2009 Louisiana Laws TITLE 11 Consolidated public retirement :: RS 11:3690.1 Reversion of funds prohibited

§3690.1.  Reversion of funds prohibited

A.  At no time shall plan assets be used for or diverted to any person other than for the exclusive benefit of the members and their beneficiaries, except that contributions made by the employer may be returned to the employer if the contribution was made due to a mistake of fact and the contribution is returned within one year of the mistaken payment of the contribution.

B.  The amount of any erroneous contribution returned to the employer may not exceed the difference between the amount actually contributed and the amount which would have been contributed had there been no mistake of fact and may not include the earning attributable to such contributions.  The amount of the contribution returned must be reduced by any losses attributable to the contribution, and no participant may have his benefit payable hereunder reduced due to the return of the contribution to less than such benefit would have been had the returned contribution never been made.

C.  Notwithstanding Subsections A and B of this Section, if the system is terminated and all obligations under the system are fully funded and provided for, then any excess funds held by the system shall be returned to the employer.

Acts 1998, 1st Ex. Sess., No. 97, §1, eff. May 5, 1998.