or Formerly Affiliated Plan of the Employera plan that, i mmediately prior to the cessation of affiliation, was actually iii. the payment is received by the member pursua maintained by the employer and, immediately after the cessa nt to a nonqualified unfunded deferred compensation plan an tion of affiliation is not actually maintained by the employer. d would have been paid at the same time if employment had For this purpose, cessation of affiliation means the event that continued, but only to the extent includible in gross income. causes an entity to no longer be considered the employer, su e. Any payments not described above shall not be c ch as the sale of a member controlled group of corporations, onsidered compensation if paid after severance from employ as defined in section 414(b) of the Internal Revenue Code, as ment, even if they are paid by the later of 2 1/2 months after modified by section 415(h), to an unrelated corporation, or t the date of severance from employment or the end of the lim hat causes a plan to not actually be maintained by the emplo itation year that includes the date of severance from employ yer, such as transfer of plan sponsorship outside a controlled ment. Back pay, within the meaning of section 1.415(c)-2(g) group. (8), shall be treated as compensation for the limitation year t High Three-Year Average Compensationthe average c o which the back pay relates to the extent the back pay repre ompensation for the three consecutive years of service (or, if sents wages and compensation that would otherwise be inclu the member has less than three consecutive years of service, ded under this definition. the member’s longest consecutive period of service, includin f. For limitation years beginning after December 31 g fractions of years, but not less than one year) with the empl 1997, compensation paid or made available during such limi oyer that produces the highest average. In the case of a mem tation year shall include amounts that would otherwise be in ber who is rehired by the employer after a severance from e cluded in compensation but for an election under sections 12 mployment, the member’s high three-year average compensa 5(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). tion shall be calculated by excluding all years for which the member performs no services for and receives no compensat g. For limitation years beginning after December 31 ion from the employer (the break period) and by treating the 2000, compensation shall also include any elective amounts years immediately preceding and following the break period that are not includible in the gross income of the member by as consecutive. A member’s compensation for a year of servi reason of section 132(f)(4). ce shall not include compensation in excess of the limitation under section 401(a)(17) of the Internal Revenue Code that i Defined Benefit Compensation Limitation100 percent s in effect for the calendar year in which such year of service of a member’s high three-year average compensation, payabl begins. e in the form of a straight life annuity. In the case of a memb

99 Louisiana Administrative Code October 2017 RETIREMENT

Limitation Yeara fiscal year, from July 1 to June 31. A (b). Limitation Years Beginning on or After July ll qualified plans maintained by the employer must use the s 1, 2007 ame limitation year. If the limitation year is amended to a dif (i). Plan Does Not Have Immediately ferent 12-consecutive month period, the new limitation year Commencing Straight Life Annuity Payable at Both Age 62 must begin on a date within the limitation year in which the and the Age of Benefit Commencement. If the annuity amendment is made. starting date for the member’s benefit is prior to age 62 and Maximum Permissible Benefitthe lesser of the defined occurs in a limitation year beginning on or after July 1, benefit dollar limitation or the defined benefit compensation 2007, and the plan does not have an immediately limitation (both adjusted where required, as provided below). commencing straight life annuity payable at both age 62 and the age of benefit commencement, the defined benefit dollar a. Adjustment for Less than 10 Years of Participatio limitation for the member’s annuity starting date is the n or Service. If the member has less than 10 years of particip annual amount of a benefit payable in the form of a straight ation in the plan, the defined benefit dollar limitation shall b life annuity commencing at the member’s annuity starting e multiplied by a fraction: date that is the actuarial equivalent of the defined benefit i. the numerator of which is the number of years dollar limitation (adjusted under Subparagraph a of this (or part thereof, but not less than one year) of participation i Paragraph for years of participation less than 10, if required) n the plan; and with actuarial equivalence computed using a 5 percent interest rate assumption and the applicable mortality table ii. the denominator of which is 10. In the case of a for the annuity starting date (and expressing the member’s member who has less than 10 years of service with the empl age based on completed calendar months as of the annuity oyer, the defined benefit compensation limitation shall be m starting date). ultiplied by a fraction: (ii). Plan Has Immediately Commencing (a). the numerator of which is the number of year Straight Life Annuity Payable at Both Age 62 and the Age of s (or part thereof, but not less than one year) of Service with Benefit Commencement. If the annuity starting date for the the employer; and member’s benefit is prior to age 62 and occurs in a limitation (b). the denominator of which is 10. year beginning on or after July 1, 2007, and the plan has an immediately commencing straight life annuity payable at b. Adjustment of Defined Benefit Dollar Limitation both age 62 and the age of benefit commencement, the for Benefit Commencement before Age 62 or after Age 65. E defined benefit dollar limitation for the member’s annuity ffective for benefits commencing in limitation years ending a starting date is the lesser of the limitation determined under fter December 31, 2001, the defined benefit dollar limitation Division b.i.(b).(i) of this Paragraph and the defined benefit shall be adjusted if the annuity starting date of the member’s dollar limitation (adjusted under Subparagraph a of this benefit is before age 62 or after age 65. If the annuity startin Paragraph for years of participation less than 10, if required) g date is before age 62, the defined benefit dollar limitation s multiplied by the ratio of the annual amount of the hall be adjusted under Clause b.i of this Paragraph, as modifi immediately commencing straight life annuity under the plan ed by Clause b.iii of this Paragraph. If the annuity starting da at the member’s annuity starting date to the annual amount te is after age 65, the defined benefit dollar limitation shall b of the immediately commencing straight life annuity under e adjusted under Clause b.ii of this Paragraph, as modified b the plan at age 62, both determined without applying the y Clause b.iii of this Paragraph. limitations of this article. i. Adjustment of Defined Benefit Dollar Limitati ii. Adjustment of Defined Benefit Dollar Limitati on for Benefit Commencement before Age 62 on for Benefit Commencement after Age 65 (a). Limitation Years Beginning before July 1, 20 (a). Limitation Years Beginning Before July 1, 2 07. If the annuity starting date for the member’s benefit is pri 007. If the annuity starting date for the member’s benefit is a or to age 62 and occurs in a limitation year beginning before fter age 65 and occurs in a limitation year beginning before J July 1, 2007, the defined benefit dollar limitation for the me uly 1, 2007, the defined benefit dollar limitation for the mem mber’s annuity starting date is the annual amount of a benefi ber’s annuity starting date is the annual amount of a benefit t payable in the form of a straight life annuity commencing a payable in the form of a straight life annuity commencing at t the member’s annuity starting date that is the actuarial equi the member’s annuity starting date that is the actuarial equiv valent of the defined benefit dollar limitation (adjusted under alent of the defined benefit dollar limitation (adjusted under §201.F.11.a. for years of participation less than 10, if require Subparagraph a of this Paragraph for years of participation le d) with actuarial equivalence computed using whichever of t ss than 10, if required) with actuarial equivalence computed he following produces the smaller annual amount: using whichever of the following produces the smaller annua (i). the interest rate and the mortality table (or l amount: other tabular factor) specified in the plan for adjusting (i). the interest rate and the mortality table (or benefits in the same form; or other tabular factor) specified in the plan for adjusting (ii). a 5 percent interest rate assumption and benefits in the same form; or the applicable mortality table.

Louisiana Administrative Code August 2013 100 (ii). a 5-percent interest rate assumption and orfeited upon death before the annuity starting date, such an the applicable mortality table. adjustment shall be made. For this purpose, no forfeiture sha ll be treated as occurring upon the member’s death if the pla (b). Limitation Years Beginning Before July 1, 2 n does not charge members for providing a qualified preretir 007 ement survivor annuity, as defined in section 417(c) of the I (i) Plan Does Not Have Immediately nternal Revenue Code, upon the member’s death. Commencing Straight Life Annuity Payable at Both Age 65 c. Minimum Benefit Permitted. Notwithstanding an and the Age of Benefit Commencement. If the annuity ything else in this Section to the contrary, the benefit otherwi starting date for the member’s benefit is after age 65 and se accrued or payable to a member under this plan shall be d occurs in a limitation year beginning on or after July 1, eemed not to exceed the maximum permissible benefit if: 2007, and the plan does not have an immediately commencing straight life annuity payable at both age 65 and i. the retirement benefits payable for a limitation the age of benefit commencement, the defined benefit dollar year under any form of benefit with respect to such member limitation at the member’s annuity starting date is the annual under this plan and under all other defined benefit plans (wit amount of a benefit payable in the form of a straight life hout regard to whether a plan has been terminated) ever mai annuity commencing at the member’s annuity starting date ntained by the employer do not exceed $10,000 multiplied b that is the actuarial equivalent of the defined benefit dollar y a fraction: limitation (adjusted under Subparagraph a of this Paragraph (a). the numerator of which is the member’s num for years of participation less than 10, if required), with ber of years (or part thereof, but not less than one year) of se actuarial equivalence computed using a 5 percent interest rvice (not to exceed 10) with the employer; and rate assumption and the applicable mortality table for that annuity starting date (and expressing the member’s age (b). the denominator of which is 10; and based on completed calendar months as of the annuity ii. the employer (or a predecessor employer) has n starting date). ot at any time maintained a defined contribution plan in whic (ii). Plan Has Immediately Commencing h the member participated (for this purpose, mandatory empl Straight Life Annuity Payable at Both Age 65 and the Age of oyee contributions under a defined benefit plan, individual m Benefit Commencement. If the annuity starting date for the edical accounts under Section 401(h), and accounts for postr member’s benefit is after age 65 and occurs in a limitation etirement medical benefits established under section 419A year beginning on or after July 1, 2007, and the plan has an (d)(1) are not considered a separate defined contribution pla immediately commencing straight life annuity payable at n). both age 65 and the age of benefit commencement, the defined benefit dollar limitation at the member’s annuity Predecessor Employerif the employer maintains a pla starting date is the lesser of the limitation determined under n that provides a benefit which the member accrued while pe §201.F.11.b.ii.(b).(i). and the defined benefit dollar rforming services for a former employer, the former employ limitation (adjusted under §201.F.11.a. for years of er is a predecessor employer with respect to the member in t participation less than 10, if required) multiplied by the ratio he plan. A former entity that antedates the employer is also a of the annual amount of the adjusted immediately predecessor employer with respect to a member if, under the commencing straight life annuity under the plan at the facts and circumstances, the employer constitutes a continuat member’s annuity starting date to the annual amount of the ion of all or a portion of the trade or business of the former e adjusted immediately commencing straight life annuity ntity. under the plan at age 65, both determined without applying Severance from Employmentan employee has a severa the limitations of this article. For this purpose, the adjusted nce from employment when the employee ceases to be an e immediately commencing straight life annuity under the plan mployee of the employer maintaining the plan. An employee at the member’s annuity starting date is the annual amount of does not have a severance from employment if, in connectio such annuity payable to the member, computed disregarding n with a change of employment, the employee’s new employ the member’s accruals after age 65 but including actuarial er maintains the plan with respect to the employee. adjustments even if those actuarial adjustments are used to offset accruals; and the adjusted immediately commencing Year of Participationthe member shall be credited wit straight life annuity under the plan at age 65 is the annual h a year of participation (computed to fractional parts of a ye amount of such annuity that would be payable under the plan ar) for each accrual computation period for which the follow to a hypothetical member who is age 65 and has the same ing conditions are met: accrued benefit as the member. a. the member is credited with at least the number o iii. Notwithstanding the other requirements of this f hours of service (or period of service if the elapsed time me Subparagraph F.10.b., no adjustment shall be made to the def thod is used) for benefit accrual purposes, required under the ined benefit dollar limitation to reflect the probability of a m terms of the plan in order to accrue a benefit for the accrual c ember’s death between the annuity starting date and age 62, omputation period; and or between age 65 and the annuity starting date, as applicabl b. the member is included as a member under the eli e, if benefits are not forfeited upon the death of the member gibility provisions of the plan for at least one day of the accr prior to the annuity starting date. To the extent benefits are f

101 Louisiana Administrative Code October 2017 RETIREMENT ual computation period. If these two conditions are met, the unt transferred is treated as a benefit paid from the transferor portion of a year of participation credited to the member shal plan. l equal the amount of benefit accrual service credited to the 3. Formerly Affiliated Plans of the Employer. A forme member for such accrual computation period. A member wh rly affiliated plan of an employer shall be treated as a plan m o is permanently and totally disabled within the meaning of s aintained by the employer, but the formerly affiliated plan sh ection 415(c)(3)(C)(i) of the Internal Revenue Code for an a all be treated as if it had terminated immediately prior to the ccrual computation period shall receive a year of participatio cessation of affiliation with sufficient assets to pay members’ n with respect to that period. In addition, for a member to rec benefit liabilities under the plan and had purchased annuities eive a year of participation (or part thereof) for an accrual co to provide benefits. mputation period, the plan must be established no later than t he last day of such accrual computation period. In no event s 4. Plans of a Predecessor Employer. If the employer m hall more than one year of participation be credited for any 1 aintains a defined benefit plan that provides benefits accrued 2-month period. by a member while performing services for a predecessor em ployer, the member’s benefits under a plan maintained by th Year of Servicefor purposes of Subsection 201.G, the e predecessor employer shall be treated as provided under a member shall be credited with a year of service (computed t plan maintained by the employer. However, for this purpose, o fractional parts of a year) for each accrual computation per the plan of the predecessor employer shall be treated as if it iod for which the member is credited with at least the numbe had terminated immediately prior to the event giving rise to t r of hours of service (or period of service if the elapsed time he predecessor employer relationship with sufficient assets t method is used) for benefit accrual purposes, required under o pay members’ benefit liabilities under the plan, and had pu the terms of the plan in order to accrue a benefit for the accr rchased annuities to provide benefits; the employer and the p ual computation period, taking into account only service wit redecessor employer shall be treated as if they were a single h the employer or a predecessor employer. employer immediately prior to such event and as unrelated e G. Other Rules mployers immediately after the event; and if the event giving rise to the predecessor relationship is a benefit transfer, the tr 1. Benefits under Terminated Plans. If a defined benef ansferred benefits shall be excluded in determining the benef it plan maintained by the employer has terminated with suffi its provide under the plan of the predecessor employer. cient assets for the payment of benefit liabilities of all plan members and a member in the plan has not yet commenced b 5. Special Rules. The limitations of this chapter shall enefits under the plan, the benefits provided pursuant to the a be determined and applied taking into account the rules in se nnuities purchased to provide the member’s benefits under th ction 1.415(f)-1(d), (e) and (h) of the income tax regulations. e terminated plan at each possible annuity starting date shall AUTHORITY NOTE: Promulgated in accordance with R.S. 11 be taken into account in applying the limitations of this articl 2093. e. If there are not sufficient assets for the payment of all me HISTORICAL NOTE: Promulgated by the Department of Trea mbers’ benefit liabilities, the benefits taken into account shal sury, Board of Trustees of the Registrars of Voters Employees’ Retir l be the benefits that are actually provided to the member un ement System, LR 39:2284 (August 2013). der the terminated plan. §202. Required Minimum Distributions 2. Benefits Transferred from the Plan. If a member’s b A.1. Unless the member has elected otherwise on or bef enefits under a defined benefit plan maintained by the emplo ore December 31, 1983, the entire benefit of a member shall yer are transferred to another defined benefit plan maintaine be distributed over a period not longer than the longest of the d by the employer and the transfer is not a transfer of distrib following periods: utable benefits pursuant section 1.411(d)-4, Q and A-3(c), of the income tax regulations, the transferred benefits are not tr a. the member's life; eated as being provided under the transferor plan (but are tak b. if the member is married, the life of the member's en into account as benefits provided under the transferee pla designated beneficiary; n). If a member’s benefits under a defined benefit plan maint ained by the employer are transferred to another defined ben c. the member's life expectancy; efit plan that is not maintained by the employer and the trans d. the joint life and last survivor life expectancy of t fer is not a transfer of distributable benefits pursuant section he member and his designated beneficiary. 1.411(d)-4, Q and A-3(c), of the income tax regulations, the t ransferred benefits are treated by the employer’s plan as if su 2. If the member is married and his spouse survives hi ch benefits were provided under annuities purchased to provi m, the designated beneficiary for at least a qualified joint an de benefits under a plan maintained by the employer that ter d survivor annuity and 50 percent of his deferred retirement minated immediately prior to the transfer with sufficient asse option plan account shall be his spouse, unless such spouse h ts to pay all members’ benefit liabilities under the plan. If a as consented to the contrary in writing before a notary public member’s benefits under a defined benefit plan maintained b For purposes of this Paragraph: y the employer are transferred to another defined benefit pla Spousethat person who is married to the member u n in a transfer of distributable benefits pursuant section 1.41 nder a legal regime of community of acquets and gains on hi 1(d)-4, Q and A-3(c), of the income tax regulations, the amo

Louisiana Administrative Code August 2013 102 s effective date of retirement or effective date of participatio F. This Section shall be effective for members of the sys n in the deferred retirement option plan, whichever is earlier. tem who complete any service under the system on or after J uly 1, 1992, with employers contributing to the system. 3. If the member was a member on or before Decembe r 31, 1983, he shall be deemed to have made the election ref G. Distributions from the system shall be made in accord erred to herein. If a member dies after the commencement of ance with the requirements set forth in Internal Revenue Co his benefits, the remaining portion of his benefit shall be dist de section 401(a)(9), including the minimum distribution inc ributed at least as rapidly as before his death. idental benefit rules applicable thereunder. B.1. If the member dies before his benefit has commen H.1. A member's benefits shall commence to be paid on ced the remainder of such interest shall be distributed to the or before the required beginning date. member's beneficiary within five years after the date of such 2. The required beginning date shall be April 1 of the member's death. calendar year following the later of the calendar year in whic 2. Paragraph 1 of this Subsection shall not apply to an h the member attains 70 1/2 years of age, or the calendar yea y portion of a member's benefit which is payable to or for th r in which the employee retires. Effective for plan years begi e benefit of a designated beneficiary or beneficiaries, over th nning on or after January 1, 1998, the required beginning dat e life of or over the life expectancy of such beneficiary, so lo e shall be April 1 of the year following the later of the year t ng as such distributions begin not later than one year after th he member attained 70 1/2 or the year he terminated employ e date of the member's death, or, in the case of the member's ment. surviving spouse, the date the member would have attained t AUTHORITY NOTE: Promulgated in accordance with R.S. 11 he age of 70 years and six months. If the designated benefici 2093. ary is a child of the member, for purposes of satisfying the re HISTORICAL NOTE: Promulgated by the Department of Trea quirement of Paragraph 1 of this Subsection, any amount pai sury, Board of Trustees of the Registrars of Voters Employees’ Retir d to such child shall be treated as if paid to the member's sur ement System, LR 39:2289 (August 2013). viving spouse if such amount would become payable to such §203. Direct Rollovers surviving spouse, if alive, upon the child's reaching age eight een or, if later, upon the child's completing a designated even A. Notwithstanding any other provision of law to the con t. For purposes of the preceding sentence, a designated event trary that would otherwise limit a distributee's election under shall be the later of the date the child is no longer disabled, o this Section, a distributee may elect, at the time and in the m r the date the child ceases to be a full-time student or attains anner prescribed by the board of trustees, to have any portio age 23, if earlier. n of an “eligible rollover distribution”, as specified by the di stributee, paid directly to an “eligible retirement plan,” as th 3. Paragraph 1 of this Subsection shall not apply if the ose terms are defined below. distribution of the member's interest has commenced and is f or a term certain over a period permitted in Subsection A of t B. The following definitions shall apply. his Section. Direct Rollovera payment by the system to the eligibl 4. Paragraph 1 of this Subsection shall not apply if the e retirement plan specified by the distributee. member has elected otherwise on or before December 31, 19 Distributeeshall include: 83, or such later date to which such election period shall be s ubject under Internal Revenue Code section 401(a). a. a member or former member; C. As to any benefit payable by the retirement system w b. the member's or former member's surviving spou hich is not optional as of December 31, 1983, the member sh se, or the member's or former member's former spouse with all be considered to have made the election referred to in Su whom a benefit or a return of employee contributions is to b bsections A and B of this Section, if he was a member on or e divided pursuant to R.S. 11:291(B), with reference to an in before such time. terest of the member or former spouse; D. If by operation of law or by action of the board of trus c. the member's or former member's non-spouse benef tees, a survivor benefit is payable to a specified person or pe iciary, provided the specified distribution is to an eligible reti rsons, the member shall be considered to have designated su rement plan as defined in Subparagraphs a and b of the defin ch person as an alternate beneficiary hereunder. If there is m ition of eligible retirement plan in this Section. ore than one such person, then the youngest disabled child sh Eligible Retirement Planany of the following: all be considered to have been so designated, or, if none, the n the youngest person entitled to receive a survivor benefit s a. an individual retirement account described in Sec hall be considered to have been so designated. The designati tion 408(a) of the Internal Revenue Code; on of a designated beneficiary hereunder shall not prevent pa yment to multiple beneficiaries but shall only establish the p b. an individual retirement annuity described in sect ermitted period of payments. ion 408(b) of the Internal Revenue Code; E. Payment in accordance with the survivor benefit provi c. an annuity plan described in section 403(a) of the sions of R.S. 11:2077 shall be deemed not to violate Subsecti Internal Revenue Code; ons A and B of this Section.

103 Louisiana Administrative Code October 2017 RETIREMENT

d. a qualified trust as described in section 401(a) of st day of the first plan year beginning on or after January 1, the Internal Revenue Code, provided that such trust accepts t 1996, that exceeded $150,000. he member's eligible rollover distribution; C. If an employee is not a section 401(a)(17) employee, e. an eligible deferred compensation plan described his accrued benefit in this system shall not be based upon co in section 457(b) of the Internal Revenue Code that is mainta mpensation in excess of the annual limit of section 401(a)(1 ined by an eligible governmental employer, provided the pla 7) of the United States Internal Revenue Code as amended a n contains provisions to account separately for amounts trans nd revised. ferred into such plan; and AUTHORITY NOTE: Promulgated in accordance with R.S. 11 f. an annuity contract described in section 403(b) of 2093. the Internal Revenue Code. HISTORICAL NOTE: Promulgated by the Department of Trea sury, Board of Trustees of the Registrars of Voters Employees’ Retir Eligible Rollover Distributionany distribution of all o ement System, LR 39:2290 (August 2013). r any portion of the balance to the credit of the distributee, e §205. General xcept that an eligible rollover distribution does not include: A. The assets of this system's pension plan shall be held f a. any distribution that is one of a series of substanti or the exclusive benefit of the employees who are or become ally equal periodic payments, not less frequently than annual participating members of the system and their survivors and ly, made for the life or life expectancy of the member, or the beneficiaries, and of retirees and their survivors and benefici joint lives or joint life expectancies of the member and the m aries. No part of the corpus, the system's pension plan assets ember's designated beneficiary, or for a specified period of te held in trust, or income of the system's pension plan shall be n years or more; used for or diverted to purposes other than the exclusive ben b. any distribution to the extent that such distributio efit of such members and retirees, or their survivors or benef n is required under section 401(a)(9) of the United States Int iciaries, whether by operation or natural termination of the s ernal Revenue Code; and ystem's pension plan, by power of revocation or amendment, by the happening of a contingency, by collateral assignment, c. any distribution which is made upon hardship of t or by any other means. he employee. B. The retirement benefit earned by a member shall be fu AUTHORITY NOTE: Promulgated in accordance with R.S. 11 lly vested and nonforfeitable no later than the date he becom 2093. es eligible to retire. Benefits of affected members shall also HISTORICAL NOTE: Promulgated by the Department of Trea become vested and nonforfeitable to the extent funded, upon sury, Board of Trustees of the Registrars of Voters Employees’ Retir ement System, LR 39:2290 (August 2013). the termination or partial termination of the system's pension plan or the complete discontinuance of contributions thereto. §204. Annual Compensation Limitation C. Forfeitures resulting from a termination of employme A. Unless otherwise provided in this Chapter, the accrue nt or a withdrawal of a member's own contributions may not d benefit of each section 401(a)(17) employee as that term is be used to increase benefits to remaining members. This shal defined below shall be the greater of the following: l not preclude an increase in benefits by amendment to the b 1. the employee's accrued benefit determined with res enefit formula made possible by favorable investment results pect to the benefit formula applicable for the plan year begin or for any other reason. ning on or after January 1, 1996, as applied to the employe AUTHORITY NOTE: Promulgated in accordance with R.S. 11 e's total years of service taken into account for purposes of b 2093. enefit accruals; HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Registrars of Voters Employees’ Retirement System, LR 39:22 2. the sum of: 91 (August 2013). a. the employee's accrued benefit as of the last day Chapter 3.Final Average Compensatio of the last plan year beginning before January 1, 1996, froze n in accordance with the provisions of section 1.401(a)(4)-1 n through 1.401(a)(4)-13 of the Code of Federal Regulations; §301. Calculation of Post-Drop Final Average Compen b. the employee's accrued benefit determined under sation the benefit formula applicable for the plan year beginning on A.1. A member must work for a three month period pos or after January 1, 1996, as applied to the employee's years o t-DROP in order to have the member’s final average compen f service credited to the employee for plan years beginning o sation recalculated for any and all purposes including but not n or after January 1, 1996, for purposes of benefit accruals. limited to: B. A Section 401(a)(17) Employeeany employee whos a. calculating the value of creditable service post-D e current accrued benefit, as of a date on or after the first day ROP; of the first plan year beginning on or after January 1, 1996, i s based on compensation for a year beginning prior to the fir b. calculating any leave that is converted post-DRO P; and

Louisiana Administrative Code August 2013 104 c. for all other actuarial and benefit calculation purp AUTHORITY NOTE: Promulgated in accordance with R.S. 11 oses. 2093 and R.S. 11:2144(I). HISTORICAL NOTE: Promulgated by the Department of Trea 2. Otherwise, the member’s final average compensatio sury, Registrars of Voters Retirement System, LR 42:1960 (Novem n to be utilized for service, leave, and all other actuarial and ber 2016). benefit calculation purposes post-DROP shall be the final av erage compensation used to calculate the DROP benefit.

105 Louisiana Administrative Code October 2017 RETIREMENT

Title 58 RETIREMENT Part XVIII. Municipal Police Employees' Retirement System

Chapter 1. Internal Revenue Code Pro arially adjusting for past and future distributions of benefits commencing at the other annuity starting dates. For this purp visions ose, the determination of whether a new starting date has occ §101. Limitation on Benefits urred shall be made without regard to section 1.401(a)-20, Q and A 10(d), and with regard to section 1.415(b)-1(b)(1)(iii) A. The limitations of this Chapter shall apply in limitatio (B) and (C) of the income tax regulations. n years beginning on or after July 1, 2007, except as otherwi se provided herein. a. No actuarial adjustment to the benefit shall be ma de for: B The annual benefit otherwise payable to a member un der the plan at any time shall not exceed the maximum permi i. survivor benefits payable to a surviving spouse ssible benefit. If the benefit the member would otherwise acc under a qualified joint and survivor annuity to the extent suc rue in a limitation year would produce an annual benefit in e h benefits would not be payable if the member’s benefit wer xcess of the maximum permissible benefit, the benefit shall e paid in another form; be limited (or the rate of accrual reduced) to a benefit that do ii. benefits that are not directly related to retireme es not exceed the maximum permissible benefit. nt benefits (such as a disability benefit, preretirement inciden C. If the member is, or has ever been, a member in anoth tal death benefits, and postretirement medical benefits); or er qualified defined benefit plan (without regard to whether t iii. the inclusion in the form of benefit of an autom he plan has been terminated) maintained by the employer or atic benefit increase feature, provided the form of benefit is a predecessor employer, the sum of the member’s annual ben not subject to section 417(e)(3) of the Internal Revenue Cod efits from all such plans may not exceed the maximum perm e and would otherwise satisfy the limitations of this Chapter, issible benefit. and the plan provides that the amount payable under the for D. The application of the provisions of this Chapter shall m of benefit in any limitation year shall not exceed the limits not cause the maximum permissible benefit for any member of this Chapter applicable at the annuity starting date, as incr to be less than the member’s accrued benefit under all the de eased in subsequent years pursuant to section 415(d). For thi fined benefit plans of the employer or a predecessor employe s purpose, an automatic benefit increase feature is included i r as of the end of the last limitation year beginning before Jul n a form of benefit if the form of benefit provides for automa y 1, 2007 under provisions of the plans that were both adopt tic, periodic increases to the benefits paid in that form. The d ed and in effect before April 5, 2007. The preceding sentence etermination of the annual benefit shall take into account So applies only if the provisions of such defined benefit plans th cial Security supplements described in section 411(a)(9) of t at were both adopted and in effect before April 5, 2007 satisf he Internal Revenue Code and benefits transferred from anot ied the applicable requirements of statutory provisions, regul her defined benefit plan, other than transfers of distributable ations, and other published guidance relating to Section 415 benefits pursuant section 1.411(d)-4, Q and A-3(c), of the inc of the Internal Revenue Code in effect as of the end of the la ome tax regulations, but shall disregard benefits attributable st limitation year beginning before July 1, 2007, as described to employee contributions or rollover contributions. Effectiv in Section 1.415(a)-1(g)(4) of the income tax regulations. e for distributions in plan years beginning after December 31, 2003, the determination of actuarial equivalence of forms of E. The limitations of this Chapter shall be determined an benefit other than a straight life annuity shall be made in acc d applied taking into account the rules in section G. ordance with §§101.F.1.b or 101.F.1.c. F. Definitions b. Benefit Forms Not Subject to Section 417(e)(3) Annual Benefita benefit that is payable annually in the i. The straight life annuity that is actuarially equi form of a straight life annuity. Except as provided below, wh valent to the member’s form of benefit shall be determined u ere a benefit is payable in a form other than a straight life an nder this Subparagraph F.1.b, if the form of the member’s be nuity, the benefit shall be adjusted to an actuarially equivale nefit is either: nt straight life annuity that begins at the same time as such ot her form of benefit and is payable on the first day of each m (a). a non-decreasing annuity (other than a straig onth, before applying the limitations of this article. For a me ht life annuity) payable for a period of not less than the life o mber who has or will have distributions commencing at mor f the member (or, in the case of a qualified pre-retirement sur e than one annuity starting date, the annual benefit shall be d vivor annuity, the life of the surviving spouse); or etermined as of each such annuity starting date (and shall sat (b). an annuity that decreases during the life of th isfy the limitations of this Chapter as of each such date), actu e member merely because of:

Louisiana Administrative Code August 2013 106 (i). the death of the survivor annuitant (but (c). the annual amount of the straight life annuity only if the reduction is not below 50 percent of the benefit commencing at the same annuity starting date that has the sa payable before the death of the survivor annuitant); or me actuarial present value as the member’s form of benefit, computed using the applicable interest rate and the applicabl (ii). the cessation or reduction of Social e mortality table, divided by 1.05. Security supplements or qualified disability payments (as defined in section 401(a)(11)). ii. Annuity Starting Date in Plan Years Beginning in 2004 or 2005. If the annuity starting date of the member’s ii. Limitation years beginning before July 1, 2007. form of benefit is in a plan year beginning in 2004 or 2005, t For limitation years beginning before July 1, 2007, the actua he actuarially equivalent straight life annuity is equal to the a rially equivalent straight life annuity is equal to the annual a nnual amount of the straight life annuity commencing at the mount of the straight life annuity commencing at the same a same annuity starting date that has the same actuarial present nnuity starting date that has the same actuarial present value value as the member’s form of benefit, computed using whic as the member’s form of benefit computed using whichever hever of the following produces the greater annual amount: of the following produces the greater annual amount: (a). the interest rate specified in La. R.S. 11:2225 (a). the interest rate specified in La. R.S. 11:2225 (D)(5) and the mortality table (or other tabular factor) specifi (D)(5) and the mortality table (or other tabular factor) specifi ed in La. R.S. 11:2225(D)(5) for adjusting benefits in the sa ed in La. R.S. 11:2225(D)(5) for adjusting benefits in the sa me form; and me form; and (b). a 5.5 percent interest rate assumption and the (b). a 5 percent interest rate assumption and the a applicable mortality table. If the annuity starting date of the pplicable mortality table for that annuity starting date. member’s benefit is on or after the first day of the first plan iii. Limitation Years beginning on or after July 1, 2 year beginning in 2004 and before December 31, 2004, the a 007. For limitation years beginning on or after July 1, 2007, pplication of this §101.F.1.c shall not cause the amount paya the actuarially equivalent straight life annuity is equal to the ble under the member’s form of benefit to be less than the be greater of: nefit calculated under the plan, taking into account the limita tions of this Chapter, except that the actuarially equivalent st (a). the annual amount of the straight life annuity raight life annuity is equal to the annual amount of the straig (if any) payable to the member under the plan commencing a ht life annuity commencing at the same annuity starting date t the same annuity starting date as the member’s form of ben that has the same actuarial present value as the member’s for efit; and m of benefit, computed using whichever of the following pro (b). the annual amount of the straight life annuity duces the greatest annual amount: commencing at the same annuity starting date that has the sa (i). the interest rate specified in La. R.S. me actuarial present value as the member’s form of benefit, 11:2225(D)(5) and the mortality table (or other tabular computed using a 5 percent interest rate assumption and the factor) specified in La. R.S. 11:2225(D)(5) for adjusting applicable mortality table for that annuity starting date. benefits in the same form; c. Benefit Forms Subject to Section 417(e)(3). The (ii). the applicable interest rate and the straight life annuity that is actuarially equivalent to the mem applicable mortality table; and ber’s form of benefit shall be determined under this Paragrap h if the form of the member’s benefit is other than a benefit f (iii). the applicable interest rate (as in effect orm described in §101.F.1.b. In this case, the actuarially equi on the last day of the last plan year beginning before January valent straight life annuity shall be determined as follows. 1, 2004, under provisions of the plan then adopted and in effect) and the applicable mortality table. i. Annuity Starting Date in Plan Years Beginning After 2005. If the annuity starting date of the member’s form Applicable Interest Ratethe rate of interest on 30-year of benefit is in a plan year beginning after 2005, the actuarial treasury securities (or any subsequent rate used under sectio ly equivalent straight life annuity is equal to the greatest of: n 417(e) of the Internal Revenue Code) as specified by the In ternal Revenue Service for the lookback month. The lookbac (a). the annual amount of the straight life annuity k month applicable to the stability period is the second calen commencing at the same annuity starting date that has the sa dar month preceding the first day of the stability period. The me actuarial present value as the member’s form of compute stability period is the plan year that contains the annuity start d using the interest rate specified in La. R.S. 11:2225(D)(5) ing date for the distribution and for which the applicable int and the mortality table (or other tabular factor) specified in L erest rate remains constant. a. R.S. 11:2225(D)(5) for adjusting benefits in the same form; and Applicable Mortality Tablethe applicable mortality ta (b). the annual amount of the straight life annuity ble within the meaning of section 417(e)(3)(B) of the Intern al Revenue Code. commencing at the same annuity starting date that has the sa me actuarial present value as the member’s form of benefit, 415 Safe-Harbor Compensation computed using a 5.5 percent interest rate assumption and th e applicable mortality table; and

107 Louisiana Administrative Code October 2017 RETIREMENT

a. Compensation is defined as wages, salaries, and f s (such as overtime or shift differential), commissions, bonus ees for professional services and other amounts received (wit es, or other similar payments, and, absent a severance from e hout regard to whether or not an amount is paid in cash) for mployment, the payments would have been paid to the mem personal services actually rendered in the course of employ ber while the member continued in employment with the em ment with the employer maintaining the plan to the extent th ployer; at the amounts are includible in gross income (including, but ii. the payment is for unused accrued bona fide sic not limited to, commissions paid salespersons, compensation k, vacation or other leave that the member would have been for services on the basis of a percentage of profits, commissi able to use if employment had continued; or ons on insurance premiums, tips, bonuses, fringe benefits, an d reimbursements, or other expense allowances under a nona iii. the payment is received by the member pursua ccountable plan (as described in section 1.62-2(c) of the inco nt to a nonqualified unfunded deferred compensation plan an me tax regulations), and excluding the following. d would have been paid at the same time if employment had continued, but only to the extent includible in gross income. i. Employer contributions (other than elective co ntributions described in section 402(e)(3), section 408(k)(6), e. Any payments not described above shall not be c section 408(p)(2)(A)(i), or section 457(b)) to a plan of deferr onsidered compensation if paid after severance from employ ed compensation (including a simplified employee pension d ment, even if they are paid by the later of 2 1/2 months after escribed in section 408(k) or a simple retirement account des the date of severance from employment or the end of the lim cribed in section 408(p), and whether or not qualified) to the itation year that includes the date of severance from employ extent such contributions are not includible in the member’s ment. Back pay, within the meaning of section 1.415(c)-2(g) gross income for the taxable year in which contributed, and a (8), shall be treated as compensation for the limitation year t ny distributions (whether or not includible in gross income w o which the back pay relates to the extent the back pay repre hen distributed) from a plan of deferred compensation (whet sents wages and compensation that would otherwise be inclu her or not qualified). ded under this definition. ii. Amounts realized from the exercise of a nonsta f. For limitation years beginning after December 31 tutory stock option (that is, an option other than a statutory st 1997, compensation paid or made available during such limi ock option as defined in section 1.421-1(b) of the income tax tation year shall include amounts that would otherwise be in regulations), or when restricted stock (or property) held by t cluded in compensation but for an election under sections 12 he member either becomes freely transferable or is no longer 5(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). subject to a substantial risk of forfeiture. g. For limitation years beginning after December 31 iii. Amounts realized from the sale, exchange or ot 2000, compensation shall also include any elective amounts her disposition of stock acquired under a statutory stock opti that are not includible in the gross income of the member by on. reason of section 132(f)(4). iv. Other amounts that receive special tax benefits, Defined Benefit Compensation Limitation100 percent such as premiums for group-term life insurance (but only to t of a member’s high three-year average compensation, payabl he extent that the premiums are not includible in the gross in e in the form of a straight life annuity. In the case of a memb come of the member and are not salary reduction amounts th er who is rehired after a severance from employment, the def at are described in section 125). ined benefit compensation limitation is the greater of 100 per v. Other items of remuneration that are similar to cent of the member’s high three-year average compensation, any of the items listed in Clauses i-iv above. as determined prior to the severance from employment or 10 0 percent of the member’s high three-year average compensa b. For any self-employed individual, compensation tion, as determined after the severance from employment un shall mean earned income. der §101.G. c. Except as provided herein, for limitation years be Defined Benefit Dollar Limitationeffective for limitati ginning after December 31, 1991, compensation for a limitat on years ending after December 31, 2001, the defined benefi ion year is the compensation actually paid or made available t dollar limitation is $160,000, automatically adjusted under during such limitation year. section 415(d) of the Internal Revenue Code, effective Janua d. For limitation years beginning on or after July 1, ry 1 of each year, as published in the Internal Revenue Bulle 2007, compensation for a limitation year shall also include c tin, and payable in the form of a straight life annuity. The ne ompensation paid by the later of 2 1/2 months after an memb w limitation shall apply to limitation years ending with or wi er’s severance from employment with the employer maintain thin the calendar year of the date of the adjustment, but a me ing the plan or the end of the limitation year that includes the mber’s benefits shall not reflect the adjusted limit prior to Ja date of the member’s severance from employment with the e nuary 1 of that calendar year. mployer maintaining the plan, if: Employerfor purposes of this Chapter, employer shall i. the payment is regular compensation for servic mean the employer that adopts this plan, and all members of es during the member’s regular working hours, or compensat a controlled group of corporations, as defined in section 414 ion for services outside the employee’s regular working hour (b) of the Internal Revenue Code, as modified by section 415

Louisiana Administrative Code August 2013 108 (h), all commonly controlled trades or businesses (as defined (a). the numerator of which is the number of year in section 414(c), as modified, except in the case of a brothe s (or part thereof, but not less than one year) of Service with r-sister group of trades or businesses under common control, the employer; and by section 415(h)), or affiliated service groups (as defined in (b). the denominator of which is 10. section 414(m)) of which the adopting employer is a part, an d any other entity required to be aggregated with the employ b. Adjustment of Defined Benefit Dollar Limitation er pursuant to section 414(o) of the Internal Revenue Code. for Benefit Commencement before Age 62 or after Age 65. E ffective for benefits commencing in limitation years ending a Formerly Affiliated Plan of the Employera plan that, i fter December 31, 2001, the defined benefit dollar limitation mmediately prior to the cessation of affiliation, was actually shall be adjusted if the annuity starting date of the member’s maintained by the employer and, immediately after the cessa benefit is before age 62 or after age 65. If the annuity startin tion of affiliation is not actually maintained by the employer. g date is before age 62, the defined benefit dollar limitation s For this purpose, cessation of affiliation means the event that hall be adjusted under Clause b.i of this Paragraph, as modifi causes an entity to no longer be considered the employer, su ed by Clause b.iii of this Paragraph. If the annuity starting da ch as the sale of a member controlled group of corporations, te is after age 65, the defined benefit dollar limitation shall b as defined in section 414(b) of the Internal Revenue Code, as e adjusted under Clause b.ii of this Paragraph, as modified b modified by section 415(h), to an unrelated corporation, or t y Clause b.iii of this Paragraph. hat causes a plan to not actually be maintained by the emplo yer, such as transfer of plan sponsorship outside a controlled i. Adjustment of Defined Benefit Dollar Limitati group. on for Benefit Commencement before Age 62 High Three-Year Average Compensationthe average c (a). Limitation Years Beginning before July 1, 20 ompensation for the three consecutive years of service (or, if 07. If the annuity starting date for the member’s benefit is pri the member has less than three consecutive years of service, or to age 62 and occurs in a limitation year beginning before the member’s longest consecutive period of service, includin July 1, 2007, the defined benefit dollar limitation for the me g fractions of years, but not less than one year) with the empl mber’s annuity starting date is the annual amount of a benefi oyer that produces the highest average. In the case of a mem t payable in the form of a straight life annuity commencing a ber who is rehired by the employer after a severance from e t the member’s annuity starting date that is the actuarial equi mployment, the member’s high three-year average compens valent of the defined benefit dollar limitation (adjusted under ation shall be calculated by excluding all years for which the §101.F.11.a. for years of participation less than 10, if require member performs no services for and receives no compensat d) with actuarial equivalence computed using whichever of t ion from the employer (the break period) and by treating the he following produces the smaller annual amount: years immediately preceding and following the break period (i). the interest rate and the mortality table as consecutive. A member’s compensation for a year of servi (or other tabular factor) specified in the plan for adjusting ce shall not include compensation in excess of the limitation benefits in the same form; or under section 401(a)(17) of the Internal Revenue Code that i s in effect for the calendar year in which such year of service (ii). a 5 percent interest rate assumption and begins. the applicable mortality table. Limitation Yeara fiscal year, from July 1 to June 31. A (b). Limitation Years Beginning on or After July ll qualified plans maintained by the employer must use the s 1, 2007 ame limitation year. If the limitation year is amended to a dif (i). Plan Does Not Have Immediately ferent 12-consecutive month period, the new limitation year Commencing Straight Life Annuity Payable at Both Age 62 must begin on a date within the limitation year in which the and the Age of Benefit Commencement. If the annuity amendment is made. starting date for the member’s benefit is prior to age 62 and Maximum Permissible Benefitthe lesser of the defined occurs in a limitation year beginning on or after July 1, benefit dollar limitation or the defined benefit compensation 2007, and the plan does not have an immediately limitation (both adjusted where required, as provided below). commencing straight life annuity payable at both age 62 and the age of benefit commencement, the defined benefit dollar a. Adjustment for Less than 10 Years of Participatio limitation for the member’s annuity starting date is the n or Service. If the member has less than 10 years of particip annual amount of a benefit payable in the form of a straight ation in the plan, the defined benefit dollar limitation shall b life annuity commencing at the member’s annuity starting e multiplied by a fraction: date that is the actuarial equivalent of the defined benefit i. the numerator of which is the number of years dollar limitation (adjusted under Subparagraph a of this (or part thereof, but not less than one year) of participation i Paragraph for years of participation less than 10, if required) n the plan; and with actuarial equivalence computed using a 5 percent interest rate assumption and the applicable mortality table ii. the denominator of which is 10. In the case of a for the annuity starting date (and expressing the member’s member who has less than 10 years of service with the empl age based on completed calendar months as of the annuity oyer, the defined benefit compensation limitation shall be m starting date). ultiplied by a fraction:

109 Louisiana Administrative Code October 2017 RETIREMENT

(ii). Plan Has Immediately Commencing based on completed calendar months as of the annuity Straight Life Annuity Payable at Both Age 62 and the Age of starting date). Benefit Commencement. If the annuity starting date for the (ii). Plan Has Immediately Commencing member’s benefit is prior to age 62 and occurs in a limitation Straight Life Annuity Payable at Both Age 65 and the Age of year beginning on or after July 1, 2007, and the plan has an Benefit Commencement. If the annuity starting date for the immediately commencing straight life annuity payable at member’s benefit is after age 65 and occurs in a limitation both age 62 and the age of benefit commencement, the year beginning on or after July 1, 2007, and the plan has an defined benefit dollar limitation for the member’s annuity immediately commencing straight life annuity payable at starting date is the lesser of the limitation determined under both age 65 and the age of benefit commencement, the Division b.i.(b).(i) of this Paragraph and the defined benefit defined benefit dollar limitation at the member’s annuity dollar limitation (adjusted under Subparagraph a of this starting date is the lesser of the limitation determined under Paragraph for years of participation less than 10, if required) §101.F.11.b.ii.(b).(i) and the defined benefit dollar limitation multiplied by the ratio of the annual amount of the (adjusted under §101.F.11.a for years of participation less immediately commencing straight life annuity under the plan than 10, if required) multiplied by the ratio of the annual at the member’s annuity starting date to the annual amount amount of the adjusted immediately commencing straight of the immediately commencing straight life annuity under life annuity under the plan at the member’s annuity starting the plan at age 62, both determined without applying the date to the annual amount of the adjusted immediately limitations of this article. commencing straight life annuity under the plan at age 65, ii. Adjustment of Defined Benefit Dollar Limitati both determined without applying the limitations of this on for Benefit Commencement after Age 65 article. For this purpose, the adjusted immediately commencing straight life annuity under the plan at the (a). Limitation Years Beginning Before July 1, 2 member’s annuity starting date is the annual amount of such 007. If the annuity starting date for the member’s benefit is a annuity payable to the member, computed disregarding the fter age 65 and occurs in a limitation year beginning before J member’s accruals after age 65 but including actuarial uly 1, 2007, the defined benefit dollar limitation for the mem adjustments even if those actuarial adjustments are used to ber’s annuity starting date is the annual amount of a benefit offset accruals; and the adjusted immediately commencing payable in the form of a straight life annuity commencing at straight life annuity under the plan at age 65 is the annual the member’s annuity starting date that is the actuarial equiv amount of such annuity that would be payable under the plan alent of the defined benefit dollar limitation (adjusted under to a hypothetical member who is age 65 and has the same Subparagraph a of this Paragraph for years of participation le accrued benefit as the member. ss than 10, if required) with actuarial equivalence computed using whichever of the following produces the smaller annua iii. Notwithstanding the other requirements of this l amount: Subparagraph F.10.b, no adjustment shall be made to the defi ned benefit dollar limitation to reflect the probability of a me (i). the interest rate and the mortality table mber’s death between the annuity starting date and age 62, o (or other tabular factor) specified in the plan for adjusting r between age 65 and the annuity starting date, as applicable, benefits in the same form; or if benefits are not forfeited upon the death of the member pri (ii). a 5-percent interest rate assumption or to the annuity starting date. To the extent benefits are forf and the applicable mortality table. eited upon death before the annuity starting date, such an adj ustment shall be made. For this purpose, no forfeiture shall b (b). Limitation Years Beginning Before July 1, 2 e treated as occurring upon the member’s death if the plan d 007 oes not charge members for providing a qualified preretirem (i). Plan Does Not Have Immediately ent survivor annuity, as defined in section 417(c) of the Inter Commencing Straight Life Annuity Payable at Both Age 65 nal Revenue Code, upon the member’s death. and the Age of Benefit Commencement. If the annuity c. Minimum Benefit Permitted. Notwithstanding an starting date for the member’s benefit is after age 65 and ything else in this section to the contrary, the benefit otherwi occurs in a limitation year beginning on or after July 1, se accrued or payable to a member under this plan shall be d 2007, and the plan does not have an immediately eemed not to exceed the maximum permissible benefit if: commencing straight life annuity payable at both age 65 and the age of benefit commencement, the defined benefit dollar i. the retirement benefits payable for a limitation limitation at the member’s annuity starting date is the annual year under any form of benefit with respect to such member amount of a benefit payable in the form of a straight life under this plan and under all other defined benefit plans (wit annuity commencing at the member’s annuity starting date hout regard to whether a plan has been terminated) ever mai that is the actuarial equivalent of the defined benefit dollar ntained by the employer do not exceed $10,000 multiplied b limitation (adjusted under Subparagraph a of this Paragraph y a fraction: for years of participation less than 10, if required), with (a). the numerator of which is the member’s num actuarial equivalence computed using a 5 percent interest ber of years (or part thereof, but not less than 1 year) of servi rate assumption and the applicable mortality table for that ce (not to exceed 10) with the employer; and annuity starting date (and expressing the member’s age (b). the denominator of which is 10; and

Louisiana Administrative Code August 2013 110 ii. the employer (or a predecessor employer) has n 1. Benefits under Terminated Plans. If a defined benef ot at any time maintained a defined contribution plan in whic it plan maintained by the employer has terminated with suffi h the member participated (for this purpose, mandatory empl cient assets for the payment of benefit liabilities of all plan oyee contributions under a defined benefit plan, individual m members and a member in the plan has not yet commenced b edical accounts under section 401(h), and accounts for postre enefits under the plan, the benefits provided pursuant to the a tirement medical benefits established under section 419A(d) nnuities purchased to provide the member’s benefits under th (1) are not considered a separate defined contribution plan). e terminated plan at each possible annuity starting date shall be taken into account in applying the limitations of this articl Predecessor Employerif the employer maintains a pla e. If there are not sufficient assets for the payment of all me n that provides a benefit which the member accrued while pe mbers’ benefit liabilities, the benefits taken into account shal rforming services for a former employer, the former employ l be the benefits that are actually provided to the member un er is a predecessor employer with respect to the member in t der the terminated plan. he plan. A former entity that antedates the employer is also a predecessor employer with respect to a member if, under the 2. Benefits Transferred from the Plan. If a member’s b facts and circumstances, the employer constitutes a continuat enefits under a defined benefit plan maintained by the emplo ion of all or a portion of the trade or business of the former e yer are transferred to another defined benefit plan maintaine ntity. d by the employer and the transfer is not a transfer of distrib utable benefits pursuant section 1.411(d)-4, Q and A-3(c), of Severance from Employmentan employee has a sever the income tax regulations, the transferred benefits are not tr ance from employment when the employee ceases to be an e eated as being provided under the transferor plan (but are tak mployee of the employer maintaining the plan. An employee en into account as benefits provided under the transferee pla does not have a severance from employment if, in connection n). If a member’s benefits under a defined benefit plan maint with a change of employment, the employee’s new employer ained by the employer are transferred to another defined ben maintains the plan with respect to the employee. efit plan that is not maintained by the employer and the trans Year of Participationthe member shall be credited wit fer is not a transfer of distributable benefits pursuant section h a year of participation (computed to fractional parts of a y 1.411(d)-4, Q and A-3(c), of the income tax regulations, the t ear) for each accrual computation period for which the follo ransferred benefits are treated by the employer’s plan as if su wing conditions are met: ch benefits were provided under annuities purchased to provi de benefits under a plan maintained by the employer that ter a. the member is credited with at least the number o minated immediately prior to the transfer with sufficient asse f hours of service (or period of service if the elapsed time me ts to pay all members’ benefit liabilities under the plan. If a thod is used) for benefit accrual purposes, required under the member’s benefits under a defined benefit plan maintained b terms of the plan in order to accrue a benefit for the accrual c y the employer are transferred to another defined benefit pla omputation period; and n in a transfer of distributable benefits pursuant section 1.41 b. the member is included as a member under the eli 1(d)-4, Q and A-3(c), of the income tax regulations, the amo gibility provisions of the plan for at least one day of the accr unt transferred is treated as a benefit paid from the transferor ual computation period. If these two conditions are met, the plan. portion of a year of participation credited to the member sha 3. Formerly Affiliated Plans of the Employer. A forme ll equal the amount of benefit accrual service credited to the rly affiliated plan of an employer shall be treated as a plan m member for such accrual computation period. A member wh aintained by the employer, but the formerly affiliated plan sh o is permanently and totally disabled within the meaning of s all be treated as if it had terminated immediately prior to the ection 415(c)(3)(C)(i) of the Internal Revenue Code for an a cessation of affiliation with sufficient assets to pay members’ ccrual computation period shall receive a year of participati benefit liabilities under the plan and had purchased annuities on with respect to that period. In addition, for a member to r to provide benefits. eceive a year of participation (or part thereof) for an accrual computation period, the plan must be established no later tha 4. Plans of a Predecessor Employer. If the employer m n the last day of such accrual computation period. In no even aintains a defined benefit plan that provides benefits accrued t shall more than 1 year of participation be credited for any by a member while performing services for a predecessor em 12-month period. ployer, the member’s benefits under a plan maintained by th e predecessor employer shall be treated as provided under a Year of Servicefor purposes of Subsection 101.G, the plan maintained by the employer. However, for this purpose, member shall be credited with a year of service (computed t the plan of the predecessor employer shall be treated as if it o fractional parts of a year) for each accrual computation per had terminated immediately prior to the event giving rise to t iod for which the member is credited with at least the numbe he predecessor employer relationship with sufficient assets t r of hours of service (or period of service if the elapsed time o pay members’ benefit liabilities under the plan, and had pu method is used) for benefit accrual purposes, required under rchased annuities to provide benefits; the employer and the p the terms of the plan in order to accrue a benefit for the accr redecessor employer shall be treated as if they were a single ual computation period, taking into account only service wit employer immediately prior to such event and as unrelated e h the employer or a predecessor employer. mployers immediately after the event; and if the event giving G. Other Rules rise to the predecessor relationship is a benefit transfer, the tr

111 Louisiana Administrative Code October 2017 RETIREMENT ansferred benefits shall be excluded in determining the benef member, for purposes of satisfying the requirement of Paragr its provide under the plan of the predecessor employer. aph 1 of this Subsection, any amount paid to such child shall be treated as if paid to the member's surviving spouse if such 5. Special Rules. The limitations of this Chapter shall amount would become payable to such surviving spouse, if a be determined and applied taking into account the rules in se live, upon the child's reaching age eighteen or, if later, upon t ction 1.415(f)-1(d), (e) and (h) of the income tax regulations. he child's completing a designated event. For purposes of the AUTHORITY NOTE: Promulgated in accordance with R.S. 11 preceding sentence, a designated event shall be the later of th 2225(B). e date the child is no longer disabled, or the date the child ce HISTORICAL NOTE: Promulgated by the Department of the T ases to be a full-time student or attains age 23, if earlier. reasury, Board of Trustees of the Municipal Police Employees’ Reti rement System, LR 39:1482 (June 2013). 3. Paragraph 1 of this Subsection shall not apply if the §102. Required Minimum Distributions distribution of the member's interest has commenced and is f or a term certain over a period permitted in Subsection A of t A.1. Unless the member has elected otherwise on or bef his Section. ore December 31, 1983, the entire benefit of a member shall be distributed over a period not longer than the longest of the 4. Paragraph 1 of this Subsection shall not apply if the following periods: member has elected otherwise on or before December 31, 19 83, or such later date to which such election period shall be s a. the member's life; ubject under Internal Revenue Code section 401(a). b. if the member is married, the life of the member's C. As to any benefit payable by the retirement system w designated beneficiary; hich is not optional as of December 31, 1983, the member sh c. the member's life expectancy; all be considered to have made the election referred to in Su bsections A and B of this Section, if he was a member on or d. the joint life and last survivor life expectancy of t before such time. he member and his designated beneficiary. D. If by operation of law or by action of the board of trus 2. If the member is married and his spouse survives hi tees, a survivor benefit is payable to a specified person or pe m, the designated beneficiary for at least a qualified joint an rsons, the member shall be considered to have designated su d survivor annuity and 50 percent of his deferred retirement ch person as an alternate beneficiary hereunder. If there is m option plan account shall be his spouse, unless such spouse h ore than one such person, then the youngest disabled child sh as consented to the contrary in writing before a notary public all be considered to have been so designated, or, if none, the For purposes of this Paragraph, spouse shall mean that perso n the youngest person entitled to receive a survivor benefit s n who is married to the member under a legal regime of com hall be considered to have been so designated. The designati munity of acquets and gains on his effective date of retireme on of a designated beneficiary hereunder shall not prevent pa nt or effective date of participation in the deferred retirement yment to multiple beneficiaries but shall only establish the p option plan, whichever is earlier. ermitted period of payments. 3. If the member was a member on or before Decembe E. Payment in accordance with the survivor benefit provi r 31, 1983, he shall be deemed to have made the election ref sions of R.S. 11:2220.4 and 2222 shall be deemed not to viol erred to herein. If a member dies after the commencement of ate Subsections A and B of this Section. his benefits, the remaining portion of his benefit shall be dist ributed at least as rapidly as before his death. Payment of sur F. This Section shall be effective for members of the sys vivor benefits shall not be considered to violate this provisio tem who complete any service under the system on or after J n. uly 1, 1992, with employers contributing to the system. B.1. If the member dies before his benefit has commenc G. Distributions from the system shall be made in accord ed the remainder of such interest shall be distributed to the m ance with the requirements set forth in Internal Revenue Co ember's beneficiary within five years after the date of such m de section 401(a)(9), including the minimum distribution inc ember's death. idental benefit rules applicable thereunder. 2. Paragraph 1 of this Subsection shall not apply to an H.1. A member's benefits shall commence to be paid on y portion of a member's benefit which is payable to or for th or before the required beginning date. e benefit of a designated beneficiary or beneficiaries, over th 2. The required beginning date shall be April 1 of the e life of or over the life expectancy of such beneficiary, so lo calendar year following the later of the calendar year in whic ng as such distributions begin not later than one year after th h the member attains 70 1/2 years of age, or the calendar yea e date of the member's death, or, in the case of the member's r in which the employee retires. Effective for plan years begi surviving spouse, the date the member would have attained t nning on or after January 1, 1998, the required beginning dat he age of 70 1/2. If the designated beneficiary is the membe e shall be April 1 of the year following the later of the year t r’s surviving spouse and if the surviving spouse dies before t he member attained 70 1/2 or the year he terminated employ he distribution of benefits commences, then Paragraph 1 of t ment. his Subsection shall be applied as if the surviving spouse we re the member. If the designated beneficiary is a child of the AUTHORITY NOTE: Promulgated in accordance with R.S. 11 2225(B).

Louisiana Administrative Code August 2013 112 HISTORICAL NOTE: Promulgated by the Department of the T b. any distribution to the extent that such distributio reasury, Board of Trustees of the Municipal Police Employees’ Reti n is required under section 401(a)(9) of the United States Int rement System, LR 39:1487 (June 2013). ernal Revenue Code; and §103. Direct Rollovers c. any distribution which is made upon hardship of t A. Notwithstanding any other provision of law to the con he employee. trary that would otherwise limit a distributee's election under AUTHORITY NOTE: Promulgated in accordance with R.S. 11 this Section, a distributee may elect, at the time and in the m 2225(B). anner prescribed by the board of trustees, to have any portio HISTORICAL NOTE: Promulgated by the Department of the T n of an “eligible rollover distribution,” as specified by the di reasury, Board of Trustees of the Municipal Police Employees’ Reti stributee, paid directly to an “eligible retirement plan”, as th rement System, LR 39:1488 (June 2013). ose terms are defined below. §104. Annual Compensation Limitation B. The following definitions shall apply. A. Unless otherwise provided in this Chapter, the accrue Direct Rollovera payment by the system to the eligibl d benefit of each “section 401(a)(17) employee” as that term e retirement plan specified by the distributee. is defined below shall be the greater of the following: Distributeeshall include: 1. The employee's accrued benefit determined with res pect to the benefit formula applicable for the plan year begin a. a member or former member; ning on or after January 1, 1996, as applied to the employe b. the member's or former member's surviving spou e's total years of service taken into account for purposes of b se, or the member's or former member's former spouse with enefit accruals. whom a benefit or a return of employee contributions is to b 2. The sum of: e divided pursuant to R.S. 11:291(B), with reference to an in terest of the member or former spouse; a. the employee's accrued benefit as of the last day of the last plan year beginning before January 1, 1996, froze c. the member's or former member's non-spouse benef n in accordance with the provisions of section 1.401(a)(4)-1 iciary, provided the specified distribution is to an eligible reti through 1.401(a)(4)-13 of the Code of Federal Regulations; rement plan as defined in Subparagraphs a and b of the defin ition of eligible retirement plan in this Section. b. the employee's accrued benefit determined under the benefit formula applicable for the plan year beginning on Eligible Retirement Planany of the following: or after January 1, 1996, as applied to the employee's years o a. an individual retirement account described in sect f service credited to the employee for plan years beginning o ion 408(a) of the Internal Revenue Code; n or after January 1, 1996, for purposes of benefit accruals. b. an individual retirement annuity described in sect B. A section 401(a)(17) employee shall mean any emplo ion 408(b) of the Internal Revenue Code; yee whose current accrued benefit, as of a date on or after th e first day of the first plan year beginning on or after January c. an annuity plan described in section 403(a) of the 1, 1996, is based on compensation for a year beginning prior Internal Revenue Code; to the first day of the first plan year beginning on or after Jan uary 1, 1996, that exceeded $150,000. d. a qualified trust as described in section 401(a) of the Internal Revenue Code, provided that such trust accepts t C. If an employee is not a “section 401(a)(17) employee” he member's eligible rollover distribution; his accrued benefit in this system shall not be based upon co mpensation in excess of the annual limit of section 401(a)(1 e. an eligible deferred compensation plan described 7) of the United States Internal Revenue Code as amended a in section 457(b) of the Internal Revenue Code that is mainta nd revised. ined by an eligible governmental employer, provided the pla n contains provisions to account separately for amounts trans AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ferred into such plan; and 2225(B). HISTORICAL NOTE: Promulgated by the Department of the T f. an annuity contract described in section 403(b) of reasury, Board of Trustees of the Municipal Police Employees’ Reti the Internal Revenue Code. rement System, LR 39:1489 (June 2013). Eligible Rollover Distributionany distribution of all o §105. Vesting of Benefits at Plan Termination r any portion of the balance to the credit of the distributee, e A. In the event of termination or partial termination of th xcept that an eligible rollover distribution does not include: e system’s pension plan, accrued benefits of affected membe a. any distribution that is one of a series of substanti rs shall become vested and nonforfeitable to the extent funde ally equal periodic payments, not less frequently than annual d as of the date of the termination or partial termination of th ly, made for the life or life expectancy of the member, or the e plan. joint lives or joint life expectancies of the member and the m AUTHORITY NOTE: Promulgated in accordance with R.S. 11 ember's designated beneficiary, or for a specified period of te 2225(B). n years or more;

113 Louisiana Administrative Code October 2017 RETIREMENT

HISTORICAL NOTE: Promulgated by the Department of the T reasury, Board of Trustees of the Municipal Police Employees’ Reti rement System, LR 42:70 (January 2016).

Louisiana Administrative Code August 2013 114 Title 58 RETIREMENT Part XIX. Assessors' Retirement Fund

Chapter 1.General Provisions a. IRC §415 compensation shall include elective am ounts that are not includible in the gross income of the empl §101. Compensation oyee under IRC §§125, 132(f)(4), 402(e)(3), 402(h), 403(b) or 457. A. Definitions. As provided under R.S. 11:1402(6), effect ive for limitation years beginning on or after July 1, 2007, co 2. For any plan year beginning after December 31, 20 mpensation is hereby defined as follows. 01: Compensationthe regular pay of the member, not incl a. IRC §415 compensation shall not exceed the max uding any overtime or bonuses; imum amount of compensation permitted to be taken into ac count under IRC §401(a)(17), $200,000 adjusted for the cost IRC §415 Compensationwages, tips and other compe of living increases in accordance with IRC §401(a)(17)(B). nsation required to be reported under §§6041, 6051 and 605 2 of the Internal Revenue Code (IRC) (wages, tips and other i. The cost-of-living adjustment in effect for a cal compensation box on IRS Form W-2), during the calendar ye endar year applies to annual compensation for the determinat ar of the plan (the plan year or determination period). ion period that begins with or within such calendar year. B. Exclusions from Compensation. Compensation shall n 3. If a determination period consists of fewer than 12 ot include: months, as a result of a change in plan year or in the year of t he termination of the plan: 1. any amounts that are not includible in IRC §415 co mpensation; a. the IRC §415 compensation limit is an amount eq ual to the otherwise applicable IRC §415 compensation limit 2. employer contributions to a plan of deferred compe multiplied by a fraction, the numerator of which is the numb nsation to the extent contributions are not included in gross i er of months in the short determination period, and the deno ncome of the employee for the taxable year in which contrib minator of which is 12; uted, or on behalf of an employee to a simplified employee p ension plan and any distributions form a plan of deferred co 4. If IRC §415 compensation for any prior determinati mpensation; on period is taken into account in determining a participant’s benefit for the current plan year, the IRC §415 compensation 3. amounts realized from the exercise of a non-qualifi for such prior determination period is subject to the applicabl ed stock option, or when restricted stock (or property) held b e IRC §415 compensation limit in effect for that prior period. y an employee becomes freely transferable or is no longer su bject to a substantial risk of forfeitures; D. IRC §415 Compensation Paid After Severance from E mployment 4. amounts realized from the sale, exchange or other d isposition of stock acquired under a qualified stock option; 1. Adjusted Compensation. IRC §415 compensation s hall be adjusted for the following types of compensation pai 5. other amounts that receive special tax benefits, or c d after a participant's severance from employment with the e ontributions made by an employer (whether or not under a sa mployer maintaining the plan (or any other entity that is treat lary reduction agreement) towards the purchase of a IRC § 4 ed as the employer pursuant to IRC §414(b), (c), (m) or (o)). 03(b) annuity contract (whether or not the contributions are e However, amounts described in Paragraphs 2-8 of this Subse xcludible from the gross income of the employee); and ction may only be included in IRC §415 compensation to the 6. pre-tax amounts contributed by the employee to an extent such amounts are paid by the later of 2 1/2 months aft IRC §125 cafeteria plan. er severance from employment or by the end of the limitatio n year that includes the date of such severance from employ C. Determination of IRC §415 Compensation. IRC §415 ment. Any other payment of compensation paid after severan compensation must be determined without regard to any rule ce from employment that is not described in the following ty s under IRC §3401(a) that limit the remuneration included in pes of compensation is not considered IRC §415 compensati wages based on the nature or location of the employment or t on within the meaning of IRC §415(c)(3), even if payment is he services performed (such as the exception for agricultural made within the time period specified above. labor in IRC §3401(a)(2)). 2. Regular Pay. IRC §415 compensation shall include 1. For plan years beginning on and after January 1, 20 regular pay after severance from employment if: 01: a. the payment is regular compensation for services during the participant's regular working hours, or compensati

115 Louisiana Administrative Code October 2017 RETIREMENT on for services outside the participant's regular working hour a. shall be the calendar year of the fund; s (such as overtime or shift differential), commissions, bonus b. is the period that is used to apply the limitations o es, or other similar payments; and f IRC §415. b. the payment would have been paid to the particip 2. The limitation year may only be changed by amend ant prior to a severance from employment if the participant h ment to the fund. ad continued in employment with the employer. a. Furthermore, if the fund is terminated effective as 3. Leave Cashouts. Leave cashouts shall be included i of a date other than the last day of the fund's limitation year, n IRC §415 compensation if: then the fund is treated as if the fund had been amended to c a. those amounts would have been included in the d hange its limitation year. efinition of IRC §415 compensation if they were paid prior t AUTHORITY NOTE: Promulgated in accordance with R.S. 11 o the participant's severance from employment; and 1402(6), R.S. 11:1404(A), and R.S. 49.950 et seq. b. the amounts are payment for unused accrued bon HISTORICAL NOTE: Promulgated by the Board of Trustees o a fide sick, vacation, or other leave, but only if: f the Assessors’ Retirement Fund, LR 39:2187 (August 2013). §103. Actuarial Equivalent i. the participant would have been able to use the leave if employment had continued. A. As provided under R.S. 11:1402(8), actuarial equival ent shall be defined using the following assumptions. 4. Deferred Compensation. IRC §415 compensation w ill include deferred compensation if the compensation would 1. Interest shall be compounded annually at the rate of have been included in the definition of IRC §415 compensati 7 1/2 percent per annum. on if: 2. Annuity rates shall be determined on the basis of R a. it had been paid prior to the participant's severanc P2000 combined healthy table set back three years for males e from employment; and and two years for females and uninsured. b. the compensation is received pursuant to a nonqu B. Effective July 1, 2012, as provided by R.S. 11:1402 alified unfunded deferred compensation plan, but only if: (8) actuarial equivalent shall be defined by using the followi ng assumptions. i. the payment would have been paid at the same time if the participant had continued in employment with the 1. Interest shall be compounded annually at the rate of employer and only to the extent that the payment is includibl 7.5 percent per annum. e in the participant's gross income. 2. Mortality rates shall be based on the RP-2000 comb 5. Qualified Military Service. IRC §415 compensation ined healthy table unisexed based on 65 percent males and 3 does not include payments to an individual who does not cur 5 percent females for retirees and 35 percent males and 65 p rently perform services for the employer by reason of qualifi ercent females for beneficiaries. ed military service (as that term is used in IRC §414(u)(1)) t C. Effective October 1, 2015, as provided by R.S. 11:140 o the extent those payments do not exceed the amounts the i 2(8) actuarial equivalent shall be defined by using the follow ndividual would have received if the individual had continue ing assumptions. d to perform services for the employer rather than entering q ualified military service. 1. Interest shall be compounded annually at the rate of 7.25 percent per annum (except as provided below). 6. Permanently and Totally Disabled. IRC §415 comp ensation does not include compensation paid to a participant 2. For single life option factors, mortality rates shall b who is permanently and totally disabled (as defined in IRC § e based on the RP-2000 combined healthy tables unisexed ba 22(e)(3)). sed on 35 percent males and 65 percent females. 7. Amounts Earned but not Paid. IRC §415 compensat 3. For Joint Life option factors, mortality rates shall b ion for a limitation year shall not include amounts earned but e based on the RP-2000 combined healthy tables unisexed ba not paid during the limitation year solely because of the timi sed on 65 percent males and 35 percent females for retirees a ng of pay periods and pay dates. nd 35 percent males and 65 percent females for beneficiaries. 8. Lost Wages. Payments awarded by an administrativ 4. For disability award lifetime equivalences, mortalit e agency or court or pursuant to a bona fide agreement by an y rates shall be based on the RP-2000 disabled lives tables u employer to compensate an employee for lost wages are IRC nisexed based on 35 percent males and 65 percent females. §415 compensation for the limitation year to which the back 5. For drop balance life annuity conversions, mortality pay relates, but only to the extent such payments represent w rates shall be based on the RP-2000 combined healthy table ages and compensation that would otherwise be included in I set back 3 years and unisexed based on 100 percent males an RC §415 compensation. d 0 percent females with interest at 6 percent per annum. E. Limitation Year 1. The limitation year:

Louisiana Administrative Code August 2013 116 D. Effective October 1, 2016, as provided by R.S. 11:140 a. an eligible plan under IRC §457(b) that is maintai 2(8) actuarial equivalent shall be defined by using the follow ned by a state, political subdivision of a state, or any agency ing assumptions. or instrumentality of a state or political subdivision of a state and that agrees to separately account for amounts transferred 1. Interest shall be compounded annually at the rate of into such plan from this plan, an individual retirement accou 7.00 percent per annum (except as provided below). nt described in IRC §408(a), an individual retirement annuit 2. For single life option factors, mortality rates shall b y described in IRC §408(b), an annuity plan described in IR e based on the RP-2000 combined healthy tables set forward C §403(a), an annuity contract described in IRC §403(b), or 1 year for males with no set forward for females and unisexe a qualified plan described in IRC §401(a), that accepts the di d based on 40 percent males and 60 percent females. stributee’s eligible rollover distribution; 3. For joint life option factors, mortality rates shall be b. shall also apply in the case of a distribution to a s based on the RP-2000 combined healthy tables set forward 1 urviving spouse, or to a spouse or former spouse who is the a year for males with no set forward for females and unisexed lternate payee under a qualified domestic relations order. based on 65 percent males and 35 percent females for retiree Eligible Rollover Distributionany distribution of all o s and 35 percent males and 65 percent females for beneficiar r any portion of the balance to the credit of the distributee, e ies. xcept that an eligible rollover distribution does not include: 4. For disability award lifetime equivalences, mortalit a.i. any distribution that is one of a series of substanti y rates shall be based on the RP-2000 disabled lives tables u ally equal periodic payments (not less frequently than annual nisexed based on 40 percent males and 60 percent females. ly) made for the life (or life expectancy of the distributee or t 5. For drop balance life annuity conversions, mortality he joint lives (or joint life expectancies) of the distribute and rates shall be based on the RP-2000 healthy annuitant table s the distributee’s designated beneficiary; or et back 1 year and projected to 2030 using scale AA, and uni ii. for a specified period of 10 years or more; sexed based on 100 percent males and 0 percent females wit h interest at 6 percent per annum. b. any distribution to the extent such distributions is required under IRC §401(a)(9); E. Thereafter, these assumptions shall be adopted by res olution of the board, based on recommendations of its actuar c. any hardship distribution attributable to elective d y. eferrals; AUTHORITY NOTE: Promulgated in accordance with R.S. 11 d. the portion of any distribution that is not includib 1402(8), 11:1404(A), and R.S. 49.950 et seq. le in gross income (determined without regard to the exclusi HISTORICAL NOTE: Promulgated by the Board of Trustees o on for net unrealized appreciation with respect to employer s f the Assessors’ Retirement Fund, LR 39:2188 (August 2013), ame ecurities); and nded LR 42:1959 (November 2016). §105. Accumulated Contributions, Rollovers e. any other distribution(s) that is reasonably expect ed to total less than $200 during a year. A. As provided in R.S. 11:1457(C), the following definiti ons are revised. B. Eligible Retirement Plan 2009 RMDs of a Participant or Beneficiaryamounts t 1. Effective for distributions on or after January 1, 200 hat the participant or beneficiary would have been required t 7: o receive as a required minimum distribution under IRC §40 a. eligible retirement plan shall include the individu 1(a)(9) for the 2009 distribution calendar year. al retirement account or annuity in the name of the deceased Distributee participant for the benefit of a nonspouse beneficiary, who re ceives an eligible rollover distribution from the plan on acco a. a person who is distributed benefits from the plan unt of the death of a participant, provided that the individual and shall include an employee or former employee. In additi retirement account or annuity is treated as an inherited IRA a on: nd that the minimum distribution rules applicable in the even i. the employee’s or former employee’s surviving t the IRA owner dies before the entire interest is distributed s spouse and the employee’s or former employee’s spouse or f hall apply to the transferee IRA and the transferee IRA does ormer spouse who is the alternate payee under a qualified do not provide the beneficiaries with the special rules for surviv mestic relations order, as defined in IRC §414(p), are distrib ing spouse beneficiaries; utees with regard to the interest of the spouse or former spou b. a Roth IRA is an eligible retirement plan with res se; pect to distributions from the Fund that do not consist of desi ii. a nonspouse beneficiary as designated by the m gnated Roth accounts, so long as the restrictions that apply t ember. o a transfer from a traditional IRA (non-Roth) to a Roth IRA are satisfied. Eligible Retirement Plan C. Eligible Rollover Distribution

117 Louisiana Administrative Code October 2017 RETIREMENT

1. If any portion of an eligible rollover distribution is 1. In the case of a death occurring on or after January attributable to payments or distributions from a designated R 1, 2007, if a participant dies while performing qualified milit oth account, an eligible retirement plan with respect to such ary service (as defined in IRC §414(u)), the participant's ben portion shall include only another designated Roth account o eficiary is entitled to any additional benefits (other than bene f the individual from whose account the payments or distribu fit accruals relating to the period of qualified military servic tions were made, or a Roth IRA of such individual. e) provided under the plan as if the participant had resumed and then terminated employment on account of death. 2. Effective January 1, 2003, a portion of a distributio n shall not fail to be an eligible rollover distribution merely b a. Moreover, the plan will credit the participant's qu ecause the portion consists of after-tax employee contributio alified military service as service for vesting purposes, as tho ns that are not includible in gross income. However, such po ugh the participant had resumed employment under USERR rtion may be transferred only to an individual retirement acc A immediately prior to the participant's death. ount or annuity described in IRC §408(a) or (b), or to a quali AUTHORITY NOTE: Promulgated in accordance with R.S. 11 fied defined contribution plan described in IRC §401(a) or 4 1404(A), R.S. 11:1411, and the provisions of the Administrative Pr 03(a) that agrees to separately account for amounts so transf ocedure Act, R.S. 49.950 et seq. erred, including separately accounting for the portion of such HISTORICAL NOTE: Promulgated by the Board of Trustees o distribution that is includible in gross income and the portion f the Assessors’ Retirement Fund, LR 39:2189 (August 2013). of such distribution that is not so includible. Chapter 5.Limitation on Payment of 3. Effective January 1, 2007, eligible rollover distribut Benefits ions shall include: §501. Suspension of Benefits a. a distribution to a nonspouse beneficiary on acco unt of the participant’s death, so long as any rollover distribu A. As provided in R.S. 11:1444(D), if a member has com tion is transferred to an individual retirement account or ann menced to receive distributions under R.S. 11:1444 even tho uity that is treated as an inherited account of the deceased pa ugh he is still employed with the employer, then such memb rticipant; er shall be given the opportunity to elect to suspend such dist b. after-tax contributions held in a plan qualified un ributions so long as he is still employed. If such member late der IRC §401(a). r terminates employment, he shall commence to receive mini mum distributions again and shall be entitled to elect the met 4. Effective January 1, 2007, distributions from the pl hod of receiving such distributions, with his required beginni an that do not consist of designated Roth accounts shall be el ng date to be determined based on the date of his termination igible rollover distributions with respect to a Roth IRA and of employment. may be rolled over to a Roth IRA, subject to the restrictions t AUTHORITY NOTE: Promulgated in accordance with R.S. 11 hat apply to a transfer from a traditional (non-Roth) IRA to a 1404(A), R.S. 11:1444(D), and R.S. 49.950 et seq. Roth IRA. HISTORICAL NOTE: Promulgated by the Board of Trustees o 5. During 2009, 2009 RMDs shall be treated as eligibl f the Assessors’ Retirement Fund, LR 39:2189 (August 2013). e rollover distributions for purposes of making available the §503. Required Beginning Date direct rollover of eligible rollover distributions that include s A. As provided in R.S. 11:1444(E), any required beginni uch amount, but not for purposes of withholding federal inco ng date occurring in 2009 shall be extended for one year. me taxes on the amount when it is distributed. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1444(E), R.S. 11:1404(A), and R.S. 49.950 et seq. 1404(A), R.S. 11:1457(C), and R.S. 49.950 et seq. HISTORICAL NOTE: Promulgated by the Board of Trustees o HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Assessors’ Retirement Fund, LR 39:2189 (August 2013). f the Assessors’ Retirement Fund, LR 39:2188 (August 2013). §505. Benefit Limitations §107. Definitions A. As provided under R.S. 11:1458, the following provis Full-Time—regularly scheduled to work a minimum of 35 ions shall apply for limitation years beginning on or after Jul hours per week. y 1, 2007. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 1402(8), 11:1404(A), and R.S. 49.950 et seq. 1. Annual BenefitMaximum Permissible Benefit. T HISTORICAL NOTE: Promulgated by the Department of Trea he annual benefit, otherwise payable to a participant under th sury, Board of Trustees of the Assessors’ Retirement Fund, LR 42:1 e plan, at any time shall not exceed the maximum permissibl 960 (November 2016). e benefit. If the benefit the participant would otherwise accru e in a limitation year would produce an annual benefit in exc Chapter 3.Creditable Service ess of the maximum permissible benefit, then the benefit sha §301. Death Benefits for Qualified Military Service ll be limited (or the rate of accrual reduced) to a benefit that does not exceed the maximum permissible benefit. A. As provided under R.S. 11:1411, the following shall a pply. 2. Adjustment if in Two Defined Benefit Plans. If the participant is, or has ever been, a participant in another quali

Louisiana Administrative Code August 2013 118 fied defined benefit plan (without regard to whether the plan is payable on the first day of each month, before applying th has been terminated) maintained by the employer or a predec e limitations of this Part. essor employer, the sum of the participant’s annual benefit fr 2. For a participant who has or will have distributions om all such plans may not exceed the maximum permissible commencing at more than one annuity starting date, the annu benefit. Where the participant’s employer-provided benefits al benefit shall be determined as of each such annuity startin under all such defined benefit plans (determined as of the sa g date (and shall satisfy the limitations of this Part as of each me age) would exceed the maximum permissible benefit app such date), actuarially adjusting for past and future distributi licable at that age, the employer shall limit a participant’s be ons of benefits commencing at the other annuity starting date nefit in accordance with the terms of the plans. s. 3. Limits Grandfathered prior to July 1, 2007 a. For this purpose, the determination of whether a a. The following sentence in Clause i of this Subpar new annuity starting date has occurred shall be made: agraph applies only if the provisions of such defined benefit i. without regard to U.S. Treasury regulations §1. plans that were both adopted and in effect before April 5, 20 401(a)-20, Q and A-10(d); and 07 satisfied the applicable requirements of statutory provisio ns, regulations, and other published guidance relating to IRC ii. with regard to U.S. Treasury regulations §1.41 § 415 in effect as of the end of the last limitation year beginn 5(b)1(b)(1)(iii)(B) and (C). ing before July 1, 2007, as described in U.S. Treasury regula 3. The determination of the annual benefit shall take i tions § 1.415(a)-1(g)(4). nto account Social Security supplements described in IRC § i. The application of the provisions of this Part sh 411(a)(9) and benefits transferred from another defined bene all not cause the maximum permissible benefit for any partic fit plan, other than transfers of distributable benefits pursuan ipant to be less than the participant’s accrued benefit under a t to U.S. Treasury regulations § 1.411(d)-4, Q and A-3(c), bu ll the defined benefit plans of the employer or a predecessor t shall disregard benefits attributable to employee contributio employer as of the end of the last limitation year beginning b ns or rollover contributions. efore July 1, 2007 under provisions of the plans that were bo C. Actuarial Adjustment. No actuarial adjustment to the th adopted and in effect before April 5, 2007. benefit shall be made for: AUTHORITY NOTE: Promulgated in accordance R.S. 11:140 4(A), R.S. 11:1458, and R.S. 49.950 et seq. 1. survivor benefits payable to a surviving spouse und HISTORICAL NOTE: Promulgated by the Board of Trustees o er a qualified joint and survivor annuity to the extent such be f the Assessors’ Retirement Fund, LR 39:2189 (August 2013). nefits would not be payable if the participant’s benefit were Chapter 7.Accumulated Contribution paid in another form; s 2. benefits that are not directly related to retirement be nefits (such as a qualified disability benefit, preretirement in §701. Benefit Limitations cidental death benefits, and postretirement medical benefits); or A. Definitions. For purposes of Chapter 7, the following definitions apply. 3. the inclusion in the form of benefit of an automatic benefit increase feature, provided the form of benefit is not s Annual Benefita benefit that is payable annually in the ubject to IRC §417(e)(3) and would otherwise satisfy the lim form of a straight life annuity. itations of this Part, and the plan provides that the amount pa Defined Benefit Dollar Limitationeffective for limitati yable under the form of benefit in any limitation year shall n on years ending after December 31, 2001, $160,000, automa ot exceed the limits of this Part applicable at the annuity start tically adjusted under IRC §415(d), effective January 1 of ea ing date, as increased in subsequent years pursuant to IRC § ch year, as published in the Internal Revenue Bulletin, and p 415(d); ayable in the form of a straight life annuity: a. for this purpose, an automatic benefit increase fea a. the new limitation shall apply to limitation years ture is included in a form of benefit if the form of benefit pro ending with or within the calendar year of the date of the adj vides for automatic, periodic increases to the benefits paid in ustment, but a participant’s benefits shall not reflect the adju that form. sted limit prior to January 1 of that calendar year; D. Acturarial EquivalentStraight Life Annuity b. the automatic annual adjustment of the defined b 1. Effective for distributions in plan years beginning a enefit dollar limitation under IRC §415(d) shall apply to part fter December 31, 2003, the determination of actuarial equiv icipants who have had a separation from employment. alence of forms of benefit other than a straight life annuity s B. Annual Benefit Determination hall be made in accordance with Subparagraph a of this Para graph. 1. Except as provided below, where a benefit is payabl e in a form other than a straight life annuity, the benefit shall a. The straight life annuity that is actuarially equiva be adjusted to an actuarially equivalent straight life annuity t lent to the participant’s form of benefit shall be determined u hat begins at the same time as such other form of benefit and

119 Louisiana Administrative Code October 2017 RETIREMENT nder this Subparagraph if the form of the participant’s benefi computed using a 5 percent interest rate assumption and the t is either: applicable mortality table defined in the plan for that annuity starting date. i. a nondecreasing annuity (other than a straight li fe annuity) payable for a period of not less than the life of th AUTHORITY NOTE: Promulgated in accordance with the pro e participant (or, in the case of a qualified pre-retirement sur visions of R.S. 11:1404(A) and R.S. 49.950 et seq. vivor annuity, the life of the surviving spouse); or HISTORICAL NOTE: Promulgated by the Board of Trustees o f the Assessors’ Retirement Fund, LR 39:2190 (August 2013). ii. an annuity that decreases during the life of the §703. Rollover of Returned Contributions participant merely because of: A. As provided in R.S. 11:1445(G): (a). the death of the survivor annuitant (but only if the reduction is not below 50 percent of the benefit payabl 1. distributee, eligible retirement plan and eligible roll e before the death of the survivor annuitant); or over distribution shall be defined in provisions adopted by th e board pursuant to R.S. 11:1457; (b). the cessation or reduction of Social Security supplements or qualified disability payments (as defined in I 2. an eligible rollover distribution shall be transferred RC §401(a)(11)). in a direct rollover to an eligible retirement plan if so directe d by the distributee. The board shall provide distributees wit 2. For limitation years beginning before July 1, 2007, h the opportunity to direct such direct rollover. the actuarially equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the AUTHORITY NOTE: Promulgated in accordance with the pro same annuity starting date that has the same actuarial present visions of R.S. 11:1404(A), R.S. 11:1445(G), R.S. 11:1457, and R. value as the participant’s form of benefit computed using wh S. 49.950 et seq. HISTORICAL NOTE: Promulgated by the Board of Trustees o ichever of the following produces the greater annual amount: f the Assessors’ Retirement Fund, LR 39:2191 (August 2013). a. the interest rate and mortality table (or other tabul §705. Repayment of Withdrawn Accumulated Contrib ar factor) specified in the plan for adjusting benefits in the sa utions me form; and A. As provided in R.S. 11:1455(B), payment may be ma b. 5 percent interest rate assumption and the applica de directly by the member or may be made on the member’s ble mortality table defined in the plan for that annuity startin behalf: g date. 1. in a single sum payment by an individual retirement 3. For limitation years beginning on or after July 1, 20 account; or 07, the actuarially equivalent straight life annuity is equal to the greater of: 2. annuity; or a. the annual amount of the straight life annuity (if a 3. by a plan qualified under IRC §§401(a), 403(a), 40 ny) payable to the participant under the plan commencing at 3(b), or 457(g). the same annuity starting date as the participant’s form of be AUTHORITY NOTE: Promulgated in accordance with the pro nefit; and visions of R.S. 11:1404(A), R.S. 11:1455(B), and the Administrativ e Procedure Act, R.S. 49.950 et seq. b. the annual amount of the straight life annuity co HISTORICAL NOTE: Promulgated by the Board of Trustees o mmencing at the same annuity starting date that has the sam f the Assessors’ Retirement Fund, LR 39:2191 (August 2013). e actuarial present value as the participant’s form of benefit,

Louisiana Administrative Code August 2013 120 Title 58 RETIREMENT Part XXI. District Attorneys' Retirement System

Chapter 1.General Provisions 1. For plan years beginning on and after January 1, 20 01: §101. Compensation a. IRC §415 compensation shall include elective am A. Definitions. As provided under R.S. 11:1581(5), effect ounts that are not includible in the gross income of the empl ive for limitation years beginning on or after July 1, 2007, co oyee under IRC §§125, 132(f)(4), 402(e)(3), 402(h), 403(b) mpensation is hereby defined as follows. or 457. Compensationthe regular pay of the member, not incl 2. For any plan year beginning after December 31, 20 uding any overtime or bonuses. 01: DARSthe District Attorneys’ Retirement System, as se a. IRC §415 compensation shall not exceed the max t forth in R.S. 11:1581 through 1702 and this Part. imum amount of compensation permitted to be taken into ac count under IRC §401(a)(17), $200,000 adjusted for the cost IRC §415 Compensationwages, tips and other compe of living increases in accordance with IRC §401(a)(17)(B). nsation required to be reported under §§6041, 6051 and 605 2 of the Internal Revenue Code (IRC) (wages, tips and other i. The cost-of-living adjustment in effect for a cal compensation box on IRS Form W-2), during the calendar ye endar year applies to annual compensation for the determinat ar of the plan (the plan year or determination period). ion period that begins with or within such calendar year. B. Exclusions from Compensation. Compensation shall n 3. If a determination period consists of fewer than 12 ot include: months, as a result of a change in plan year or in the year of t he termination of the plan. 1. any amounts that are not includible in IRC §415 co mpensation; a. The IRC §415 compensation limit is an amount e qual to the otherwise applicable IRC §415 compensation lim 2. employer contributions to a plan of deferred compe it multiplied by a fraction, the numerator of which is the nu nsation to the extent contributions are not included in gross i mber of months in the short determination period, and the de ncome of the employee for the taxable year in which contrib nominator of which is 12. uted, or on behalf of an employee to a simplified employee p ension plan and any distributions form a plan of deferred co 4. If IRC §415 compensation for any prior determinati mpensation; on period is taken into account in determining a participant’s benefit for the current plan year, the IRC §415 compensation 3. amounts realized from the exercise of a non-qualifi for such prior determination period is subject to the applicabl ed stock option, or when restricted stock (or property) held b e IRC §415 compensation limit in effect for that prior period. y an employee becomes freely transferable or is no longer su bject to a substantial risk of forfeitures; D. IRC §415 Compensation Paid After Severance from E mployment 4. amounts realized from the sale, exchange or other d isposition of stock acquired under a qualified stock option; 1. Adjusted Compensation. IRC §415 compensation s hall be adjusted for the following types of compensation pai 5. other amounts that receive special tax benefits, or c d after a participant's severance from employment with the e ontributions made by an employer (whether or not under a sa mployer maintaining the plan (or any other entity that is treat lary reduction agreement) towards the purchase of a IRC §40 ed as the employer pursuant to IRC §414(b), (c), (m) or (o)). 3(b) annuity contract (whether or not the contributions are ex However, amounts described in Paragraphs 2-8 of this Subse cludible from the gross income of the employee); and ction may only be included in IRC §415 compensation to the 6. pre-tax amounts contributed by the employee to an extent such amounts are paid by the later of 2 1/2 months aft IRC §125 cafeteria plan. er severance from employment or by the end of the limitatio n year that includes the date of such severance from employ C. Determination of IRC §415 Compensation. IRC §415 ment. Any other payment of compensation paid after severan compensation must be determined without regard to any rule ce from employment that is not described in the following ty s under IRC §3401(a) that limit the remuneration included in pes of compensation is not considered IRC §415 compensati wages based on the nature or location of the employment or t on within the meaning of IRC §415(c)(3), even if payment is he services performed (such as the exception for agricultural made within the time period specified above. labor in IRC §3401(a)(2)). 2. Regular Pay. IRC §415 compensation shall include regular pay after severance from employment if:

121 Louisiana Administrative Code October 2017 RETIREMENT

a. the payment is regular compensation for services E. Limitation Year during the participant's regular working hours, or compensati 1. The limitation year: on for services outside the participant's regular working hour s (such as overtime or shift differential), commissions, bonus a. shall be the calendar year; es, or other similar payments; and b. is the period that is used to apply the limitations o b. the payment would have been paid to the particip f IRC §415. ant prior to a severance from employment if the participant h 2. The limitation year may only be changed by amend ad continued in employment with the employer. ment to DARS. Furthermore, if DARS is terminated effectiv 3. Leave Cashouts. Leave cashouts shall be included i e as of a date other than the last day of DARS’s limitation ye n IRC §415 compensation if: ar, then DARS is treated as if DARS had been amended to c hange its limitation year. a. those amounts would have been included in the d efinition of IRC §415 compensation if they were paid prior t AUTHORITY NOTE: Promulgated in accordance with R.S. 11 o the participant's severance from employment; and 1588(A), R.S. 11:1581(5)(b), and R.S. 49:950 et seq. HISTORICAL NOTE: Promulgated by the Board of Trustees o b. the amounts are payment for unused accrued bon f the District Attorneys’ Retirement System, LR 41:2311 (Novembe a fide sick, vacation, or other leave, but only if: r 2015). i. the participant would have been able to use the §103. Actuarial Equivalent leave if employment had continued. A. Effective July 1, 2013 and continuing through June 30, 4. Deferred Compensation. IRC §415 compensation w 2015, as provided by R.S. 11:1588(A) actuarial equivalent s ill include deferred compensation if the compensation would hall be defined by using the following assumptions. have been included in the definition of IRC §415 compensati 1. Interest shall be compounded annually at the rate of on and if: 7.5 percent per annum. a. it had been paid prior to the participant's severanc a. For single life option factors, mortality rates shall e from employment; and be based on the RP-2000 combined healthy tables unisexed b. the compensation is received pursuant to a nonqu based on 70 percent males and 30 percent females. For joint alified unfunded deferred compensation plan, but only if: life option factors, mortality rates shall be based on the RP-2 000 combined healthy tables unisexed based on 95 percent i. the payment would have been paid at the same males and 5 percent females for retirees and 5 percent males time if the participant had continued in employment with the and 95 percent females for beneficiaries employer and only to the extent that the payment is includibl e in the participant's gross income. b. For disability award lifetime equivalences, mortal ity rates shall be based on the RP-2000 disabled lives tables 5. Qualified Military Service. IRC §415 compensation unisexed based on 70 percent males and 30 percent females. does not include payments to an individual who does not cur rently perform services for the employer by reason of qualifi B. Effective July 1, 2015 and continuing through June 30, ed military service (as that term is used in IRC §414(u)(1)) t 2016, as provided by R.S. 11:1588(A) actuarial equivalent s o the extent those payments do not exceed the amounts the i hall be defined by using the following assumptions. ndividual would have received if the individual had continue 1. Interest shall be compounded annually at the rate of d to perform services for the employer rather than entering q 7.25 percent per annum. ualified military service. a. For single life option factors, mortality rates shall 6. Permanently and Totally Disabled. IRC §415 comp be based on the RP-2000 combined healthy tables unisexed ensation does not include compensation paid to a participant based on 70 percent males and 30 percent females. For joint who is permanently and totally disabled (as defined in IRC § life option factors, mortality rates shall be based on the RP-2 22(e)(3)). 000 combined healthy tables unisexed based on 95 percent 7. Amounts Earned but not Paid. IRC §415 compensat males and 5 percent females for retirees and 5 percent males ion for a limitation year shall not include amounts earned but and 95 percent females for beneficiaries. not paid during the limitation year solely because of the timi b. For disability award lifetime equivalences, mortal ng of pay periods and pay dates. ity rates shall be based on the RP-2000 disabled lives tables 8. Lost Wages. Payments awarded by an administrativ unisexed based on 70 percent males and 30 percent females. e agency or court or pursuant to a bona fide agreement by an C. Effective July 1, 2016 and continuing so long as not a employer to compensate an employee for lost wages are IRC mended by resolution of the board, as provided by R.S. 11:1 §415 compensation for the limitation year to which the back 588(A) actuarial equivalent shall be defined by using the foll pay relates, but only to the extent such payments represent w owing assumptions. ages and compensation that would otherwise be included in I RC §415 compensation. 1. Interest shall be compounded annually at the rate of 7.00 percent per annum.

Louisiana Administrative Code August 2013 122 a. For single life option factors, mortality rates shall e January 1, 2007, a Roth IRA is an eligible retirement plan be based on the RP-2000 combined healthy table with white with respect to distributions from this plan that do not consis collar adjustment with no setback for males and with 1 year t of designated Roth accounts, so long as the restrictions that setback for females and unisexed based on 80 percent males apply to a transfer from a traditional IRA (non-Roth) to a Ro and 20 percent females. For joint life option factors, mortalit th IRA are satisfied. y rates shall be based on the RP-2000 combined healthy tabl es with white color adjustment with no setback for males an Eligible Rollover Distributionshall include, in additio d with a 1 year setback for females and unisexed based on 9 n to the events set forth in R.S. 11:1635(D)(4), the following. 5 percent males and 5 percent females for retirees and 5 perc a. Effective January 1, 2003, a portion of a distribut ent males and 95 percent females for beneficiaries. ion shall not fail to be an eligible rollover distribution merel b. For disability award lifetime equivalences, mortal y because the portion consists of after-tax employee contribu ity rates shall be based on the RP-2000 disabled lives tables tions that are not includible in gross income. However, such set back 5 years for males and set back 3 years for females u portion may be transferred only to an individual retirement a nisexed based on 80 percent males and 20 percent females. ccount or annuity described in §408(a) or (b) of the Internal Revenue Code, or a Roth individual retirement account or an D. After July 1, 2016, the interest and mortality rate assu nuity described in §408A of the Internal Revenue Code (a mptions shall be as adopted by resolution of the board. The b “Roth IRA”) or to a qualified defined contribution plan descr oard shall consult with its actuary with regard to the proper r ibed in §§401(a) or 403(a) of the Internal Revenue Code that ates to use. agrees to separately account for amounts so transferred, incl uding separately accounting for the portion of such distributi E. For purposes of comparing the benefits of the forms o on that is includible in gross income and the portion of such f distribution with the maximum limitation on benefits, the a distribution that is not so includible. pplicable mortality tables described in IRC §417(e)(3)(B) sh all be used. b. Effective January 1, 2007, eligible rollover distri AUTHORITY NOTE: Promulgated in accordance with the pro butions shall include a distribution to a nonspouse beneficiar visions of R.S. 11:1658-1659 and R.S. 49:950 et seq. y on account of the participant’s death, so long as any rollov HISTORICAL NOTE: Promulgated by the Board of Trustees o er distribution is transferred to an individual retirement acco f the District Attorneys’ Retirement System, LR 41:2313 (Novembe unt or annuity that is treated as an inherited account of the de r 2015), amended LR 43:877 (May 2017). ceased participant, or Roth IRA established on behalf of the §105. Accumulated Contributions, Rollovers nonspouse designated beneficiary for the purpose of receivin g the distribution. Effective January 1, 2007, early rollover d A. Definitions. As provided in R.S. 11:1635(E), the follo istribution shall include after-tax contributions held in a plan wing definitions are provided or revised. qualified under §401(a) of the Internal Revenue Code. Effect 2009 RMDs of a Participant or Beneficiaryamounts t ive January 1, 2007, distributions from the plan that do not c hat the participant or beneficiary would have been required t onsist of designated Roth accounts shall be eligible rollover o receive as a required minimum distribution under IRC §40 distributions with respect to a Roth IRA and may be rolled o 1(a)(9) for the 2009 distribution calendar year. ver to a Roth IRA, subject to the restrictions that apply to a t ransfer from a traditional (non-Roth) IRA to a Roth IRA. Eligible Retirement Planshall include, in addition to t he plans and accounts described in R.S. 11:1635(D)(3), the f c. During 2009, 2009 RMDs shall be treated as eligi ollowing. ble rollover distributions for purposes of making available th e direct rollover of eligible rollover distributions that include a. Effective for distributions on or after January 1, 2 such amount, but not for purposes of withholding federal inc 007, eligible retirement plan shall include the individual retir ome taxes on the amount when it is distributed. ement account or annuity in the name of the deceased partici pant for the benefit of a nonspouse beneficiary, who receives B. Rollover of Returned Contributions. As provided in R. an eligible rollover distribution from the plan on account of t S. 11:1635(E): he death of a participant, provided that the individual retirem 1. distributee, eligible retirement plan and eligible roll ent account or annuity is treated as an inherited IRA and that over distribution shall be defined as provided in Subsection the minimum distribution rules applicable in the event the IR A of this Section; A owner dies before the entire interest is distributed shall ap ply to the transferee IRA and the transferee IRA does not pro 2. an eligible rollover distribution shall be transferred vide the beneficiary with the special rules for surviving spou in a direct rollover to an eligible retirement plan if so directe se beneficiaries. d by the distributee. The board shall provide distributees wit h the opportunity to direct such direct rollover by written not b. If any portion of an eligible rollover distribution i ice at least 30 and not longer than 180 days prior to the distri s attributable to payments or distributions from a designated bution; Roth account, an eligible retirement plan with respect to suc h portion shall include only another designated Roth account 3. this rollover right shall apply to any eligible rollove of the individual from whose account the payments of distrib r distribution, including distributions of accumulated contrib utions were made, or a Roth IRA of such individual. Effectiv utions, DROP accounts and back-DROP accounts.

123 Louisiana Administrative Code October 2017 RETIREMENT

C. Eligible Retirement Plan direct rollover of eligible rollover distributions that include s uch amount, but not for purposes of withholding federal inco 1. Effective for distributions on or after January 1, 200 me taxes on the amount when it is distributed. 7: E. Payment for Age Discrimination Service Credit a. eligible retirement plan shall include the individu al retirement account or annuity in the name of the deceased 1. As provided in R.S. 11:1617(B), payment may be m participant for the benefit of a nonspouse beneficiary, who re ade directly by the member or may be made on the member’ ceives an eligible rollover distribution from the plan on acco s behalf in a single sum payment by: unt of the death of a participant, provided that the individual a. an individual retirement account; or retirement account or annuity is treated as an inherited IRA a nd that the minimum distribution rules applicable in the even b. an individual retirement annuity; or t the IRA owner dies before the entire interest is distributed s c. a plan qualified under IRC §§401(a), 403(a), 403 hall apply to the transferee IRA and the transferee IRA does (b), or 457(g). not provide the beneficiaries with the special rules for surviv ing spouse beneficiaries; 2. Source of Contribution. Amounts contributed under Paragraph 1 of this Subsection shall not consist of amounts f b. a Roth IRA is an eligible retirement plan with res or which additional recordkeeping is required, such as after t pect to distributions from the fund that do not consist of desi ax or Roth accounts. The trustees shall have discretion wheth gnated Roth accounts, so long as the restrictions that apply t er to accept contributions in any particular form. o a transfer from a traditional IRA (non-Roth) to a Roth IRA are satisfied. AUTHORITY NOTE: Promulgated in accordance with the pro visions of R.S. 11:1588(A), R.S. 11:1617(B), and the Administrativ D. Eligible Rollover Distribution e Procedure Act, R.S. 49.950 et seq. 1. If any portion of an eligible rollover distribution is HISTORICAL NOTE: Promulgated by the Board of Trustees o f the District Attorneys’ Retirement System, LR 41:2313 (Novembe attributable to payments or distributions from a designated R r 2015), amended LR 43:877 (May 2017). oth account, an eligible retirement plan with respect to such portion shall include only another designated Roth account o §107. Repayment of Withdrawn Accumulated Contrib f the individual from whose account the payments or distribu utions tions were made, or a Roth IRA of such individual. A. Withdrawn Accumulated Contributions May be Repai 2. Effective January 1, 2003, a portion of a distributio d n shall not fail to be an eligible rollover distribution merely b 1. Repayment Permitted ecause the portion consists of after-tax employee contributio ns that are not includible in gross income. However, such po a. Member contributions that have been refunded to rtion may be transferred only to an individual retirement acc the member upon his termination of employment before qual ount or annuity described in IRC §408(a) or (b), or to a quali ifying for retirement benefits under the DARS may be repaid fied defined contribution plan described in IRC §§401(a) or to DARS by the member upon his reemployment by a partici 403(a) that agrees to separately account for amounts so trans pating employer and his participation in and contributing to ferred, including separately accounting for the portion of suc DARS for a minimum of six months, provided such repayme h distribution that is includible in gross income and the porti nt is made prior to any application by the member for retire on of such distribution that is not so includible. ment. 3. Effective January 1, 2007, eligible rollover distribut 2. Amount of Repayment ions shall include: a. Repayment of a refund shall include the amount r a. a distribution to a nonspouse beneficiary on acco efunded plus interest thereon. The trustees shall determine th unt of the participant’s death, so long as any rollover distribu e interest rate applicable to each period during which the acc tion is transferred to an individual retirement account or ann umulated contributions have been refunded and ending with uity that is treated as an inherited account of the deceased pa the date of repayment. Such interest shall be determined on a rticipant; consistent basis and shall apply to all members. Installments shall not be permitted. If funds used for repayment originate b. after-tax contributions held in a plan qualified un from multiple sources, all funds due must be received by DA der IRC §401(a). RS within 45 days of each other. Service credit shall not be r 4. Effective January 1, 2007, distributions from the pl estored until full payment has been received. an that do not consist of designated Roth accounts shall be el 3. Sources of Payment igible rollover distributions with respect to a Roth IRA and may be rolled over to a Roth IRA, subject to the restrictions t a. The member shall be responsible for certifying a hat apply to a transfer from a traditional (non-Roth) IRA to a nd demonstrating the amount of any refund from a source fo Roth IRA. r which taxes have been paid by the member. Amounts recei ved in a rollover, whether a direct rollover or 60-day rollover 5. During 2009, 2009 RMDs shall be treated as eligibl will be presumed not to have been taxed; however, the truste e rollover distributions for purposes of making available the es or their delegates may offer the member the opportunity t

Louisiana Administrative Code August 2013 124 o demonstrate that part or all of the rollover is of after-tax fu HISTORICAL NOTE: Promulgated by the Board of Trustees o nds, subject to any administrative requirements that the trust f the District Attorneys’ Retirement System, LR 41:2314 (Novembe ees regard as reasonable to demonstrate proof of the after-tax r 2015). status of the funds. DARS will maintain records of after-tax Chapter 5.Limitation on Payment of amounts held for the benefit of the member. Benefits 4. Distribution of Refund Amounts §501. Suspension of Benefits a. Any distribution of amounts repaid by the memb er that includes after-tax payments shall include the allocable A. As provided in R.S. 11:1631(E) and (F), if a member portion of the after-tax payment. Determination of the alloca has commenced to receive distributions under R.S. 11:1632 ble portion of each payment shall be in accordance with fede or 1633, then benefits to such member shall be suspended up ral income tax rules and the policies and procedures of the tr on his reemployment by a contributing employer to the syste ustees. m, and the suspension shall continue so long as he is still em ployed. If such member later terminates employment, he sha B. Service Credited Upon Repayment ll commence to receive minimum distributions again and sha 1. Service Credited ll be entitled to elect the method of receiving such distributio ns, with his required beginning date to be determined based a. All creditable service forfeited upon refund shall on the date of his termination of employment. be restored upon full repayment of the refund plus interest in accordance with Subsection A above. The accrual rate of suc AUTHORITY NOTE: Promulgated in accordance with R.S. 11 h service shall be the applicable rate in place at the time the s 1588(A) and R.S. 49.950 et seq. HISTORICAL NOTE: Promulgated by the Board of Trustees o ervice was initially earned. f the District Attorneys’ Retirement System, LR 41:2315 (Novembe AUTHORITY NOTE: Promulgated in accordance with the pro r 2015). visions of R.S. 11:1588(A) and R.S. 11:1617(B). §503. Definitions HISTORICAL NOTE: Promulgated by the Board of Trustees o f the District Attorneys’ Retirement System, LR 43:877 (May 2017). A. Definitions. For purposes of this Title, the following d Chapter 3.Creditable Service efinitions apply. Annual Benefita benefit that is payable annually in the §301. Benefits for Qualified Military Service form of a straight life annuity. A. Death and Disability. As provided under R.S. 11:1614 Defined Benefit Dollar Limitationeffective for limitati (F), the following shall apply. on years ending after December 31, 2001, $160,000, automa 1. In the case of a death or disability occurring on or a tically adjusted under IRC §415(d), effective January 1 of ea fter January 1, 2007, if a member dies or becomes disabled ch year, as published in the Internal Revenue Bulletin, and p while performing qualified military service (as defined in IR ayable in the form of a straight life annuity: C §414(u)), the member or the member's beneficiary is entitl a. the new limitation shall apply to limitation years ed to any additional benefits (other than benefit accruals rela ending with or within the calendar year of the date of the adj ting to the period of qualified military service) provided und ustment, but a participant’s benefits shall not reflect the adju er the plan as if the participant had resumed and then termina sted limit prior to January 1 of that calendar year; ted employment on account of death. b. the automatic annual adjustment of the defined b a. Moreover, the plan will credit the member's quali enefit dollar limitation under IRC §415(d) shall apply to part fied military service as service for vesting purposes, as thoug icipants who have had a separation from employment. h the member had resumed employment under USERRA im mediately prior to the member's death. Required Beginning Date of a MemberApril 1 of the c alendar year following the year in which the plan member te B. Differential Wage Payments. If the member’s employ rminated employment with the employers that contribute to t er makes differential wage payments during the member’s q he system. Any required beginning date occurring in 2009 sh ualified military service, then the member shall be credited all be extended for one year. with compensation for purposes of the system. AUTHORITY NOTE: Promulgated in accordance with R.S. 11 C. Qualified Military Serviceany service in the unifor 1588(A) and R.S. 49.950 et seq. med services (as defined in chapter 43 of title 38, United Sta HISTORICAL NOTE: Promulgated by the Board of Trustees o tes Code), by any individual if such individual is entitled to r f the District Attorneys’ Retirement System, LR 41:2315 (Novembe eemployment rights under such chapter with respect to such r 2015). service. §505. Benefit Limitations AUTHORITY NOTE: Promulgated in accordance with R.S. 11 A. Maximum Permissible Benefit. As provided under R. 1588(A), R.S. 11:1614(F), and the provisions of the Administrative S. 11:1632, the following provisions shall apply for limitatio Procedure Act, R.S. 49.950 et seq. n years beginning on or after July 1, 2007.

125 Louisiana Administrative Code October 2017 RETIREMENT

1. Annual BenefitMaximum Permissible Benefit. T ii. with regard to U.S. Treasury regulations §1.41 he annual benefit, otherwise payable to a participant under th 5(b)1(b)(1)(iii)(B) and (C). e plan, at any time shall not exceed the maximum permissibl 3. The determination of the annual benefit shall take i e benefit. If the benefit the participant would otherwise accru nto account Social Security supplements described in IRC § e in a limitation year would produce an annual benefit in exc 411(a)(9) and benefits transferred from another defined bene ess of the maximum permissible benefit, then the benefit sha fit plan, other than transfers of distributable benefits pursuan ll be limited (or the rate of accrual reduced) to a benefit that t to U.S. Treasury regulations §1.411(d)-4, Q and A-3(c), but does not exceed the maximum permissible benefit. shall disregard benefits attributable to employee contribution 2. Adjustment if in Two Defined Benefit Plans. If the s or rollover contributions. participant is, or has ever been, a participant in another quali C. Actuarial Adjustment. No actuarial adjustment to the fied defined benefit plan (without regard to whether the plan benefit shall be made for: has been terminated) maintained by the employer or a predec essor employer, the sum of the participant’s annual benefit fr 1. survivor benefits payable to a surviving spouse und om all such plans may not exceed the maximum permissible er a qualified joint and survivor annuity to the extent such be benefit. Where the participant’s employer-provided benefits nefits would not be payable if the participant’s benefit were under all such defined benefit plans (determined as of the sa paid in another form; me age) would exceed the maximum permissible benefit app 2. benefits that are not directly related to retirement be licable at that age, the employer shall limit a participant’s be nefits (such as a qualified disability benefit, preretirement in nefit in accordance with the terms of the plans. cidental death benefits, and postretirement medical benefits); 3. Limits Grandfathered prior to July 1, 2007 or a. The following sentence in Clause i of this Subpar 3. the inclusion in the form of benefit of an automatic agraph applies only if the provisions of such defined benefit benefit increase feature, provided the form of benefit is not s plans that were both adopted and in effect before April 5, 20 ubject to IRC §417(e)(3) and would otherwise satisfy the lim 07 satisfied the applicable requirements of statutory provisio itations of this Part, and the plan provides that the amount pa ns, regulations, and other published guidance relating to IRC yable under the form of benefit in any limitation year shall n §415 in effect as of the end of the last limitation year beginni ot exceed the limits of this Part applicable at the annuity start ng before July 1, 2007, as described in U.S. Treasury regulat ing date, as increased in subsequent years pursuant to IRC § ions §1.415(a)-1(g)(4). 415(d). i. The application of the provisions of this Part sh a. For this purpose, an automatic benefit increase fe all not cause the maximum permissible benefit for any partic ature is included in a form of benefit if the form of benefit pr ipant to be less than the participant’s accrued benefit under a ovides for automatic, periodic increases to the benefits paid i ll the defined benefit plans of the employer or a predecessor n that form. employer as of the end of the last limitation year beginning b D. Actuarial EquivalentStraight Life Annuity efore July 1, 2007 under provisions of the plans that were bo th adopted and in effect before April 5, 2007. 1. Effective for distributions in plan years beginning a fter December 31, 2003, the determination of actuarial equiv B. Annual Benefit Determination alence of forms of benefit other than a straight life annuity s 1. Except as provided below, where a benefit is payabl hall be made in accordance with Subparagraph a of this Para e in a form other than a straight life annuity, the benefit shall graph. be adjusted to an actuarially equivalent straight life annuity t a. The straight life annuity that is actuarially equiva hat begins at the same time as such other form of benefit and lent to the participant’s form of benefit shall be determined u is payable on the first day of each month, before applying th nder this Subparagraph if the form of the participant’s benefi e limitations of this Part. t is either: 2. For a participant who has or will have distributions i. a nondecreasing annuity (other than a straight li commencing at more than one annuity starting date, the annu fe annuity) payable for a period of not less than the life of th al benefit shall be determined as of each such annuity startin e participant (or, in the case of a qualified pre-retirement sur g date (and shall satisfy the limitations of this Part as of each vivor annuity, the life of the surviving spouse); or such date), actuarially adjusting for past and future distributi ons of benefits commencing at the other annuity starting date ii. an annuity that decreases during the life of the s. participant merely because of: a. For this purpose, the determination of whether a (a). the death of the survivor annuitant (but only new annuity starting date has occurred shall be made: if the reduction is not below 50 percent of the benefit payabl e before the death of the survivor annuitant); or i. without regard to U.S. Treasury regulations §1. 401(a)-20, Q and A-10(d); and (b). the cessation or reduction of Social Security supplements or qualified disability payments (as defined in I RC §401(a)(11)).

Louisiana Administrative Code August 2013 126 2. For limitation years beginning before July 1, 2007, will be distributed or begin to be distributed, no later than as the actuarially equivalent straight life annuity is equal to the follows. annual amount of the straight life annuity commencing at the a. Member Survived by Designated Beneficiary. If t same annuity starting date that has the same actuarial present he member dies before the date distributions begin and there value as the participant’s form of benefit computed using wh is a designated beneficiary, the minimum amount that will be ichever of the following produces the greater annual amount: distributed for each distribution calendar year after the year a. the interest rate and mortality table (or other tabul of the member’s death is the quotient obtained by dividing th ar factor) specified in the plan for adjusting benefits in the sa e member’s account balance by the remaining life expectanc me form; and y of the member’s designated beneficiary. b. 5 percent interest rate assumption and the applica b. No Designated Beneficiary. If the member dies b ble mortality table defined in the plan for that annuity startin efore the date distributions begin and there is no designated g date. beneficiary as of September 30 of the year following the yea r of the member’s death, distribution of the member’s interes 3. For limitation years beginning on or after July 1, 20 t in the applicable account(s) will be completed by Decembe 07, the actuarially equivalent straight life annuity is equal to r 31 of the calendar year containing the fifth anniversary of t the greater of: he member’s death. a. the annual amount of the straight life annuity (if a c. Death of Surviving Spouse Before Distributions t ny) payable to the participant under the plan commencing at o Surviving Spouse Are Required to Begin. If the member di the same annuity starting date as the participant’s form of be es before the date distributions begin, the member’s survivin nefit; and g spouse is the member’s sole designated beneficiary, and th b. the annual amount of the straight life annuity co e surviving spouse dies before distributions are required to b mmencing at the same annuity starting date that has the sam egin to the surviving spouse under Paragraph C.6 of this Sect e actuarial present value as the participant’s form of benefit, ion, this Section will apply as if the surviving spouse were th computed using a 5 percent interest rate assumption and the e member. applicable mortality table defined in the plan for that annuity d. For purposes of this Section, any amount paid to starting date. a child of the member will be treated as if it had been paid to AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1 the surviving spouse if the amount becomes payable to the s 588(A) and 11:1632(F). urviving spouse when the child reaches the age of majority. HISTORICAL NOTE: Promulgated by the Board of Trustees of t he District Attorneys’ Retirement System, LR 41:2315 (November e. For the purposes of this Section, distribution of a 2015). member's interest in the applicable account(s) is considered t o begin on the member's required beginning date (or, if Subp Chapter 7.Required Minimum Distrib aragraph c of this Paragraph is applicable, the date distributi utions on is required to begin to the surviving spouse pursuant to S ubparagraph a of this Paragraph). §701. Required Beginning Date C. Applicable Accounts A. Definition 1. This Subsection shall apply with respect to any acc Required Beginning Date of a Participant who is a 5 Pe ount that is part of the system that is considered to be a defin rcent Owner of an Adopting Employerthe first day of April ed contribution account within the system. This Subsection s of the calendar year following the calendar year in which the hall apply to the refund of accumulated contributions as prov participant attains age 70 1/2. The required beginning date fo ided in R.S. 11:1635 (hereinafter referred to as “applicable a r benefit distributions to a participant other than a 5 percent ccount”). owner shall be the first day of April of the calendar year foll owing the calendar year in which the later of the following o 2. The applicable account(s) of a member must be dist ccurs: the participant attains age 70 1/2, or the participant ret ributed or begin to be distributed no later than the member's ires. Once distributions have begun to a 5 percent owner und required beginning date. The first distribution calendar year er this Section, they must continue to be distributed, even if t shall be the calendar year in which the member attains age 7 he participant ceases to be a 5 percent owner in a subsequent 0 1/2 or has a severance from employment with the employe year. r maintaining this system, if later. Distribution shall be made over a period not longer than that provided under this Subsec B. Annuity Distributions tion. 1. Benefits due to a member who is eligible for retire 3. Death of Member before Distributions Begin. If the ment under R.S. 11:1632, 1633, or 1634 shall commence on member dies before distributions begin, the member’s applic or before the required beginning date. able account(s) will be distributed, or begin to be distributed, 2. Death before Date Distributions Begin. If the memb no later than as follows. er dies before distribution of his or her interest begins, distri bution of the member's interest in the applicable account(s)

127 Louisiana Administrative Code October 2017 RETIREMENT

a. If the member’s surviving spouse is the member’ c. Member's Benefitthe account balance of the ap s sole designated beneficiary, then distributions to the survivi plicable account or accounts as of the last valuation date in t ng spouse will begin by December 31 of the calendar year i he calendar year immediately preceding the distribution cale mmediately following the calendar year in which the membe ndar year increased by the amount of any contributions alloc r died, or by December 31 of the calendar year in which the ated to the applicable account balance as of dates in the distri member would have attained age 70 1/2, if later. bution calendar year with respect to the first distribution year, after the valuation date and decreased by distributions made b. If the member’s surviving spouse is not the mem in the distribution calendar year after the valuation date. ber’s sole designated beneficiary, then distributions to the de signated beneficiary will be made or will begin by December i. For purposes of Subparagraph c of this Paragra 31 of the calendar year immediately following the calendar y ph, if any portion of the minimum distribution for the first di ear in which the member died. stribution calendar year is made in the second distribution ca lendar year on or before the required beginning date, the am c. If there is no designated beneficiary as of Septem ount of the minimum distribution made in the second distrib ber 30 of the year following the year of the member’s death, ution calendar year shall be treated as if it had been in the im the member’s applicable account will be distributed by Dece mediately preceding distribution calendar year. mber 31 of the calendar year containing the fifth anniversary of the member’s death. 6. Required Minimum Distributions after Member’s D eath. If the member dies after distribution of his or her applic d. If the member’s surviving spouse is the member’ able account(s) has begun, the remaining portion of such acc s sole designated beneficiary and the surviving spouse dies a ount(s) will continue to be distributed at least as rapidly as u fter the member but before distributions to the surviving spo nder the method of distribution being used prior to the memb use are required to begin, this Subsection (other than Subpar er's death. agraph a of this Paragraph) will apply as if the surviving spo use were the member. For purposes of this Subsection, distri a. Member is Survived by Designated Beneficiary. I butions are considered to begin on the member’s required be f the member dies on or after the date distributions begin and ginning date, or if applicable, on the date distributions are re there is a designated beneficiary, the minimum amount that quired to begin to the surviving spouse. The date distribution will be distributed for each distribution calendar year after th s are considered to begin is the date distributions actually co e year of the member’s death is the quotient obtained by divi mmence. ding the member’s account balance by the longer of the rema ining life expectancy of the member or the remaining life ex 4. Forms of Distribution. Unless the member’s interest pectancy of the member’s designated beneficiary, determine is distributed in a single-sum on or before the required begin d as follows. ning date, as of the first distribution calendar year, distributi ons will be made in accordance with this Subsection. i. The member’s remaining life expectancy is cal culated using the age of the member in the year of death, red 5. Required Minimum Distribution for each Distributi uced by one for each subsequent year. on Calendar Year. If the member's interest in the applicable a ccount(s) is to be distributed in other than a single sum, the f ii. If the member’s surviving spouse is the membe ollowing minimum distribution rules shall apply on or after t r’s sole designated beneficiary, the remaining life expectancy he required beginning date. of the surviving spouse is calculated for each distribution cal endar year after the year of the member’s death using the sur a. During the member’s lifetime, the minimum amo viving spouse’s age as of the spouse’s birthday in that year. F unt that will be distributed for each distribution calendar yea or distribution calendar years after the year of the surviving s r is the lesser of: pouse’s death, the remaining life expectancy of the surviving i. the quotient obtained by dividing the member’s spouse is calculated using the age of the surviving spouse as account balance by the distribution period in the uniform life of the spouse’s birthday in the calendar year of the spouse’s time table set forth in 26 CFR §1.401(a)(9)-9, Q and A-2, usi death, reduced by one for each subsequent calendar year. ng the member’s age as of the member’s birthday in the distr iii. If the member’s surviving spouse is not the me ibution calendar year; or mber’s sole designated beneficiary, the designated beneficiar ii. if the member’s sole designated beneficiary for y’s remaining life expectancy is calculated using the age of t the distribution calendar year is the member’s spouse, the qu he beneficiary in the year following the year of the member’ otient obtained by dividing the member’s account balance by s death, reduced by one for each subsequent year. the number in the joint and last survivor table set forth in 26 b. No Designated Beneficiary. If the member dies o CFR §1.401(a)(9)-9, Q and A-3, using the member’s and spo n or after the date distributions begin and there is no designat use’s attained ages as of the member’s and spouse’s birthday ed beneficiary as of September 30 of the year after the year o s in the distribution calendar year. f the member’s death, the minimum amount that will be distr b. Required minimum distributions will be determin ibuted for each distribution calendar year after the year of th ed under this Section beginning with the first distribution cal e member’s death is the quotient obtained by dividing the me endar year and continuing up to, and including, the distributi mber’s account balance by the member’s remaining life expe on calendar year that includes the member’s date of death.

Louisiana Administrative Code August 2013 128 ctancy calculated using the age of the member in the year of 4. Rollover death, reduced by one for each subsequent year. a. If a distribution is made that includes the minimu D. Deferred Retirement Option Plan (DROP) and Back- m required distribution for a calendar year, then that minimu Deferred Retirement Option Plan (Back-DROP) m required distribution may not be rolled over; however, any amount distributed in excess of the minimum required distri 1. Required Beginning Date bution for any calendar year shall be an eligible rollover dist a. The DROP account and/or Back-DROP account ribution and may be rolled over into an eligible retirement pl of a member shall be distributed, or commence to be distribu an. ted, on or before the member’s required beginning date. AUTHORITY NOTE: Promulgated in accordance with the pro 2. Minimum Required Distribution (MRD) visions of R.S. 11:1588(A), R.S. 11:1635, and the Administrative P rocedure Act, R.S. 49:950 et seq. a. Unless a greater amount is elected by the member HISTORICAL NOTE: Promulgated by the Board of Trustees o for a calendar year, the amount to be distributed as the mini f the District Attorneys’ Retirement System, LR 41:2316 (Novembe mum required distribution shall be determined by annuitizin r 2015), amended LR 43:878 (May 2017). g the DROP account and/or back-DROP account of the mem Chapter 9.Funding of Retirement Syst ber over the period equal to the number of years beginning w ith the first distribution calendar year and continuing for the em period equal to the number of whole years of the member’s l §901. Employer Contributions ife expectancy measured from the first distribution calendar year as determined under the uniform lifetime table in 26 C. A. In accordance with R.S. 11:1658, the Board of Trustee F.R. §1.401(a)(9)-9. The board shall have authority to design s directs that the direct employer contribution rate for Januar ate the interest rate for purposes of calculating the periodic p y 1, 2017 through June 30, 2017 shall be 0 percent. ayments. Notwithstanding the foregoing, all payments shall B. Any excess funds resulting from application of Subse be made from the DROP account or back-DROP account of t ction A of this Section shall be combined with any contributi he member, and no amount shall be paid that is not accrued f on surplus or offset by any contribution shortfall, and the res or the member’s benefit under such account. ulting balance, if greater than zero, shall be accumulated in t 3. Right to Accelerate Payments he funding deposit account pursuant to R.S. 11:1659. a. The member shall have the right to accelerate pay AUTHORITY NOTE: Promulgated in accordance with the pro ments and to receive a distribution of the entire DROP accou visions of R.S. 11:1588(A), R.S. 11:1658-1659, and the Administra nt or back-DROP account in a lump sum. tive Procedure Act, R.S. 49:950 et seq. HISTORICAL NOTE: Promulgated by the Board of Trustees o f the District Attorneys’ Retirement System, LR 43:878 (May 2017).

129 Louisiana Administrative Code October 2017 RETIREMENT

Title 58 RETIREMENT Part XXIII. Survivor Benefit Board

Chapter 1. Law Enforcement Officers c. traveling to or from a public safety emergency or responding to a request for law enforcement assistance regar and Firemen’s Survivor ding the health, safety, or welfare of the public; or Benefit Board d. traveling to or from their residence or their author (Formerly LAC 37:I.Chapter 11) ized work area while using a law enforcement vehicle provid ed by their employing agency; §101. Survivors Benefits (Formerly LAC 37:I.1101.A-B) 2. for firemen, an activity performed in which a firem an suffers death as a result of: A. Purpose: a. an injury arising out of and in the course of the p 1. to establish an effective and efficient mechanism fo erformance of their official duties; r fulfilling the provisions of R.S. 39:1533(A), 40:1665, 40:1 665.3, 40:1665.2(B), and 40:1665.1; b. an injury arising out of an activity, while on or of f duty, in their capacity as a firemen, in the protection of life 2. to govern the submission, evaluation and determina and property; tion of claims submitted pursuant to R.S. 40:1665.3, 40:1665. 2, 40:1665.1, 40:1665, 33:2011, and 33:2581. c. a heart attack or stroke as provided for in R.S. 40: 1665.1; B. Application d. a disabling cancer, following 10 or more years of 1. The rules will apply to all claims arising from R.S. service, as provided for in R.S. 33:2011; or 40:1665, 40:1665.2, and 40:1665.1. e. a disease or infirmity of the heart or lungs, which AUTHORITY NOTE: Promulgated in accordance with R.S. 40 develops during employment in the classified fire service, as 1665, 40:1665.1, 40:1665.2, 40:1665.3, 33:2011, 33:2581, and 39:1 533. provided for in R.S. 33:2581. HISTORICAL NOTE: Promulgated by the Office of the Gover Qualifying Claim—those claims meeting the criteria of cla nor, Division of Administration, Office of Risk Management, LR 1 ims request documentation, and the meaning ascribed to line 6:400 (May 1990), amended LR 31:69 (January 2005), LR 32:1443 of duty. (August 2006), amended by the Department of Justice, Law Enforc ement Officers and Firemen’s Survivor Benefit Review Board, LR Spouse—as defined in R.S. 40:1665.3(C)(1). 43:1417 (July 2017). AUTHORITY NOTE: Promulgated in accordance with R.S. 40 §103. Definitions 1665, 40:1665.1, 40:1665.2, 40:1665.3, 33:2011, 33:2581, and 39:1 (Formerly LAC 37:I.1101.C) 533. Board—the Law Enforcement Officers and Firemen’s Sur HISTORICAL NOTE: Promulgated by the Office of the Gover nor, Division of Administration, Office of Risk Management, LR 1 vivor Benefit Review Board. 6:400 (May 1990), amended LR 31:69 (January 2005), LR 32:1443 Child—as defined in R.S. 40:1665.3(C)(2). (August 2006), amended by the Department of Justice, Law Enforc ement Officers and Firemen’s Survivor Benefit Review Board, LR Fireman—as defined in R.S. 40:1665(B). 43:1417 (July 2017). Law Enforcement Officer—as defined in R.S. 40:1665.2 §105. Board Membership and Domicile (B). (Formerly LAC 37:I.1101.D) Line of Duty—shall include: A. The board’s official domicile will be located in Baton Rouge. All claims hearings, presentations, etc. will be held i 1. for law enforcement, any activity performed in whi n the board’s official domicile. Claimant expenses related to ch a law enforcement officer suffers death as a result of: claim preparation and presentation are not allowable for rei a. an injury arising out of and in the course of the p mbursement. Board members serve on a gratuitous basis. Th erformance of their official duties; e chairman of the board shall be the attorney general, or their designee. b. arising out of any activity while on or off duty, in their official enforcement capacity, involving the protection B. The board will be comprised of those individuals or th of life or property; eir designees as stated in R.S. 40:1665.3

Louisiana Administrative Code August 2013 130 AUTHORITY NOTE: Promulgated in accordance with R.S. 40 C. Additional information required for some firemen: 1665, 40:1665.1, 40:1665.2, 40:1665.3, 33:2011, 33:2581, and 39:1 533. 1. for claims involving disabling cancer under R.S. 33: HISTORICAL NOTE: Promulgated by the Office of the Gover 2011, a certified copy of medical diagnosis of disabling canc nor, Division of Administration, Office of Risk Management, LR 1 er originating in the bladder, brain, colon, liver, pancreas, ski 6:400 (May 1990), amended LR 31:69 (January 2005), LR 32:1443 n, kidney, or gastrointestinal tract, and leukemia, lymphoma, (August 2006), amended by the Department of Justice, Law Enforc and multiple myeloma; ement Officers and Firemen’s Survivor Benefit Review Board, LR 43:1417 (July 2017). 2. for claims involving diseases or infirmity of the hea §107. Claims Requests rt or lungs under R.S. 33:2581, a certified copy of a medical (Formerly LAC 37:I.1101.E) diagnosis of disease of the heart or lung during period of clas sified fire service; A. All claims shall be submitted to the chairman of Law Enforcement Officers and Firemen’s Survivor Benefit Revie 3. for claims involving heart attack or stroke under R. w Board through the Department of Justice, Attorney Genera S. 40:1665.1, notarized affidavit providing that heart attack o l. r stroke occurred while on duty while fireman was engaged i n an activity which was stressful or physical, or participating B. All claim requests must include the following docume in a training exercise that involved stressful or strenuous phy ntation: sical activity, or no later than 24 hours from engaging or part 1. notarized affidavit for decedent’s date of employme icipating in such activities, while on duty. nt, rank, duty assignment, routine work schedule, work respo AUTHORITY NOTE: Promulgated in accordance with R.S. 40 nsibilities, years of classified service if applicable, and brief 1665, 40:1665.1, 40:1665.2, 40:1665.3, 33:2011, 33:2581, and 39:1 statement outlining injuries; 533. HISTORICAL NOTE: Promulgated by the Office of the Gover 2. copy of decedent’s commission as police officer/fir nor, Division of Administration, Office of Risk Management, LR 1 eman; 6:400 (May 1990), amended LR 31:69 (January 2005), LR 32:1443 (August 2006), amended by the Department of Justice, Law Enforc 3. notarized affidavits from any witnesses to incident; ement Officers and Firemen’s Survivor Benefit Review Board, LR 4. certified copy of investigative report, or uncertified 43:1418 (July 2017). copy accompanied by notarized affidavit of reporting investi §109. Procedures for Hearings gative officer, which identifies copy of report as accurate rep (Formerly LAC 37:I.1101.F) roduction of original report; A. Upon receipt of a claim, the chairman will schedule th 5. certified copy of decedent’s death certificate and au e claim for board hearing within 60 days after all required do topsy protocol report; cumentation is received. Each claim shall be assigned a sequ ential number claim code which shall be utilized for official 6. notarized affidavit from decedent’s surviving spous references. e stating their full name, address, date of marriage, and that t hey were not legally separated or divorced at time of death. B. The chairman shall notify the board members, claima Also, a certified copy of marriage license; nt, and appointing authority of the claimant of the claim item s up for consideration no later than 10 days prior to hearing. 7. list of names and birth dates of each minor child bo rn to or adopted by decedent, certified copies of birth certific C. At the hearing date described, the board shall officiall ates; y receive and act upon all claims received. 8. certified copy of letters of tutorship; D. The board may, at its discretion, entertain additional o ral presentations from outside parties regarding the claim. 9. notarized affidavit of tutor or legal representative of surviving child stating child is unmarried and under the age E. The board shall have the following options with regar of 18, or alternately, is unmarried, under the age of 23, and a ds to the claim action: student; 1. approval of the qualifying claim; 10. notarized affidavit of caretaker of surviving child w 2. denial of the claim; hich states the major child is physically and/or mentally han dicapped, totally and permanently disabled, and solely depen 3. deferral pending receipt of additional data; or dent upon decedent for support. Also, copy of the major chil 4. conditional approval of qualifying claim, pending r d’s medical and/or psychological records; and eceipt of any outstanding documentation. 11. if decedent was not survived by a spouse, child or c F. The board shall inform the claimant, in writing, of its hildren, a notarized copy of the department’s form designatin determination. g decedent’s chosen beneficiary. If decedent is not survived by a spouse, child or children, and no beneficiary designatio G. If approved or upon receipt of outstanding documenta n form has been completed, any approved qualifying claim s tion following conditional approval, the board chairman shal hall be paid to the decedent’s estate.

131 Louisiana Administrative Code October 2017 RETIREMENT l certify to the commissioner of administration and request p B. This appeal shall be filed in the Nineteenth Judicial D ayment in accordance with R.S. 39:1533. istrict Court. AUTHORITY NOTE: Promulgated in accordance with R.S. 40 AUTHORITY NOTE: Promulgated in accordance with R.S. 40 1665, 40:1665.1, 40:1665.2, 40:1665.3, 33:2011, 33:2581, and 39:1 1665, 40:1665.1, 40:1665.2, 40:1665.3, 33:2011, 33:2581, and 39:1 533. 533. HISTORICAL NOTE: Promulgated by the Office of the Gover HISTORICAL NOTE: Promulgated by the Office of the Gover nor, Division of Administration, Office of Risk Management, LR 1 nor, Division of Administration, Office of Risk Management, LR 1 6:400 (May 1990), amended LR 31:69 (January 2005), LR 32:1443 6:400 (May 1990), amended LR 31:69 (January 2005), LR 32:1443 (August 2006), amended by the Department of Justice, Law Enforc (August 2006), amended by the Department of Justice, Law Enforc ement Officers and Firemen’s Survivor Benefit Review Board, LR ement Officers and Firemen’s Survivor Benefit Review Board, LR 43:1418 (July 2017). 43:1418 (July 2017). §111. Appeals (Formerly LAC 37:I.1101.G) A. Claimant may appeal within 60 days of being advised of the board’s decision.

Louisiana Administrative Code August 2013 132

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