Current through Register Vol. 50, No. 9, September 20, 2024
A. If a member continues in covered
employment after termination of his participation in the DROP, the member shall
accrue a second retirement benefit based on his additional covered employment
performed following the date of termination of his DROP participation, using
the normal method of computation of benefits, subject to the following
conditions.
1. New System Member
a. If the member originally retired from the
new system, and his period of additional covered employment after termination
of DROP participation is less than 48 months, the average compensation figure
used to calculate the additional benefit accruals shall be that used to
calculate the member's original benefit.
b. If the member originally retired from the
new system, and his period of additional covered employment after termination
of DROP participation is 48 months or more, the average compensation figure
used to calculate the additional benefit accruals shall be based on the
member's compensation earned during the period of post-DROP service.
2. Old System Member
a. If the member originally retired from the
old system and his period of additional covered employment is less than 12
months, the average compensation figure used to calculate the additional
benefit shall be that used to calculate the member's original
benefit.
b. If the member
originally retired from the old system and his period of additional covered
employment is 12 months or more, the average compensation figure used to
calculate the additional benefit shall be based on the member's compensation
during the period of additional service.
3. If the member was first employed before
December 31, 1967 but originally elected to retire from the new system, that
election shall also apply to and determine the additional benefits accrued for
post-DROP service.
B.
The distribution option under
R.S.
11:3385 originally selected by the new system
member upon entering into the DROP shall also apply to any additional benefits
accrued during the period of additional covered employment.
C. The beneficiary designated by the member
upon entry into the DROP shall also be the beneficiary or beneficiaries
designated in connection with the additional benefits accrued; however, in the
event the member's designated beneficiary has predeceased the member, the
member may designate a new beneficiary or beneficiaries for purposes of the
additional retirement benefit only.
D. If, following a period of additional
covered employment performed after leaving the DROP, the board determines that
the member is disabled pursuant to
R.S.
11:3376 and is therefore eligible to receive
a service-connected disability benefit, the following terms and conditions
shall apply.
1. The amount of the
service-connected disability benefit shall be in the same amount and calculated
as a service retirement benefit based only on the credited service accrued
subsequent to the date of the member's termination of participation in the
DROP.
2. The fund shall distribute
to the member, upon his written application to the fund office, a lump sum
payment in an amount specified by the member. Provided, however, that the
member may not elect to withdraw an amount less than $1,000, or more than the
balance in his DROP account at the time the application is filed with the board
of trustees.
3. The member's
monthly benefit payments attributable to both the original and the additional
benefits shall be paid directly to the retiree.
4. All monthly benefits paid and payable to
the member, as well as his DROP account balance, shall be classified by the
fund as service-connected disability benefits and shall be so reported on all
necessary filings made by the fund to the Internal Revenue Service.
5. Under no circumstances shall the original
benefit amount or the DROP account balance be recalculated, for any
purpose.
E. In no event
shall the member's additional retirement benefit exceed an amount which, when
combined with the original benefit, equals 100 percent of the average of any
three highest consecutive years of compensation earned by a member who elected
to retire under the old system, or 100 percent of the average of any four
highest consecutive years of compensation earned by a member who elected to
retire under the new system, both during participation and after withdrawal
from the DROP.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
11:3363 and
3385.1.
