La. Admin. Code tit. 32 § VII-317

Current through Register Vol. 50, No. 8, August 20, 2024

Section VII-317 - Custody of Plan Assets

A. All amounts of compensation deferred under the plan, all property and rights purchased with such amounts, and all income attributable to such amounts, property or rights shall be held for the exclusive benefit of participants and their beneficiaries. The trust requirement of IRC §457(g) shall be satisfied as plan assets and shall be set aside as follows.

1. Plan assets shall be set aside in one or more annuity contracts described in IRC §401(f) The owner of the annuity contract is the "deemed trustee" of the assets invested under the contract for purposes of IRC §457(g)

2. Plan assets shall be set aside in one or more custodial accounts described in IRC §401(f) The bank or trust company shall be the custodian and "deemed trustee" for purposes of IRC §457(g) and shall accept such appointment by executing same. The commission and custodian must enter into a separate written custody agreement.

3. All amounts deferred under the Plan shall be transferred by the employer to the Commission for investment through an account described in §317. A.1 above within 15 business days following the month in which such amounts would have otherwise been paid to the participant.

La. Admin. Code tit. 32, § VII-317

Promulgated by the Department of the Treasury, Deferred Compensation Commission, LR 24:1966 (October 1998), LR 37:1620 (June 2011).

AUTHORITY NOTE: Promulgated in accordance with IRC §457 and R.S. 42:1301-1308.