Current through Register Vol. 50, No. 9, September 20, 2024
A.
Deposits to DROP accounts will be effective on the first day of each month of
participation in the plan. Any DROP account deposit attributable to the first
month of DROP participation shall be prorated to coincide with the first day of
DROP participation. Any DROP account deposit attributable to the last month of
DROP participation shall be prorated to coincide with the last day of DROP
participation.
B. DROP account
statements will be issued on a quarterly basis as follows:
1. statements issued during DROP
participation will reflect all account deposits for a quarterly
period;
2. statements issued after
completion of DROP participation and termination of employment will reflect all
account withdrawals for a quarterly period; and
3. statements issued after completion of DROP
participation and prior to termination of employment will reflect total account
deposits and interest earned for the quarterly period.
4. withdrawal payments from DROP accounts
will be issued on the fifteenth day of each month.
C. Interest earnings will begin accruing the
day after termination of DROP participation and will be calculated on the daily
principal balance and posted annually or monthly as listed below:
1. 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 Systems' 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 Liquidated means all funds have been withdrawn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;
2. 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;
D. Withdrawal
payments from DROP accounts will be issued on the fifteenth day of each
month.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
11:826.
