Louisiana Administrative Code › Title 32 - EMPLOYEE BENEFITS › Part VII - Public Employee Deferred Compensation › Subpart 1 - Deferred Compensation Plan › Chapter 1 - Administration › Section VII-101 - Definitions

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.
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.