La. Admin. Code tit. 58 § III-523
Current through Register Vol. 50, No. 11, November 20, 2024
Section III-523 - DROP Distributions Provided for by Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020A. For purposes of this Section, coronavirus-related distribution shall mean a distribution from a participant's Deferred Retirement Option Plan (DROP) account on or after August 3, 2020 and before December 1, 2020, to a participant: 1. who is diagnosed with the virus SARS-CoV-2 or with the coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;2. whose spouse or dependent is diagnosed with such virus or disease by such a test;3. who experiences adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to such virus or disease;4. who experiences adverse financial consequences as a result of being unable to work due to lack of child care due to such virus or disease;5. who experiences adverse financial consequences as a result of closing or reducing hours of a business owned or operated by the individual due to such virus or disease; or6. who meets any other factors as determined by the Secretary of the Treasury of the United States.B. Notwithstanding any other provision of law to the contrary, in addition to any distribution normally allowed under §509, a DROP participant shall be allowed to take a coronavirus-related distribution of all or part of the funds in his DROP account under the provisions of this Section. The aggregate amount of any distributions received by a participant which may be treated as coronavirus-related distributions for the applicable period shall not exceed $100,000.C.1. Any participant applying for a coronavirus-related distribution shall be required to self-certify to the system the participant's eligibility to receive such distribution along with the factors making the participant eligible for such distribution. The system may rely on such self-certification as evidence of eligibility for any coronavirus-related distribution.2. Notwithstanding the above, applicable federal law shall govern a participant's eligibility to receive such coronavirus-related distribution as well as any tax consequences associated with such distribution.3. No distribution is allowable greater than the participants account balance.D. Notwithstanding §509, any DROP participant who has begun receiving regular retirement benefits may receive a coronavirus-related distribution regardless of whether the participant's regular DROP distributions have begun. If a participant is not otherwise required to begin receiving regular DROP distributions, the receipt of a coronavirus-related distribution shall not require a participant to begin receiving regular DROP distributions.E. Notwithstanding §509, a DROP participant may receive a coronavirus-related distribution as a partial account balance withdrawal, regardless of whether or not the participant has already received a one-time partial account balance withdrawal under §509.A 6F. If the participant is married, consent of the participant's spouse is required to receive a coronavirus-related distribution.La. Admin. Code tit. 58, § III-523
Promulgated by the Department of the Treasury, Board of Trustees of the Teachers' Retirement System of Louisiana, LR46AUTHORITY NOTE: Promulgated in accordance with R.S. 11:826.