Louisiana Administrative Code › Title 58 - RETIREMENT › Part III - Teachers' Retirement System of Louisiana › Chapter 5 - Deferred Retirement Option Plan (DROP) › Section III-509 - Withdrawal of Funds from a DROP Account

Current through Register Vol. 50, No. 6, June 20, 2024
A. Withdrawals from a DROP account may begin
				after the first regular retirement benefit has been issued. 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:
1. withdrawal of the total DROP account
				balance at the termination of DROP participation and employment;
2. 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);
3. 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				to be withdrawn each month, as specified by the participant.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);
4. 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);
5. 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				be withdrawn each year, as specified by the participant.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
6.
a.
				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:
i.
				participant must have been at least age 55 in the year of participant's
				retirement; or
ii. participant must
				be at least 59 1/2 at the time participant chooses the one-time single lump sum
				withdrawal;
b. changes
				to the monthly or annual withdrawals may only be made in accordance §511 A;
c. if a member is 72 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;
7. total DROP account balance withdrawal at
				any time after monthly or annual withdrawals have begun.