La. Admin. Code tit. 58 § III-1509

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

Section III-1509 - Employee Contributions

A. Each participant shall contribute a mandatory monthly employee contribution percentage into the plan, as provided by law. Each employer shall pick-up employee contributions for all earnable compensation paid after the effective date. The employee contributions so picked up shall be treated as employer contributions pursuant to IRC §414(h)(2) The employer shall remit the picked up contributions to the TRSL for direct transfer to the ORP provider, instead of paying such amounts to the participants, and such contributions shall be paid from the same funds that are used in paying salaries to participants. Such contributions, although designated as employee contributions, shall be paid by the employer in lieu of contributions by participants. Participants may not elect to receive such contributions directly instead of having them paid by the employer to the plan. Employer contributions so picked up shall be treated for all purposes of the plan and state law, other than federal tax law, in the same manner as employee contributions made without a pick-up. See PLR 8633052.

B. The entirety of each participant's contribution, less any monthly fee established by the board of trustees to cover the cost of administration and maintenance of the plan, will be remitted to the ORP provider for application to the participant's account.

C. If a participant first became eligible for membership in the TRSL, or the plan, on or after July 1, 1996, the employee contributions remitted by the TRSL to any ORP provider shall not be based on compensation in excess of the annual limit of IRC §401(a)(17) as amended and revised pursuant to IRC §401(a)(17)(B)

D. A participant who attains his or her eligibility for a distribution and continues to be an employee will continue to make employee contributions, and will continue to participate under the plan until his or her severance from employment or the occurrence of some other event. Further, a participant's and spouse's right to his/her account is nonforfeitable as of his/her eligibility for a distribution.

La. Admin. Code tit. 58, § III-1509

Promulgated by the Department of the Treasury, Board of Trustees of the Teachers' Retirement System of Louisiana, LR 402275 (11/1/2014).

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:921-929.