ENROLLED
ACT No. 424
2016 Regular Session
HOUSE BILL NO. 53
BY REPRESENTATIVE FOIL
1 AN ACT
2 To amend and reenact R.S. 11:1938(F)(2), relative to Deferred Retirement Option Plan
3 accounts of members of the Parochial Employees' Retirement System; to provide
4 with respect to the investment of funds in such accounts; to provide with respect to
5 the rate of interest credited to such accounts; and to provide for related matters.
6 Notice of intention to introduce this Act has been published
7 as provided by Article X, Section 29(C) of the Constitution
8 of Louisiana.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 11:1938(F)(2) is hereby amended and reenacted to read as follows:
11 ยง1938. Deferred Retirement Option Plan
12 * * *
13 F.
14 * * *
15 (2)(a) After a person terminates participation in this program, but provided
16 that he has not terminated his employment which made him eligible to become a
17 member of this system, all amounts which remain credited to the individual's
18 subaccount after termination of participation in the plan shall be placed in liquid
19 asset money market investments at the discretion of the board of trustees. Such
20 account balances may be credited with interest at the actual rate of return earned on
21 such account balance investments, said interest to be credited to the individual's
22 account balance on an annual basis.
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 53 ENROLLED
1 (a) (b) The contributing period shall mean that time period when funds are
2 being credited to the participant's subaccount which is maintained by the system.
3 (b) After the contributing period ends, the balance of the subaccount then
4 may be transferred to a self-directed subaccount, which shall be known as the
5 investment period. Both subaccounts shall be within the Deferred Retirement Option
6 Plan established herein. Management of the funds shall be by the system during the
7 contributing period. When the funds are transferred to the self-directed subaccount
8 for the investment period, the system is authorized to hire a third party provider. The
9 third party provider shall act as an agent of the system for purposes of investing
10 balances in the self-directed subaccounts of the participant as directed by the
11 participant. The participant shall be given such options that comply with federal law
12 for self-directed plans.
13 (c) The participant in the self-directed portion of this plan agrees that the
14 benefits payable to the participant are not the obligations of the state or the system,
15 and that any returns and other rights of the plan are the sole liability and
16 responsibility of the participant and the designated provider to which contributions
17 have been made. Furthermore, each participant, in accordance with this provision,
18 shall expressly waive his rights as set forth in Article X, Section 29(A) and (B) of the
19 Louisiana Constitution as it relates to his subaccount in the self-directed portion of
20 the plan. By participating in the self-directed portion of the plan, the participant
21 agrees that he and the provider shall be responsible for complying with all applicable
22 provisions of the Internal Revenue Code. The participant also agrees that if any
23 violation of the Internal Revenue Code occurs as a result of the participant's
24 participation in the self-directed portion of the plan, it shall be the sole responsibility
25 and liability of the participant and the provider, not the state or the system. There
26 shall be no liability on the part of and no cause of action of any nature shall arise
27 against the state, the system, or its agents or employees, for any action taken by the
28 participant for choices the participant makes in relationship to the funds in which he
29 chooses to place his subaccount balance. After the contributing period ends, the
30 balance of the subaccount shall be credited annually with interest using the preceding
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 53 ENROLLED
1 twelve-month average of interest paid by the custodial bank's prime money market
2 institutional shares fund.
3 * * *
4 Section 2. This Act shall become effective upon signature by the governor or, if not
5 signed by the governor, upon expiration of the time for bills to become law without signature
6 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
7 vetoed by the governor and subsequently approved by the legislature, this Act shall become
8 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.