Louisiana Administrative Code
Title 58 - RETIREMENT
Part III - Teachers' Retirement System of Louisiana
Chapter 5 - Deferred Retirement Option Plan (DROP)
Section III-511 - Change of DROP Withdrawal Method

Universal Citation: LA Admin Code III-511

Current through Register Vol. 50, No. 9, September 20, 2024

A. The participant will have one opportunity per 12-month period to change the chosen withdrawal method and/or amount if the original method selected was either §509.A 2, 3, 4, or 5. Any change must be made in accordance with the life expectancy of the participant.

1. For participants under age 72, any change in the withdrawal method must be made in accordance with the life expectancy of the participant at the time of his retirement, and at no time may the disbursement from the account be less than the amount of the originally selected periodic payment.

2. For participants over age 72 at the time of the change, the change in the withdrawal method may allow the participant to reduce the disbursement only if the participant was not age 72 at the time he began withdrawals. Otherwise the rule under §511.A.1 will apply.

B. Except as provided below, when the life expectancy of the participant governs the selected periodic withdrawal method, disbursements from the DROP account shall be made in accordance with the "Single Life Table" (SLT) for participants first eligible to begin withdrawing.

1. If a retiree is 72 or older, he must meet a required minimum distribution (RMD) and may request the use of the "Single Life Table" (SLT), "Uniform Lifetime Table" (ULT) or the "Joint and Last Survivor Table" (JLST), whichever applies. Once the election has been made he cannot elect to make a change at a later date.

C. The selection of a withdrawal method and the amount of the periodic payment should be designated by the participant 30 days prior to disbursement, but no later than 8 business days prior to disbursement, on the form prescribed by the TRSL.

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:826.

Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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