Louisiana Administrative Code › Title 7 - AGRICULTURE AND ANIMALS › Part VII - Dealers in Farm Products › Chapter 1 - Administration › Section VII-101 - Authority

Current through Register Vol. 50, No. 6, June 20, 2024
Account Balance
-
1. the bookkeeping account maintained with respect to each
				  participant which reflects the value of the deferred compensation credited to
				  the participant, including:
a. the participant's total amount deferred;
b. the earnings or loss of the fund (net of fund expenses)
				  allocable to the participant;
c. any transfers for the participant's benefit; and
d. any distribution made to the participant or the
				  participant's beneficiary:
i. if a participant has more than one beneficiary at the time
				  of the participant's death, then each beneficiary's share of the account
				  balance shall be treated as a separate account for each beneficiary;
2. the
account balance
includes:
a. any account established under §505 for rollover
				  contributions and plan-to-plan transfers made for a participant;
b. the account established for a beneficiary after a
				  participant's death; and
c. any account or accounts established for an alternate payee
				  [as defined in Code §414(p)(8)].
Administrator
or
Plan
				  Administrator
-the person, persons or entity appointed by the Louisiana
				  Deferred Compensation Commission to administer the plan pursuant to LAC
				  32:VII.103.A, if any.
Age 50 or Older Catch-Up
-the deferred amount
				  described pursuant to LAC 32:VII.303.C.
Alternate Payee
-the spouse, former spouse,
				  child or other dependent of a participant who has acquired an interest in the
				  participant's account pursuant to a Qualified Domestic Relations Order (QDRO)
				  pursuant to §1503 Alternate payees shall be treated as beneficiaries for all
				  purposes under the plan except that alternate payees shall be allowed to
				  request a distribution of all or a portion of their account balance at any
				  time, subject to the terms of the QDRO.
Beneficiary
-the person, persons or entities
				  designated by a participant pursuant to §301. A.5 who is entitled to receive
				  benefits under the plan after the death of a participant.
Commission
-the Louisiana Deferred
				  Compensation Commission, as established in accordance with
				  R.S.
				  42:1302, which shall be comprised of the
				  state treasurer, the commissioner of administration, the commissioner of
				  insurance, the commissioner of financial institutions (or their designees), and
				  three participant members (elected by the participants).
Compensation
-all payments paid by the
				  employer to an employee or independent contractor as remuneration for services
				  rendered, including salaries and fees, and, to the extent permitted by treasury
				  regulations or other similar guidance, accrued vacation and sick leave pay paid
				  within 2 and 1/2 months of participant's severance from employment so long as
				  the employee would have been able to use the leave if employment had
				  continued.
Coronavirus-Related Distribution
-shall have
				  the same
meaning as provided in Sec. 2202(a) of the Coronavirus Aid,
				  Relief, and Economic Security Act (the "CARES Act"). The CARES Act defines a
				  coronavirus-related distribution as a distribution made on or after January 1,
				  2020, and before December 31, 2020, to a participant who meets one of the
				  following criteria:
1. the participant is diagnosed with the virus SARS CoV-2 or
				  with coronavirus disease 2019 (COVID19) by a test approved by the Centers for
				  Disease Control and Prevention;
2. the participants
spouse
or
dependent
(as defined in section
				  152 of the Internal Revenue Code
				  of 1986) is diagnosed with such virus or disease by such a test; or
3. the participant experiences adverse financial consequences
				  as a result of being quarantined, being furloughed or laid off or having work
				  hours reduced due to such virus or disease, being unable to work due to lack of
				  child care due to such virus or disease, closing or reducing hours of a
				  business owned or operated by the individual due to such virus or disease, or
				  other factors as determined by the Secretary of the U.S. Treasury.
Custodial Account
-the account established
				  with a bank or trust company meeting the provisions of Internal Revenue Code
				  (IRC) §401(f), that the commission has elected to satisfy the trust requirement
				  of IRC §457(g) by setting aside plan assets in a custodial account.
Custodian
-the bank or trust company or other
				  person, if any selected by the commission to hold plan assets in a custodial
				  account in accordance with regulations pursuant to IRC §457(g)
Deferred Compensation
-the amount of
				  compensation not yet earned, which the participant and the commission mutually
				  agree, shall be deferred.
Designated Roth Account
-a separate account
				  maintained by the plan in accordance with IRC §402A and the regulations
				  thereunder for accepting designated Roth contributions. A designated Roth
				  contribution is an elective deferral that would otherwise be excludable from
				  gross income but that has been designated by the participant who elects the
				  deferral as not being so excludable, or an existing account which is converted
				  to a
designated Roth account
in compliance with the
Internal Revenue Code
.
Employee
-any individual who is employed by
				  the employer, either as a common law employee or an independent contractor,
				  including elected or appointed individuals providing personal services to the
				  employer. Any
employee
who is included in a unit of employees
				  covered by a collective bargaining agreement that does not specifically provide
				  for participation in the plan shall be excluded.
Includible Compensation
-an employee's actual
				  wages in Box 1 of Form W-2 for a year for services to the employer, but subject
				  to a maximum of $200,000 [or such higher maximum as may apply under Code
				  §401(a)(17)] and increased (up to the dollar maximum) by any compensation
				  reduction election under Code §§125, 132(f), 401(k), 403(b), or 457(b) [for
				  purposes of the limitation set forth in §303 A, compensation for services
				  performed for the employer as defined in IRC §457(e)(5)].
Independent Contractor
-an individual (not a
				  corporation, partnership, or other entity), who is receiving compensation for
				  services rendered to or on behalf of the employer in accordance with a contract
				  between such individual and the employer.
Interest
or
Interest in Deferred
				  Compensation
-under the plan, the aggregate of:
1. a participant's deferred compensation for his or her
				  entire period of participation in the plan; and
2. the earnings or losses allocable to such amount. Such
				  interest represents an accounting entry only and does not constitute an
				  ownership interest, right or title in the assets so invested.
Investment Product
-any form of investment
				  designated by the commission for the purpose of receiving funds under the
				  plan.
IRC
-the
Internal Revenue
				  Code
of 1986, as amended, or any future United States Internal Revenue
				  law. References herein to specific section numbers shall be deemed to include
				  treasury regulations thereunder and Internal Revenue Service guidance
				  thereunder and to corresponding provisions of any future United States internal
				  revenue law. All citations to sections of the Code are to such sections as they
				  may from time to time be amended or renumbered.
Limited Catch-Up
-the deferred amount
				  described in LAC 32:VII.305.A.
Non-Elective Employer Contribution
-any
				  contribution made by an employer for the participant with respect to which the
				  participant does not have the choice to receive the contribution in cash or
				  property. Such term may also include an employer matching contribution.
Normal Retirement Age
-
1. the age designated by a participant, which age shall be
				  between:
a. the earliest date on which such participant is entitled to
				  retire under the public retirement system of which that participant is a member
				  without actuarial reduction in his or her benefit; and
b. age 70 1/2, provided, however, that if a participant
				  continues in the employ of the employer beyond 70 1/2,
normal
				  retirement age
means the age at which the participant severs
				  employment;
2. if the participant is not a member of a defined benefit
				  plan in any public retirement system, the participant's normal retirement age
				  may not be earlier than age 65, and may not be later than age 70 1/2. A special
				  rule shall apply to qualified police or firefighters under the plan, if any.
				  Any qualified police or firefighter, as defined under §415(b)(2)(H)(ii)(I), who
				  is participating in the plan may choose a normal retirement age that is not
				  earlier than age 40 nor later than age 70 1/2;
3. if a participant continues to be employed by employer
				  after attaining age 70 1/2, not having previously elected an alternate normal
				  retirement age
,
the participant's alternate normal retirement
				  age shall not be later than the mandatory retirement age, if any, established
				  by the employer, or the age at which the participant actually severs employment
				  with the employer if the employer has no mandatory retirement age.
Participant
-an individual who is eligible to
				  defer compensation under the plan, and has executed an effective deferral
				  authorization.
Participant
also includes an employee or
				  independent contractor who has severance from employment but has not received a
				  complete distribution of his or her interest in deferred compensation under the
				  plan.
Participation Agreement
-the agreement
				  executed and filed by an individual who is eligible to defer compensation under
				  the plan, and has executed an effective deferral authorization.
Pay Period
-a regular accounting period
				  designated by the employer for the purpose of measuring and paying compensation
				  earned by an employee or independent contractor.
Plan
-the State of Louisiana Public Employees
				  Deferred Compensation Plan established by this document and any applicable
				  amendment.
Plan Year
-the calendar year.
Qualified Domestic Relations Order
or
QDRO
-as specified in LAC 32:VII.1503.B.
Qualified Military Service
-any service in
				  the uniformed service (as defined in Chapter 43 of Title 38 of the United
				  States Code as in effect as of December 12, 1994) by any individual if such
				  individual is entitled to reemployment rights under such Chapter with respect
				  to such service.
Section 3121 Participant
-an individual who
				  is using the Plan as a retirement system providing FICA replacement benefits
				  pursuant to IRC §3121(b)(7)(F) and the regulations thereunder.
Separation from Service
or
Separates
				  from Service
-
1. with respect to an employee, the permanent severance of
				  the employment relationship with the employer on account of such
				  employee's:
a. retirement;
b. discharge by the employer;
c. resignation;
d. layoff; or
e. in the case of an employee who is an appointed or elected
				  officer, the earlier of:
i. the taking of the oath of office of such officer's
				  successor; or
ii. the cessation of the receipt of compensation
2. if an employee incurs a break in service for a period of
				  less than 30 days or transfers among various Louisiana governmental entities,
				  such break or transfer shall not be considered a separation from
				  service;
3. with respect to an independent contractor,
separation from service
means that the expiration of all
				  contracts pursuant to services performed for or on behalf of the employer.
Severance from Employment
or
Severs
				  Employment
-
1. the date the employee dies, retires, or otherwise has a
				  severance from employment with the employer, as determined by the administrator
				  (and taking into account guidance issued under the Code). An employee whose
				  employment is interrupted by qualified military service under Code §414(u)
				  shall be deemed severed from employment until such time as he or she is
				  reemployed following the term of duty. A participant shall be deemed to have
				  severed employment with the employer for purposes of this plan when both
				  parties consider the employment relationship to have terminated and neither
				  party anticipates any future employment of the participant by the employer. In
				  the case of a participant who is an independent contractor, severance from
				  employment shall be deemed to have occurred when:
a. the participant's contract for services has completely
				  expired and terminated;
b. there is no foreseeable possibility that the employer
				  shall renew the contract or enter into a new contract for services to be
				  performed by the participant; and
c. it is not anticipated that the participant shall become an
				  employee of the employer;
2. with respect to an employee, the permanent severance of
				  the employment relationship with the employer on account of such
				  employee's:
a. retirement;
b. discharge by the employer;
c. resignation;
d. layoff; or
e. in the case of an employee who is an appointed or elected
				  officer, the earlier of:
i. the taking of the oath of office of such officer's
				  successor; or
ii. the cessation of the receipt of compensation;
3. if an employee incurs a break in service for a period of
				  less than 30 days or transfers among various Louisiana governmental entities,
				  such break or transfer shall not be considered a severance from
				  employment.
Total Amount Deferred
-with respect to each
				  participant, the sum of all compensation deferred under the plan (plus
				  investment gains and/or losses thereon, including amounts determined with
				  reference to life insurance policies) calculated in accordance with the method
				  designated in the participant's participation agreement(s) under which such
				  compensation was deferred and any subsequent election(s) to change methods,
				  less the amount of any expenses or distributions authorized by this
				  plan.
Trustee
-the commission or such other person,
				  persons or entity selected by the commission who agrees to act as
trustee
. This term also refers to the person holding the
				  assets of any custodial account or holding any annuity contract described in
				  LAC 32:VII.317.
Unforeseeable Emergency
-
1. severe financial hardship of a participant or beneficiary
				  resulting from:
a. an illness or accident of the participant or beneficiary,
				  the participant's or beneficiary's spouse, or the participant's or
				  beneficiary's dependent (as defined in IRC §152, and without regard to IRC
				  §152(b)(1), (b)(2), and (d)(1)(B));
b. loss of the participant's or beneficiary's property due to
				  casualty (including the need to rebuild a home following damage to a home not
				  otherwise covered by homeowner's insurance, such as damage that is the result
				  of a natural disaster); or
c. other similar extraordinary and unforeseeable
				  circumstances arising as a result of events beyond the control of participant
				  or beneficiary;
2. the definition of
unforeseeable emergency
does not include either the purchase of a home or the payment of college
				  tuition;
3. The definition of
unforeseeable emergency
includes, but is not limited to, the following:
a. payment of mortgage payments or rent due to imminent
				  foreclosure of or eviction from the participant's or beneficiary's primary
				  residence;
b. the need to pay for medical expenses, including
				  non-refundable deductibles, as well as for the cost of prescription drug
				  medication; and
c. the need to pay for funeral expenses of a spouse or
				  dependent (as defined above) of a participant or beneficiary.
AUTHORITY NOTE:
				  Promulgated in accordance with IRC §457 and
				  R.S.
				  42:1301-1308.