§ 1:271.1. Supplemental funding of DROP accounts; member not subject to early distribution penalty on date of retirement.

A.

Eligibility for the application of this section is limited to those members who have participated in DROP and are not subject to penalty on early distributions from qualified plans under Section 72(t) of the Internal Revenue Code on date of retirement.

B.

In addition to funding deferred retirement option plan (DROP) accounts pursuant to section 1:271, those members eligible under subsection A of this section shall be required to have (1) any severance pay or compensatory time payable by an employer funded directly to the retirement system for credit to the eligible member's account, and/or (2) any separation benefits payable by the retirement system funded directly to the eligible member's account, all funding to occur immediately upon termination of employment.

C.

Limitations relative to vacation time, sick leave, or compensatory time as allowed by the city-parish shall be used for purposes of this section in those cases where limitations for an employer are greater than those of the city-parish. In such cases, the employer shall certify compliance with the applicable city-parish limitations.

D.

This section shall not apply to a member who (1) elects funding of amounts payable under this section to an eligible deferred compensation plan, or (2) is subject to a community property settlement or court order which is dispositive of any amounts payable under this section.

E.

The administration of this section shall be subject to any provision of the Internal Revenue Code which would mandate limitation on its operation.

F.

The provisions of this section shall be effective May 1, 2001.

(Ord. No. 12005, § 1, 4-25-01; Ord. No. 16039, § 1, 8-12-15)