Louisiana Administrative Code
Title 58 - RETIREMENT
Part XI - Parochial Employees' Retirement System
Chapter 5 - Scope of Benefits
Section XI-503 - Early Payment of Benefits
Universal Citation: LA Admin Code XI-503
Current through Register Vol. 50, No. 9, September 20, 2024
A. In the event of plan termination, the benefit of any highly compensated employee including an active highly compensated employee and a former employee who was a highly compensated employee, is limited to a benefit that is nondiscriminatory under Internal Revenue Code, Section 401(a)(4) (see 26 U.S.C. 401 et seq.)
B.
1. For
plan years beginning on or after January 1, 1991, benefits distributed to any
of the 25 most highly compensated active and former highly compensated
employees are restricted such that the annual payments are no greater than an
amount equal to the payment that would be made on behalf of the employee under
a single life annuity that is the actuarial equivalent of the sum of the
employee's accrued benefit and the employee's other benefits under the
plan.
2. Subsection A of this
Section shall not apply if:
a. after the
payment of the benefit to an employee described in Paragraph 1 of this
Subsection, the value of plan assets equals or exceeds 110 percent of the value
of current liabilities as defined in Internal Revenue Code
Section 412(1)(7); or
b. the value
of the benefits for an employee described above is less than 1 percent of the
value of current liabilities.
3. For purposes of this Section, benefit
includes loans in excess of the amount set forth in Internal Revenue
Code Section 72(p)(2)(A), any periodic income, any withdrawal values
payable to a living employee, and any death benefits not provided for by
insurance on the employee's life.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1931.
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