Source: https://www.trsl.org/about_trsl/administrative_code
Timestamp: 2019-01-20 04:37:37
Document Index: 714646532

Matched Legal Cases: ['§503', '§505', '§501', '§505', '§507', '§509', '§511', '§511', '§511', '§511', '§509', '§509', '§510', '§509', '§511', '§509', '§511', '§513', '§509', '§511', '§511', '§515', '§517', '§517', '§519', '§521', '§1103', '§1105', '§1107', '§1109', '§1111', '§1303', '§3401', '§414', '§401', '§4', '§401', '§401', '§1503', '§1505', '§401', '§414', '§414', '§401', '§414', '§401', '§1', '§401', '§414', '§401', '§414', '§1507', '§1509', '§414', '§401', '§401', '§1511', '§401', '§401', '§1513', '§401', '§401', '§401', '§401', '§401', '§401', '§401', '§1', '§1', '§401', '§401', '§1', '§1515', '§401', '§402', '§408', '§401', '§401', '§408', '§408', '§401', '§403', '§457', '§457', '§403', '§408', '§401', '§408', '§401', '§403', '§408', '§401', '§402', '§402', '§1', '§1517', '§415', '§415', '§1', '§414', '§3401', '§6041', '§3401', '§3401', '§125', '§132', '§414', '§414', '§1', '§415', '§401', '§1519', '§401', '§401', '§401', '§1521', '§1523', '§401', '§1525', '§401', '§1527', '§401', '§401', '§1529', '§401', '§414', '§12503', '§115', '§414', '§414', '§414', '§415', '§401', '§414', '§101', '§1531', '§1701', '§1703', '§1705', '§1707', '§1709']

Administrative Code - TRSL - Teachers' Retirement System of Louisiana
Report pursuant to La. R.S. 49:968(D)(1)(b) - ReNEW Charter Management Organization proposed rule
Report pursuant to La. R.S. 49:968(K)
Title 58. Retirement
Chapter 3. Re-Employment of Retirees
Chapter 4. Purchase of Service Credit
Chapter 5. Deferred Retirement Option Plan (DROP)
Chapter 7. Renunciation of Benefits
Chapter 9. Computation of Final Average Compensation
Chapter 11. Voluntary Deductions from Retiree Benefits Payroll
Chapter 13. Cost-of-Living
Chapter 15. Optional Retirement Plan (ORP)
Chapter 17. Defined Benefit Plan Internal Revenue Code Provisions
Each month all employers shall certify to the Board of Trustees, by means of file transfer protocol, diskette, or by on-line web based reporting, the amounts of each employee's salary, and the amounts of deductions from the employee's salary to be paid to the annuity savings fund and then credited to the individual accounts of the employee from whose compensation the deductions were made. All file transfer protocol, diskette, and web based reporting formats must be in compliance with criteria established by Teachers' Retirement System of Louisiana as provided in the Employer Procedures Manual. All certified monthly salaries and contributions reports must be submitted by the fifteenth day of the month following the month covered by the report.
All employers with 25 or more employees being reported must submit monthly salaries and contributions reports by file transfer protocol or by diskette.
All employers reporting fewer than 25 employees must submit monthly salaries and contributions reports by file transfer protocol, diskette, or Teachers' Retirement System of Louisiana's secure on-line web-based inquiry system.
B. Contributions Correction Reports (Form 4B) All employers must submit Contributions Correction Reports (Form 4B) using Teachers' Retirement System of Louisiana's secure on-line web-based inquiry system.
C. Prior Years Certification/Correction of Member Data.
Member data previously submitted by employers through the Monthly Salaries and Contributions Reports, and Contributions Correction Reports determined to be questionable or inaccurate must be certified as correct or must be corrected by the employer.
All employers must submit Prior Year Certifications/Corrections (with certain exceptions as provided for in C2) using Teachers' Retirement System of Louisiana's secure on-line web-based inquiry system. Data that is to be certified/corrected via the on-line web-based inquiry system are as follows:
full-time rate of pay only correction;
actual earnings and contribution corrections;
identified "questionable year" data.
Employers who have data that meets Teachers' Retirement System of Louisiana's definition of "Unusual", as defined in Teacher's Retirement System of Louisiana's Employer Procedures Manual, must certify/correct the data by submitting a written statement to Teachers' Retirement System of Louisiana signed by an authorized representative of the employer.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:873(2).
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers' Retirement System of Louisiana, LR 22:1242 (December 1996), repromulgated LR 24:499 (March 1998), amended LR 33:1151 (June 2007), effective July 1, 2007, amended LR 34:1048 (June 2008), effective July 1, 2008, effective July 1, 2008.
A. Earnable compensation shall not include compensation paid to an active member or to an inactive member of Teachers' Retirement System of Louisiana (TRSL) if the compensation is paid by a secondary employer and is reported to the Internal Revenue Service (IRS) on a Form 1099, but only if both of the following occur.
The individual contract is for $1,000 or less, and a Form 1099 is issued.
The cumulative amount of the Form 1099 payments issued by a single secondary employer to that member does not exceed $15,000 in a fiscal year.
B. If an individual contract is for more than $1,000, then that entire payment is earnable compensation subject to TRSL employer and employee contributions.
C. If the cumulative amount of the Form 1099 payments issued by a single secondary employer to that member exceeds $15,000 in a fiscal year, then all Form 1099 payments in excess of $15,000 in that TRSL fiscal year are earnable compensation subject to TRSL employer and employee contributions.
Note: A secondary employer is one who does not report W-2 earnings on this member.
D. Earnable compensation shall include any and all compensation paid to a retiree of this system by a TRSL covered employer regardless of IRS reporting.
AUTHORITY NOTE: Promulgated in accordance with R.S.11:701(10).
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers' Retirement System of Louisiana, LR 30:273 (February 2004).
A. Any retiree receiving a retirement benefit from Teachers’ Retirement System of Louisiana (TRSL), who subsequently returns to work at a school chartered under the provisions of R.S. 17:3971-3982, shall be governed by the return-to-work provisions contained in R.S. 11:707, 737, 738, 739, 780.1, 783.A, or 791, whichever is applicable.
B. Local school systems granting charters will be responsible for reporting to TRSL, in accordance with R.S. 11:707, the employment of any TRSL retiree by the charter school. Failure to report this information will result in penalties assessed in accordance with R. S. 11: 737.
AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3971-3982 and R.S. 11:707, 737, 738, 739, 780.1, 783.A, and 791.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of Teachers’ Retirement System, LR 22:290 (April 1996), repromulgated LR 24:499 (March 1998).
A. General Provisions. If a TRSL member is on involuntary furlough or LWOP anytime during the period of August 29, 2005 through June 30, 2006, due to a gubernatorially declared disaster or emergency, he may purchase service and salary credit for each day of service he was on involuntary furlough or LWOP during this period under this provision if such service is not credited to his account.
TRSL members eligible to purchase service and salary credit under this rule must make application to TRSL prior to remitting any funds.
TRSL must receive certification from the member's employer as follows:
The member was or is on involuntary furlough or on LWOP due to a gubernatorially declared disaster or emergency;
The period of time during which the member was or is on involuntary furlough or LWOP due to a gubernatorially declared disaster or emergency; and
The member's full time salary as of August 29, 2005.
Invoices calculated under this provision will include interest charges at 15 day intervals should the payment become delinquent in accordance with R.S. 11:281.
Monthly payments must be paid after the close of month being purchased. For example: payments due for the month of February 2006 must be paid after February 28, 2006.
Payments to purchase service and salary credit cannot be made in advance. For example, an invoice issued in December 2005 for the January 2006's service and salary credit cannot be paid in December 2005.
DROP and Active-DROP members are not allowed to purchase service credit in accordance with R.S. 11:728(A).
Members may purchase all credit or partial credit while on involuntary furlough or LWOP.
Members may make payment on a month-by-month basis or make a lump sum payment.
Payments may be in the form of a direct payment from the member or a direct trustee-to-trustee transfer from a qualified plan or IRA.
Should a member elect to make payments through his employer, the employer is required to remit the payments to TRSL, along with a Report of Members Purchasing Declared Disaster/Emergency Leave. This separate report must include the member's name, Social Security number, the month/year being purchased, the full-time monthly salary rate, the months of contract, employee contributions and interest, employer contributions and interest, and the date the member made payment to the employer.
Employers who do not remit the employee and employer contributions paid by the member in accordance with R.S. 11:281 will be liable for any delinquent interest.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:163(A)(2)(a) and (C)(2).
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of Teachers' Retirement System of Louisiana LR 32:867 (May 2006).
A. Members of the Teachers’ Retirement System of Louisiana (TRSL), in lieu of terminating employment and accepting a retirement allowance, may elect to participate in the Deferred Retirement Option Plan (DROP) in accordance with R.S. 11:786-791 when the following eligibility requirements for plan participation are met:
Regular Plan members:
25 years of service credit and at least age 55;
20 years of service credit and at least age 65 (excluding military service);
10 years of service credit and at least age 60 (excluding military service);
those members with 10 years of service credit and who are at least age 60 will have retirement benefits calculated using a 2 percent benefit formula;
Food Service Plan A members:
25 years of service credit and at least age 55; and
School Food Service Plan B members:
30 years of service credit and at least age 55; and
10 years of service credit and at least age 60 (excluding military service).
B. DROP participation may begin or end any day of the month. The effective date for participation in DROP will be the date a properly executed DROP application, including the designation of a DROP account beneficiary(ies), is filed in the office of TRSL or the stated effective date on the properly executed DROP application, whichever is later. In the event an employer fails to submit the application in a timely fashion, the provisions of R.S. 11:761 shall apply.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:739 and R.S. 11:786-791.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 18:621 (June 1992), amended LR 18:1419 (December 1992), LR 19:1601 (December 1993), LR 20:1020 (September 1994), LR 21:1267 (November 1995), LR 23:85 (January 1997), repromulgated LR 24:500 (March 1998).
§503. Management of DROP Accounts
A. Deposits to DROP accounts will be effective on the first day of each month of participation in the plan.
B. DROP account statements will be furnished on a quarterly basis as follows:
statements issued during DROP participation will reflect all account deposits for a quarterly period;
statements issued after completion of DROP participation and termination of employment will reflect all account withdrawals for a quarterly period; and
interest earnings will begin accruing the day after termination of DROP participation and will be compounded daily;
members eligible to enter DROP prior to January 1, 2004, will have interest deposited to their DROP accounts once a year when the actuarially realized rate of return is approved by the Public Retirement System's Actuarial Committee. This interest will be equal to the approved actuarially realized rate of return less an administrative fee. Interest deposits will reflect the interest earned on the account during the previous fiscal year and will be entered on quarterly statements issued after this approval is obtained. No interest will accrue on the DROP account after the date the account has been liquidated. No interest is paid on any interest only balance. Liquidated means all funds have been withdrawn from the DROP account except for the possible final interest earnings due but not yet posted;
members eligible to enter DROP on or after January 1, 2004, will have their DROP funds transferred to a Liquid Asset Money Market Account after the termination of DROP participation. Interest will be deposited monthly based on the interest earned on the Liquid Asset Money Market Account less an administrative fee. Final payouts of DROP accounts will have interest posted through the date of the payment. Quarterly statements issued will reflect the interest earned and posted; < LI>
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 18:621 (June 1992), repromulgated LR 24:500 (March 1998), amended LR 25:1655 (September 1999), LR 30:100 (January 2004).
§505. Duration of DROP Participation
A. Participation in DROP may not exceed a period of three consecutive years. In order to participate for the maximum three consecutive years, the member must begin DROP participation within 60 calendar days after the first possible eligibility requirement for participation is met (refer to §501.A). The participation period must end not more than three years and 60 calendar days from the date the member first became eligible to participate. The participation period may only be shortened by the participant’s termination of employment or death.
In lieu of a participation period not to exceed the remainder of the three consecutive year period from date of first eligibility, a member who became eligible for DROP on or before January 1, 1994 may, at any time, select a participation period which may not exceed two consecutive years.
Notwithstanding any other provision of law to the contrary, any member who is participating in the three-year Deferred Retirement Option Plan, as set forth in R.S. 11:786.B, may continue to participate in the plan for an additional period of time which equals the difference between the actual participation of that member in that plan and the three-year maximum term of participation, provided the member satisfies all of the following.
On January 1, 1994, the member was not eligible for the full three-year period because of years of service credit or age requirements, or both.
The member chose to participate in the three-year plan for the maximum period available.
The member is participating in the three-year plan on June 30, 1995.
The member furnishes written notice to the system prior to December 31, 1995 or the end of the participation period that the member initially selected, whichever date occurs first.
Any member of the Teachers’ Retirement System of Louisiana who meets the criteria in §505, including the required written notice, will be allowed to extend their period of DROP participation through December 31, 1996.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:739 and R.S. 11:791.
§507. Retirement Benefits
A. Retirement benefits shall begin on the first day of the month immediately following termination of DROP in all of the following cases:
voluntary termination--the participant, for any reason, elects to withdraw from DROP prior to completing the selected participation period and also terminates employment;
involuntary termination--the participant is terminated by the employer prior to completing the selected participation period and is not rehired by another TRSL employer on the following day; and
completion of selected DROP participation period and termination of employment, except when the DROP participation period is completed on any day other than the last day of any month. In such cases, the DROP account deposit shall be prorated to coincide with the date of completion of DROP participation and termination of employment. Retirement benefits shall begin the day after completion of the DROP participation period and termination of employment.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 18:621 (June 1992), amended LR 18:1419 (December 1992), LR 19:1601 (December 1993), LR 20:1020 (September 1994), LR 21:1267 (November 1995), LR 23:85 (January 1997), repromulgated LR 24:501 (March 1998).
§509. Withdrawal of Funds from a DROP Account
A. Withdrawals from a DROP account are not permitted prior to the termination of DROP participation or during employment which continues immediately following the DROP participation period and shall be limited to the following methods:
withdrawal of the total DROP account balance at the termination of DROP participation and employment;
monthly withdrawals in an amount to be determined by the life expectancy of the participant. This periodic payment shall not vary from month to month (refer to §511.A);
monthly withdrawals based upon an amount to be withdrawn each month, as specified by the participant. This periodic payment shall not vary from month to month, and the amount of the withdrawal must be greater than the amount necessary to liquidate the total account balance within the participant’s life expectancy (refer to §511.A);
annual withdrawals in an amount to be determined by the life expectancy of the participant. This periodic payment shall not vary from year to year. The participant shall select the month in which the annual payment is to be made, and the first payment must be made within the 12-month period immediately following DROP participation and termination of employment (refer to §511.A);
annual withdrawals based upon an amount to be withdrawn each year, as specified by the participant. This periodic payment shall not vary from year to year, and the amount of the withdrawal must be greater than the amount necessary to liquidate the total account balance within the participant’s life expectancy. The participant shall select the month in which the annual payment is to be made, and the first payment must be made within the 12-month period immediately following DROP participation and termination of employment (refer to §511.A); and
one-time partial account balance withdrawal at the beginning of, or during the term of, monthly or annual withdrawals selected in accordance with §509.A.2, 3, 4, or 5. If the one-time partial account balance withdrawal is made before any other withdrawals, the balance of the account will be paid as determined by the withdrawal method selected in accordance with §509.A.2, 3, 4, or 5. If withdrawals have already begun, the duration of the remaining monthly and or annual withdrawals will be redetermined and the appropriate federal tax laws will be applied. If the one-time partial account balance withdrawal is to be made after the monthly or annual withdrawals have begun, the retiree must meet one of the following conditions:
one must have been at least age 55 on the date of his retirement; or
one must be at least 59 1/2 at the time he chooses the one-time single lump sum withdrawal;
changes to the monthly or annual withdrawals may only be made in accordance 511.A;
if a member is 70 1/2 or older when he chooses a partial single sum after withdrawals have begun even though he retired at a younger age, he will have the required minimum distribution calculated using the "Single Life Table" (SLT), or he may choose the "Uniform Lifetime Table" (ULT), or the "Joint and Last Survivor Table" (JLST), whichever applies. The result of using one of these tables may allow a member to lower his monthly or annual withdrawal.
total DROP account balance withdrawal at any time after monthly or annual withdrawals have begun.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:786-791.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 18:621 (June 1992), amended LR 18:1419 (December 1992), LR 19:1601 (December 1993), LR 20:1020 (September 1994), LR 21:1267 (November 1995), LR 23:85 (January 1997), repromulgated LR 24:499 (March 1998), amended LR 28:1031 (May 2002), amended LR 29:2569 (December 2002)
§510. Distributions Provided for by Gulf Opportunity Zone Act of 2005
A. If a participant was impacted by Hurricanes Katrina, Rita, or Wilma they may be able to withdraw funds from their DROP/ILSB account in addition to those normally allowed under §509. In order to receive an additional distribution, the participant must have retired prior to the special withdrawal request.
A qualified hurricane distribution must be made on or after:
August 25, 2005 and before January 1, 2007, to an individual whose principal place of residence on August 28, 2005 was located in the Hurricane Katrina disaster area, and who sustained economic loss due to Hurricane Katrina;
September 23, 2005 and before January 1, 2007, to an individual whose principal place of residence on September 23, 2005 was located in the Hurricane Rita disaster area, and who sustained an economic loss due to Hurricane Rita (but is not a distribution described in Subparagraph B.1.a);
October 23, 2005 and before January 1, 2007, to an individual whose principal place of residence on October 23, 2005 was located in the Hurricane Wilma disaster area, and who sustained an economic loss due to Hurricane Wilma (but is not a distribution described in Subparagraphs B.1.a or b).
The aggregate amount of eligible distributions cannot exceed $100,000 in any tax year. No distribution is allowable greater than the participant's account balance. A qualified distribution is not subject to any penalty that would normally be imposed because of the participant's age, and the distribution is not subject to any mandatory federal income tax withholding.
C. Participants eligible to receive funds under this provision must complete a notarized Hurricane Affidavit attesting to their eligibility.
D. If the participant is married, consent of the participant's spouse is required to receive a Hurricane Katrina, Hurricane Rita, or Hurricane Wilma distribution.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:786-791 and the U. S. Gulf Opportunity Zone Act of 2005.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers' Retirement System of Louisiana, LR 32:867 (May 2006).
§511. Change of DROP Withdrawal Method
A. The participant will have one opportunity per 12-month period to change the chosen withdrawal method and/or amount if the original method selected was either §509.A.2, 3, 4, or 5. Any change must be made in accordance with the life expectancy of the participant.
For participants under age 70 1/2, any change in the withdrawal method must be made in accordance with the life expectancy of the participant at the time of his retirement, and at no time may the disbursement from the account be less than the amount of the originally selected periodic payment.
For participants over age 70 1/2 at the time of the change, the change in the withdrawal method may allow the participant to reduce the disbursement only if the participant was not age 70 1/2 at the time he began withdrawals. Otherwise the rule under §511.A.1 will apply.
B. When the life expectancy of the participant governs the selected periodic withdrawal method, disbursements from the DROP account shall be made in accordance with the "Single Life Table" (SLT) for participants first eligible to begin withdrawing on or after January 1, 2003. Exception: If a retiree is 70 1/2 or older, he must meet a required minimum distribution (RMD) and may request the use of the "Single Life Table" (SLT), "Uniform Lifetime Table" (ULT) or the "Joint and Last Survivor Table" (JLST), whichever applies. Once the election has been made he cannot elect to make a change at a later date.
C. The selection of a withdrawal method and the amount of the periodic payment must be designated by the participant 30 days prior to completion of DROP participation and termination of employment on the form prescribed by the TRSL. Should a participant fail to choose a withdrawal method, or to notify TRSL that employment will continue, TRSL will consider the participant still employed. No benefit will be payable to the participant until official notification of termination of employment, on the prescribed form, is received in the office of TRSL.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:739 and R.S.11:786-791.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 18:621 (June 1992), amended LR 18:1419 (December 1992), LR 19:1601 (December 1993), LR 20:1020 (September 1994), LR 21:1267 (November 1995), LR 23:85 (January 1997), repromulgated LR 24:499 (March 1998), amended LR 24:961 May 1998), LR 28:1032 (May 2002), amended LR 29:2569 (December 2002)
§513. Termination of DROP Participation
A. When termination of the DROP participation period occurs because of the death of the participant, or if the death of the participant occurs in the absence of an executed Affidavit of Plan Election, the provisions of R.S. 11:783 shall apply.
B. In the event of the death of the DROP participant/retiree, a spousal beneficiary shall select a withdrawal method from the options listed in §509.A, and may make changes in accordance with §511. If the disbursements from the account began prior to the participant’s death, the spousal beneficiary may make changes in accordance with §511.
C. In the event of the death of the participant during DROP participation, or after the end of the period of participation, but before total distribution of the DROP account balance, a beneficiary(ies) other than the participant’s surviving spouse shall immediately receive a lump sum equal to the participant’s balance in the DROP account.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana LR 18:621 (June 1992), amended LR 18:1419 (December 1992), LR 19:1601 (December 1993), LR 20:1020 (September 1994), LR 21:1267 (November 1995), LR 23:85 (January 1997), repromulgated LR 24:499 (March 1998), amended LR 28:1032 (May 2002).
§515. Death of Beneficiary
A. In the event of the death of a surviving spousal or nonspousal beneficiary, any remaining DROP account balance will be paid to the estate of the beneficiary.
B. DROP accounts will be subject to all Louisiana laws governing community property, inheritance, and estate matters and will be administered in accordance with applicable state laws and. orders of the court.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 18:621 (June 1992), amended LR 18:1419 (December 1992), LR 19:1601 (December 1993), LR 20:1020 (September 1994), LR 21:1267 (November 1995), LR 23:85 (January 1997), repromulgated LR 24:502 (March 1998).
§517. Affidavit of Plan Election
A. If a member fails to return a completely executed and notarized Affidavit of Plan Election to choose a retirement benefit option by 90 calendar days after his/her receipt of the unsigned affidavit or by 90 calendar days after the beginning of his/her DROP participation, whichever is later, he/she will be deemed not to have elected to participate in DROP. Employee and employer contributions and appropriate interest or actuarial cost must then be remitted to TRSL for the prior period of TRSL employment in order to receive service credit for that period.
B. For purposes of §517.A, the signed affidavit must be postmarked no later than 90 calendar days after receipt by member of the unsigned affidavit or by 90 days after the beginning of his/her DROP participation, whichever is later.
§519. Application for DROP
A. A member shall not begin his DROP participation until TRSL has received a fully completed, signed, and witnessed Application for DROP, Form 11F. TRSL must receive both sides of the Form 11F.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 18:621 (June 1992), amended LR 18:1419 (December 1992), LR 19:1601 (December 1993), LR 20:1020 (September 1994), LR 21:1267 (November 1995), LR 23:85 (January 1997), repromulgated LR 24:499 (March 1998), amended LR 24:962 (May 1998), LR 28:1032 (May 2002).
§521. Teaching Experience
A. Retirees who return to work under the provisions of R.S. 11:739 shall be governed by the following definition of teaching experience. Any work experience which would have qualified the member for TRSL membership under the provisions of R.S. 11:701(23) if the experience had been gained in the Louisiana public education system will be considered teaching experience. Teaching experience will include qualifying work (including work during DROP) in any recognized education setting, whether public or private, including both in-state and out-of-state locations. If the experience is not documented in the member’s file, the member will be responsible for providing documentation from his/her previous employer in a timely manner. Teaching experience will not include unused leave, furlough, strike time, or unpurchased leave without pay.
A. Any person eligible to receive, or receiving, a benefit from the Teachers’ Retirement System of Louisiana (TRSL), may renounce such benefits on the following terms and conditions:
The renunciation shall be unconditional and irrevocable. Once a benefit is renounced, TRSL shall have no further obligation or liability with respect to that benefit, and the person renouncing the benefit shall, under no circumstances, be eligible to receive that benefit.
A base benefit may only be renounced in its entirety. If a base benefit is renounced, there shall be no eligibility for later adjustment of benefits of any kind. An adjustment to a base benefit (cost-of-living adjustment or adjustment for inflation) may only be renounced in its entirety. If an adjustment is renounced, the base benefit need not be renounced.
A benefit may be renounced before or after payment begins. If the renunciation is after the start of payments, any payments received prior to the effective date of the renunciation are not affected.
If the party making the renunciation is married, the spouse must join in the renunciation.
If the person making the renunciation is subject to a court order or community property settlement submitted to and approved by TRSL, in accordance with R.S. 11:291, only that portion of the benefit due the person making the renunciation may be renounced, except as provided for in R.S.11:783.D.
If the person making the renunciation is legally separated or divorced but is not subject to a court order or community property settlement submitted to and approved by TRSL, in accordance with R.S. 11:291, the renunciation must be approved by the court having jurisdiction over the separation or divorce.
If the person making the renunciation is retired and has named a joint and survivor beneficiary, the renunciation cannot affect the joint and survivor beneficiary or benefit, including adjustments to the joint and survivor benefit.
renunciation must be made on a form provided by TRSL and must be executed before a notary public and two witnesses, neither of whom may be a spouse nor presently named beneficiary. The renunciation is effective and irrevocable when received by TRSL and may not be retroactive.
A person revoking, or participating in revocation of a benefit, must hold TRSL harmless from such action.
A revocation may not be used to terminate active participation in TRSL.
Amounts credited to a DROP account cannot be renounced.
TRSL makes no representation with respect to the effect of a revocation on a person’s eligibility for receipt of any state or federal benefits or for participation in any private, local, state, or federal program. Eligibility for or participation in such programs or eligibility for or receipt of such benefits is an issue for which the person making the revocation is solely responsible. Ineligibility for or termination of participation in such programs or benefits shall not affect the irrevocable character of the renunciation.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:826.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 19:1602 (December 1993), repromulgated LR 24:503 (March 1998).
A. Members of the Teachers’ Retirement System of Louisiana (TRSL) retiring on or after July 1, 1995 will have their average compensation (highest 36 consecutive or joined months of earnable salary) computed as follows.
Full 12-month periods beginning before July 1, 1995 will be calculated using the law in effect on the day the 12-month period begins.
Full 12-month periods beginning on or after July 1, 1995 will be calculated using the law in effect on July 1, 1995.
B. A full 12-month period of the highest 36 consecutive or joined months of earnable salary is defined to be months one through 12, or months 13 through 24, or months 25 through 36.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:701(5).
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 21:1266 (November 1995), repromulgated LR 24:503 (March 1998).
A. Any TRSL retiree, beneficiary, or survivor is eligible to participate in a program established for the voluntary deduction from his/her retirement benefit for life, health, supplemental, dental, cancer, or other insurance premiums and for deductions for savings, loans, or other payments to be sent to banks and credit unions.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:821.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 22:1243 (December 1996), repromulgated LR 24:503 (March 1998).
§1103. Application Process
A. Application for participation in the program must be made by the insurance carrier, bank, or credit union which is the provider of the coverage, product, service, or depositor of monies and shall be signed by two officers of the company, bank, or credit union. The completed application must be submitted to TRSL for approval prior to any deductions being withheld from the retiree’s monthly benefit.
§1105. Requirements
A. Domestic companies shall:
have been licensed to do business in the state of Louisiana for not less than five years;
have a current rating in A.M. Best of “B” or better;
have been doing business under the same name for not less than three years;
provide a like product, service, or coverage to citizens of Louisiana;
be in compliance with all procedural, accounting, and reporting requirements governing employee deductions.
B. Foreign companies shall:
have a current rating in A.M. Best of “B+” or better;
offer a like product, service, or coverage to citizens of Louisiana;
C. Companies/credit unions must be regulated by the Department of Insurance or the Office of Financial Institutions.
D. Companies/credit unions are responsible for submitting a computer diskette of monthly deductions to TRSL by the twelfth day of the month preceding the month for which the deduction will be made, using the format and specifications established by TRSL. Diskettes received after the twelfth day will not be processed. Magnetic tapes will be accepted only under certain conditions. All deductions for a single vendor shall be submitted on one monthly diskette, and the retiree will be allowed only one monthly deduction per vendor. This deduction may cover more than one product for a single vendor. Only deductions received on computer tape/diskette will be processed.
E. Companies/credit unions shall be responsible for obtaining and maintaining appropriate deduction authorization from individual retirees. Copies shall be made available to TRSL upon request.
F. Companies/credit unions are responsible for contract/loan terms between companies/credit unions and retirees. TRSL assumes no responsibility for the contract or terms of agreement.
G. Retirees may discontinue any voluntary payroll deduction from their monthly benefit check by providing written notification to the vendor.
H. A retiree cannot authorize total deductions which would cause the net amount of the benefit to fall below $5.
I. Companies/credit unions must have a minimum of 50 TRSL retirees to participate in the program; however, companies will be allowed six months after initial approval to meet the minimum participation requirements.
J. TRSL will not deduct monthly premium amounts for any retiree who owes monies to TRSL or has his/her benefit suspended.
K. Companies/credit unions shall notify TRSL immediately upon learning of the death of a retiree. In the event that TRSL has remitted funds to the company/credit union after the death of a retiree and these funds were not due the retiree, company/credit union shall refund said monies to TRSL after notification.
L. Upon learning of the death of a retiree, even if not notified by the company/credit union, TRSL shall be refunded any monies transmitted, but not due, after notification. The company/credit union will accept the certification of TRSL as to date of death of retiree as sufficient evidence of date of death in regard to any funds owed to TRSL.
§1107. Disclaimer
A. The company/credit union is prohibited from stating that any product offered has been endorsed or approved by TRSL.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 22:1243 (December 1996), repromulgated LR 24:504 (March 1998).
§1109. Transmittal of Withheld Amounts
A. Amounts will normally be transmitted to company/credit union by wire transfer by the tenth of each month. If the tenth is a weekend, the first working day after the tenth will be the date of transmittal. In the event of computer/technical production problems beyond the control of TRSL, it is possible that transmittal of funds would not be made on the tenth day of the month.
B. TRSL will provide the company/credit union a computer printout of the names of individuals, Social Security Numbers, and the amounts withheld.
C. TRSL may adjust printout totals by amounts owed TRSL due to death of an individual. These individuals will be identified by name and Social Security Number.
§1111. Termination of Payroll Deduction
A. The Board of Trustees may terminate the voluntary payroll deduction program by providing the company/credit union with at least 30 days written notice.
B. Immediately upon notice from TRSL individual company/credit unions may be terminated for unethical conduct or practices.
A. Effective July 2, 1995, the Board of Trustees of the Teachers’ Retirement System of Louisiana shall increase the retirement benefit or other benefit of each retiree, or the beneficiary or survivor of any member eligible to receive benefits on account of the death of the member or retiree. This increase in benefit shall be provided from the Employee Experience Account held at the Teachers’ Retirement System of Louisiana.
B. The increase in benefit granted from the Employee Experience Account shall be a monthly increase in the benefit of each eligible recipient, as determined in accordance with the formula, X (A + B + C), where:
B = the number of years since retirement or since death of the member or retiree to July 1, 1994;
C = the number of years of service credit greater than 30 years; and
X = $1.
A = the number of years of credited service accrued at the time of retirement or death of the member or retiree;
C. No increase in benefit shall be paid to any retiree, beneficiary, or survivor unless such person was receiving benefits on, or prior to, July 1, 1994. In addition, no increase in benefits shall be paid to any former participant of the Deferred Retirement Option Plan unless both plan participation and employment were terminated by the plan participant on, or prior to, July 1, 1994.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:787.D and 11:883.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 21:473 (May 1995), repromulgated LR 24:504 (March 1998).
§1303. Cost-of-Living Adjustment--July 1, 1998
A. Effective July 1, 1998, the Board of Trustees of the Teachers’ Retirement System of Louisiana shall increase the retirement benefit or other benefit of each retiree, or the beneficiary or survivor of any member eligible to receive benefits, on account of the death of the member or retiree. This increase in benefit shall be provided from the Employee Experience Account held at the Teachers’ Retirement System of Louisiana.
B. The increase in benefit granted from the Employee Experience Account shall be a monthly increase in the benefit of each eligible recipient as determined in accordance with the formula: $10.00 + W + 2X + Y + 2Z, where:
X = $1 per year since retirement or death of the member or retiree in excess of 10 years as of June 30, 1997;
Y = $1 per year of credited service at the time of retirement or death of the member or retiree;
Z = $1 per year of credited service greater than 25.0 years at the time of retirement or death of the member or retiree
W = $1 per year since retirement or death of the member or retiree to June 30,1997;
C. No increase in benefit shall be paid to any retiree, beneficiary or survivor unless such person was receiving benefits on or prior to June 30, 1997. In addition, no increase in benefits shall be paid to any former participant of the Deferred Retirement Option Plan unless both plan participation and employment were terminated by the plan participant on or prior to June 30, 1997.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:787.D and 11:883.1.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System, LR 24:1138 (June 1998).
A. Terms not otherwise defined in this Chapter shall have the meaning given by the Internal Revenue Code.
B. Whenever used in the plan, each of the following terms has the meaning stated below.
Account—the total of the individual sub‑account(s) maintained on behalf of each participant, beneficiary, or alternate payee under the investment option(s) held pursuant to the plan. The following sub-accounts shall be maintained by the ORP providers: an employer account to which employer contributions shall be credited; and an employee account to which employee contributions shall be credited. The ORP provider shall maintain such other accounts as determined by the ORP provider and the plan administrator.
Alternate Payee—a person who is an alternate payee under an order directed to the plan that the plan administrator or ORP provider has determined to be a domestic relations order.
Applicable Form—a form prescribed by the plan administrator or an ORP provider.
Applicable Law—the law of the state of Louisiana or, where required, federal law, including the Internal Revenue Code.
Beneficiary—the eligible recipient of an annuity or other benefit provided by the plan. A beneficiary shall be a natural person or the succession of a natural person.
Board of Trustees—the board provided for by retirement system law to administer the plan.
Contributions—contributions under the provisions of this plan, including employee contributions and employer contributions.
Distributee—any participant or beneficiary who receives, or but for his/her instruction to the plan administrator or ORP provider is entitled to receive, a distribution. A distributee includes an alternate payee to whom the plan administrator or ORP provider is directed to make a payment under a domestic relations order.
Distribution—as appropriate in the context, any kind of distribution or the particular kind of distribution provided by the plan.
Distribution Commencement Date—the first date on which a distribution (or any payment under a distribution) is paid or becomes payable.
Domestic Relations Order or DRO—a domestic relations order directed to the plan that creates or recognizes the existence of the right of an alternate payee to receive all or a portion of any benefit payable to a participant under the plan and that further meets all requirements for a domestic relations order as applied to a governmental plan.
DRO Distribution—a distribution to an alternate payee required or permitted following a DRO.
Earnable Compensation—the compensation earned by an employee during the full normal working time as a teacher as defined in R.S. 11:701. Earnable compensation shall include any differential wage payment as defined by 26 U.S.C. §3401(h)(2) that is made by an employer to any individual performing qualified military service. Earnable compensation shall not include per diem, post allowances, payment in kind, hazardous duty pay, or any other allowance for expense authorized and incurred as an incident to employment, nor payments in lieu of unused sick or annual leave, nor retroactive salary increases unless such an increase was granted by legislative act or by a city or parish system wide salary increase, nor payment for discontinuation of contractual services, unless the payment is made on a monthly basis. If an employee is granted an official leave and he or she makes contributions for the period of leave, earnable compensation shall not include compensation paid for other employment which would not have been possible without the leave. The board of trustees shall determine whether or not any other payments are to be classified as earnable compensation.
Effective Date—July 1, 1990, which is the effective date of the plan. The implementation of the plan for academic and administrative employees of public institutions of higher education occurred on July 1, 1990. The implementation of the plan for employees of constitutionally established higher education boards occurred on July 1, 1998.
Eligible Employee—has the meaning provided in R.S. 11:921 and 11:928.
Employee Contribution—contributions required from the participant under R.S. 11:927.
Employer—any employer of an employee who makes irrevocable election to be in the plan which includes employees of the Board of Regents, Board of Supervisors of the University of Louisiana System, Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, and Board of Supervisors of Southern University and Agricultural and Mechanical College, or their successors, any other constitutionally established board which manages institutions of higher education, public institutions of higher education, or any other TRSL-covered employer with an employee required to continue participation in the ORP as provided in R.S. 11:928.
Employer Contributions—contributions made by the employer under R.S. 11:927.
Enabling Statute—R.S. 11:921 et seq.
Internal Revenue Code or IRC—the Internal Revenue Code of 1986, as amended, and including any regulations and rulings (or other guidance of general applicability) under the IRC, as applicable to a governmental plan as defined by IRC §414(d).
Investment Option—any investment option offered by the ORP provider.
ORP Provider—a company designated by the Board of Trustees of the Teachers' Retirement System of Louisiana under R.S. 11:924.
Participant—the eligible employee who has irrevocably elected to participate in the plan.
Payout Option—any of the annuity options or other options for payment that is provided in R.S. 11:929. A payout option must satisfy all applicable provisions of the plan.
Personal Representative—the person duly appointed by an order of the court (or of a registrar or administrator under the court’s supervision) having jurisdiction over the estate of the participant that grants the person the authority to receive the property of the deceased participant and to act as the personal representative of the participant’s probate estate.
Plan or ORP—the Louisiana optional retirement plan provided by R.S. 11:921 et seq., and applicable regulations.
Plan Administrator—consistent with R.S. 11:923 and R.S. 11:924, the Teachers' Retirement System of Louisiana Board of Trustees or any successor.
Plan Sponsor—the state of Louisiana.
Regular Retirement Plan—the defined benefit pension plan administered by the Teachers’ Retirement System of Louisiana.
Retirement System Law—those provisions of title 11 of the Revised Statutes of Louisiana that apply generally to the management or administration of this plan or the regular retirement plan of the Teachers' Retirement System of Louisiana.
Rollover Distribution—any eligible rollover distribution that is to be paid directly into an eligible retirement plan as a rollover under IRC §§401(a)(31) and 402.
R.S.—Louisiana Revised Statutes.
SEC—the Securities and Exchange Commission, an agency of the government of the United States of America, established by §4(a) of the federal Securities Exchange Act of 1934.
Severance from Employment—the date the participant terminates employment with an employer with no obligation for future services to be performed for an employer in the plan by the participant.
Spouse—except for the purposes of IRC §§401(a)(9) and 401(a)(31), the individual that is the participant's spouse under applicable law.
State—the state of Louisiana unless the context clearly indicates otherwise.
TRSL—Teachers’ Retirement System of Louisiana.
Trust—the legal entity and the legal relationship created by state law. Consistent with IRC §401(a)(2), the trust must be solely for the purposes of the plan.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:921-929.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 40:2272 (November 2014).
§1503. Plan Year
A. The plan year for the plan shall be the fiscal year commencing July 1 through June 30. The limitation year is the calendar year.
B. The plan administrator and ORP provider shall be entitled to rely on the assumption that a participant's taxable year is the calendar year.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 40:2273 (November 2014).
§1505. Establishment of Plan
A. The plan sponsor and plan administrator intend that the plan conform to the Internal Revenue Code of 1986 requirements for favorable federal tax treatment under IRC §401(a) and is a governmental plan within the meaning of IRC §414(d), with employee contributions picked up under an arrangement consistent with IRC §414(h)(2). Therefore, the plan administrator will construe and interpret the plan to state provisions that conform to the requirements of IRC §401, as applicable to a governmental plan under IRC §414(d). When the Internal Revenue Code is amended through subsequent legislation, or interpreted through revenue rulings, the plan administrator will construe and interpret the plan as stating provisions consistent with such amendment of relevant law.
B. To the extent required for this plan to qualify under IRC §401(a), the provisions of this plan shall be construed, consistent with treasury reg. §1.401-1(b)(1)(i), to provide:
a definite pre-determined formula for allocating contributions and a definite pre-determined formula for allocating investment earnings (and losses) among accounts;
periodic valuation of plan assets (including investment options) and trust assets at least once each year;
periodic valuation of accounts at least once each year; and
distribution of plan accounts after severance from employment or the occurrence of some event.
C. This Chapter states the provisions of an optional retirement plan for the classes of employees covered by R.S. 11:921 et seq. The purpose of the optional retirement plan is set out by R.S. 11:922. The provisions of R.S. 11:921 et seq., are incorporated as if fully set out in this Louisiana Administrative Code.
D. The plan is established and maintained with the intent that the plan conforms to the applicable requirements of the retirement system law. The provisions of the plan shall be interpreted whenever possible to state provisions that conform to the applicable requirements of the enabling statute. When the enabling statute is amended or interpreted through subsequent legislation or regulations or an attorney general opinion, the plan should be construed as stating provisions consistent with such amendment or interpretation of the applicable law. In the event of a conflict between the Louisiana Administrative Code and the enabling statute, the enabling statute will supersede.
E. Subject only to the Constitution of Louisiana, the Louisiana legislature has the right to amend the plan at any time. To the extent consistent with the retirement system law, the plan administrator has the right to amend the plan to implement applicable federal and state law at any time. Any amendment of the plan and trust shall not be effective to the extent that the amendment has the effect of causing any plan assets to be diverted to or inure to the benefit of the plan administrator, ORP provider, or any employer, or to be used for any purpose other than providing benefits to participants and beneficiaries and defraying reasonable expenses of administering the plan and trust.
F. The plan is established for the exclusive benefit of participants and their beneficiaries. Consistent with IRC §401(a)(2), no amount held under the plan will ever inure to the benefit of the plan sponsor, any employer, the plan administrator, the ORP provider or any successor of any of them, and all plan investments and amounts will be held for the exclusive purpose of providing benefits to the plan's participants and their beneficiaries. Notwithstanding anything in the plan to the contrary, plan assets shall not be used for or diverted to purposes other than for the exclusive benefit of participants, beneficiaries, and alternate payees before the satisfaction of all liabilities to participants, beneficiaries, and alternate payees, except that payment of taxes and administration expenses may be made from the plan assets as provided by the plan or permitted by applicable law.
G. Plan contributions are invested, at the direction of each participant, in one or more funding vehicles provided by ORP providers to participants under the plan. Required participant plan contributions are designated picked up so as not to be included in participants' gross income for federal income tax purposes as provided by IRC §414(h)(2).
H. At no time shall the plan assets be used for, or diverted to, any person other than for the exclusive benefit of the employees and their beneficiaries and defraying reasonable expenses of administering the plan, except that contributions made by the employer may be returned to the employer if the contribution was made due to a mistake of fact.
I. The plan, and all acts and decisions taken under it, is binding and conclusive, for all purposes, upon every participant, beneficiary, alternate payee, any person claiming through a participant or beneficiary or alternate payee, all other interested persons, and upon the personal representatives, executors, administrators, heirs, successors and assigns of any and all such persons. The plan shall not affect contracts or other dealings with a person who is not an interested person, unless a written agreement executed by that person expressly so provides.
J. For purposes of the IRC, the plan is a defined contribution money purchase retirement plan under IRC §401(a).
K. The plan is an individual account plan which provides for an individual account for each participant and for benefits based solely upon the amount of contributions, investment gains and losses, fees, and expenses allocated to the participant's account.
L. The United States Code provisions created by title I of the Employee Retirement Income Security Act of 1974 ("ERISA") do not apply to this plan.
M. The plan is a governmental plan within the meaning of 29 USC 1002(32) and IRC §414(d).
N. The Teachers' Retirement System of Louisiana as the plan administrator provides for the administration and maintenance of the ORP pursuant to R.S. 11:921 et seq. The plan administrator may delegate duties to ORP providers to the extent permitted by applicable law.
§1507. Eligibility and Election to Participate
A. Academic and administrative employees of public institutions of higher education and employees of the Board of Regents, Board of Supervisors for the University of Louisiana System, Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, and Board of Supervisors of Southern University and Agricultural and Mechanical College, or their successors, and any other constitutionally established board which manages institutions of higher education who are current employees in the regular retirement plan of the TRSL may make an irrevocable election to participate in the ORP within 180 days after the implementation date of the ORP at their employer institution or board.
B. Academic and administrative employees of public institutions of higher education and employees of the Board of Regents, Board of Supervisors for the University of Louisiana System, Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, and Board of Supervisors of Southern University and Agricultural and Mechanical College, or their successors, and any other constitutionally established board which manages institutions of higher education who are initially employed on or after the implementation date at their employer institution or board may make an irrevocable election to participate in the ORP within 60 days after their employment date.
C. Any academic or administrative employee of a public institution of higher education or employee of the Board of Regents, Board of Supervisors for the University of Louisiana System, Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, or Board of Supervisors of Southern University and Agricultural and Mechanical College, or their successors, and any other constitutionally established board which manages institutions of higher education who is a part-time, seasonal, or temporary employee as defined in 26 CFR 31:3121(b)(7)-2, or in any successor regulation shall be eligible to participate in the ORP upon election by such employee.
D. Notwithstanding the provisions of Subsections A and B of this Section, any academic or administrative employee of a public institution of higher education and any employee of the Board of Regents, Board of Supervisors for the University of Louisiana System, Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, and Board of Supervisors of Southern University and Agricultural and Mechanical College, or their successors, and any other constitutionally established board which manages institutions of higher education who is an active contributing member in the regular retirement plan of the TRSL and who has less than five years of creditable service in the TRSL, may make an irrevocable election to participate in the ORP and transfer his accumulated employee contributions to the ORP under the provisions of R.S. 11:926(A). This election can only be made by a member prior to attainment of five years of creditable service in the TRSL.
E. Elections must be made in writing and filed with the appropriate officer of the employer institution or board, who shall forward a copy of the completed election to the TRSL.
F. The election of employees making an election to participate in ORP as provided in Subsection A of this Section will be effective as of the date they are filed. Elections of eligible employees hired on or after the implementation date of the optional retirement plan at their institution or board as provided in Subsection B of this Section will be effective as of the date of their employment. If an eligible employee fails to make the election provided for in this Section, he shall become a member of the regular retirement plan of the TRSL in accordance with R.S. 11:721.
G. Any person electing to participate in the ORP shall always be ineligible for membership in the regular retirement plan of the TRSL even if he is employed in a position covered by the TRSL, as prescribed by R.S. 11:928.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 40:2274 (November 2014).
§1509. Employee Contributions
A. Each participant shall contribute a mandatory monthly employee contribution percentage into the plan, as provided by law. Each employer shall pick‑up employee contributions for all earnable compensation paid after the effective date. The employee contributions so picked up shall be treated as employer contributions pursuant to IRC §414(h)(2). The employer shall remit the picked up contributions to the TRSL for direct transfer to the ORP provider, instead of paying such amounts to the participants, and such contributions shall be paid from the same funds that are used in paying salaries to participants. Such contributions, although designated as employee contributions, shall be paid by the employer in lieu of contributions by participants. Participants may not elect to receive such contributions directly instead of having them paid by the employer to the plan. Employer contributions so picked up shall be treated for all purposes of the plan and state law, other than federal tax law, in the same manner as employee contributions made without a pick‑up. See PLR 8633052.
B. The entirety of each participant's contribution, less any monthly fee established by the board of trustees to cover the cost of administration and maintenance of the plan, will be remitted to the ORP provider for application to the participant's account.
C. If a participant first became eligible for membership in the TRSL, or the plan, on or after July 1, 1996, the employee contributions remitted by the TRSL to any ORP provider shall not be based on compensation in excess of the annual limit of IRC §401(a)(17) as amended and revised pursuant to IRC §401(a)(17)(B).
D. A participant who attains his or her eligibility for a distribution and continues to be an employee will continue to make employee contributions, and will continue to participate under the plan until his or her severance from employment or the occurrence of some other event. Further, a participant's and spouse's right to his/her account is non-forfeitable as of his/her eligibility for a distribution.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 40:2275 (November 2014).
§1511. Employer Contributions
A. Each employer shall contribute a mandatory monthly employer contribution percentage into the plan, as provided by law. Upon receipt of the employer contribution, the TRSL will promptly forward the amount established in compliance with law to the ORP provider. Such amount paid over to the ORP provider shall be credited to the participant’s account. The TRSL shall retain the balance of the employer contribution for application to the unfunded accrued liability of the TRSL.
B. If a participant first became eligible for membership in the Teachers' Retirement System of Louisiana, or the ORP, on or after July 1, 1996, the employer contributions remitted by the Teachers' Retirement System of Louisiana to any ORP provider shall not be based on compensation in excess of the annual limit of IRC §401(a)(17) as amended and revised pursuant to IRC §401(a)(17)(B).
C. A participant who attains his eligibility for a distribution and continues to be an employee will continue to receive employer contributions, and will continue to participate under the plan until his or her severance from employment or the occurrence of some other event. Further, a participant's and spouse's right to his/her account is non-forfeitable as of his/her eligibility for a distribution.
§1513. Distributions
A. Retirement benefits shall be payable to plan participants or their beneficiaries by the ORP providers. Subject to the provisions of the contract, retirement benefits shall be paid in the form of a lifetime income, unless the participant or beneficiary requests a trustee-to-trustee single-sum cash rollover payment between qualified plans, or payment made directly to an individual retirement account, but death benefits may be paid in the form of a single-sum cash payment paid directly to the beneficiary or estate, whichever is applicable.
B. The ORP provider shall offer ORP participants the following singe-sum cash payments:
direct transfers by and between OPR providers;
an initial benefit payable upon retirement, provided such benefit is approved by the ORP provider. The initial benefit shall not exceed an amount equal to the participant's monthly benefit, payable as a single-life annuity with no guarantees, times 36.
C. Minimum Distribution
1. For purposes of this Section, the following definitions shall apply.
Designated Beneficiary—the individual who is designated as the beneficiary under the plan and is thedesignated beneficiary under IRC §401(a)(9) and treasury regulations section 1.401(a)(9)-1, Q&A-4.
Required Beginning Date—the April 1 of the calendar year following the later of:
i. the calendar year in which the participant attains age 70 1/2 ; or
ii. the calendar year in which the participant retires.
(a). The participant, alternate payee, or beneficiary may elect on the applicable form whether to recalculate life expectancy (or any element of it) to the fullest extent permitted by IRC §401(a)(9)(D). If the participant, alternate payee, or beneficiary does not timely make this election, the participant, alternate payee, or beneficiary is deemed to have elected the "default" method specified by the applicable investment option(s), or to the extent that no method is so specified, that no recalculation shall apply with respect to any individual's life expectancy.
2. The requirements of this Section will take precedence over any inconsistent provisions of the plan. All distributions required under this Section will be determined and made in accordance with IRC §401(a)(9) and the treasury regulations under IRC §401(a)(9). Distributions to a participant and his/her beneficiaries shall only be made in accordance with the incidental death benefit requirements of IRC §401(a)(9)(G) and the treasury regulations thereunder.
3. The participant's entire interest will be distributed, or begin to be distributed, to the participant no later than the participant's required beginning date. If the participant dies before distributions begin, the participant's entire interest will be distributed, or begin to be distributed, no later than as follows.
a. If the participant's surviving spouse is the participant's sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the participant died, or by December 31 of the calendar year in which the participant would have attained age 70 1/2, if later.
b. If the participant's surviving spouse is not the participant's sole designated beneficiary, then distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the participant died.
c. If there is no designated beneficiary as of September 30 of the year following the year of the participant's death, the participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the participant's death.
d. If the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the participant but before distributions to the surviving spouse begin, this Subparagraph, rather than Subparagraph 3.a, will apply as if the surviving spouse were the participant.
4. For purposes of this Section, unless Subparagraph 3.a applies, distributions are considered to begin on the participant's required beginning date. If Subparagraph 3.a applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Subparagraph 3.a. If distributions under an annuity purchased from an insurance company irrevocably commence to the participant before the participant's required beginning date (or to the participant's surviving spouse) before the date distributions are required to begin to the surviving spouse under Subparagraph 3.a, the date distributions are considered to begin is the date distributions actually commence.
5. If the participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of IRC §401(a)(9) and the treasury regulations thereunder.
6. If a distribution is required to begin to a beneficiary and the beneficiary has not filed a claim by the date that is 90 days before the date required by IRC §401(a)(9) (or if the ORP provider has denied a claim and an acceptable claim has not been filed before the applicable date), the ORP provider shall direct payment (or, if provided by the investment option, the ORP provider may without instruction make payment) according to the automatic payout option provided by the applicable investment option(s), or, to the extent not so provided, as a lump sum distribution.
7. If a participant has not furnished evidence of his or her spouse's date of birth, the ORP provider will use the employee's age in determining the minimum distribution period according to treasury reg. §1.401(a)(9)-5/Q&A-4(a) without regard to treasury reg. §1.401(a)(9)-5/Q&A-4(b).
D. Required Minimum Distribution Waiver of 2009
1. Notwithstanding any other provisions of this Section, a participant or beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of IRC §401(a)(9)(H) ("2009 RMDs"), and who would have satisfied that requirement by receiving distributions that are: equal to the 2009 RMDs; or one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the participant’s designated beneficiary, or for a period of at least 10 years ("extended 2009 RMDs"), will not receive those 2009 distributions unless the participant or beneficiary elects to receive such distribution. Participants and beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distributions described in the preceding sentence. However, those participants and beneficiaries who receive required minimum distributions though the automatic payment system will continue to receive 2009 RMDs unless he or she elects not to receive the 2009 RMDs.
2. Notwithstanding any other provisions of the plan, and solely for purposes of applying the rollover provisions of the plan, 2009 RMDs [amounts that would have been required minimum distributions for 2009 but for the enactment of IRC §401(a)(9)(H)] and extended 2009 RMDs (one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the participant’s designated beneficiary, or for a period of at least 10 years), will be treated as eligible rollover distributions.
E. Claim for Distribution
1. Any distribution shall be paid only upon a claim made on the applicable form, and submission of additional information requested by the ORP provider, including but not limited to:
a. if the distribution is made, appropriate evidence that the participant has a severance from employment;
b. if the distribution is an eligible rollover distribution, the distributee's instruction as to whether the distribution (or a portion of the distribution) is to be paid directly to an eligible retirement plan, and if any amount is to be paid directly to an eligible retirement plan, the name and address of the trustee or administrator of that eligible retirement plan together with any other information that the plan administrator, ORP provider, or the eligible retirement plan administrator reasonably requests pursuant to treas. reg. §1.401(a)(31)-1;
c. if the distribution is made on account of the participant's death, appropriate evidence of the participant's death;
d. whenever required by the ORP provider, the date-of-birth of any distributee as relevant to the distribution;
e. if the account consists of more than one investment option, the order in which any investment options are to be charged or redeemed to pay the distribution; and
f. any other evidence or information that the ORP provider finds is relevant to administer a provision of the plan in the participant's or beneficiary's and the distributee's circumstances.
§1515. Rollover Distribution
A. For purposes of this Section, the following definitions shall apply.
Direct Rollover¾a payment by the plan to the eligible retirement plan specified by the distributee.
Distributee¾includes a participant or former participant. It also includes the participant's or former participant's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a domestic relations order. It also includes the participant's or former participant's nonspouse beneficiary who is a designated beneficiary as defined by IRC §401(a)(9)(E). Effective January 1, 2007, and notwithstanding anything in the plan to the contrary that otherwise would limit a distributee's election under this Section, and to the extent allowed under the applicable provisions of the IRC and the treasury regulations, a distributee who is a designated beneficiary, but not a surviving spouse, spouse or former spouse alternate payee may elect, at the time and in the manner prescribed by the plan administrator, to have all or any part of the account that qualifies as an eligible rollover distribution paid in a direct trustee-to-trustee transfer to an eligible retirement plan that is an individual retirement plan described in Clause (i) or (ii) of the IRC §402(c)(8)(B). If such a transfer is made:
a. the transfer shall be treated as an eligible rollover distribution;
b. the individual retirement plan shall be treated as an inherited individual retirement account or individual retirement annuity (within the meaning of IRC §408(d)(3)(C); and
c. IRC §401(a)(9)(B) (other than clause (iv) thereof) shall apply to such individual retirement plans.
Eligible Retirement Plan¾any program defined in IRC §§401(a)(31) and 402(c)(8)(B), that accepts the distributee's eligible rollover distribution, and any of the following:
a. an individual retirement account under IRC §408(a);
b. an individual retirement annuity under IRC §408(b);
c. a qualified trust as described in IRC §401(a), provided that such trust accepts the employee's eligible rollover distribution;
d. an annuity plan as described in IRC §403(a);
e. an eligible deferred compensation plan described in IRC §457(b) which is maintained by an eligible governmental employer under IRC §457(e)(1)(A) (provided the plan contains provisions to account separately for amounts transferred into such plan);
f. an annuity contract under IRC §403(b); or
g. a Roth IRA as described under IRC §408A.
Eligible Rollover Distribution--
a. the distribution of all or any portion of the balance to the credit of an employee from a qualified plan, except that an eligible rollover distribution does not include:
i. any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the participant and the participant's designated beneficiary, or for a specified period of 10 years or more;
ii. any distribution to the extent such distribution is required under IRC §401(a)(9); or
iii. the portion of any distribution that is not includible in gross income, provided that any portion of any distribution that is not includible in gross income may be an eligible rollover distribution for purposes of a rollover to either:
(a). a traditional individual retirement account or individual retirement annuity under IRC §§408(a) or 408(b); or
(b). a qualified trust which is part of a plan which is a defined contribution plan or a defined benefit under IRC §§401(a) or 403(a) or to an annuity contract described in IRC §403(b), and such trust or annuity contract separately accounts for amounts so transferred, including separate accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that is not includible.
b. a qualified rollover contribution to a Roth IRA within the meaning of IRC §408A.
B. Consistent with IRC §401(a)(31), for any distribution that is an eligible rollover distribution, the distributee may elect, at the time and in the manner prescribed by the ORP provider, to instruct the ORP provider to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee. The ORP provider shall provide written information to the distributee regarding eligible rollover distributions no more than 180 days prior to payment of the eligible rollover distribution, to the extent required by IRC §402(f).
C. A current employee in the TRSL who elects participation in the plan shall have the right to have his or her accumulated employee contributions transferred to the plan to purchase benefits thereunder in accordance with R.S. 11:926. A current vested employee in the TRSL or an employee with sufficient years of service credit but who is not old enough to receive a benefit and who elects participation in the plan will have the same rights and privileges accorded by R.S. 11:726.
D. The ORP provider may (but is not required to) commence the distribution less than 30 days after giving an eligible rollover distribution notice only if the following requirements are met. To the extent required by IRC §402(f) and treasury reg. §1.402(c)-2, the ORP provider must inform the distributee in an eligible rollover distribution notice or otherwise that the distributee has a right to a period of at least 30 days after receiving the eligible rollover distribution notice to consider the decision of whether to elect a distribution and any available payout option, and the distributee after receiving the eligible rollover distribution notice must affirmatively elect a distribution.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 40:2277 (November 2014).
§1517. Benefit Limitation
A. Annual additions with respect to a member shall not exceed the lesser of $40,000 (as adjusted pursuant to IRC §415(d) or 100 percent of the member's compensation.
1. For purposes of this Section, the following definition shall apply.
Annual Additions—the sum (for any year) of employer contributions to a defined contribution plan, member contributions, and forfeitures credited to a member's individual account. Member contributions are determined without regard to rollover contributions and to picked-up employee contributions that are paid to a defined benefit plan.
2. For purposes of applying IRC §415(c) and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a limitation year, except as noted below and as permitted by treasury regulation §1.415(c)-2, or successor regulation; provided, however, that member contributions picked up under IRC §414(h) shall not be treated as compensation.
3. Compensation will be defined as wages within the meaning of IRC §3401(a) and all other payments of compensation to an employee by an employer for which the employer is required to furnish the employee a written statement under IRC §§6041(d), 6051(a)(3) and 6052 and will be determined without regard to any rules under IRC §3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed [such as the exception for agricultural labor in IRC §3401(a)(2)].
a. However, for limitation years beginning after December 31, 1997, compensation will also include amounts that would otherwise be included in compensation but for an election under IRC §§125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b).
b. For limitation years beginning after December 31, 2000, compensation shall also include any elective amounts that are not includible in the gross income of the member by reason of IRC §132(f)(4).
B. For limitation years beginning on and after January 1, 2009, compensation for the limitation year shall also include compensation paid by the later of two and one-half months after a member's severance from employment or the end of the limitation year that includes the date of the member's severance from employment if the payment is regular compensation for services during the member's regular working hours, or compensation for services outside the member's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the member while the member continued in employment with the employer.
C. Any payments not described in Subsection B of this Section are not considered compensation if paid after severance from employment, even if they are paid within two and one-half months following severance from employment, except for payments to the individual who does not currently perform services for the employer by reason of qualified military service [within the meaning of IRC §414(u)(1)] to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the employer rather than entering qualified military service.
D. An employee who is in qualified military service [within the meaning of IRC §414(u)(1)] shall be treated as receiving compensation from the employer during such period of qualified military service equal to:
1. the compensation the employee would have received during such period if the employee were not in qualified military service, determined based on the rate of pay the employee would have received from the employer but for the absence during the period of qualified military service; or
2. if the compensation the employee would have received during such period was not reasonably certain, the employee's average compensation from the employer during the twelve month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service).
E. Back pay, within the meaning of treasury regulation §1.415(c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.
F. If the annual additions for any member for a plan year exceed the limitation under IRC §415(c), the excess annual addition will be corrected as permitted under the employee plans compliance resolution system (or similar IRS correction program).
G. For limitation years beginning on or after January 1, 2009, a member's compensation for purposes of this Paragraph shall not exceed the annual limit under IRC §401(a)(17).
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 40:2278 (November 2014).
§1519. Annual Compensation Limitation
A. In addition to other applicable limits stated by the plan and notwithstanding any other provision of the plan to the contrary, the amount of earnable compensation determined for the purposes of the contributions to the plan shall not exceed the limit prescribed by IRC §401(a)(17) as adjusted each year according to IRC §401(a)(17)(B).
B. For purposes of this Section, the following definition shall apply.
Annual Compensation—earnable compensation during the plan year or such other consecutive 12-month period over which compensation is otherwise determined under the plan (the determination period). The cost-of-living-adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.
C. If the plan year or applicable period for determining annual compensation contains fewer than 12 calendar months, then this compensation limit is the amount equal to the annual IRC §401(a)(17) limit for the applicable calendar year during which the compensation period begins multiplied by the ratio that is obtained by dividing the number of full months in the period by 12.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 40:2279 (November 2014).
§1521. Fiduciary Responsibility
A. Any person electing to participate in the plan shall agree to the provisions of the plan in accordance with R.S. 11:929.
B. The ORP providers may not engage in any prohibited transactions.
§1523. Plan Assets
A. Except as provided in Subsection B of this Section, plan assets shall be held by the ORP providers in an individual or group annuity contract, or custodial account which meets the requirements of IRC §401(f) in order to be treated as a qualified trust.
B. A separate trust is hereby established under state law for the purpose of segregating fees to be used for the payment of reasonable plan expenses. This trust shall be administered by the board of trustees.
§1525. Vesting
A. A participant's interest in his/her account shall immediately become and shall at all times remain fully vested and non-forfeitable.
B. The plan shall be construed consistently with IRC §§401(a)(4) and 401(a)(7) as in effect on September 1, 1974.
§1527. Governing Law
A. The plan, and actions under or relating to the plan, and the statute of limitations for such actions shall be governed by and enforced by the laws of the state of Louisiana and shall be construed, to the extent that any construction beyond the written plan is necessary, according to the laws of the state of Louisiana or the Internal Revenue Code or other federal law, where applicable.
B. If, under any application filed by or on behalf of the plan, the IRS determines that the plan as amended and restated does not qualify under IRC §401(a), and the determination is not contested, or if contested, is finally upheld (or otherwise finally determined), the plan administrator may retroactively amend the plan to the earliest date permitted by treasury regulations to the fullest extent that the plan administrator considers necessary to obtain an IRS determination that the plan qualifies under IRC §401(a). Such actions may be taken without further authorization or consent from the plan sponsor, provided amendments are not contrary to state law.
C. If any contribution (or any portion of a contribution) is made by the employer by a good faith mistake of fact, upon receipt in good order of a proper request, the plan administrator or the ORP provider shall return the amount of the mistaken contribution(s), except as limited below, to the employer in accordance with rev. rul. 91-4. The amount of any contribution returned may not exceed the difference between the amount actually contributed and the amount which would have been contributed had there been no mistake of fact and may not include the earnings attributable to such contribution. The amount of the contributions returned must be reduced by any losses attributable to the contribution, and no participant may have his benefit payable hereunder reduced by the return of the contribution to less than such benefit would have been had the returned contribution never been made. The amount of the erroneous contributions will be corrected and returned no later than 30 days after notification of the error if such correction and return can be completed within one year of the erroneous contributions.
D. In any event, any correction under this section shall be made in accordance with the Internal Revenue Service employee plans compliance resolution system (or similar IRS correction program).
§1529. USERRA
A. Notwithstanding any provisions of this plan to the contrary, contributions, benefits, and service credits with respect to qualified military service shall be provided in accordance with the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA") and the Heroes Earnings Assistance and Relief Tax Act of 2008 ("HEART"), IRC §401(a)(37), and IRC §414(u).
Qualified Military Service (as defined by in chapter 43, title 38, United States Code)—the performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty training, initial active duty for training, inactive duty training, full-time National Guard duty, a period for which a person is absent from a position of employment for the purposes of an examination to determine the fitness of the person to perform any such duty, and a period for which a person is absent from employment for the purposes of performing funeral honors duty as authorized by 10 U.S.C. §12503 or 32 U.S.C. §115 if such individual is entitled to reemployment rights under USERRA with respect to such service.
Uniformed Service—the Armed Forces, the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty, the commissioned corps of Public Health Service, and any other category of persons designated by the President of the U.S. in the time of war or national emergency.
C. An eligible employee whose employment is interrupted by qualified military service under IRC §414(u) or who is on a leave of absence for qualified military service under IRC §414(u) shall be entitled to receive any employer contributions that he failed to receive under the plan as a result of his military service, provided he returns to employment with the employer upon receiving an honorable discharge from military service and there is no intervening employment outside of the employment with the employer.
D. Effective January 1, 2009, an eligible employee whose employment is interrupted by qualified military service or who is on a leave of absence for qualified military service and who receives a differential wage payment within the meaning of IRC §414(u)(12)(D) from the employer will be treated as an eligible employee of the employer and the differential wage payment will be treated as compensation for purposes of applying the limits on annual additions under IRC §415(c).
E. Effective January 1, 2007, death benefits payable under the plan shall be paid in accordance with IRC §401(a)(37), which provides that in the case of an eligible employee who dies while performing qualified military service (as defined in IRC §414(u)), the survivors of the eligible employee are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the plan had the eligible employee resumed and then terminated employment with the employer on account of death.
F. Notwithstanding anything in the plan to the contrary, a participant who is a reservist or national guardsman (as defined in 37 U.S.C. §101(24), and who was ordered or called to active duty, after September 11, 2001, for a period in excess of 179 days or for an indefinite period may request, during the period beginning on the date of the order or call to duty and ending at the close of the active duty period, a distribution of all or part of his or her account attributable to salary deferral contributions. The distribution shall be paid to the participant as promptly as practicable after the plan administrator or ORP provider receives the participant's request. If the participant's interest in the plan is invested in more than one of the separate investment options maintained under the plan, a withdrawal of less than the complete balance of the interest shall be withdrawn pro rata from each applicable investment option.
§1531. ORP Providers
A. In the selection of ORP provider(s) as required by law, the board of trustees will, at a minimum, consider the following criteria in the selection process:
1. portability of the contracts offered or to be offered by the company, based on the number of states in which the designated company provides contracts under similar plans;
2. efficacy of the contracts in the recruitment and retention of employees for the various state public institutions of higher education and higher education boards;
3. nature and extent of the rights and benefits to be provided by the contracts for participating employees and their beneficiaries;
4. relation of the rights and benefits to the amount of the contributions to be made pursuant to the provisions of the plan;
5. suitability of the rights and benefits to the needs and interests of participating employees and employers; and
6. ability of the designated company or companies to provide the rights and benefits under such contracts.
B. The TRSL will enter into a contract with each ORP provider. Effective July 1, 2015, each ORP provider contract shall include the “operational guide for ORP providers” developed by the TRSL.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 40:2280 (November 2014).
§1701. Use of Plan Assets
A. At no time shall it be possible for the plan assets to be used for, or diverted to, any person other than for the exclusive benefit of the members and their beneficiaries, except that contributions made by the employer may be returned to the employer if the contribution was made due to a mistake of fact as permitted by revenue ruling 91-4.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the
Teachers’ Retirement System of Louisiana, LR 41:397 (February 2015).
§1703. Heroes Earnings Assistance and Relief Tax Act of 2008
A. Effective January 1, 2007, 26 U.S.C. 401(a)(37), as enacted by the Heroes Earnings
Assistance and Relief Tax Act of 2008, shall apply to the retirement system as provided herein. Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service (as defined in chapter 43 of title 38, United States Code), to the extent required by section 401(a)(37) of the Internal Revenue Code, survivors of a member in a state or local retirement or pension system, are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as accelerated eligibility or survivor benefits that are contingent on the member's death while employed. In any event, a deceased member's period of qualified military service must be counted for eligibility purposes.
B. Effective January 1, 2009, 26 U.S.C. 3401(h)(2), as enacted by the Heroes Earnings Assistance and Relief Tax Act of 2008, shall apply to the retirement system as provided herein. Beginning January 1, 2009, to the extent required by section 414(u)(12) of the Internal Revenue Code, an individual receiving differential wage payments (as defined under section 3401(h)(2) of the Internal Revenue Code) from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under section 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 41:397 (February 2015).
§1705. Domestic Relations Orders
A. If benefits are payable pursuant to a domestic relations order that meets the requirements of section 414(p) of the Internal Revenue Code, then the applicable requirements of section 414(p) of the Internal Revenue Code will be followed by the retirement system.
§1707. Limitations on Contributions and Benefits
A. Adjustments for Form of Benefit
1. If the form of benefit without regard to the automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor annuity, then the adjustment under R.S. 11:784.1(B)(3)(a) is applied by either reducing the section 415(b) of the Internal Revenue Code limit applicable at the annuity starting date or adjusting the form of benefit to an actuarially equivalent amount [determined using the assumptions specified in treasury regulation section 1.415(b)-1(c)(2)(ii)] that takes into account the additional benefits under the form of benefit as described in Subparagraphs A.1.a and b below, as applicable.
a. For a benefit paid in a form to which section 417(e)(3) of the Internal Revenue Code does not apply (generally, a monthly benefit), the actuarially equivalent straight life annuity benefit that is the greater of:
i. the annual amount of the straight life annuity (if any) payable to the member under the plan commencing at the same annuity starting date as the form of benefit to the member; or
ii. the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using a 5 percent interest assumption (or the applicable statutory interest assumption) and:
(a). for years prior to January 1, 2009, the applicable mortality tables described in treasury regulation section 1.417(e)-1(d)(2) (revenue ruling 2001-62 or any subsequent revenue ruling modifying the applicable provisions of revenue rulings 2001-62); and
(b). for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the Internal Revenue Code).
b. For a benefit paid in a form to which section 417(e)(3) of the Internal Revenue Code applies (generally, a lump sum benefit), the actuarially equivalent straight life annuity benefit that is the greatest of:
i. the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience;
ii. the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using a five and one-half percent interest assumption (or the applicable statutory interest assumption); and
(a). for years prior to January 1, 2009, the applicable mortality tables for the distribution under treasury regulation section 1.417(e)-1(d)(2) (the mortality table specified in revenue ruling 2001-62 or any subsequent revenue ruling modifying the applicable provisions of revenue ruling 2001-62); and
(b). for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue Code (notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the Internal Revenue Code); or
iii. the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable (computed using the applicable interest rate for the distribution under treasury regulation section 1.417(e)-1(d)(3) (using the rate in effect for the November prior to the one-year stabilization period, which is the limitation year); and
(b). for years after December 31, 2008, the applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417(e)(3)(B) of the Internal Revenue Code), divided by 1.05.
c. The actuary may adjust the Section 415(b) of the Internal Revenue Code limit at the annuity starting date in accordance with Subparagraphs A.1.a and b above.
d. Benefits For Which No Adjustment of the 415(b) Limit is Required
i. For purposes of this Section, the following benefits shall not be taken into account in adjusting these limits:
(a). any ancillary benefit which is not directly related to retirement income benefits;
(b). that portion of any joint and survivor annuity that constitutes a qualified joint and survivor annuity; and
(c). any other benefit not required under section 415(b)(2) of the Internal Revenue Code and
treasury regulations thereunder to be taken into account for purposes of the limitation of section 415(b)(1) of the Internal Revenue Code.
B. Section 415(c) Limitations on Contributions and Other Additions
1. After-tax member contributions or other annual additions with respect to a member may not exceed the lesser of $40,000 (as adjusted pursuant to section 415(d) of the Internal Revenue Code) or 100 percent of the member's compensation.
a. For the purposes of this Section, the following definition shall apply.
b. For purposes of applying section 415(c) of the Internal Revenue Code and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a limitation year, except as noted below and as permitted by treasury regulation section 1.415(c)-2, or successor regulation; provided, however, that member contributions picked up under section 414(h) of the Internal Revenue Code shall not be treated as compensation.
c. Compensation will be defined as wages within the meaning of section 3401(a) of the Internal Revenue Code and all other payments of compensation to an employee by an employer for which the employer is required to furnish the employee a written statement under sections 6041(d), 6051(a)(3) and 6052 of the Internal Revenue Code and will be determined without regard to any rules under section 3401(a) of the Internal Revenue Code that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in section 3401(a)(2) of the Internal Revenue Code).
i. However, for limitation years beginning after December 31, 1997, compensation will also include amounts that would otherwise be included in compensation but for an election under section 125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b) of the Internal Revenue Code.
ii. For limitation years beginning after December 31, 2000, compensation shall also include any elective amounts that are not includible in the gross income of the member by reason of section 132(f)(4) of the Internal Revenue Code.
iii. For limitation years beginning on and after January 1, 2009, compensation for the limitation year shall also include compensation paid by the later of two and one-half months after a member's severance from employment or the end of the limitation year that includes the date of the member's severance from employment if the payment is regular compensation for services during the member's regular working hours, or compensation for services outside the member's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the member while the member continued in employment with the employer.
(a). Any payments not described in Clause B.1.c.iii above are not considered compensation if paid after severance from employment, even if they are paid within two and one-half months following severance from employment, except for payments to the individual who does not currently perform services for the employer by reason of qualified military service (within the meaning of section 414(u)(1) of the Internal Revenue Code) to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the employer rather than entering qualified military service.
(b). An employee who is in qualified military service (within the meaning of section 414(u)(1) of the Internal Revenue Code) shall be treated as receiving compensation from the employer during such period of qualified military service equal to:
(i). the compensation the employee would have received during such period if the employee were not in qualified military service, determined based on the rate of pay the employee would have received from the employer but for the absence during the period of qualified military service; or
(ii). if the compensation the employee would have received during such period was not reasonably certain, the employee's average compensation from the employer during the twelve month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service).
iv. Back pay, within the meaning of treasury regulation section 1.415(c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.
d. If the annual additions for any member for a plan year exceed the limitation under section 415(c) of the Internal Revenue Code, the excess annual addition will be corrected as permitted under the employee plans compliance resolution system (or similar IRS correction program).
e. For limitation years beginning on or after January 1, 2009, a member's compensation for purposes of this Subsection shall not exceed the annual limit under section 401(a)(17) of the Internal Revenue Code.
C. Service Purchases under Section 415(n)
1. Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the plan, then the requirements of section 415(n) of the Internal Revenue Code will be treated as met only if:
a. the requirements of section 415(b) of the Internal Revenue Code are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of section 415(b) of the Internal Revenue Code; or
b. the requirements of section 415(c) of the Internal Revenue Code are met, determined by treating all such contributions as annual additions for purposes of section 415(c) of the Internal Revenue Code.
2. For purposes of applying this section, the system will not fail to meet the reduced limit under section 415(b)(2)(C) of the Internal Revenue Code solely by reason of this Subsection and will not fail to meet the percentage limitation under section 415(c)(1)(B) of the Internal Revenue Code solely by reason of this Subsection.
3. For purposes of this Subsection, the following definition shall apply.
a. Permissive Service Credit—service credit:
b. Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, such term may include service credit for periods for which there is no performance of service, and, notwithstanding Clause C.3.a.ii above, may include service credited in order to provide an increased benefit for service credit which a member is receiving under the system.
4. The system will fail to meet the requirements of this Subsection if:
a. more than five years of nonqualified service credit are taken into account for purposes of this Subsection; or
b. any nonqualified service credit is taken into account under this Subsection before the member has at least five years of participation under the system.
5. For purposes of Paragraph C.4 above, effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, the following definition shall apply.
a. Nonqualified Service Credit—permissive service credit other than that allowed with respect to:
i. service (including parental, medical, sabbatical, and similar leave) as an employee of the Government of the United States, any state or political subdivision thereof, or any agency or instrumentality of any of the foregoing (other than military service or service for credit which was obtained as a result of a repayment described in section 415(k)(3) of the Internal Revenue Code);
ii. service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in Clause C.5.a.i above) of an education organization described in section 170(b)(1)(A)(ii) of the Internal Revenue Code which is a public, private, or sectarian school which provides elementary or secondary education (through grade 12), or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed;
iii. service as an employee of an association of employees who are described in Clause C.5.a.i above; or
iv. military service (other than qualified military service under section 414(u) of the Internal Revenue Code) recognized by the system.
b. In the case of service described in Clause C.5.a.i, ii or iii above, such service will be nonqualified service if recognition of such service would cause a member to receive a retirement benefit for the same service under more than one plan.
6. In the case of a trustee-to-trustee transfer after December 31, 2001, to which section 403(b)(13)(A) of the Internal Revenue Code or section 457(e)(17)(A) of the Internal Revenue Code applies (without regard to whether the transfer is made between plans maintained by the same employer):
a. the limitations of Paragraph C.4 above will not apply in determining whether the transfer is for the purchase of permissive service credit; and
b. the distribution rules applicable under federal law to the system will apply to such amounts and any benefits attributable to such amounts.
7. For an eligible member, the limitation of section 415(c)(1) of the Internal Revenue Code shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of a Plan as in effect on August 5, 1997. For purposes of this Paragraph, an eligible member is an individual who first became a member in the system before January 1, 1998.
D. Modification of Contributions for 415(c) and 415(n) Purposes
1. Notwithstanding any other provision of law to the contrary, the system may modify a request by a member to make a contribution to the system if the amount of the contribution would exceed the limits provided in section 415 of the Internal Revenue Code by using the following methods.
a. If the law requires a lump sum payment for the purchase of service credit, the system may establish a periodic payment plan for the member to avoid a contribution in excess of the limits under section 415(c) or 415(n) of the Internal Revenue Code.
b. If payment pursuant to Subparagraph a. of this Paragraph will not avoid a contribution in excess of the limits imposed by section 415(c) or 415(n) of the Internal Revenue Code, the system may either reduce the member's contribution to an amount within the limits of those sections or refuse the member's contribution.
E. Repayments of Cashouts
1. Any repayment of contributions (including interest thereon) to the plan with respect to an amount previously refunded upon a forfeiture of service credit under the plan or another governmental plan maintained by the retirement system shall not be taken into account for purposes of section 415 of the Internal Revenue Code, in accordance with applicable treasury regulations.
F. Limitation of Benefits Priority
1. Reduction of benefits and/or contributions to all defined benefit plans sponsored by the state in which the member participated, where required, shall be accomplished by first reducing the member's benefit under the defined benefit plan in which the member most recently accrued benefits and thereafter in such priority as shall be determined by the plan and the plan administrator of such other plans. Necessary reductions may be made in a different manner and priority pursuant to the agreement of the plan and the plan administrator of all other plans covering such member.
G. Limitation Year
1. For purposes of applying the limitations of section 415 of the Internal Revenue Code, the limitation year shall be the calendar year.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 41:398 (February 2015).
§1709. Group Trust Participation
A. The board of trustees may, unless restricted by law, transfer assets of the plan to a collective or common group trust, as permitted under revenue ruling 81-100 and revenue ruling 2011-1 (or subsequent guidance), that is operated or maintained exclusively for the commingling and collective investment of monies, provided that the funds in the group trust consist exclusively of trust assets held under plans qualified under section 401(a) of the Internal Revenue Code, individual retirement accounts that are exempt under section 408(e) of the Internal Revenue Code, eligible governmental plans that meet the requirements of section 457(b) of the Internal Revenue Code, and government plans under section 401(a)(24) of the Internal Revenue Code. For this purpose, a trust includes a custodial account that is treated as a trust under section 401(f) or under section 457(g)(3) of the Internal Revenue Code.
B. For purposes of valuation, the value of the interest maintained by the plan in such group trust shall be the fair market value of the portion of the group trust held for the plan, determined in accordance with generally recognized valuation procedures.
C. The board of trustees may adopt one or more group trust(s) as part of the plan, by executing appropriate participation and/or adoption agreements with the group trust's trustee.
HISTORICAL NOTE: Promulgated by the Department of the Treasury, Board of Trustees of the Teachers’ Retirement System of Louisiana, LR 41:400 (February 2015).