2006 Louisiana Laws - RS 11:1642 — Termination of participation

§1642.  Termination of participation

A.  Upon termination of participation in both the Deferred Retirement Option Plan and employment, a participant shall:

(1)  At the participant's option, receive either a lump sum payment from the account equal to the amount then credited to his individual subaccount; or systematic disbursements based on his individual subaccount in any manner approved by the board.

(2)  Begin to receive regular monthly retirement benefits based on the option selected at the time of election to participate in the plan, as adjusted pursuant to Subsection D of this Section.

(3)  Have the custodian of the system's assets segregate in a subaccount those funds in the Deferred Retirement Option Plan Account attributable to the member who has terminated employment.  Upon termination of employment, funds in such subaccounts shall be placed in liquid asset money market investments at the discretion of the board of trustees.  Such subaccounts shall be credited with interest at the actual rate of return earned in such subaccount investments as certified by the custodian of this system's assets.  The total amount of any disbursements from the member's subaccount shall in no case be less than the amount of funds credited to the member's subaccount at the time of termination of participation in the plan.

B.  Upon termination of participation in the plan but not employment, credits to the account shall cease, and no retirement benefits shall be paid to the participant until employment is terminated.  No payment shall be made based on credits to the account until employment is terminated.  Employee contributions shall resume in full, and the participant shall resume full membership in the retirement system.

C.  If the participant dies while still employed, his credits and benefits, if any, due beneficiaries shall be payable as if he had retired immediately prior to death, and the credits attributed to his subaccount shall be payable to his estate, or in any manner approved by the board.

D.  Monthly retirement benefits payable to a participant after termination of participation in the plan and employment shall be calculated as follows:

(1)  There shall be a "base benefit" which shall equal the participant's monthly credit to the account.

(2)  If the participant does not continue employment after termination of participation in the plan, his monthly retirement benefit shall equal his base benefit.

(3)  If the participant continues employment after termination of participation in the plan for a period of less than thirty-six months, his monthly retirement benefit shall equal his base benefit plus an amount based upon the service credit for the additional employment, based upon the final average compensation used to calculate the monthly credit.

(4)  If the participant continues employment after termination of participation in the plan for a period of thirty-six months or more, his monthly retirement benefit shall equal his base benefit plus an amount based upon his service credit for the additional employment, based upon the final average compensation for the period of employment after termination of participation in the plan.

Acts 1991, No. 75, §1, eff. Jan. 1, 1992; Redesignated from R.S. 16:1053 by Acts 1991, No. 74, §5, eff. June 25, 1991; Acts 1993, No. 234, §1, eff. June 1, 1993; Acts 2003, No. 686, §1.