La. Admin. Code tit. 4 § III-901

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

Section III-901 - Establishment

A. The following identified agencies may sponsor and participate in 403(b) plans for the benefit of their qualified education employees through payroll deductions and services afforded by the ISIS Human Resource System:

1. Board of Supervisors for the University of Louisiana System;

2. Louisiana School for the Deaf (renamed as Louisiana Schools for the Deaf and Visually Impaired);

3. Louisiana School for Math, Science and the Arts;

4. Board of Regents;

5. New Orleans Center for Creative Arts;

6. Louisiana Universities Marine Consortium;

7. Department of Education State Activities;

8. Recovery School District; and

9. any other ISIS HR paid agency which meets the Internal Revenue Code requirements applicable to 403(b) plans.

B. Each agency to sponsor a 403(b) plan shall sign an interagency agreement with the Division of Administration, agreeing to sponsor a 403(b) plan written to the agency's specifications. Each written plan, and any amendments made thereto, shall be approved as to form by the Commissioner of Administration through the Office of State Uniform Payroll and shall comply with this rule and all applicable IRS regulations. All plan agreements must be signed by the agency appointing authority and forwarded to the Office of State Uniform Payroll for review. The following plan options shall not be allowed:

1) Roth 403(b) contributions;

2) employer contributions; and

3) 15 year service catch-up options. Any plan may provide for a distribution option at age 59 1/2. All plans shall allow participation by all eligible employees. Loan repayments shall not be handled through payroll deduction. Each agency, with oversight and approval of the Commissioner of Administration through the Office of State Uniform Payroll, shall administer its written 403(b) plan covering qualified ISIS HR paid education employees according to this rule.

C. The Office of State Uniform Payroll shall serve as the payroll agent/paymaster of the plan responsible for directing payroll deductions to the appropriate vendors. Agencies must work with the Office of State Uniform Payroll if a desired vendor does not have a current payroll deduction. The Office of State Uniform Payroll shall delegate any responsibility for making all eligible employees aware of plan participation ("universal awareness") to each individual agency sponsoring a plan. All plans must be monitored for IRS compliance through a plan monitor approved by the Office of State Uniform Payroll. Any 403(b) plan sponsored shall be voluntary, shall be designated as non-ERISA, and shall be non-contributory on the part of any sponsor, employer or agency of the state.

D. Sponsoring agencies, in cooperation with the Division of Administration, are authorized to enter into contracts with commercially available plan monitors at no cost to the sponsor, employer or agency of the state, to assist in formulating, instituting and monitoring their 403(b) Tax Shelter Annuity plans. Once adopted, any 403(b) plan shall be managed by the sponsor in the best interests of the participating employees, subject to any rule or regulation adopted by the Division of Administration. Nothing shall prevent the Division of Administration from adopting emergency rules from time to time regarding the duties and operation of sponsored plans.

E. The Office of State Uniform Payroll may develop internal policies and forms whenever necessary to regulate the following:

1. submission of 403(b) plans and amendments for approval;

2. approval of 403(b) plan documents and amendments;

3. content and acceptance of interagency agreements;

4. approval of proposed vendors and plan monitors; and

5. payroll deductions.

F. If the Division of Administration determines that continued sponsorship of any 403(b) Tax Shelter Annuity plan for state employees paid through ISIS Human Resource System is not in the best interests of the state, it shall cause the sponsoring agencies to give adequate notice to the participants prior to terminating the plan, and shall cause the sponsoring agencies to comply with all applicable IRS regulations related to dissolving 403(b) plans.

La. Admin. Code tit. 4, § III-901

Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 37:1404 (May 2011).

AUTHORITY NOTE: Promulgated in accordance with R.S. 42:455 (A).