Louisiana Administrative Code › Title 32 - EMPLOYEE BENEFITS › Part VII - Public Employee Deferred Compensation › Subpart 1 - Deferred Compensation Plan › Chapter 3 - Plan Participation, Options and Requirements › Section VII-301 - Enrollment in the Plan

Current through Register Vol. 50, No. 6, June 20, 2024
A. The
				  following applies to compensation deferred under the plan.
1. A participant may not defer any
				  compensation unless a deferral authorization providing for such deferral has
				  been completed by the participant and is filed in good order with the
				  administrator. Such election shall become effective no earlier than the first
				  payroll period after the first day of the month after such new election is
				  made, and shall continue in effect until modified, disallowed or revoked in
				  accordance with the terms of this plan, or until the participant ceases
				  employment with the employer. With respect to a new employee, compensation will
				  be deferred in the payroll period during which a participant first becomes an
				  employee if a deferral authorization providing for such deferral is executed on
				  or before the first day on which the participant becomes an employee. Any prior
				  employee who was a participant in the plan and either revoked their participant
				  agreement, or is rehired by employer, may resume participation in the plan by
				  entering into a participation agreement, which shall take effect no earlier
				  than the first payroll period after the first day of the month after such new
				  participation agreement is entered into by the participant and accepted by the
				  administrator. Any distributions being taken from this plan are to be
				  terminated prior to the resumption of deferrals under the plan. Additionally,
				  if distributions had not begun pursuant to a prior severance from employment,
				  any deferred commencement date elected by such employee with respect to those
				  prior plan assets shall be null and void.
2. In signing the participation agreement,
				  the participant elects to participate in this plan and consents to the deferral
				  by the employer of the amount specified in the participation agreement from the
				  participant's gross compensation for each pay period. Such deferral shall
				  continue in effect until modified, disallowed or revoked in accordance with the
				  terms of this plan. Unless the election specifies a later effective date, a
				  change in the amount of the deferral shall take effect as of the first payroll
				  period after the first day of the next following month, or as soon as
				  administratively practicable, if later.
3. The minimum amount of compensation
				  deferred under a deferral authorization shall be no less than $20 each month;
				  provided, however, that such minimum deferral shall not apply to a participant
				  whose deferral authorization (or similar form) in effect on October 1, 1984,
				  permitted a smaller deferral, or to a participant who elects to defer not less
				  than 7.5 percent of compensation (voluntary and/or involuntary contributions)
				  in lieu of Social Security coverage (§11332 of the Social Security Act and
				  IRC §3121). The employer retains the right to establish minimum deferral
				  amounts per pay period and to limit the number and/or timing of enrollments
				  into the plan in the participation agreement.
4. Notwithstanding
				  §301.
				  A 1, to the extent permitted by applicable
				  law, the administrator may establish procedures whereby each employee becomes a
				  participant in the plan (automatic enrollment) and, as a term or condition of
				  employment, elects to participate in the plan and consents to the deferral by
				  the employer of a specified amount for any payroll period for which a
				  participation agreement is not in effect. In the event such procedures are in
				  place, a participant may elect to defer a different amount of compensation per
				  payroll period, including zero, by entering into a participation agreement.
a. Within a reasonable period of time before
				  each plan year, the commission shall give to each employee to whom an automatic
				  enrollment arrangement described in
				  §301.
				  A.4 applies for such year notice of the
				  employee's rights under such arrangement.
b. The notice provided for in
				  §301.
				  A.4.a above shall provide an explanation of
				  the employee's rights and obligations under the arrangement, including the
				  right to elect not to have contributions made on the employee's behalf or to
				  have such contributions made at a different percentage. The notice shall also
				  provide an explanation of how contributions made under the arrangement will be
				  invested in the absence of any investment election by the employee.
5. Investment Selection and
				  Beneficiary Designation
a. The participation
				  election, or such other form as approved by the administrator, shall include
				  the employee's designation of investment funds. Any such election shall remain
				  in effect until a new election is filed. A change in the investment direction
				  shall take effect as of the date provided by the administrator on a uniform
				  basis for all employees.
b. Each
				  participant shall initially designate in the participation agreement a
				  beneficiary or beneficiaries to receive any amounts, which may be distributed
				  in the event of the death of the participant prior to the complete distribution
				  of benefits. A participant may change the designation of beneficiaries at any
				  time by filing with the commission a written notice on a form approved by the
				  commission. If no such designation is in effect at the time of participant's
				  death, or if the designated beneficiary does not survive the participant by 30
				  days, his beneficiary shall be his surviving spouse, if any, and then his
				  estate.
6. Information
				  Provided by the Participant. Each employee enrolling in the plan should provide
				  to the administrator at the time of initial enrollment, and later if there are
				  any changes, any information necessary or advisable, in the sole discretion of
				  the administrator, for the administrator to administer the plan, including,
				  without limitation, whether the employee is a participant in any other eligible
				  plan under Code §457(b)