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Regular Session, 2010 ENROLLED
SENATE BILL NO. 191
BY SENATOR B. GAUTREAUX
AN ACT1
To amend and reenact R.S. 11:701(introductory paragraph), 728(A)(4), 783(A)(3)(a),2
792(C)(1) and (D), 1002(introductory paragraph), 1153(C)(1) and (D), 1326 and3
1337(B), to enact R.S. 11:701(5)(e), 784.1(F) and (G), 1002(6)(c), 1140, 1141.2(C)4
and (D), 1336(F) and (G), and 1338(F), and to repeal R.S. 11:701(12)(d), 792(B)(3),5
(C)(2), and (F), 1153(B)(3), (C)(2), and (F), and 1337(A)(3), relative to the Teachers'6
Retirement System of Louisiana, Louisiana School Employees' Retirement System,7
and State Police Pension and Retirement System; to provide relative to compliance8
with applicable federal tax qualification requirements; to provide for an effective9
date; and to provide for related matters.10
Notice of intention to introduce this Act has been published.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 11:701(introductory paragraph), 728(A)(4), 783(A)(3)(a), 792(C)(1)13
and (D), 1002(introductory paragraph), 1153(C)(1) and (D), 1326 and 1337(B) are hereby14
amended and reenacted and R.S. 11:701(5)(e), 784.1(F) and (G), 1002(6)(c), 1140,15
1141.2(C) and (D), 1336(F) and (G), and 1338(F) are hereby enacted to read as follows:16
§701. Definitions17
As used in this Chapter, the following words and phrases have the meanings18
ascribed to them in this Section unless a different meaning is plainly required by the19
context:20
* * *21
(5)(a) * * *22
(e) Notwithstanding any other provision of law to the contrary, "average23
compensation" shall not include any amount in excess of the limitation provided24
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in R.S. 11:785.1.1
* * *2
§728. Prior service credit3
A. Any member of the Teachers' Retirement System of Louisiana may4
receive credit for service as a teacher, as the term "teacher" is defined in R.S. 11:701,5
and/or for service in any agency in Louisiana, provided he meets the requirements6
set forth below, and provided the application for such purchase is received by the7
Teachers' Retirement System of Louisiana prior to the date of retirement or the8
beginning date of the Deferred Retirement Option Plan participation and the9
purchase is finalized before the retirement or Deferred Retirement Option Plan10
participation date:11
(1) * * *12
(4) Payments to be made under the provisions of this Section shall be made13
in a lump sum. Effective January 1, 2002, payment for service credit under this14
Section shall be allowed by a trustee-to-trustee transfer of funds from a Code Section15
403(b) annuity or a Code Section 457 plan to the system; provided that no purchase16
of service credit under this Section shall be allowed by a trustee-to-trustee transfer17
of funds from a Code Section 403(b) annuity or a Code Section 457 plan to the18
pension after December 31, 2010.19
* * *20
§783. Selection of option for method of payment after death of member21
A.(1) * * *22
(3) Initial Lump-Sum Benefit. (a) If a member has not participated in the23
Deferred Retirement Option Plan provided by the provisions of this Chapter and has24
thirty years of creditable service, or is age fifty-five and has twenty-five years of25
creditable service, or is age sixty and has ten years of creditable service, and if the26
maximum benefit, Option 2, 2A, 3, 3A, 4, or 4A above is chosen, then the member27
may further elect to receive a reduced retirement allowance plus an initial benefit28
shall be paid to the member. The accredited* creditable service referenced in this29
Paragraph shall not include unused accumulated sick leave and unused accumulated30 SB NO. 191 ENROLLED
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annual leave.1
* * *2
§784.1. Maximum benefits3
* * *4
F. The board of trustees shall make no actuarial adjustment under this5
Section by reason of the member's retirement after normal retirement age.6
G. The board of trustees shall adopt rules for the administration of the7
limits provided in this Section and the limitations under Section 415 of the8
Internal Revenue Code, including adjustments in the annual dollar limitation9
to reflect cost-of-living adjustments authorized by the Internal Revenue Service.10
* * *11
§792. Direct rollover12
* * *13
C.(1) An "eligible retirement plan" shall mean any of the following:14
(a) An individual retirement account described in Section 408(a) of the15
United States Internal Revenue Code.16
(b) An individual retirement annuity described in Section 408(b) of the17
United States Internal Revenue Code.18
(c) An annuity plan described in Section 403(a) of the United States Internal19
Revenue Code.20
(d) A qualified trust as described in Section 401(a) of the United States21
Internal Revenue Code, provided that such trust accepts the member's eligible22
rollover distribution.23
(e) An eligible deferred compensation plan described in Section 457(b)24
of the Internal Revenue Code that is maintained by an eligible governmental25
employer, provided the plan contains provisions to account separately for26
amounts transferred into such plan.27
(f) An annuity contract described in Section 403(b) of the Internal28
Revenue Code.29
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D. A "distributee" as provided for in this Section shall include:1
(1) A member or former member.2
(2) The member's or former member's surviving spouse, or the member's3
spouse or former member's former spouse with whom a benefit or a return of4
employee contributions is to be divided pursuant to R.S. 11:291(B), are distributees5
with reference to an interest of the member or former spouse.6
(3) The member's or former member's non-spouse beneficiary, provided7
the specified distribution is to an eligible retirement plan as defined in8
Subparagraphs (C)(1)(a) and (C)(1)(b) of this Section.9
* * *10
§1002. Definitions11
As used in this Chapter, the following words and phrases shall have the12
meanings ascribed to them in this Section unless a different meaning is plainly13
required by the context:14
* * *15
(6)(a) * * *16
(c) Notwithstanding any other provision of law to the contrary, "average17
compensation" shall not include any amount in excess of the limitation provided18
in R.S. 11:1141.3.19
* * *20
§1140. Purchase of service credit; trustee-to-trustee transfer21
Payment for service credit under this Part shall be allowed by a trustee-22
to-trustee transfer of funds from an annuity under Section 403(b) or a plan23
under Section 457 of the Internal Revenue Code to the system.24
* * *25
§1141.2. Computation of retirement benefits26
* * *27
C. The board of trustees shall make no actuarial adjustment under this28
Section by reason of the member's retirement after normal retirement age.29
D. The board of trustees shall adopt rules for the administration of the30 SB NO. 191 ENROLLED
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limits provided in this Section and the limitations under Section 415 of the1
Internal Revenue Code including adjustments in the annual dollar limitation to2
reflect cost-of-living adjustments authorized by the Internal Revenue Service.3
* * *4
§1153. Direct rollover5
* * *6
C.(1) An "eligible retirement plan" shall mean any of the following:7
(a) An individual retirement account described in Section 408(a) of the8
United States Internal Revenue Code.9
(b) An individual retirement annuity described in Section 408(b) of the10
United States Internal Revenue Code.11
(c) An annuity plan described in Section 403(a) of the United States Internal12
Revenue Code.13
(d) A qualified trust as described in Section 401(a) of the United States14
Internal Revenue Code, provided that such trust accepts the member's eligible15
rollover distribution.16
(e) An eligible deferred compensation plan described in Section 457(b)17
of the Internal Revenue Code that is maintained by an eligible governmental18
employer, provided the plan contains provisions to account separately for19
amounts transferred into such plan.20
(f) An annuity contract described in Section 403(b) of the Internal21
Revenue Code.22
* * *23
D. A "distributee" as provided for in this Section shall include:24
(1) A member or former member.25
(2) The member's or former member's surviving spouse, or the member's26
spouse or former member's former spouse with whom a benefit or a return of27
employee contributions is to be divided pursuant to R.S. 11:291(B), are distributees28
with reference to an interest of the member or former spouse.29
(3) The member's or former member's non-spouse beneficiary, provided30 SB NO. 191 ENROLLED
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the specified distribution is to an eligible retirement plan as defined in1
Subparagraphs (C)(1)(a) and (C)(1)(b) of this Section.2
* * *3
§1326. Credit for previous service upon reentry into service4
A. Any employee who has left the service and has withdrawn his5
accumulated contributions from the state police retirement fund may have his prior6
service credit reinstated provided he repays to the fund the full amount previously7
withdrawn from the fund, plus interest at the board approved actuarial valuation rate,8
compounded annually from date of withdrawal to date of repayment.9
B. Payment for service credit under this Section shall be allowed by a10
trustee-to-trustee transfer of funds from an annuity under Section 403(b) or a11
plan under Section 457 of the Internal Revenue Code to the system.12
* * *13
§1336. Maximum benefits14
* * *15
F. The board of trustees shall make no actuarial adjustment under this16
Section by reason of the member's retirement after normal retirement age.17
G. The board of trustees shall adopt rules for the administration of the18
limits provided in this Section and the limitations under Section 415 of the19
Internal Revenue Code, including adjustments in the annual dollar limitation20
to reflect cost-of-living adjustments authorized by the Internal Revenue Service.21
§1337. Direct rollover of eligible rollover distributions22
* * *23
B. An eligible retirement plan is an individual retirement account annuity24
described in Section 408(b) of the Internal Revenue Code, a Section 403(b) annuity25
of the Internal Revenue Code, a Section 457 plan of the Internal Revenue Code, an26
individual retirement annuity account described in Section 408(a) of the Internal27
Revenue Code, an annuity plan described in Section 403(a) of the Internal28
Revenue Code, or a qualified trust described in Section 401(a) of the Internal29
Revenue Code, that accepts the distributee's eligible rollover distribution. The30 SB NO. 191 ENROLLED
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member's or former member's surviving spouse and the member's or former1
member's spouse or former spouse who is an alternate payee under a qualified2
domestic relations order, as defined in Section 414(p) of the Internal Revenue Code,3
are distributees with regard to the interest of the spouse or former spouse. The4
member's or former member's non-spouse beneficiary is a distributee provided5
the specified distribution is to an individual retirement account or individual6
retirement annuity. A direct rollover is a payment by this system's pension plan to7
the eligible retirement plan specified by the distributee.8
§1338. Internal Revenue Code qualification requirements9
* * *10
F.(1) Unless otherwise provided in this Chapter, the accrued benefit of11
each "Section 401(a)(17) employee" as that term is defined in Paragraph (2) of12
this Subsection, shall be the greater of the following:13
(a) The employee's accrued benefit determined with respect to the14
benefit formula applicable for the plan year beginning on or after January 1,15
1996, as applied to the employee's total years of service taken into account for16
purposes of benefit accruals.17
(b) The sum of:18
(i) The employee's accrued benefit as of the last day of the last plan year19
beginning before January 1, 1996, frozen in accordance with the provisions of20
26 CFR 1.401(a)-4 through 1.401(a)-13; and21
(ii) The employee's accrued benefit determined under the benefit22
formula applicable for the plan year beginning on or after January 1, 1996, as23
applied to the employee's years of service credited to the employee for plan24
years beginning on or after January 1, 1996, for purposes of benefit accruals.25
(2) A "Section 401(a)(17) employee" shall mean any employee whose26
current accrued benefit, as of a date on or after the first day of the first plan27
year beginning on or after January 1, 1996, is based on compensation for a year28
beginning prior to the first day of the first plan year beginning on or after29
January 1, 1996, that exceeded one hundred fifty thousand dollars.30 SB NO. 191 ENROLLED
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(3) If an employee is not a "Section 401(a)(17) employee", his accrued1
benefit in this system shall not be based upon compensation in excess of the2
annual limit of Section 401(a)(17) of the Internal Revenue Code as amended and3
revised.4
Section 2. R.S. 11:701(12)(d), 792(B)(3), (C)(2), and (F), 1153 (B)(3), (C)(2), and5
(F), and 1337(A)(3) are hereby repealed.6
Section 3. This Act shall become effective on July 1, 2010; if vetoed by the governor7
and subsequently approved by the legislature, this Act shall become effective on July 1,8
2010, or on the day following such approval by the legislature, whichever is later.9
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: