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Regular Session, 2014 ENROLLED
SENATE BILL NO. 20
BY SENATOR GUILLORY
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
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
ACT No. 727 ENROLLEENROLLEDENROLLED
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(10) "Earnable compensation" means the compensation earned by a member1
during the full normal working time as a teacher. Earnable compensation shall2
include any differential wage payment as defined by 26 U.S.C. 3401(h)(2) that is3
made by an employer to any individual performing qualified military service.4
Earnable compensation shall not include per diem, post allowances, payment in kind,5
hazardous duty pay, or any other allowance for expense authorized and incurred as6
an incident to employment, nor payments in lieu of unused sick or annual leave, nor7
retroactive salary increases unless such an increase was granted by legislative Act8
or by a city-parish city or parish systemwide salary increase, nor payment for9
discontinuation of contractual services, unless the payment is made on a monthly10
basis. If a member is granted an official leave and he makes contributions for the11
period of leave, earnable compensation shall not include compensation paid for other12
employment which would not have been possible without the leave. The board of13
trustees shall determine whether or not any other payments are to be classified as14
earnable compensation.15
(11) "Employer" means the State state of Louisiana, the any city, parish, or16
other local school board, the city school board, the State Board of Elementary and17
Secondary Education, the board of supervisors of the Louisiana State University any18
board created by Article VIII of the Constitution of Louisiana, or any other19
agency of and within the State state or a political subdivision by which a teacher20
is paid.21
(12) "Eligible rollover distribution" means the distribution of all or any22
portion of the balance to the credit of a member from a qualified plan. However, an23
eligible rollover distribution shall not include any of the following distributions:24
(a) One that is a series of substantially equal periodic payments, made not25
less frequently than annually, for the life, or life expectancy of the member or the26
joint lives, or joint life expectancies of the member and the member's designated27
beneficiary.28
(b) One that is for a specified period of ten years or more.29
(c) One that is required by the provisions of Section 401(a)(9) of the United30 ENROLLEENROLLEDENROLLED
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States Internal Revenue Code a distribution as defined in R.S. 11:792(B).1
* * *2
(14.1) "Internal Revenue Code" means the United States Internal3
Revenue Code of 1986, as amended.4
* * *5
(22.1) "Plan Year" means the fiscal year.6
* * *7
(24) "Public School" means any day school conducted within the state under8
the authority and supervision of a city, parish, or city other local school board and9
any educational institution supported by and under the control of the state.10
* * *11
(33)(a) "Teacher", except as provided in Subparagraph (b) of this Paragraph,12
shall mean any of the following:13
(i) Any employee of a city, or parish, or other local school board, any parish,14
or city, or other local superintendent, or any assistant superintendent of public15
schools.16
(ii)(aa) Any president, vice president, dean, teacher, guidance counselor, or17
unclassified employee at any state college or university or any vocational-technical18
school or institution or special school under the control of the State Board of19
Elementary and Secondary Education, or any educational institution supported by20
and under the control of the state or any city, parish, or other local school board.21
* * *22
(xiii) Any person who has retained membership in the system pursuant23
to R.S. 11:723.24
(xiv) In all cases of doubt, the board of trustees shall determine whether any25
person is a teacher within the scope of the definition set forth in this Paragraph.26
(b) "Teacher" shall not include any of the following:27
(i) Any employee of a city, or parish, or other local school board who is28
employed as a school bus driver, school janitor, school custodian, or a school29
maintenance employee, school bus aide, monitor , or attendant, or anyone who30 ENROLLEENROLLEDENROLLED
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actually works on a school bus helping with the transportation of school children.1
* * *2
§702. Name and establishment of retirement system3
A. A retirement system is established with all the powers and privileges4
pertaining to corporations, under the management of the board of trustees for the5
purpose of providing retirement allowances and other benefits under the provisions6
of this Chapter for teachers of the state of Louisiana. The retirement system so7
created shall be established as of the first day of August nineteen hundred and8
thirty-six August 1, 1936. The retirement system is established as a qualified9
defined benefit plan under Title 11 of the Louisiana Revised Statutes of 1950,10
known as the "Louisiana Public Retirement Law", as amended from time to11
time, pursuant to Sections 401(a) and 414(d) of the Internal Revenue Code,12
other applicable provisions of the Internal Revenue Code, applicable Treasury13
regulations, and other guidance.14
B. This system shall be known as the "Teachers' Retirement System of15
Louisiana", and by such name or its nominee name, which is hereby established as16
"TRSLA" "TRSL", all of its business shall be transacted, all of its funds invested,17
and all of its cash and securities and other property held, except as provided in18
Subsection C hereof of this Section.19
* * *20
§723. Members employed in other state employment; exception21
A.(1) Notwithstanding any enrollment error occurring prior to January 1,22
1992, and except as provided in Subsection C of this Section, any person who is23
a member of the Teachers' Retirement System of Louisiana, who has creditable24
membership service of at least five years in this system and who becomes employed25
in other state or public employment where he is no longer eligible for membership26
in this system but is eligible for membership in another state or statewide retirement27
system, shall have the right to remain a member of this system in lieu of membership28
in the other statewide retirement system by filing a notice, in writing, with the board29
of trustees within sixty days after the effective date of employment. Such election30 ENROLLEENROLLEDENROLLED
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shall be irrevocable.1
* * *2
§781. Refund of contributions3
* * *4
B. Any member whose employment is terminated as an employee a teacher5
as defined in R.S. 11:701(23) (33), and who, due to such termination, applies to6
withdraw the accumulated contributions standing to his account, shall not be entitled7
to receive a refund of said funds if he has been employed again by an employer as8
an employee a teacher defined in R.S. 11:701(23) (33) prior to the processing of his9
refund request by the retirement system. Such a member shall be considered as10
being an active member of the retirement system and shall not be entitled to11
withdraw his accumulated contributions.12
C. In conformity with Section 401(a)(8) of the Internal Revenue Code,13
any forfeitures of benefits by members or former members of the plan shall not14
be used to pay benefit increases. However, such forfeitures may be used to15
reduce employer contributions.16
* * *17
§784. Payment of benefits18
A. The retirement system shall pay all benefits in accordance with a19
good faith interpretation of the requirements of Section 401(a)(9) of the Internal20
Revenue Code as applicable to a governmental plan within the meaning of21
Section 414(d) of the Internal Revenue Code. The payment of benefits to or on22
behalf of a member shall commence not later than April first following the calendar23
year in which the member retires, or attains age seventy and one-half years,24
whichever is later.25
* * *26
C. * * *27
(2) Paragraph (1) of this Subsection shall not apply to any portion of a28
member's benefit which is payable to or for the benefit of a designated beneficiary29
or beneficiaries, over the life of or over the life expectancy of such beneficiary, so30 ENROLLEENROLLEDENROLLED
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long as such distributions begin not later than one year after the date December1
thirty-first of the calendar year immediately following the calendar year of the2
member's death, or, in the case of the member's surviving spouse, the date December3
thirty-first of the calendar year in which the member would have attained the age4
of seventy and one-half years. If the designated beneficiary is the member's5
surviving spouse and if the surviving spouse dies before the distribution of benefits6
commences, then Paragraph (1) of this Subsection shall be applied as if the7
surviving spouse were the member. If the designated beneficiary is a child of the8
member, for purposes of satisfying the requirement of Paragraph (1) of this9
Subsection, any amount paid to such child shall be treated as if paid to the member's10
surviving spouse if such amount would become payable to such surviving spouse,11
(if alive), upon the child's reaching age eighteen or, if later, upon the child's12
completing a designated event. For purposes of the preceding sentence, a designated13
event shall be the later of the date the child is no longer disabled or the date the child14
ceases to be a full-time student, (or attains age twenty-three, if earlier ).15
* * *16
F. Payment in accordance with the options of R.S. 11:762 or of this Subpart17
A of Part IV, Chapter 2 of Subtitle II, shall be deemed not to violate Subsections B18
and C of this Section Notwithstanding any other provision of this Section or the19
provisions of the Treasury Regulations, any benefit option may continue so long20
as the option satisfies Section 401(a)(9) of the Internal Revenue Code based on21
a reasonable and good faith interpretation of that section.22
* * *23
§784.1. Maximum benefits24
A.(1) Notwithstanding any other provision of this system to the contrary, no25
member shall receive a benefit in any year in excess of the sum of the maximum26
employer-financed benefit and the member-financed benefit the member27
contributions paid to and retirement benefits paid from the plan shall be limited28
to such extent as may be necessary to conform to the requirements of Section29
415 of the Internal Revenue Code for a qualified pension plan.30 ENROLLEENROLLEDENROLLED
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(a) The maximum employer-financed benefit shall equal the sum of ninety1
thousand dollars, except that it may exceed that sum if the excess is caused by2
adjustments made pursuant to this Section.3
(b) The maximum employer-financed benefit for the year 1999 shall equal4
one hundred thirty thousand dollars. The member-financed benefit is the annual5
benefit that can be provided by annuitizing the member's after-tax accumulated6
contributions.7
(2) Any benefit reduction required by this Section shall, to the extent8
possible, reduce the monthly pension to which the member would otherwise have9
been entitled and shall not affect the member's Deferred Retirement Option Plan10
account.11
(2) Basic 415(b) limitation. (a) Before January 1, 1995, a member shall12
not receive an annual benefit that exceeds the limits specified in Section 415(b)13
of the Internal Revenue Code, subject to the applicable adjustments in that14
Section. On and after January 1, 1995, a member shall not receive an annual15
benefit that exceeds the dollar amount specified in Section 415(b)(1)(A) of the16
Internal Revenue Code, subject to the applicable adjustments in Section 415(b)17
of the Internal Revenue Code and subject to any additional limits that may be18
specified in the retirement system. In no event shall a member's annual benefit19
payable under the plan in any limitation year be greater than the limit20
applicable at the annuity starting date, as increased in subsequent years21
pursuant to Section 415(d) of the Internal Revenue Code and the regulations22
thereunder.23
(b) For purposes of Section 415(b) of the Internal Revenue Code,24
"annual benefit" means a benefit payable annually in the form of a straight life25
annuity with no ancillary benefits without regard to the benefit attributable to26
after-tax employee contributions, except pursuant to Section 415(n) of the27
Internal Revenue Code, and to rollover contributions, as defined in Section28
415(b)(2)(A) of the Internal Revenue Code. The "benefit attributable" shall be29
determined in accordance with Treasury regulations.30 ENROLLEENROLLEDENROLLED
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B. Adjustments in 415(b) limitation. (1)(a) If the annual benefit begins1
before the member attains age sixty-two, the ninety thousand dollar limit described2
in Subparagraph A(1)(a) of prescribed by this Section, as adjusted, shall be reduced3
in a manner prescribed by the United States Secretary of the accordance with4
Treasury regulations pursuant to the provisions of Section 415(b) of the Internal5
Revenue Code, so that such limit, as so reduced, equals an annual straight life6
benefit when such retirement income benefit begins that is equivalent to a one7
hundred sixty thousand dollar annual benefit, as adjusted, beginning at age8
sixty-two. The reduction provided for in this Paragraph shall not be applicable:9
(a) In the event the member's benefit is based on fifteen years of military10
service; or11
(b) To pre-retirement disability benefits or pre-retirement death12
benefits.13
(b) The adjustment authorized by Subparagraph (a) of this Paragraph may14
not reduce the member's annual benefit below seventy-five thousand dollars, if the15
member's benefit begins at or after age fifty-five, or the actuarial equivalent of16
seventy-five thousand dollars beginning at age fifty-five if benefits begin before age17
fifty-five.18
(2)(a) If the annual benefit begins after the member attains age sixty-five, the19
ninety thousand dollar limit set forth in Subparagraph A(1)(a) of this Section, as20
adjusted, shall be increased so that it is the actuarial equivalent of the ninety21
thousand dollar limit at age sixty-five. The ninety thousand dollar limit on annual22
benefits, but not the seventy- five thousand dollar limit set forth in Subparagraph23
B(1)(b) of this Section, shall be adjusted annually as provided by Section 415(d) of24
the United States Internal Revenue Code and the regulations prescribed by the25
United States Secretary of the Treasury to reflect cost-of-living adjustments.26
(b) (2) Effect of cost-of-living adjustments. (a) The annual adjusted limit,27
set forth in Subparagraph (a) of this Paragraph A(2) of this Section, is effective as28
of January first of each calendar year and is applicable to benefits commencing29
during that calendar year. As a result of a cost-of-living increase to the limit under30 ENROLLEENROLLEDENROLLED
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Section 415(d) of the Internal Revenue Code, a benefit that had been limited by1
the provisions of this Section in a previous year may be increased with respect to2
future payments to the lesser of the new limit or the amount of benefit that would3
have been payable from this system without regard to the provisions of this Section.4
(b) Effective on and after January 1, 2009, for purposes of applying the5
limits under Section 415(b) of the Internal Revenue Code, referred to in this6
Paragraph as the "Limit", to a member with no lump sum benefit, the following7
shall apply:8
(i) A member's applicable Limit shall be applied to the member's annual9
benefit in the member's first limitation year without regard to any cost-of-living10
adjustments granted under the plan;11
(ii) To the extent that the member's annual benefit equals or exceeds the12
Limit, the member shall no longer be eligible for cost-of-living adjustments until13
such time as the benefit plus the accumulated increases are less than the Limit;14
and15
(iii) Thereafter, in any subsequent limitation year, a member's annual16
benefit, including any cost-of-living adjustments granted under the plan, shall17
be tested under the then-applicable benefit Limit including any adjustment to18
the Section 415(b)(1)(A) of the Internal Revenue Code dollar limit under Section19
415(d) of the Internal Revenue Code, and the regulations thereunder.20
(c) Effective on and after January 1, 2009, with respect to a member21
who receives a portion of the member's annual benefit in a lump sum, a22
member's applicable Limit will be applied taking into consideration cost-of-23
living adjustments as required by Section 415(b) of the Internal Revenue Code24
and applicable Treasury regulations.25
(3) Annual benefits may not be paid in an amount greater than the accrued26
benefit under the plan. The maximum benefit limit, set forth in Paragraph A(1) of27
this Section, shall apply to a single-life annuity. If the benefit is payable in a form28
other than a single-life annuity, the maximum limit shall apply to the pension that is29
the actuarial equivalent of such single-life annuity, using an applicable interest rate30 ENROLLEENROLLEDENROLLED
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and mortality table as prescribed by the United States Internal Revenue Service;1
however, the limit shall not be reduced for any benefit received as a disability2
retirement allowance or any payments received by the beneficiaries, survivors, or3
estate of a member as a result of the death of the member.4
C. An annual benefit may be paid to any member in excess of the limit5
otherwise allowed in Paragraph A(1) of this Section if the annual benefit derived6
from the employer contributions under this and all other qualified plans of the7
employer subject to the limitations of Section 415(b) of the United States Internal8
Revenue Code does not, in the aggregate, exceed ten thousand dollars for the plan9
year or for any prior year, and the member has not at any time participated in a10
defined contribution plan maintained by the employer. For purposes of this11
Subsection, a member's own contributions to the system are not considered a12
separate defined contribution plan maintained by the employer. (1) Ten Thousand13
Dollar Limit. The retirement benefit payable with respect to a member shall be14
deemed not to exceed the limit under Section 415 of the Internal Revenue Code15
if the benefits payable, with respect to such member under this plan and under16
all other qualified defined benefit pension plans to which the member's17
employer contributes, do not exceed ten thousand dollars for the applicable18
limitation year and for any prior limitation year and the employer has not at19
any time maintained a qualified defined contribution plan in which the member20
participated.21
(2) Less than Ten Years of Participation or Service Adjustment for22
415(b) Limitations. The maximum retirement benefits payable to any member23
who has completed less than ten years of service shall be the amount determined24
under Paragraph A(2) of this Section, as adjusted under Subsection B of this25
Section, multiplied by a fraction, the numerator of which is the number of the26
member's years of participation and the denominator of which is ten. The limit27
under Paragraph C(1) of this Section, concerning the ten thousand dollar limit,28
shall be similarly reduced for any member who has accrued less than ten years29
of service, except the fraction shall be determined with respect to years of30 ENROLLEENROLLEDENROLLED
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service instead of years of participation. The reduction provided by this1
Paragraph shall not reduce the maximum benefit below ten percent of the limit2
determined without regard to this Paragraph. The reduction provided for in3
this Paragraph cannot be applicable to pre-retirement disability benefits or4
pre-retirement death benefits.5
D.(1) If a member is or has been a participant in one or more defined6
contribution plans maintained by the employer, the sum of the member's7
contributions paid to this system and any other qualified defined benefit plans of the8
employer and the annual additions under such defined contribution plan or plans may9
not exceed the lesser of twenty-five percent of the member's earned compensation10
or thirty thousand dollars, as adjusted by the United States Secretary of the Treasury11
the limit under Section 415(c) of the Internal Revenue Code.12
(2) The sum of the "defined benefit plan fraction" and the "defined13
contribution plan fraction", as those terms are defined in Section 415 of the United14
States Internal Revenue Code, for any plan year in which Section 415 of the United15
States Internal Revenue Code is in effect, may not exceed one, 1.0, for any calendar16
year in which the limits of Section 415(d) of the United States Internal Revenue17
Code are in effect and enforced by the United States Internal Revenue Service. If the18
sum of the defined benefit plan fraction and the defined contribution plan fraction19
exceeds one, 1.0, in any such year for any member, or if the benefits under this plan20
and one or more other defined benefit plans of the employer would otherwise exceed21
the maximum employer-financed benefit, and the administrator of the other plan or22
plans does not reduce the contributions or benefits under such other plan, the23
employer-financed benefit payable by this system shall be reduced to the extent24
necessary to ensure that the limitations provided in Section 415 of the United States25
Internal Revenue Code are met. The 415(b) limit with respect to any member who26
at any time has been a member in any other defined benefit plan as defined in27
Section 414(j) of the Internal Revenue Code maintained by the member's28
employer shall apply as if the total benefits payable under all such defined29
benefit plans in which the member has been a member were payable from one30 ENROLLEENROLLEDENROLLED
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plan.1
(3) Effective on and after January 1, 2000, the limit under Section 415(e)2
of the Internal Revenue Code shall no longer apply.3
* * *4
§785.1. Annual compensation limitation for determination of benefits5
A. Unless otherwise provided in this Chapter, the accrued benefit of each6
"Section 401(a)(17) employee" as that term is defined below shall be the greater of7
the following:8
(1) The employee's accrued benefit determined with respect to the benefit9
formula applicable for the plan year beginning on or after January 1, 1996, as applied10
to the employee's total years of service taken into account for purposes of benefit11
accruals.12
(2) The sum of:13
(a) The employee's accrued benefit as of the last day of the last plan year14
beginning before January 1, 1996, frozen in accordance with the provisions of15
Section 1.401(a)(4) through (13) of the Code of Federal Regulations Sections16
1.401(a)(4)-1 through 1.401(a)(4)-13 of the Treasury regulations; and17
(b) The employee's accrued benefit determined under the benefit formula18
applicable for the plan year beginning on or after January 1, 1996, as applied to the19
employee's years of service credited to the employee for plan years beginning on or20
after January 1, 1996, for purposes of benefit accruals.21
* * *22
C. If an employee is not a "Section 401(a)(17) employee", his accrued23
benefit in this system shall not be based upon compensation in excess of the annual24
limit of Section 401(a)(17) of the United States Internal Revenue Code, as amended25
and revised., subject to the following provisions:26
(1) Effective with respect to plan years beginning on and after July 1,27
1996, and before July 1, 2002, the annual compensation of a plan member which28
exceeds one hundred fifty thousand dollars, as adjusted for cost-of-living29
increases under Section 401(a)(17)(B) of the Internal Revenue Code, shall be30 ENROLLEENROLLEDENROLLED
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disregarded for purposes of computing employee and employer contributions1
to or benefits due from the retirement system. Effective only for the 1996 plan2
year, in determining the compensation of an employee eligible for consideration3
under this Paragraph, the rules of Section 414(q)(6) of the Internal Revenue4
Code shall apply, except that in applying such rules, the term "family" shall5
include only the spouse of the member and any lineal descendants of the6
employee who have not attained age nineteen before the close of the year.7
(2) Effective with respect to plan years beginning on and after July 1,8
2002, the annual compensation of a plan member which exceeds two hundred9
thousand dollars, as adjusted for cost-of-living increases in accordance with10
Section 401(a)(17)(B) of the Internal Revenue Code, may not be taken into11
account in determining benefits or contributions due for any plan year. Annual12
compensation means compensation during the plan year or such other13
consecutive twelve month period, hereinafter the "determination period", over14
which compensation is otherwise determined under the plan. The cost-of-living15
adjustment in effect for a calendar year applies to annual compensation for the16
determination period that begins with or within such calendar year. If the17
determination period consists of fewer than twelve months, the annual18
compensation limit is an amount equal to the otherwise applicable annual19
compensation limit multiplied by a fraction, the numerator of which is the20
number of months in the short determination period, and the denominator of21
which is twelve. If the compensation for any prior determination period is22
taken into account in determining a plan member's contributions or benefits for23
the current plan year, the compensation for such prior determination period is24
subject to the applicable annual compensation limit in effect for that prior25
period.26
* * *27
§792. Direct rollover28
A. The provisions of this Section shall apply to all eligible distributions29
by the system made on or after January 1, 1993, for purposes of compliance30 ENROLLEENROLLEDENROLLED
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with Section 401(a)(31) of the Internal Revenue Code. Notwithstanding any other1
provision of law to the contrary that would otherwise limit a member's distributee's2
election under this Section, a member distributee may elect, at the time and in the3
manner prescribed by the Board of Trustees board of trustees, to have any portion4
of an "eligible rollover distribution", as specified by the member distributee, paid5
directly to an "eligible retirement plan", as those terms are defined below.6
B. An "eligible rollover distribution" is any distribution of all or any portion7
of the balance to the credit of a member, except that an eligible rollover distribution8
does not include: distributee. Effective January 1, 2002, the definition of eligible9
rollover distribution shall also include a distribution to a surviving spouse, or10
to a former spouse with whom a benefit or a return of employee contributions11
is to be divided pursuant to R.S. 11:291(B) and who is an alternate payee under12
a domestic relations order. An eligible rollover distribution shall not include:13
(1) Any distribution that is one of a series of substantially equal periodic14
payments, not less frequently than annually, made for the life or life expectancy of15
the member distributee, or the joint lives or joint life expectancies of the member16
distributee and the member's distributee's designated beneficiary, or for a specified17
period of ten years or more.18
(2) Any distribution to the extent that such distribution is required under19
Section 401(a)(9) of the United States Internal Revenue Code.20
(3) The portion of any distribution that is not includible in gross income;21
provided, however, effective January 1, 2002, a portion of a distribution shall22
not fail to be an eligible rollover distribution merely because the portion consists23
of after-tax employee contributions that are not includible in gross income, but24
such portion may be transferred only:25
(a) To an individual retirement account or annuity described in Section26
408(a) or (b) of the Internal Revenue Code or to a qualified defined contribution27
plan described in Section 401(a) of the Internal Revenue Code that agrees to28
separately account for amounts so transferred and earnings thereon, including29
separately accounting for the portion of the distribution that is includible in30 ENROLLEENROLLEDENROLLED
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gross income and the portion of the distribution that is not so includible;1
(b) On or after January 1, 2007, to a qualified defined benefit plan2
described in Section 401(a) of the Internal Revenue Code or to an annuity3
contract described in Section 403(b) of the Internal Revenue Code, that agrees4
to separately account for amounts so transferred and earnings thereon,5
including separately accounting for the portion of the distribution that is6
includible in gross income and the portion of the distribution that is not so7
includible; or8
(c) On or after January 1, 2008, to a Roth IRA described in Section9
408A of the Internal Revenue Code.10
(4) Any other distribution which the Internal Revenue Service does not11
consider eligible for rollover treatment, such as certain corrective distributions12
necessary to comply with the provisions of Section 415 of the Internal Revenue13
Code or any distribution that is reasonably expected to total less than two14
hundred dollars during the year.15
C.(1) An "eligible retirement plan" shall mean any of the following that16
accepts the distributee's eligible rollover distribution:17
(a)(1) An individual retirement account described in Section 408(a) of the18
Internal Revenue Code.19
(b)(2) An individual retirement annuity described in Section 408(b) of the20
Internal Revenue Code.21
(c)(3) An annuity plan described in Section 403(a) of the Internal Revenue22
Code.23
(d)(4) A qualified trust as described in Section 401(a) of the Internal Revenue24
Code, provided that such trust accepts the member's eligible rollover distribution.25
(e)(5) An Effective January 1, 2002, an eligible deferred compensation plan26
described in Section 457(b) of the Internal Revenue Code that is maintained by an27
eligible governmental employer, provided the plan contains provisions to account28
separately for amounts transferred into such plan.29
(f)(6) An Effective January 1, 2002, an annuity contract described in30 ENROLLEENROLLEDENROLLED
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words in boldface type and underscored are additions.
Section 403(b) of the Internal Revenue Code.1
(7) Effective January 1, 2008, a Roth IRA described in Section 408A of2
the Internal Revenue Code.3
D. A "distributee" as provided for in this Section shall include:4
(1) A member or former member.5
(2) The member's or former member's surviving spouse, or the member's or6
former member's former spouse with whom a benefit or a return of employee7
contributions is to be divided pursuant to R.S. 11:291(B) and who is the alternate8
payee under a domestic relations order, with reference to an interest of the9
member or former spouse.10
(3) The Effective January 1, 2010, the member's or former member's non-11
spouse beneficiary, provided the specified distribution is to an eligible retirement12
plan as defined in Subparagraphs Paragraphs (C)(1)(a) and (C)(1)(b)(2) of this13
Section established for the purpose of receiving the distribution, and the account14
or annuity will be treated as an "inherited" individual retirement account or15
annuity.16
(4) Any other beneficiary as authorized under the Internal Revenue17
Code and as required to maintain governmental plan tax qualification status.18
* * *19
§826. Rules and regulations20
Subject to the limitations of this Part the board of trustees shall, from time to21
time, establish rules and regulations for the administration of the funds created by22
this Part Chapter and for the transaction of its business. The board shall prepare and23
submit to the Joint Legislative Committee on the Budget an annual budget for24
estimated costs of operating the system for each succeeding fiscal year. This budget25
shall be subject to approval by the Joint Legislative Committee on the Budget. The26
board of trustees shall adopt rules and regulations which are appropriate or27
necessary to maintain the qualified status of the plan.28
Section 2. R.S. 11:723(B) is hereby repealed.29
Section 3. This Act shall become effective on July 1, 2014; if vetoed by the governor30 ENROLLEENROLLEDENROLLED
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words in boldface type and underscored are additions.
and subsequently approved by the legislature, this Act shall become effective on July 1,1
2014, or on the day following such approval by the legislature, whichever is later.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: