ENROLLED
Page 1 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 481
Regular Session, 2012
HOUSE BILL NO. 41
BY REPRESENTATIVE PEARSON
AN ACT1
To amend and reenact R.S. 11:1532 and to enact R.S. 11:1518, 1521.2, 1524(C), and2
1533(F), relative to the Clerks' of Court Retirement and Relief Fund; to provide3
relative to federal tax qualification status; to authorize changes to be made using the4
Administrative Procedure Act; and to provide for related matters.5
Notice of intention to introduce this Act has been published6
as provided by Article X, Section 29(C) of the Constitution7
of Louisiana.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 11:1532 is hereby amended and reenacted and R.S. 11:1518, 1521.2,10
1524(C), and 1533(F) are hereby enacted to read as follows: 11
§1518. Reemployment of a member after military service12
A. The qualified military service of a member who has been reemployed in13
accordance with 26 U.S.C. 414(u) shall be treated for vesting and benefit accrual14
purposes as service completed under R.S. 11:1514 if the member remits to the fund15
any employee contributions which would have been required but for the member's16
leave of absence to perform qualified military service.17
B. Effective January 1, 2007, if a member dies while on a leave of absence18
to perform qualified military service as described in 26 U.S.C. 414(u), his19
beneficiary is entitled to any benefits, except benefits that accrued during the period20
of qualified military service, that would have been provided under the plan had the21
member resumed and then terminated employment due to death, in accordance with22
26 U.S.C. 401(a)(37).23
* * *24 ENROLLEDHB NO. 41
Page 2 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1521.2. Maximum compensation1
A. For the purposes of calculating any benefit payable under this plan, any2
compensation in excess of the limits set forth in 26 U.S.C. 401(a)(17) shall be3
disregarded.4
B. Subsection A of this Section shall not apply to members who enrolled in5
the plan on or before January 1, 1996.6
* * *7
§1524. Optional benefit payments 8
* * *9
C.(1) A retiree who has been married for one year or more shall elect Option10
2, 3, 4, or 5 of Subsection A of this Section. If the retiree chooses Option 2 or 3, he11
shall nominate his surviving spouse as the joint annuitant with the retiree. If the12
retiree chooses Option 4, he shall select a benefit ensuring that, upon his death, no13
less than fifty percent of the benefit shall be payable to his surviving spouse during14
the spouse's lifetime.15
(2) If a retiree's spouse has executed a qualified waiver of the joint and16
survivor annuity requirements in accordance with 26 U.S.C. 417, Paragraph (1) of17
this Subsection is not applicable to the retiree.18
* * *19
§1532. Direct rollover of eligible rollover distributions20
A. Notwithstanding any provision of this pension plan to the contrary that21
would otherwise limit a distributee's election under this Section, a distributee may22
elect, at the time and in the manner prescribed by the board of trustees, to have any23
portion of an eligible rollover distribution paid directly to an eligible retirement plan24
specified by the distributee in a direct rollover. For this purpose, an eligible rollover25
distribution is any distribution made on or after December 1, 1994, of all or any26
portion of the balance to the credit of the distributee, except that an eligible rollover27
distribution does not include: any equal periodic payments (not less frequently than28
annually) made for the life (or life expectancy) of the distributee or the joint lives (or29
joint life expectancies) of the distributee and the distributee's designated beneficiary30 ENROLLEDHB NO. 41
Page 3 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
or for a specified period of ten years or more; any distribution to the extent such1
distribution is required under Section 401(a)(9) of the Internal Revenue Code,2
hereinafter referred to in this Section as "the Code"; and the portion of any3
distribution that is not includable in gross income. An eligible retirement plan is an4
individual retirement account described in Section 408(b) 408(a) of the Code, an5
individual retirement annuity described in Section 408(a) 408(b) of the Code, or a6
qualified trust described in Section 401(a) of the Code, that accepts the distributee's7
eligible rollover distribution. In the case of an eligible rollover distribution to a8
surviving spouse, however, an eligible retirement plan is only an individual9
retirement account or individual retirement annuity. A distributee includes a10
member or former member. In addition, the member's or former member's surviving11
spouse and the member's or former member's spouse or former spouse who is an12
alternate payee under a qualified domestic relations order, as defined in Section13
414(p) of the Code, are distributees with regard to the interest of the spouse or14
former spouse. A direct rollover is payment by the plan to the eligible retirement15
plan specified by the distributee.16
B.(1) The fund shall, within a reasonable period of time before making an17
eligible rollover distribution as provided for in Subsection A of this Section, provide18
a written explanation of the following to the recipient of such distribution:19
(a) The provisions under which the recipient may have the distribution20
directly transferred to an eligible retirement plan and that the automatic distribution21
by direct transfer applies to certain distributions in accordance with 26 U.S.C.22
401(a)(31)(B).23
(b) The provision which requires the withholding of tax on the distribution24
if it is not directly transferred to an eligible retirement plan.25
(c) The provisions under which the distribution will not be subject to tax if26
transferred to an eligible retirement plan within sixty days after the date on which the27
recipient received the distribution.28
(d) The provisions under which distributions from the eligible retirement29
plan receiving the distribution may be subject to restrictions and tax consequences30 ENROLLEDHB NO. 41
Page 4 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
that are different from those applicable to distributions from the plan making such1
distribution.2
(2) For the purposes of this Subsection, the term "reasonable period of time"3
shall have the meaning assigned to it by 26 U.S.C. 401(a)(31) and the regulations4
thereunder.5
* * *6
§1533. Internal Revenue Code qualification requirements7
* * *8
F. Amendments to the fund required for the purpose of maintaining9
continued compliance with the Internal Revenue Code and the regulations thereunder10
that do not require legislative action shall be promulgated as rules in accordance with11
the Administrative Procedure Act.12
* * *13
Section 2. This Act shall become effective upon signature by the governor or, if not14
signed by the governor, upon expiration of the time for bills to become law without signature15
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If16
vetoed by the governor and subsequently approved by the legislature, this Act shall become17
effective on the day following such approval.18
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: