ENROLLED
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 143
Regular Session, 2014
HOUSE BILL NO. 39
BY REPRESENTATIVE PEARSON
AN ACT1
To enact R.S. 11:1456.1(E), relative to Back-Deferred Retirement Option Plan in the2
Louisiana Assessors' Retirement Fund; to provide relative to lump-sum distributions3
from such plan; to authorize transfers to a third-party provider; to provide relative4
to contracts to manage such funds; to provide relative to the rights, duties, and5
obligations of participants, providers, the fund, and the state; and to provide for6
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. 11:1456.1(E) is hereby enacted to read as follows: 12
ยง1456.1. Back-Deferred Retirement Option Program13
* * *14
E.(1) In lieu of receiving a lump-sum benefit payment as set forth in15
Paragraph (D)(3) of this Section, the member may elect to transfer the lump-sum16
payment into a self-directed account managed by a third-party provider.17
(2) The board may hire a third-party provider to manage the self-directed18
accounts authorized by this Subsection. The third-party provider shall act as an agent19
of the fund for purposes of investing balances in the self-directed accounts of the20
participant as directed by the participant. The participant shall be given such options21
as comply with federal law for self-directed plans.22
(3) Any participant who elects to transfer the lump-sum Back-DROP23
payment into a self-directed account agrees that the benefits payable to the24
participant are not the obligations of the state or the fund and that any returns and25 ENROLLEDHB NO. 39
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
other rights of the plan are the sole liability and responsibility of the participant and1
the designated provider to which contributions have been made. Furthermore, each2
participant, in accordance with this provision, shall expressly waive his rights as set3
forth in Article X, Section 29(E)(5) of the Constitution of Louisiana as it relates to4
his Back-DROP account with the third-party provider. By electing to transfer the5
Back-DROP lump-sum payment into an account with a third-party provider, the6
participant agrees that he and the provider shall be responsible for complying with7
all applicable provisions of the Internal Revenue Code. The participant also agrees8
that if any violation of the Internal Revenue Code occurs as a result of the9
participant's decision to transfer his Back-DROP lump-sum payment into a self-10
directed account, it shall be the sole responsibility and liability of the participant and11
the provider and not of the state or the fund.12
(4) There shall be no liability on the part of and no cause of action of any13
nature shall arise against the state, the fund, or the agents or employees of the state14
or the fund for any action taken by the participant or for choices the participant15
makes in relationship to the self-directed account funds in which he chooses to place16
his account balance.17
Section 2. This Act shall become effective upon signature by the governor or, if not18
signed by the governor, upon expiration of the time for bills to become law without signature19
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If20
vetoed by the governor and subsequently approved by the legislature, this Act shall become21
effective on the day following such approval.22
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: