Current through Register Vol. 50, No. 9, September 20, 2024
A.
Notwithstanding any other provision of law to the contrary that would otherwise
limit a distributee's election under this Section, a distributee may elect, at
the time and in the manner prescribed by the board of trustees, to have any
portion of an "eligible rollover distribution," as specified by the
distributee, paid directly to an "eligible retirement plan," as those terms are
defined below.
B. The following
definitions shall apply.
Direct Rollover - a payment by the system to
the eligible retirement plan specified by the distributee.
Distributee - shall include:
a. a member or former member;
b. the member's or former member's surviving
spouse, or the member's or former member's former spouse with whom a benefit or
a return of employee contributions is to be divided pursuant to
R.S.
11:291(B), with reference to
an interest of the member or former spouse;
c. the member's or former member's non-spouse
beneficiary, provided the specified distribution is to an eligible retirement
plan as defined in Subparagraphs a and b of the definition of eligible
retirement plan in this Section.
Eligible Retirement Plan - any of the
following:
a. an individual retirement
account described in section 408(a) of the Internal Revenue
Code;
b. an individual
retirement annuity described in section 408(b) of the Internal Revenue
Code;
c. an annuity plan
described in section 403(a) of the Internal Revenue
Code;
d. a qualified trust
as described in section 401(a) of the Internal Revenue Code,
provided that such trust accepts the member's eligible rollover
distribution;
e. an eligible
deferred compensation plan described in section 457(b) of the Internal
Revenue Code that is maintained by an eligible governmental employer,
provided the plan contains provisions to account separately for amounts
transferred into such plan; and
f.
an annuity contract described in section 403(b) of the Internal Revenue
Code.
Eligible Rollover Distribution -
any distribution of all or any portion of the balance to the credit of
the distributee, except that an eligible rollover distribution
does not include:
a. any distribution
that is one of a series of substantially equal periodic payments, not less
frequently than annually, made for the life or life expectancy of the member,
or the joint lives or joint life expectancies of the member and the member's
designated beneficiary, or for a specified period of ten years or
more;
b. any distribution to the
extent that such distribution is required under section 401(a)(9) of the United
States Internal Revenue Code; and
c. any distribution which is made upon
hardship of the employee.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
11:1302.1.
