ENROLLED
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ACT No. 523
Regular Session, 2012
HOUSE BILL NO. 1202 (Substitute for House Bill No. 58 by Representative Pearson)
BY REPRESENTATIVE PEARSON
AN ACT1
To amend and reenact R.S. 11:1581(5), 1612, 1614, 1617, 1631(F)(1), and 1635 and to enact2
R.S. 11:1588, 1631(G), 1632(C), (D), (E), and (F), 1633(C), 1636(C) and (D),3
1638(C), 1645, and 1646, relative to the District Attorneys' Retirement System of4
Louisiana; to provide relative to federal tax qualification status of the system; to5
authorize changes to be made using the Administrative Procedure Act; and to6
provide for related matters.7
Notice of intention to introduce this Act has been published8
as provided by Article X, Section 29(C) of the Constitution9
of Louisiana.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 11:1581(5), 1612, 1614, 1617, 1631(F)(1), and 1635 are hereby12
amended and reenacted and R.S. 11:1588, 1631(G), 1632(C), (D), (E), and (F), 1633(C),13
1636(C) and (D), 1638(C), 1645, and 1646 are hereby enacted to read as follows:14
§1581. Definitions15
The following words and phrases, as used in this Chapter, unless a different16
meaning is plainly required by the context, shall have the following meanings:17
* * *18
(5)(a) "Average final compensation" shall mean the average monthly19
compensation earned by an employee during any period of thirty-six successive20
months of service as an employee during which the said earned compensation was21
the highest. The average monthly compensation shall include compensation not paid22
by the state, but only to the extent that non-state compensation for the thirteenth23
through the twenty-fourth month does not exceed one hundred ten percent of the24
total of non-state compensation for the first through twelfth month, and that non-state25 ENROLLEDHB NO. 1202
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compensation for the final twelve months does not exceed one hundred ten percent1
of the total of non-state compensation for the thirteenth through the twenty-fourth2
month. Fees earned in connection with official duties shall not be included in3
average final compensation. In the event of interruption of employment, the4
thirty-six-month period shall be computed by joining employment periods5
immediately preceding and succeeding the interruption.6
(b) Compensation of a member in excess of two hundred thousand dollars,7
as adjusted for increases in the cost-of-living under 26 U.S.C. 401(a)(17)(B) for8
years beginning after January 1, 2002, shall not be taken into account. This9
limitation may be adjusted by rules promulgated by the board of trustees in10
accordance with the provisions of the Administrative Procedure Act, R.S. 49:950 et11
seq. For purposes of compliance with the requirements for qualification under 2612
U.S.C. 401(a), the board of trustees may promulgate rules further defining13
"compensation" and "section 415 compensation" in accordance with the14
Administrative Procedure Act.15
* * *16
§1588. Amendment of provisions of retirement system 17
A. The provisions of the retirement system may be amended by action of the18
legislature in the same manner as any other statute may be amended by the19
legislature. In addition, action by the board of trustees with respect to the payment20
of cost-of living adjustments, with respect to the payment of employee contributions,21
with respect to actuarial assumptions, and with respect to other actions authorized22
in this Chapter shall be considered amendments to the provisions of the retirement23
system.24
B. No amendment to the retirement system shall operate to deprive any25
member of a benefit to which he is entitled. In the case of any merger or26
consolidation with or transfer of assets or liabilities to any other retirement system,27
each member in the retirement system shall, if the retirement system is then28
terminated, receive a benefit immediately after the merger, consolidation, or transfer29
which is equal to or greater than the benefit he would have been entitled to receive30 ENROLLEDHB NO. 1202
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immediately before the merger, consolidation, or transfer if the retirement system1
had then terminated.2
C. Upon the termination or partial termination of the retirement system, the3
board of trustees shall reevaluate and redetermine the benefit of each member, and4
the entire benefit of each member may be paid or commence to be paid and5
distributed to such member, or if he dies before such distribution, to the beneficiary6
or beneficiaries designated by the member. However, if the member is still7
employed and the system is partially terminated, payment shall not be made until8
retirement or termination and shall be held until payment is otherwise due under the9
provisions of the retirement system. A member's right to his benefit is not10
conditioned upon a sufficiency of assets in the event of termination.11
D. Upon termination or partial termination of the retirement system, a12
member's interest in the system shall be nonforfeitable to the extent funded.13
E. The retirement system is intended to qualify under 26 U.S.C. 401(a).14
Accordingly, any amendments to the provisions of the retirement system shall be15
designed to maintain this qualification.16
* * *17
§1612. Employees of Louisiana District Attorneys' Association; prior service credit18
A. Any employee of the Louisiana District Attorneys' Association shall be19
eligible to receive prior service credit for all service rendered as such an employee20
prior to the date as of which such employees become eligible to be included in the21
membership of this system. In order to obtain such credit, any such employee, prior22
to the date of application for retirement, shall make application to the board of23
trustees for such credit and shall furnish a detailed statement of all service for which24
credit is claimed in such form as the board may require. In addition, each such25
employee shall pay into the system an amount equal to the employee and employer26
contributions which would have been made had the employee been a member during27
the period for which credit is claimed, plus five percent compound interest per28
annum thereon from date of service until paid. 29 ENROLLEDHB NO. 1202
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B. The system shall accept as the member's payment of amounts payable by1
the member under this Section any assets held in an individual retirement account2
or annuity or a plan qualified under 26 U.S.C. 401(a) or under 26 U.S.C. 403(a), a3
governmental deferred compensation arrangement subject to 26 U.S.C. 457(g), or a4
tax sheltered annuity or other arrangement under 26 U.S.C. 403(b).5
* * *6
§1614. Service on which retirement allowances are based 7
A. Creditable service at retirement on which the retirement allowance of a8
member shall be based shall consist of the membership service rendered by him9
since he last became a member, and, also, if he has a prior service certificate which10
is in full force and effect, the amount of service certified on his prior service11
certificate.12
B. If a member takes a leave of absence governed by the Uniformed Services13
Employment and Reemployment Rights Act (USERRA), such member shall be14
credited with service as provided under R.S. 11:153, provided that the member15
makes employee contributions attributable to such service.16
C. The system shall accept as the member's payment of amounts payable by17
the member under this Section the direct transfer of any assets held for the benefit18
of the member in an individual retirement account or annuity, including a Roth19
account, or in a plan qualified under 26 U.S.C. 401(a) or 403(a), or in a20
governmental deferred compensation arrangement subject to 26 U.S.C. 457(g), or in21
a tax sheltered annuity or other arrangement under 26 U.S.C. 403(b).22
D. If a member dies or becomes disabled on or after January 1, 2007, while23
performing qualified military service as defined in 26 U.S.C. 414(u), the member's24
beneficiary is entitled to any additional benefits, other than benefit accruals relating25
to the period of qualified military service, provided under the system as if the26
member had resumed and then terminated employment on account of death or27
disability. Also, the system will credit the member's qualified military service as28
service for vesting purposes as though the member had resumed employment under29
USERRA immediately prior to the member's death or disability.30 ENROLLEDHB NO. 1202
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E. If a member is receiving differential wage payments while performing1
qualified military service as defined in 26 U.S.C. 414(u), the member shall be treated2
as an employee of the employer making the payment and the differential wage3
payment will be treated as compensation pursuant to 26 U.S.C. 414(u)(12)(A).4
F. The board of trustees shall adopt procedures which shall be part of the5
governing procedures of the system that shall implement the requirements of6
USERRA and the Heroes Earnings Assistance and Relief Tax Act of 2008.7
§1617. Service credit resulting from age discrimination8
A. Any person who retired from this system and was reemployed in a9
capacity as a district attorney or assistant district attorney but was denied10
membership in this system based on provisions of law regarding age requirements11
shall have the option of establishing credit for the full-time service in that capacity12
by paying into the system the employer and employee amount plus interest that13
would have been withheld and paid into the system for such service based on the14
member's gross salary for the period of such reemployment.15
B. The system shall accept as the member's payment of amounts payable by16
the member under this Section any assets held in an individual retirement account17
or annuity or a system qualified under 26 U.S.C. 401(a) or 26 U.S.C. 403(a), a18
governmental deferred compensation arrangement subject to 26 U.S.C. 457(g) or a19
tax sheltered annuity or other arrangement under 26 U.S.C. 403(b).20
§1631. Retirement benefits; application; eligibility requirements21
* * *22
F.(1) Except as provided in Paragraph (2) of this Subsection, if any member23
who has retired from this system is reemployed as an employee by any district24
attorney in the state, his retirement benefit shall be suspended during said25
employment, and he shall not be paid any benefits for the period covered by such26
employment. He shall, upon such reemployment, again become an active27
contributing member of the system, with the option of establishing service credit for28
any period of full-time employment as district attorney or assistant district attorney29
since returning to such employment following retirement by payment into the system30 ENROLLEDHB NO. 1202
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the employer and employee amount plus interest that would have been withheld and1
paid into the system for that period based upon his total salary for such period. He2
shall accrue a supplemental retirement benefit based on his service rendered after3
reemployment. If the member continues employment after retirement for a period4
of less than thirty-six sixty months, his supplemental monthly retirement benefit5
shall equal the benefit accrued under R.S. 11:1632 or 1633, whichever is applicable,6
based on the lesser of his average final compensation at his original retirement date7
or his average compensation during the period of his subsequent reemployment. If8
the member continues in employment after retirement for a period of thirty-six sixty9
months or more, his supplemental monthly retirement benefit shall equal the benefit10
accrued under R.S. 11:1632 or 1633, whichever is applicable, based on his average11
final compensation during his period of reemployment. Upon retirement subsequent12
to reemployment, his benefit shall be equal to the benefits he was receiving13
immediately prior to reemployment plus the supplemental benefit earned during his14
reemployment.15
* * *16
G. Forfeitures resulting from a termination of employment or a withdrawal17
of a member's own contributions may not be used to increase benefits to remaining18
members.19
§1632. Retirement eligibility; benefits at three percent20
* * *21
C.(1) The annual benefit otherwise payable to a member under the system22
at any time shall not exceed the maximum permissible benefit. If the benefit the23
member would otherwise accrue in a limitation year would produce an annual benefit24
in excess of the maximum permissible benefit, then the benefit shall be limited or the25
rate of accrual reduced to a benefit that does not exceed the maximum permissible26
benefit.27
(2) The retirement benefit of any member that is not attributable to employee28
contributions, when expressed as an annual benefit, may not exceed two hundred29
thousand dollars per year, as adjusted for increases in the cost of living pursuant to30 ENROLLEDHB NO. 1202
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26 U.S.C. 415(d). For purposes of determining whether a member's benefit exceeds1
this limitation, if the normal form of benefit is other than a single life annuity, such2
form shall be adjusted actuarially to the equivalent of a single life annuity. This3
single life annuity shall not exceed the maximum dollar limitation outlined in this4
Paragraph. No adjustment is required for qualified joint and survivor annuity5
benefits, preretirement disability benefits, or preretirement death benefits.6
(3)(a) If benefit distribution begins before the member has reached age7
sixty-two, the actual retirement benefit shall not exceed the adjusted dollar8
limitation. The adjusted dollar limitation shall be the equivalent of two hundred9
thousand dollars beginning at age sixty-two.10
(b) If the annuity starting date for the member's benefit is after he has11
reached age sixty-five, the defined benefit dollar limitation for the member's annuity12
starting date is the annual amount of a benefit payable in the form of a straight life13
annuity commencing at the member's annuity starting date that is the actuarial14
equivalent of the defined benefit dollar limitation adjusted for years of participation15
less than ten pursuant to Paragraph (4) of this Subsection.16
(c) The interest rate and mortality table used for adjusting the maximum17
limitations above shall be:18
(i) For benefits commencing before the member has reached age sixty-two19
and for forms of benefit other than straight life annuity, the member's benefit shall20
be the lesser of the benefit computed using an interest rate of five percent and the21
applicable mortality table and the benefit computed using the defined benefit dollar22
limit at age sixty-two, multiplied by the ratio of the annual amount of the23
immediately commencing straight life annuity to the annual amount of the straight24
life annuity commencing at age sixty-two, with both amounts determined without the25
limitations of this Section.26
(ii) For benefits commencing after the member has reached age sixty-five,27
the member's benefit shall be the lesser of the benefit computed using an interest rate28
of five percent and the applicable mortality table and the benefit computed using the29
defined benefit dollar limit at age sixty-five, multiplied by the ratio of the annual30 ENROLLEDHB NO. 1202
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amount of the immediately commencing straight life annuity to the annual amount1
of the straight life annuity commencing at age sixty-five, with both amounts2
determined without the limitations of this Section.3
(iii) Notwithstanding the other requirements of this Subsection, no4
adjustment shall be made to the defined benefit dollar limitation to reflect the5
probability of a member's death between the annuity starting date and age sixty-two,6
or between age sixty-five and the annuity starting date, as applicable, if benefits are7
not forfeited upon the death of the member prior to the annuity starting date.8
(4) If retirement benefits are payable under this system to a member who has9
less than ten years of participation in the system, the dollar limitation referred to in10
Paragraph (2) of this Subsection shall be multiplied by a fraction, not in excess of11
one, the numerator of which is the member's number of years of participation in the12
system and the denominator of which is ten.13
(5) The two hundred thousand dollar limitation provided in this Subsection14
shall be adjusted annually to the maximum dollar limits allowable as determined by15
the commissioner of the Internal Revenue Service under 26 U.S.C. 415(d).16
(6) If a member is also a member in another defined benefit pension plan17
maintained by the state or one of its political subdivisions, his benefit, considered in18
the aggregate after taking into account the benefits provided by all such retirement19
plans, shall not exceed the limits provided in this Subsection.20
(7) That portion of the benefit that is attributable to member contributions21
shall be determined in accordance with Treasury Regulations §1.415(b)-1(b)(2)(iii).22
(8) Notwithstanding the provisions of this Subsection, the benefits payable23
with respect to a participant under any defined benefit plan shall be deemed not to24
exceed the limitations of Subsection E of this Section if both of the following apply:25
(a) The retirement benefits payable with respect to such participant under26
such plan and under all other defined benefit plans of the employer do not exceed ten27
thousand dollars for the plan year, or for any prior plan year.28
(b) The employer has not at any time maintained a defined contribution plan29
in which the participant participated.30 ENROLLEDHB NO. 1202
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D.(1) For purposes of this Section and R.S. 11:1633 and 1634, average1
compensation shall include any amounts properly considered as regular rate of pay2
of the member, as defined in R.S. 11:231, and unreduced by amounts excluded from3
income for federal income tax purposes by reason of 26 U.S.C. 125, 132(f),4
402(e)(3), 402(h)(1)(B), 403(b), 414(h), or 457 or any other provision of federal law5
of similar effect.6
(2) For years beginning on or after January 1, 2002, the annual compensation7
limitation shall not exceed two hundred thousand dollars, as adjusted for8
cost-of-living increases under 26 U.S.C. 401(a)(17)(B). If compensation for an9
earlier period is taken into account in determining an employee's benefits accruing10
in the current plan year, the compensation for the earlier period shall be subject to11
the compensation limit for the current year.12
E.(1) The provisions of this Section shall apply if any member is covered or13
has ever been covered by another plan maintained by the employer, including a14
qualified plan, a welfare benefit fund as defined in 26 U.S.C. 419(e), or an individual15
medical account as defined in 26 U.S.C. 415(l)(2) that provides an annual addition16
as described in Paragraph (4) of this Subsection.17
(2) If a member is or has ever been covered under more than one defined18
benefit plan maintained by the employer, the sum of the member's annual benefits19
from all such plans shall not exceed the maximum permissible benefit set forth in20
Subsection C of this Section.21
(3) If the employer maintains or at any time maintained one or more22
qualified defined contribution plans covering any member in this system, a welfare23
benefit fund as defined in 26 U.S.C. 419(e), or an individual medical account as24
defined in 26 U.S.C. 415(l)(2), the member's annual additions for any year shall not25
exceed the maximum permissible amount, which is forty thousand dollars adjusted26
for increases in the cost of living pursuant to 26 U.S.C. 415(d).27
(4) "Annual additions" of a member for the year shall mean the sum of the28
following amounts credited to a member's account for the year:29
(a) Employer contributions.30 ENROLLEDHB NO. 1202
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(b) Employee contributions.1
(c) Forfeitures.2
(d) Amounts allocated to an individual medical account as defined in 263
U.S.C. 415(l)(2) that is a part of a pension or annuity plan maintained by the4
employer are treated as annual additions to a defined contribution plan.5
Additionally, amounts derived from contributions paid or accrued in taxable years6
ending after December 31, 1985, which are attributable to postretirement medical7
benefits allocated to the separated account of a key employee as defined in 26 U.S.C.8
419A(d)(3) or under a welfare benefit fund as defined in 26 U.S.C. 419(e)9
maintained by the employer are treated as annual additions to a defined contribution10
plan.11
(e) The employee contribution shall be deemed to be a defined contribution12
plan. If a member has made employee contributions pursuant to the provisions of13
this retirement system, the amount of such contributions shall be treated as an annual14
addition to a qualified defined contribution plan for purposes of this Section.15
(5) The amount of annual additions that may be credited to the member's16
account for any limitation year shall not exceed the maximum permissible amount.17
Contributions and benefits under any other plan of the employer, to the extent that18
an adjustment is required to satisfy the requirements of this Section in the aggregate,19
shall be limited or reduced to the extent necessary to satisfy such requirements20
without reducing accrued benefits; however, only after such other plans have been21
modified shall the benefits and contributions under this plan be reduced. As soon as22
it is administratively feasible after the end of the limitation year, the maximum23
permissible amount for the limitation year shall be determined on the basis of the24
member's actual compensation for the limitation year. If there is an excess amount,25
the excess shall be disposed of as follows:26
(a) Any nondeductible voluntary employee contribution to the extent it27
would reduce the excess amount shall be returned to the member.28 ENROLLEDHB NO. 1202
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(b) If after the application of Subparagraph (a) of this Paragraph an excess1
amount still exists, then any nondeductible mandatory contribution to the extent it2
would reduce the excess amount shall be returned to the member.3
(c) If after the application of Subparagraph (b) of this Paragraph an excess4
amount still exists and the member is covered by the plan at the end of the limitation5
year, the excess amount in the member's account shall be used to reduce employer6
contributions, including any allocation of forfeitures, for such member in the next7
limitation year if necessary.8
(d) If after the application of Subparagraph (c) of this Paragraph an excess9
amount still exists and the member is not covered by the plan at the end of the10
limitation year, the excess amount shall be held unallocated in a suspense account.11
The suspense account shall be applied to reduce the future employer contributions12
for all remaining members in the next limitation year and each succeeding limitation13
year if necessary.14
(e) If a suspense account is in existence at any time during a limitation year15
pursuant to the provisions of this Section, it shall not participate in the allocation of16
the trust's investment gains and losses. If a suspense account is in existence at any17
time during a particular limitation year, all amounts in the suspense account shall be18
allocated and reallocated to members' accounts before any employer or any19
employee contributions may be made to the plan for that limitation year. Excess20
amounts shall not be distributed to members or former members.21
(6) "Excess amounts" of a member for a limitation year shall mean the22
excess of the member's annual additions for the limitation year over the maximum23
permissible amount.24
(7) The "limitation year" shall be the calendar year or the twelve consecutive25
month period determined by the board of trustees.26
(8)(a) The "maximum permissible amount" for a member for a limitation27
year shall be the maximum annual addition that may be contributed or allocated to28
a member's account under the plan for any limitation year and shall not exceed the29
lesser of:30 ENROLLEDHB NO. 1202
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(i) Forty thousand dollars, as adjusted after 2001 for changes in the cost of1
living in accordance with 26 U.S.C. 415(d).2
(ii) One hundred percent of the member's compensation for the limitation3
year.4
(b) The compensation limitation provided for in Item (a)(ii) of this Paragraph5
shall not apply to any contribution for medical benefits within the meaning of 266
U.S.C. 401(h) or 419A(f)(2) that is otherwise treated as an annual addition pursuant7
to 26 U.S.C. 415(l) or 419A(d)(2).8
F. The board of trustees may adopt provisions of the system that will carry9
out the requirements of Subsections C, D, and E of this Section, and the board of10
trustees may adopt provisions as required for the system to maintain its qualified11
status under 26 U.S.C. 401(a).12
§1633. Retirement eligibility; benefits at three and one-half percent13
* * *14
C. The limitations of R.S. 11:1632(C) and (E) shall apply to this Section.15
* * *16
§1635. Return of accumulated contributions 17
A. Should a member cease to be an employee except by death or retirement18
under the provisions of this Chapter, he shall be paid such part of the amount of the19
accumulated contributions standing to the credit of his individual account in the20
annuity savings fund as he shall demand. Should a member die before retirement the21
amount of his accumulated contributions standing to the credit of his individual22
account shall be paid to his estate or to such person as he shall have nominated by23
written designation, duly executed and filed with the board of trustees, unless24
benefits are payable under R.S. 11:1636.25
B. Notwithstanding any other provision of law to the contrary that would26
otherwise limit a member's election under this Section, a distributee may elect, at the27
time and in the manner prescribed by the plan administrator, to have any portion of28
an eligible rollover distribution paid directly to an eligible retirement plan specified29
by the distributee in a direct rollover.30 ENROLLEDHB NO. 1202
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C. If a distribution is one to which 26 U.S.C. 401(a)(11) and 417 do not1
apply, the distribution may commence fewer than thirty days after the notice required2
under 26 CFR 1.411(a)-11(c) is given, if both of the following apply:3
(1) The plan administrator clearly informs the member that he has a right to4
a period of at least thirty days after receiving the notice to consider the decision of5
whether or not to elect a distribution and, if applicable, a particular distribution6
option.7
(2) The participant, after receiving the notice, affirmatively elects a8
distribution.9
D. As used in this Section, the following terms shall mean the following:10
(1) "Direct rollover" means a payment by the plan to the eligible retirement11
plan specified by the distributee.12
(2) "Distributee" means a member or former member. In addition, the13
member's or former member's surviving spouse, or the member's spouse or former14
member's spouse with whom a benefit or return of employee contributions is to be15
divided pursuant to R.S. 11:291(B) are distributees with reference to an interest of16
the member or former spouse.17
(3) "Eligible retirement plan" means an individual retirement account18
described in 26 U.S.C. 408(a), an individual retirement annuity described in 2619
U.S.C. 408(b), an annuity plan described in 26 U.S.C. 403(a), or a qualified trust20
described in 26 U.S.C. 401(a), that accepts the distributee's eligible rollover21
distribution. However, in the case of an eligible rollover distribution to the surviving22
spouse, an eligible retirement plan is an individual retirement account or individual23
retirement annuity. "Eligible retirement plan" shall also mean an annuity contract24
described in 26 U.S.C. 403(b) and an eligible plan under 26 U.S.C. 457(b) that is25
maintained by the state or any political subdivision or instrumentality thereof26
agreeing to account separately for amounts transferred into such plan from this27
system. A distribution to a surviving spouse or to a spouse or former spouse who is28
the alternate payee under a qualified domestic relations order shall not make the29
retirement plan ineligible.30 ENROLLEDHB NO. 1202
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(4) "Eligible rollover distribution" means any distribution of all or any1
portion of the balance to the credit of the distribution, except that an eligible rollover2
distribution does not include any distribution that is one of a series of substantially3
equal periodic payments, not less frequently than annually, made for the life or life4
expectancy of the distributee or the joint lives or joint life expectancies of the5
distributee and the distributee's designated beneficiary, or for a specified period of6
ten years or more; any distribution to the extent such distribution is required under7
26 U.S.C. 401(a)(9); and the portion of any distribution that is not includable in gross8
income, determined without regard to the exclusion for net unrealized appreciation9
with respect to employer securities. A portion of a distribution shall not fail to be an10
eligible rollover distribution merely because the portion consists of after-tax11
employee contributions which are not includable in gross income; however, such12
portion may be paid only to an individual retirement account or annuity described13
in 26 U.S.C. 408(a) or (b), or to a qualified defined contribution plan described in 2614
U.S.C. 401(a) or 403(a) that agrees to account separately for amounts so transferred,15
including accounting separately for the portion of such distribution which is16
includable in gross income and the portion of such distribution which is not17
includable. The system shall accept member rollover contributions, direct rollovers18
of distributions made after December 31, 2011, or both, from the following types of19
plans: individual retirement accounts or annuities or plans qualified under 26 U.S.C.20
401(a) or 403(a), governmental deferred compensation arrangements defined in 2621
U.S.C. 457(b), or tax sheltered annuities or other arrangements under 26 U.S.C.22
403(b), beginning on the effective date specified; but only for the purposes of23
repaying prior distributions or purchasing service credits permitted under 26 U.S.C.24
415(k)(3) and 415(n).25
E. The board of trustees may adopt provisions of the system that carry out26
the requirements of Subsections B, C, and D of this Section, and the board of trustees27
may adopt provisions as required to maintain the qualified status of the system under28
26 U.S.C. 401(a).29 ENROLLEDHB NO. 1202
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§1636. Survivors' benefits 1
* * *2
C.(1) If a survivor benefit is payable to a specified person or persons or if a3
benefit is payable at death under an option elected pursuant to R.S. 11:1637, the4
member shall be considered to have designated such person as a designated5
beneficiary hereunder. If there is more than one such person, then the oldest such6
person shall be considered to have been so designated, or, if none, the oldest person7
entitled to receive a survivor benefit shall be considered to have been so designated.8
The designation of a designated beneficiary hereunder shall not prevent payment to9
multiple beneficiaries but shall only establish the permitted period of payments.10
(2) Distributions from the retirement system shall be made in accordance11
with the requirements set forth in 26 U.S.C. 401(a)(9), including the minimum12
distribution incidental benefit rules applicable thereunder.13
(3) A member's benefits shall be made or shall commence to be paid on or14
before the required beginning date.15
(4) The required beginning date shall be April first of the calendar year16
following the later of the calendar year in which the member attains seventy and17
one-half years of age, or the calendar year in which the employee retires.18
D. The board of trustees may adopt provisions of the system that will carry19
out the requirements of Subsection C of this Section, and the board of trustees may20
adopt provisions as required to maintain the qualified status of the system under 2621
U.S.C. 401(a).22
* * *23
§1638. Cost-of-living increase of benefits24
* * *25
C. No increase in benefits pursuant to Subsection A of this Section shall26
apply if the resulting benefit would exceed the limitations of R.S. 11:1632(C).27
* * *28 ENROLLEDHB NO. 1202
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are additions.
§1645. Excess benefit arrangement1
A. A separate, nonqualified, unfunded excess benefit arrangement is hereby2
created outside the trust fund of the retirement system. This excess benefit3
arrangement shall be administered as a governmental excess benefit arrangement4
under 26 U.S.C. 415(m). The purpose of the excess benefit arrangement is to pay5
to retirees of the retirement system benefits otherwise payable by the retirement6
system that exceed the limitations on benefits imposed by 26 U.S.C. 415(b)(1)(A).7
B. The board of trustees shall be responsible for the administration of the8
arrangement provided for in this Section. Except as otherwise provided by this9
Section, the board has the same rights, duties, and responsibilities concerning the10
excess benefit arrangement as it has to the trust fund and may adopt rules and11
regulations necessary to administer this arrangement in accordance with the12
Administrative Procedure Act and in compliance with 26 U.S.C. 415(m).13
C. Benefits under this Section are exempt from execution to the same extent14
as provided by R.S. 11:1583, subject to the exceptions in R.S. 11:291 and 292, and15
the benefits are completely unassignable. Contributions to this arrangement are not16
held in trust and may not be commingled with other funds of the retirement system.17
D. A retiree is entitled to a monthly benefit under this Section in an amount18
equal to the amount by which the benefit otherwise payable by the retirement system19
has been reduced by the limitation on benefits imposed by 26 U.S.C. 415(b)(1)(A).20
The benefit payable by this arrangement is payable at the time and in the form that21
the benefit payable under the trust fund is paid.22
E. The benefit payable under this Section shall be paid from contributions23
that otherwise would be made to the trust fund under this Chapter. In lieu of deposit24
in the trust account, an amount determined by the retirement system to be necessary25
to pay benefits under this Section shall be paid monthly to the credit of a separately26
dedicated account maintained only for the excess benefit arrangement. The account27
may include amounts needed to pay reasonable and necessary expenses of28
administering this arrangement. The monthly amounts to be paid to the credit of the29
account shall be transferred to the account prior to the date of a monthly30 ENROLLEDHB NO. 1202
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are additions.
disbursement under this Section. No assets of the system shall be used to provide1
such benefits.2
F. The board may amend, terminate, or reestablish the arrangement at any3
time. Such amendment or termination may be retroactive to the extent that the board4
deems such action necessary to maintain the tax qualified status of the system or the5
status of this arrangement as an excess benefit arrangement or to avoid jeopardizing6
the funded status of the system. In addition, the arrangement may be amended or7
terminated to eliminate all benefits with respect to any member or other person who8
has not become eligible to participate in an excess benefit plan arrangement as of the9
date of such amendment or termination.10
§1646. Reversion of funds prohibited11
A. Plan assets shall not be used for, or diverted to, any person or purpose12
other than for the exclusive benefit of the members and their beneficiaries, except13
that contributions made by the employer may be returned to the employer if the14
contribution was made due to a mistake of fact and the contribution is returned15
within one year of the mistaken payment of the contribution.16
B. The amount of any contribution returned shall not exceed the difference17
between the amount actually contributed and the amount which would have been18
contributed had there been no mistake of fact and shall not include the earnings19
attributable to such contribution. The amount of the contribution returned shall be20
reduced by any losses attributable to the contribution, and no member shall have his21
benefit reduced by the return of the contribution to less than such benefit would have22
been had the contribution not been returned.23 ENROLLEDHB NO. 1202
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are additions.
C. Notwithstanding the provisions of Subsections A and B of this Section,1
if the retirement system is terminated and all obligations under the retirement system2
are fully funded and provided for, any excess funds held by the system shall be3
returned to the employer.4
Section 2. This Act shall become effective on January 1, 2013.5
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: