Current through Register Vol. 50, No. 9, September 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to be withdrawn each month, as specified by the participant.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be withdrawn each year, as specified by the participant.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.
B. Selection of the withdrawal method and the
amount of the periodic payment must be complete, correct, and on the form
prescribed by TRSL. The correctly completed prescribed TRSL form should be
received by TRSL 30 days prior to the disbursement, but no later than 8
business days prior to disbursement. Members under age 72 in the year of
retirement must begin withdrawals within 12 months of the date of retirement.
Members age 72 or older in the year of retirement must begin withdrawals by
April 1 of the calendar year following the date of retirement or 12 months
after retirement, whichever is earlier.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
11:826.
