Source: http://richland.k12.la.us/caps/Statutes/110788.htm
Timestamp: 2019-04-20 13:08:08+00:00

Document:
A. The system shall establish a Deferred Retirement Option Plan Account which shall be a part of the system fund. This account shall not be subject to any fees, costs, or expenses of any kind.
B. (1) The system shall maintain subaccounts within this account reflecting the credits attributed to each participant in the plan, but the monies in the account shall remain a part of the fund until disbursed to a participant in accordance with the plan provisions.
(2) Any retiree who received a qualified hurricane distribution prior to January 1, 2007, pursuant to the Katrina Emergency Tax Relief Act of 2005 or the Gulf Opportunity Zone Act of 2005, may contribute all or part of such qualified hurricane distribution within three years from the date on which such qualified hurricane distribution was received, but only to the extent that such qualified hurricane distribution was eligible for tax-free rollover treatment.
(3) Repealed by Acts 2007, No. 50, § 2, eff. June 18, 2007.
(1) The contributing period shall mean that time period when funds are being credited to the participant's subaccount which is maintained by the system.
(2) After the contributing period ends, the balance of the subaccount then may be transferred to a self-directed subaccount, which shall be known as the investment period. Both subaccounts shall be within the Deferred Retirement Option Plan established herein. Management of the funds shall be by the system during the contributing period. When the funds are transferred to the self-directed subaccount for the investment period, the system is authorized to hire a third party provider. The third party provider shall act as an agent of the system for purposes of investing balances in the self-directed subaccounts of the participant as directed by the participant. The participant shall be given such options that comply with federal law for self-directed plans.
(3) The participant in the self-directed portion of this plan agrees that the benefits payable to the participant are not the obligations of the state or the system, and that any returns and other rights of the plan are the sole liability and responsibility of the participant and the designated provider to which contributions have been made. Furthermore, each participant, in accordance with this provision, shall expressly waive his rights as set forth in Article X, Section 29(A) and (B) of the Louisiana Constitution as it relates to his subaccount in the self-directed portion of the plan. By participating in the self-directed portion of the plan, the participant agrees that he and the provider shall be responsible for complying with all applicable provisions of the Internal Revenue Code. The participant also agrees that if any violation of the Internal Revenue Code occurs as a result of the participant's participation in the self-directed portion of the plan, it shall be the sole responsibility and liability of the participant and the provider, not the state or the system. There shall be no liability on the part of and no cause of action of any nature shall arise against the state, the system, or its agents or employees, for any action taken by the participant for choices the participant makes in relationship to the funds in which he chooses to place his subaccount balance.
(4)(a) Notwithstanding any provision of this Subsection to the contrary, any individual who became or becomes eligible to participate in the Deferred Retirement Option Plan on or after January 1, 2004, may make an irrevocable written election to waive his rights as set forth in Article X, Section 29 of the Constitution of Louisiana, relative to the interest earned by his Deferred Retirement Option Plan account. For any such person who has made such irrevocable election, upon termination of participation in the plan, his individual account balance in the plan shall earn interest on those particular funds at a rate equal to the realized return on the system's portfolio for each fiscal year as certified by the system's actuary in the actuarial report, less one-half of one percent. However, by making such an election, the person shall expressly acknowledge that his account shall be debited in the event the system's investment portfolio experiences a negative earnings rate. The member shall further expressly acknowledge his consent to having the value of his account balance permanently reduced as a result of the devaluation of system assets caused by such a negative earnings rate. As a precondition of making this election, the member shall expressly acknowledge his understanding of the possibility of such account reductions.
(b) The provisions of this Paragraph shall apply prospectively only, beginning on the effective date of this Paragraph. Any member who participated in the Deferred Retirement Option Plan between January 1, 2004, and the effective date of this Paragraph may make the election authorized by Subparagraph (a) of this Paragraph only within the sixty days after the effective date of this Paragraph. Any member who becomes eligible for participation in the Deferred Retirement Option Plan after the effective date of this Paragraph may only make the election authorized by Subparagraph (a) of this Paragraph prior to participation in the plan.
(c) Any individual who does not elect to waive his rights pursuant to Subparagraph (a) of this Paragraph shall continue to be governed by the provisions of this Subsection which are otherwise applicable to individuals who became or become eligible to participate in the Deferred Retirement Option Plan on or after January 1, 2004.
(d) Should any participant's waiver executed pursuant to the provisions of Subparagraph (a) of this Paragraph be declared null, void, inapplicable, or unenforceable, the participant's individual account shall be treated as though he had not executed such waiver, and the balance therein shall be adjusted to reflect such treatment.
(e) The board of trustees may make, alter, amend, and promulgate rules necessary for the implementation and administration of this Paragraph.
Added by Acts 1991, No. 62, § 1, eff. July 1, 1992. Amended by Acts 1993, No. 973, § 1, eff. Jan. 1, 1994; Acts 2001, No. 959, § 1, eff. June 27, 2001; Acts 2001, No. 1172, § 1, eff. July 1, 2001; Acts 2003, No. 962, § 1, eff. Jan. 1, 2004; Acts 2007, No. 50, § 1, eff. June 18, 2007; Acts 2008, No. 714, § 1.

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