La. Admin. Code tit. 58 § I-2713

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

Section I-2713 - Time for Disbursement

A. The DROP account must be totally disbursed within the expected lifetime of the participant in accordance with federal laws. The expected lifetime is determined based on the age of the participant on the date of termination. All funds from the DROP account must be withdrawn in accordance with the Internal Revenue Services Guidelines.

B. Disbursements from the DROP accounts shall be made on the first day of each month; if the first is a weekend or holiday, the disbursement shall be made on the following workday.

C. When a retiree reaches age 73, mandatory annual distributions shall begin in accordance with IRS regulations. The amount of the distributions will be recalculated annually.

D. Requested withdrawals from DROP accounts which would leave a balance in that account of $500 or less shall be processed as a request for disbursement of the entire balance. All such withdrawal requests shall result in the closing of the account. LASERS may, at its option, conduct audits to identify DROP accounts with a balance of $500 or less and may disburse the entire amount to the person in whose name the account exists or to their beneficiary after giving notice of at least 30 days prior to disbursement.

La. Admin. Code tit. 58, § I-2713

Promulgated by the Department of Treasury, Board of Trustees of the State Employees' Retirement System, LR 22:373 (May 1996), amended LR 25:2466 (December 1999), LR 29:1121 (July 2003), LR 30:2079 (September 2004), LR 32:1070 (June 2006), LR 35:2476 (November 2009), Amended LR 461695 (12/1/2020), Amended LR 491752 (10/1/2023).

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:515.