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Regular Session, 2014
SENATE BILL NO. 20
BY SENATOR GUILLORY
TEACHERS RETIREMENT. Provides for compliance with federal tax qualification
standards. (7/1/14)
AN ACT1
To amend and reenact R.S. 11:701(10), (11), (12), (24), and (33)(a)(i), (ii)(aa), and (xiii) and2
(b)(i), 702(A) and (B), 723(A)(1), 781(B), 784(A), (C)(2), and (F), 784.1(A), (B),3
(C), and (D), 785.1(A) and (C), 792(A), (B), (C), and (D), and 826, to enact R.S.4
11:701(14.1), (22.1), and (33)(a)(xiv) and 781(C), and to repeal R.S. 11:723(B),5
relative to the Teachers' Retirement System of Louisiana; to provide with respect to6
the tax qualification of the system; to make changes to the plan's provisions in7
conformity with federal requirements; to provide for an effective date; and to provide8
for related matters.9
Notice of intention to introduce this Act has been published.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 11:701(10), (11), (12), (24), and (33)(a)(i), (ii)(aa), and (xiii) and12
(b)(i), 702(A) and (B), 723(A)(1), 781(B), 784(A), (C)(2), and (F), 784.1(A), (B), (C), and13
(D), 785.1(A) and (C), 792(A), (B), (C), and (D), and 826 are hereby amended and reenacted14
and R.S. 11:701(14.1), (22.1), and (33)(a)(xiv) and 781(C) are hereby enacted to read as15
follows:16
§701. Definitions17 SB NO. 20
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As used in this Chapter, the following words and phrases have the meanings1
ascribed to them in this Section unless a different meaning is plainly required by the2
context:3
* * *4
(10) "Earnable compensation" means the compensation earned by a member5
during the full normal working time as a teacher. Earnable compensation shall6
include any differential wage payment as defined by 26 U.S.C. 3401(h)(2) that is7
made by an employer to any individual performing qualified military service.8
Earnable compensation shall not include per diem, post allowances, payment in kind,9
hazardous duty pay, or any other allowance for expense authorized and incurred as10
an incident to employment, nor payments in lieu of unused sick or annual leave, nor11
retroactive salary increases unless such an increase was granted by legislative Act12
or by a city-parish city or parish systemwide salary increase, nor payment for13
discontinuation of contractual services, unless the payment is made on a monthly14
basis. If a member is granted an official leave and he makes contributions for the15
period of leave, earnable compensation shall not include compensation paid for other16
employment which would not have been possible without the leave. The board of17
trustees shall determine whether or not any other payments are to be classified as18
earnable compensation.19
(11) "Employer" means the State state of Louisiana, the any city, parish, or20
other local school board, the city school board, the State Board of Elementary and21
Secondary Education, the board of supervisors of the Louisiana State University any22
board created by Article VIII of the Constitution of Louisiana, or any other23
agency of and within the State or a political subdivision by which a teacher is paid.24
(12) "Eligible rollover distribution" means the distribution of all or any25
portion of the balance to the credit of a member from a qualified plan. However, an26
eligible rollover distribution shall not include any of the following distributions:27
(a) One that is a series of substantially equal periodic payments, made not28
less frequently than annually, for the life, or life expectancy of the member or the29 SB NO. 20
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joint lives, or joint life expectancies of the member and the member's designated1
beneficiary.2
(b) One that is for a specified period of ten years or more.3
(c) One that is required by the provisions of Section 401(a)(9) of the United4
States Internal Revenue Code a distribution as defined in R.S. 11:792(B).5
* * *6
(14.1) "Internal Revenue Code" means the United States Internal7
Revenue Code of 1986, as amended.8
* * *9
(22.1) "Plan Year" means the fiscal year.10
* * *11
(24) "Public School" means any day school conducted within the state under12
the authority and supervision of a city, parish, or city other local school board and13
any educational institution supported by and under the control of the state.14
* * *15
(33)(a) "Teacher", except as provided in Subparagraph (b) of this Paragraph,16
shall mean any of the following:17
(i) Any employee of a city, or parish, or other local school board, any parish,18
or city, or other local superintendent, or any assistant superintendent of public19
schools.20
(ii)(aa) Any president, vice president, dean, teacher, guidance counselor, or21
unclassified employee at any state college or university or any vocational-technical22
school or institution or special school under the control of the State Board of23
Elementary and Secondary Education, or any educational institution supported by24
and under the control of the state or any city, parish, or other local school board.25
* * *26
(xiii) Any person who has retained membership in the system pursuant27
to R.S. 11:723.28
(xiv) In all cases of doubt, the board of trustees shall determine whether any29 SB NO. 20
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person is a teacher within the scope of the definition set forth in this Paragraph.1
(b) "Teacher" shall not include any of the following:2
(i) Any employee of a city, or parish, or other local school board who is3
employed as a school bus driver, school janitor, school custodian, or a school4
maintenance employee, school bus aide, monitor , or attendant, or anyone who5
actually works on a school bus helping with the transportation of school children.6
* * *7
§702. Name and establishment of retirement system8
A. A retirement system is established with all the powers and privileges9
pertaining to corporations, under the management of the board of trustees for the10
purpose of providing retirement allowances and other benefits under the provisions11
of this Chapter for teachers of the state of Louisiana. The retirement system so12
created shall be established as of the first day of August nineteen hundred and13
thirty-six. The retirement system is established as a qualified defined benefit14
plan under Title 11 of the Louisiana Revised Statutes of 1950, known as the15
"Louisiana Public Retirement Law", as amended from time to time, pursuant16
to Sections 401(a) and 414(d) of the Internal Revenue Code, other applicable17
provisions of the Internal Revenue Code, applicable Treasury regulations, and18
other guidance.19
B. This system shall be known as the "Teachers' Retirement System of20
Louisiana", and by such name or its nominee name, which is hereby established as21
"TRSLA" "TRSL", all of its business shall be transacted, all of its funds invested,22
and all of its cash and securities and other property held, except as provided in23
Subsection C hereof.24
* * *25
§723. Members employed in other state employment; exception26
A.(1) Notwithstanding any enrollment error occurring prior to January 1,27
1992, and except as provided in Subsection C of this Section, any person who is28
a member of the Teachers' Retirement System of Louisiana, who has creditable29 SB NO. 20
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membership service of at least five years in this system and who becomes employed1
in other state or public employment where he is no longer eligible for membership2
in this system but is eligible for membership in another state or statewide retirement3
system, shall have the right to remain a member of this system in lieu of membership4
in the other statewide retirement system by filing a notice, in writing, with the board5
of trustees within sixty days after the effective date of employment. Such election6
shall be irrevocable.7
* * *8
§781. Refund of contributions9
* * *10
B. Any member whose employment is terminated as an employee a teacher11
as defined in R.S. 11:701(23) (33), and due to such termination applies to withdraw12
the accumulated contributions standing to his account, shall not be entitled to receive13
a refund of said funds if he has been employed again by an employer as an employee14
a teacher defined in R.S. 11:701(23) (33) prior to the processing of his refund15
request by the retirement system. Such a member shall be considered as being an16
active member of the retirement system and shall not be entitled to withdraw his17
accumulated contributions.18
C. In conformity with Section 401(a)(8) of the Internal Revenue Code,19
any forfeitures of benefits by members or former members of the plan shall not20
be used to pay benefit increases. However, such forfeitures may be used to21
reduce employer contributions.22
* * *23
§784. Payment of benefits24
A. The retirement system shall pay all benefits in accordance with a25
good faith interpretation of the requirements of Section 401(a)(9) of the Internal26
Revenue Code as applicable to a governmental plan within the meaning of27
Section 414(d) of the Internal Revenue Code. The payment of benefits to or on28
behalf of a member shall commence not later than April first following the calendar29 SB NO. 20
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year in which the member retires, or attains age seventy and one-half years,1
whichever is later.2
* * *3
C. * * *4
(2) Paragraph (1) shall not apply to any portion of a member's benefit which5
is payable to or for the benefit of a designated beneficiary or beneficiaries, over the6
life of or over the life expectancy of such beneficiary, so long as such distributions7
begin not later than one year after the date December thirty-first of the calendar8
year immediately following the calendar year of the member's death, or, in the9
case of the member's surviving spouse, the date December thirty-first of the10
calendar year in which the member would have attained the age of seventy and11
one-half years. If the designated beneficiary is the member's surviving spouse and12
if the surviving spouse dies before the distribution of benefits commences, then13
Paragraph (1) shall be applied as if the surviving spouse were the member. If the14
designated beneficiary is a child of the member, for purposes of satisfying the15
requirement of Paragraph (1), any amount paid to such child shall be treated as if16
paid to the member's surviving spouse if such amount would become payable to such17
surviving spouse (if alive) upon the child's reaching age eighteen or, if later, upon18
the child's completing a designated event. For purposes of the preceding sentence,19
a designated event shall be the later of the date the child is no longer disabled or the20
date the child ceases to be a full-time student (or attains age twenty-three, if earlier).21
* * *22
F. Payment in accordance with the options of R.S. 11:762 or of this Subpart23
A of Part IV, Chapter 2 of Subtitle II, shall be deemed not to violate Subsections B24
and C of this Section Notwithstanding any other provision of this Section or the25
provisions of the Treasury Regulations, any benefit option may continue so long26
as the option satisfies Section 401(a)(9) of the Internal Revenue Code based on27
a reasonable and good faith interpretation of that section.28
* * *29 SB NO. 20
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§784.1. Maximum benefits1
A.(1) Notwithstanding any other provision of this system to the contrary, no2
member shall receive a benefit in any year in excess of the sum of the maximum3
employer-financed benefit and the member-financed benefit the member4
contributions paid to and retirement benefits paid from the plan shall be limited5
to such extent as may be necessary to conform to the requirements of Section6
415 of the Internal Revenue Code for a qualified pension plan.7
(a) The maximum employer-financed benefit shall equal the sum of ninety8
thousand dollars, except that it may exceed that sum if the excess is caused by9
adjustments made pursuant to this Section.10
(b) The maximum employer-financed benefit for the year 1999 shall equal11
one hundred thirty thousand dollars. The member-financed benefit is the annual12
benefit that can be provided by annuitizing the member's after-tax accumulated13
contributions.14
(2) Any benefit reduction required by this Section shall, to the extent15
possible, reduce the monthly pension to which the member would otherwise have16
been entitled and shall not affect the member's Deferred Retirement Option Plan17
account.18
(2) Basic 415(b) limitation. (a) Before January 1, 1995, a member may19
not receive an annual benefit that exceeds the limits specified in Section 415(b)20
of the Internal Revenue Code, subject to the applicable adjustments in that21
Section. On and after January 1, 1995, a member may not receive an annual22
benefit that exceeds the dollar amount specified in Section 415(b)(1)(A) of the23
Internal Revenue Code, subject to the applicable adjustments in Section 415(b)24
of the Internal Revenue Code and subject to any additional limits that may be25
specified in the retirement system. In no event shall a member's annual benefit26
payable under the plan in any limitation year be greater than the limit27
applicable at the annuity starting date, as increased in subsequent years28
pursuant to Section 415(d) of the Internal Revenue Code and the regulations29 SB NO. 20
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thereunder.1
(b) For purposes of Section 415(b) of the Internal Revenue Code,2
"annual benefit" means a benefit payable annually in the form of a straight life3
annuity with no ancillary benefits without regard to the benefit attributable to4
after-tax employee contributions, except pursuant to Section 415(n) of the5
Internal Revenue Code, and to rollover contributions, as defined in Section6
415(b)(2)(A) of the Internal Revenue Code. The "benefit attributable" shall be7
determined in accordance with Treasury regulations.8
B. Adjustments in 415(b) limitation. (1)(a) If the annual benefit begins9
before the member attains age sixty-two, the ninety thousand dollar limit described10
in Subparagraph A(1)(a) of prescribed by this Section, as adjusted, shall be reduced11
in a manner prescribed by the United States Secretary of the accordance with12
Treasury regulations pursuant to the provisions of Section 415(b) of the Internal13
Revenue Code, so that such limit, as so reduced, equals an annual straight life14
benefit when such retirement income benefit begins which is equivalent to a one15
hundred sixty thousand dollar annual benefit, as adjusted, beginning at age16
sixty-two. The reduction provided for in this Paragraph shall not be applicable:17
(a) In the event the member's benefit is based on fifteen years of military18
service; or19
(b) To pre-retirement disability benefits or pre-retirement death20
benefits.21
(b) The adjustment authorized by Subparagraph (a) of this Paragraph may22
not reduce the member's annual benefit below seventy-five thousand dollars, if the23
member's benefit begins at or after age fifty-five, or the actuarial equivalent of24
seventy-five thousand dollars beginning at age fifty-five if benefits begin before age25
fifty-five.26
(2)(a) If the annual benefit begins after the member attains age sixty-five, the27
ninety thousand dollar limit set forth in Subparagraph A(1)(a) of this Section, as28
adjusted, shall be increased so that it is the actuarial equivalent of the ninety29 SB NO. 20
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thousand dollar limit at age sixty-five. The ninety thousand dollar limit on annual1
benefits, but not the seventy- five thousand dollar limit set forth in Subparagraph2
B(1)(b) of this Section, shall be adjusted annually as provided by Section 415(d) of3
the United States Internal Revenue Code and the regulations prescribed by the4
United States Secretary of the Treasury to reflect cost-of-living adjustments.5
(b) (2) Effect of cost-of-living adjustments. (a) The annual adjusted limit,6
set forth in Subparagraph (a) of this Paragraph A(2) of this Section, is effective as7
of January first of each calendar year and is applicable to benefits commencing8
during that calendar year. As a result of a cost-of-living increase to the limit under9
Section 415(d) of the Internal Revenue Code, a benefit that had been limited by10
the provisions of this Section in a previous year may be increased with respect to11
future payments to the lesser of the new limit or the amount of benefit that would12
have been payable from this system without regard to the provisions of this Section.13
(b) Effective on and after January 1, 2009, for purposes of applying the14
limits under Section 415(b) of the Internal Revenue Code (the "Limit") to a15
member with no lump sum benefit, the following shall apply:16
(i) A member's applicable Limit shall be applied to the member's annual17
benefit in the member's first limitation year without regard to any cost-of-living18
adjustments granted under the plan;19
(ii) To the extent that the member's annual benefit equals or exceeds the20
Limit, the member shall no longer be eligible for cost-of-living adjustments until21
such time as the benefit plus the accumulated increases are less than the Limit;22
and23
(iii) Thereafter, in any subsequent limitation year, a member's annual24
benefit, including any cost-of-living adjustments granted under the plan, shall25
be tested under the then-applicable benefit Limit including any adjustment to26
the Section 415(b)(1)(A) of the Internal Revenue Code dollar limit under Section27
415(d) of the Internal Revenue Code, and the regulations thereunder.28
(c) Effective on and after January 1, 2009, with respect to a member29 SB NO. 20
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who receives a portion of the member's annual benefit in a lump sum, a1
member's applicable Limit will be applied taking into consideration cost-of-2
living adjustments as required by Section 415(b) of the Internal Revenue Code3
and applicable Treasury regulations.4
(3) Annual benefits may not be paid in an amount greater than the accrued5
benefit under the plan. The maximum benefit limit, set forth in Paragraph A(1) of6
this Section, shall apply to a single-life annuity. If the benefit is payable in a form7
other than a single-life annuity, the maximum limit shall apply to the pension that is8
the actuarial equivalent of such single-life annuity, using an applicable interest rate9
and mortality table as prescribed by the United States Internal Revenue Service;10
however, the limit shall not be reduced for any benefit received as a disability11
retirement allowance or any payments received by the beneficiaries, survivors, or12
estate of a member as a result of the death of the member.13
C. An annual benefit may be paid to any member in excess of the limit14
otherwise allowed in Paragraph A(1) of this Section if the annual benefit derived15
from the employer contributions under this and all other qualified plans of the16
employer subject to the limitations of Section 415(b) of the United States Internal17
Revenue Code does not, in the aggregate, exceed ten thousand dollars for the plan18
year or for any prior year, and the member has not at any time participated in a19
defined contribution plan maintained by the employer. For purposes of this20
Subsection, a member's own contributions to the system are not considered a21
separate defined contribution plan maintained by the employer. (1) Ten Thousand22
Dollar Limit. The retirement benefit payable with respect to a member shall be23
deemed not to exceed the 415 limit if the benefits payable, with respect to such24
member under this plan and under all other qualified defined benefit pension25
plans to which the member's employer contributes, do not exceed ten thousand26
dollars for the applicable limitation year and for any prior limitation year and27
the employer has not at any time maintained a qualified defined contribution28
plan in which the member participated.29 SB NO. 20
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(2) Less than Ten Years of Participation or Service Adjustment for1
415(b) Limitations. The maximum retirement benefits payable to any member2
who has completed less than ten years of service shall be the amount determined3
under Paragraph A(2) of this Section, as adjusted under Subsection B of this4
Section, multiplied by a fraction, the numerator of which is the number of the5
member's years of participation and the denominator of which is ten. The limit6
under Paragraph C(1) of this Section, concerning the ten thousand dollar limit,7
shall be similarly reduced for any member who has accrued less than ten years8
of service, except the fraction shall be determined with respect to years of9
service instead of years of participation. The reduction provided by this10
Paragraph shall not reduce the maximum benefit below ten percent of the limit11
determined without regard to this Paragraph. The reduction provided for in12
this Paragraph cannot be applicable to pre-retirement disability benefits or13
pre-retirement death benefits.14
D.(1) If a member is or has been a participant in one or more defined15
contribution plans maintained by the employer, the sum of the member's16
contributions paid to this system and any other qualified defined benefit plans of the17
employer and the annual additions under such defined contribution plan or plans may18
not exceed the lesser of twenty-five percent of the member's earned compensation19
or thirty thousand dollars, as adjusted by the United States Secretary of the Treasury20
the limit under Section 415(c) of the Internal Revenue Code.21
(2) The sum of the "defined benefit plan fraction" and the "defined22
contribution plan fraction", as those terms are defined in Section 415 of the United23
States Internal Revenue Code, for any plan year in which Section 415 of the United24
States Internal Revenue Code is in effect, may not exceed one, 1.0, for any calendar25
year in which the limits of Section 415(d) of the United States Internal Revenue26
Code are in effect and enforced by the United States Internal Revenue Service. If the27
sum of the defined benefit plan fraction and the defined contribution plan fraction28
exceeds one, 1.0, in any such year for any member, or if the benefits under this plan29 SB NO. 20
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and one or more other defined benefit plans of the employer would otherwise exceed1
the maximum employer-financed benefit, and the administrator of the other plan or2
plans does not reduce the contributions or benefits under such other plan, the3
employer-financed benefit payable by this system shall be reduced to the extent4
necessary to ensure that the limitations provided in Section 415 of the United States5
Internal Revenue Code are met. The 415(b) limit with respect to any member who6
at any time has been a member in any other defined benefit plan as defined in7
Section 414(j) of the Internal Revenue Code maintained by the member's8
employer shall apply as if the total benefits payable under all such defined9
benefit plans in which the member has been a member were payable from one10
plan.11
(3) Effective on and after January 1, 2000, the limit under Section 415(e)12
of the Internal Revenue Code shall no longer apply.13
* * *14
§785.1. Annual compensation limitation for determination of benefits15
A. Unless otherwise provided in this Chapter, the accrued benefit of each16
"Section 401(a)(17) employee" as that term is defined below shall be the greater of17
the following:18
(1) The employee's accrued benefit determined with respect to the benefit19
formula applicable for the plan year beginning on or after January 1, 1996, as applied20
to the employee's total years of service taken into account for purposes of benefit21
accruals.22
(2) The sum of:23
(a) The employee's accrued benefit as of the last day of the last plan year24
beginning before January 1, 1996, frozen in accordance with the provisions of25
Section 1.401(a)(4) through (13) of the Code of Federal Regulations Sections26
1.401(a)(4)-1 through 1.401(a)(4)-13 of the Treasury regulations; and27
(b) The employee's accrued benefit determined under the benefit formula28
applicable for the plan year beginning on or after January 1, 1996, as applied to the29 SB NO. 20
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employee's years of service credited to the employee for plan years beginning on or1
after January 1, 1996, for purposes of benefit accruals.2
* * *3
C. If an employee is not a "Section 401(a)(17) employee", his accrued4
benefit in this system shall not be based upon compensation in excess of the annual5
limit of Section 401(a)(17) of the United States Internal Revenue Code, as amended6
and revised., subject to the following provisions:7
(1) Effective with respect to plan years beginning on and after July 1,8
1996, and before July 1, 2002, the annual compensation of a plan member which9
exceeds one hundred fifty thousand dollars, as adjusted for cost-of-living10
increases under Section 401(a)(17)(B) of the Internal Revenue Code, shall be11
disregarded for purposes of computing employee and employer contributions12
to or benefits due from the retirement system. Effective only for the 1996 plan13
year, in determining the compensation of an employee eligible for consideration14
under this Paragraph, the rules of Section 414(q)(6) of the Internal Revenue15
Code shall apply, except that in applying such rules, the term "family" shall16
include only the spouse of the member and any lineal descendants of the17
employee who have not attained age nineteen before the close of the year.18
(2) Effective with respect to plan years beginning on and after July 1,19
2002, the annual compensation of a plan member which exceeds two hundred20
thousand dollars, as adjusted for cost-of-living increases in accordance with21
Section 401(a)(17)(B) of the Internal Revenue Code, may not be taken into22
account in determining benefits or contributions due for any plan year. Annual23
compensation means compensation during the plan year or such other24
consecutive twelve month period, hereinafter the "determination period", over25
which compensation is otherwise determined under the plan. The cost-of-living26
adjustment in effect for a calendar year applies to annual compensation for the27
determination period that begins with or within such calendar year. If the28
determination period consists of fewer than twelve months, the annual29 SB NO. 20
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compensation limit is an amount equal to the otherwise applicable annual1
compensation limit multiplied by a fraction, the numerator of which is the2
number of months in the short determination period, and the denominator of3
which is twelve. If the compensation for any prior determination period is4
taken into account in determining a plan member's contributions or benefits for5
the current plan year, the compensation for such prior determination period is6
subject to the applicable annual compensation limit in effect for that prior7
period.8
* * *9
§792. Direct rollover10
A. The provisions of this Section shall apply to all eligible distributions11
by the system made on or after January 1, 1993, for purposes of compliance12
with Section 401(a)(31) of the Internal Revenue Code. Notwithstanding any other13
provision of law to the contrary that would otherwise limit a member's distributee's14
election under this Section, a member distributee may elect, at the time and in the15
manner prescribed by the Board of Trustees board of trustees, to have any portion16
of an "eligible rollover distribution", as specified by the member distributee, paid17
directly to an "eligible retirement plan", as those terms are defined below.18
B. An "eligible rollover distribution" is any distribution of all or any portion19
of the balance to the credit of a member, except that an eligible rollover distribution20
does not include: distributee. Effective January 1, 2002, the definition of eligible21
rollover distribution shall also include a distribution to a surviving spouse, or22
to a former spouse with whom a benefit or a return of employee contributions23
is to be divided pursuant to R.S. 11:291(B) and who is an alternate payee under24
a domestic relations order. An eligible rollover distribution shall not include:25
(1) Any distribution that is one of a series of substantially equal periodic26
payments, not less frequently than annually, made for the life or life expectancy of27
the member distributee, or the joint lives or joint life expectancies of the member28
distributee and the member's distributee's designated beneficiary, or for a specified29 SB NO. 20
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period of ten years or more.1
(2) Any distribution to the extent that such distribution is required under2
Section 401(a)(9) of the United States Internal Revenue Code.3
(3) The portion of any distribution that is not includible in gross income;4
provided, however, effective January 1, 2002, a portion of a distribution shall5
not fail to be an eligible rollover distribution merely because the portion consists6
of after-tax employee contributions that are not includible in gross income, but7
such portion may be transferred only:8
(a) To an individual retirement account or annuity described in Section9
408(a) or (b) of the Internal Revenue Code or to a qualified defined contribution10
plan described in Section 401(a) of the Internal Revenue Code that agrees to11
separately account for amounts so transferred and earnings thereon, including12
separately accounting for the portion of the distribution that is includible in13
gross income and the portion of the distribution that is not so includible;14
(b) On or after January 1, 2007, to a qualified defined benefit plan15
described in Section 401(a) of the Internal Revenue Code or to an annuity16
contract described in Section 403(b) of the Internal Revenue Code, that agrees17
to separately account for amounts so transferred and earnings thereon,18
including separately accounting for the portion of the distribution that is19
includible in gross income and the portion of the distribution that is not so20
includible; or21
(c) On or after January 1, 2008, to a Roth IRA described in Section22
408A of the Internal Revenue Code.23
(4) Any other distribution which the Internal Revenue Service does not24
consider eligible for rollover treatment, such as certain corrective distributions25
necessary to comply with the provisions of Section 415 of the Internal Revenue26
Code or any distribution that is reasonably expected to total less than two27
hundred dollars during the year.28
C.(1) An "eligible retirement plan" shall mean any of the following that29 SB NO. 20
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words in boldface type and underscored are additions.
accepts the distributee's eligible rollover distribution:1
(a)(1) An individual retirement account described in Section 408(a) of the2
Internal Revenue Code.3
(b)(2) An individual retirement annuity described in Section 408(b) of the4
Internal Revenue Code.5
(c)(3) An annuity plan described in Section 403(a) of the Internal Revenue6
Code.7
(d)(4) A qualified trust as described in Section 401(a) of the Internal Revenue8
Code, provided that such trust accepts the member's eligible rollover distribution.9
(e)(5) An Effective January 1, 2002, an eligible deferred compensation plan10
described in Section 457(b) of the Internal Revenue Code that is maintained by an11
eligible governmental employer, provided the plan contains provisions to account12
separately for amounts transferred into such plan.13
(f)(6) An Effective January 1, 2002, an annuity contract described in14
Section 403(b) of the Internal Revenue Code.15
(7) Effective January 1, 2008, a Roth IRA described in Section 408A of16
the Internal Revenue Code.17
D. A "distributee" as provided for in this Section shall include:18
(1) A member or former member.19
(2) The member's or former member's surviving spouse, or the member's or20
former member's former spouse with whom a benefit or a return of employee21
contributions is to be divided pursuant to R.S. 11:291(B) and who is the alternate22
payee under a domestic relations order, with reference to an interest of the23
member or former spouse.24
(3) The Effective January 1, 2010, the member's or former member's non-25
spouse beneficiary, provided the specified distribution is to an eligible retirement26
plan as defined in Subparagraphs Paragraphs (C)(1)(a) and (C)(1)(b)(2) of this27
Section established for the purpose of receiving the distribution, and the account28
or annuity will be treated as an "inherited" individual retirement account or29 SB NO. 20
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annuity.1
(4) Any other beneficiary as authorized under the Internal Revenue2
Code and as required to maintain governmental plan tax qualification status.3
* * *4
§826. Rules and regulations5
Subject to the limitations of this Part the board of trustees shall, from time to6
time, establish rules and regulations for the administration of the funds created by7
this Part Chapter and for the transaction of its business. The board shall prepare and8
submit to the Joint Legislative Committee on the Budget an annual budget for9
estimated costs of operating the system for each succeeding fiscal year. This budget10
shall be subject to approval by the Joint Legislative Committee on the Budget. The11
board of trustees shall adopt rules and regulations which are appropriate or12
necessary to maintain the qualified status of the plan.13
Section 2. R.S. 11:723(B) is hereby repealed.14
Section 3. This Act shall become effective on July 1, 2014; if vetoed by the governor15
and subsequently approved by the legislature, this Act shall become effective on July 1,16
2014, or on the day following such approval by the legislature, whichever is later.17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
Guillory (SB 20)
Proposed law amends present law to keep the provisions governing the Teachers' Retirement
System of Louisiana in conformity with the provisions of present federal law requirements
for tax-qualified defined benefit plans.
Effective July 1, 2014.
(Amends R.S. 11:701(10), (11), (12), (24), and (33)(a)(i), (ii)(aa), and (xiii) and (b)(i),
702(A) and (B), 723(A)(1), 781(B), 784(A), (C)(2), and (F), 784.1(A), (B), (C), and (D),
785.1(A) and (C), 792(A), (B), (C), and (D), and 826; adds R.S. 11:701(14.1), (22.1), and
(33)(a)(xiv) and 781(C); repeals R.S. 11:723(B))