La. Admin. Code tit. 32 § VII-709

Current through Register Vol. 50, No. 11, November 20, 2024

Section VII-709 - Unforseeable Emergency

A. If a participant has incurred a genuine unforeseeable emergency and no other resources of financial relief are available, the commission may grant, in its sole discretion, a participant's request for a payment from the participant's account. Any payment made under this provision shall be in a lump sum.

1. The commission shall have the right to request and review all pertinent information necessary to assure that hardship withdrawal requests are consistent with the provisions of IRC §457.

2. In no event, however, shall an unforeseeable emergency distribution be made if such hardship may be relieved:

a. through reimbursement or compensation by insurance or otherwise;

b. by liquidation of the participant's assets, to the extent the liquidation of the participant's assets would not itself cause a severe financial hardship; or

c. by cessation of deferrals under this plan.

3. The amount of any financial hardship benefit shall not exceed the lesser of:

a. the amount reasonably necessary, as determined by the commission, to satisfy the hardship; or

b. the amount of the participant's account.

4. Payment of a financial hardship distribution shall result in mandatory suspension of deferrals for a minimum of 6 months from the date of payment (or such other period as mandated in treasury regulations).

B. The following events are not considered unforeseeable emergencies under the Plan:

1. enrollment of a child in college;

2. purchase of a house;

3. purchase or repair of an automobile, except due to a casualty loss or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant or beneficiary;

4. repayment of loans (unless the loan was the direct result of an unforeseeable emergency, as defined in section 101 of the plan);

5. payment of income taxes, back income taxes, or fines associated with back income taxes (except for income taxes which result from a distribution made in connection with an unforeseeable emergency, as defined in section 101 of the plan);

6. marital separation or divorce; or

7. bankruptcy (except when bankruptcy resulted directly from an unforeseeable emergency, as defined in section 101 of the plan).

La. Admin. Code tit. 32, § VII-709

Promulgated by the Department of the Treasury, Deferred Compensation Commission, LR 24:1968 (October 1998), amended LR 28:1498 (June 2002), LR 32:122 (January 2006), LR 37:1621 (June 2011).

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