1. A. Definition

   1. Required Beginning Date of a Participant who is a 5 Percent Owner of an Adopting Employerthe first day of April of the calendar year following the calendar year in which the participant attains age 70 1/2. The required beginning date for benefit distributions to a participant other than a 5 percent owner shall be the first day of April of the calendar year following the calendar year in which the later of the following occurs: the participant attains age 70 1/2, or the participant retires. Once distributions have begun to a 5 percent owner under this Section, they must continue to be distributed, even if the participant ceases to be a 5 percent owner in a subsequent year.

2. B. Annuity Distributions

   1. 1. Benefits due to a member who is eligible for retirement under R.S. 11:1632, 1633, or 1634 shall commence on or before the required beginning date.

   2. 2. Death before Date Distributions Begin. If the member dies before distribution of his or her interest begins, distribution of the member's interest in the applicable account(s) will be distributed or begin to be distributed, no later than as follows.

      1. a. Member Survived by Designated Beneficiary. If the member dies before the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the member’s death is the quotient obtained by dividing the member’s account balance by the remaining life expectancy of the member’s designated beneficiary.
      2. b. No Designated Beneficiary. If the member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the member’s death, distribution of the member’s interest in the applicable account(s) will be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death.
      3. c. Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the member dies before the date distributions begin, the member’s surviving spouse is the member’s sole designated beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under Paragraph C.6 of this Section, this Section will apply as if the surviving spouse were the member.
      4. d. For purposes of this Section, any amount paid to a child of the member will be treated as if it had been paid to the surviving spouse if the amount becomes payable to the surviving spouse when the child reaches the age of majority.
      5. e. For the purposes of this Section, distribution of a member's interest in the applicable account(s) is considered to begin on the member's required beginning date (or, if Subparagraph c of this Paragraph is applicable, the date distribution is required to begin to the surviving spouse pursuant to Subparagraph a of this Paragraph).

3. C. Applicable Accounts

   1. 1. This Subsection shall apply with respect to any account that is part of the system that is considered to be a defined contribution account within the system. This Subsection shall apply to the refund of accumulated contributions as provided in R.S. 11:1635 (hereinafter referred to as “applicable account”).
   2. 2. The applicable account(s) of a member must be distributed or begin to be distributed no later than the member's required beginning date. The first distribution calendar year shall be the calendar year in which the member attains age 70 1/2 or has a severance from employment with the employer maintaining this system, if later. Distribution shall be made over a period not longer than that provided under this Subsection.

   3. 3. Death of Member before Distributions Begin. If the member dies before distributions begin, the member’s applicable account(s) will be distributed, or begin to be distributed, no later than as follows.

      1. a. If the member’s surviving spouse is the member’s sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the member died, or by December 31 of the calendar year in which the member would have attained age 70 1/2, if later.
      2. b. If the member’s surviving spouse is not the member’s sole designated beneficiary, then distributions to the designated beneficiary will be made or will begin by December 31 of the calendar year immediately following the calendar year in which the member died.
      3. c. If there is no designated beneficiary as of September 30 of the year following the year of the member’s death, the member’s applicable account will be distributed by December 31 of the calendar year containing the fifth anniversary of the member’s death.
      4. d. If the member’s surviving spouse is the member’s sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse are required to begin, this Subsection (other than Subparagraph a of this Paragraph) will apply as if the surviving spouse were the member. For purposes of this Subsection, distributions are considered to begin on the member’s required beginning date, or if applicable, on the date distributions are required to begin to the surviving spouse. The date distributions are considered to begin is the date distributions actually commence.
   4. 4. Forms of Distribution. Unless the member’s interest is distributed in a single-sum on or before the required beginning date, as of the first distribution calendar year, distributions will be made in accordance with this Subsection.

   5. 5. Required Minimum Distribution for each Distribution Calendar Year. If the member's interest in the applicable account(s) is to be distributed in other than a single sum, the following minimum distribution rules shall apply on or after the required beginning date.

      1. a. During the member’s lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of:

         1. i. the quotient obtained by dividing the member’s account balance by the distribution period in the uniform lifetime table set forth in 26 CFR §1.401(a)(9)-9, Q and A-2, using the member’s age as of the member’s birthday in the distribution calendar year; or
         2. ii. if the member’s sole designated beneficiary for the distribution calendar year is the member’s spouse, the quotient obtained by dividing the member’s account balance by the number in the joint and last survivor table set forth in 26 CFR §1.401(a)(9)-9, Q and A-3, using the member’s and spouse’s attained ages as of the member’s and spouse’s birthdays in the distribution calendar year.
      2. b. Required minimum distributions will be determined under this Section beginning with the first distribution calendar year and continuing up to, and including, the distribution calendar year that includes the member’s date of death.

      3. c. Member's Benefitthe account balance of the applicable account or accounts as of the last valuation date in the calendar year immediately preceding the distribution calendar year increased by the amount of any contributions allocated to the applicable account balance as of dates in the distribution calendar year with respect to the first distribution year, after the valuation date and decreased by distributions made in the distribution calendar year after the valuation date.

         1. i. For purposes of Subparagraph c of this Paragraph, if any portion of the minimum distribution for the first distribution calendar year is made in the second distribution calendar year on or before the required beginning date, the amount of the minimum distribution made in the second distribution calendar year shall be treated as if it had been in the immediately preceding distribution calendar year.

   6. 6. Required Minimum Distributions after Member’s Death. If the member dies after distribution of his or her applicable account(s) has begun, the remaining portion of such account(s) will continue to be distributed at least as rapidly as under the method of distribution being used prior to the member's death.

      1. a. Member is Survived by Designated Beneficiary. If the member dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the member’s death is the quotient obtained by dividing the member’s account balance by the longer of the remaining life expectancy of the member or the remaining life expectancy of the member’s designated beneficiary, determined as follows.

         1. i. The member’s remaining life expectancy is calculated using the age of the member in the year of death, reduced by one for each subsequent year.
         2. ii. If the member’s surviving spouse is the member’s sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the member’s death using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year.
         3. iii. If the member’s surviving spouse is not the member’s sole designated beneficiary, the designated beneficiary’s remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the member’s death, reduced by one for each subsequent year.
      2. b. No Designated Beneficiary. If the member dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year after the year of the member’s death, the minimum amount that will be distributed for each distribution calendar year after the year of the member’s death is the quotient obtained by dividing the member’s account balance by the member’s remaining life expectancy calculated using the age of the member in the year of death, reduced by one for each subsequent year.

4. D. Deferred Retirement Option Plan (DROP) and Back-Deferred Retirement Option Plan (Back-DROP)

   1. 1. Required Beginning Date

      1. a. The DROP account and/or Back-DROP account of a member shall be distributed, or commence to be distributed, on or before the member’s required beginning date.

   2. 2. Minimum Required Distribution (MRD)

      1. a. Unless a greater amount is elected by the member for a calendar year, the amount to be distributed as the minimum required distribution shall be determined by annuitizing the DROP account and/or back-DROP account of the member over the period equal to the number of years beginning with the first distribution calendar year and continuing for the period equal to the number of whole years of the member’s life expectancy measured from the first distribution calendar year as determined under the uniform lifetime table in 26 C.F.R. §1.401(a)(9)-9. The board shall have authority to designate the interest rate for purposes of calculating the periodic payments. Notwithstanding the foregoing, all payments shall be made from the DROP account or back-DROP account of the member, and no amount shall be paid that is not accrued for the member’s benefit under such account.

   3. 3. Right to Accelerate Payments

      1. a. The member shall have the right to accelerate payments and to receive a distribution of the entire DROP account or back-DROP account in a lump sum.

   4. 4. Rollover

      1. a. If a distribution is made that includes the minimum required distribution for a calendar year, then that minimum required distribution may not be rolled over; however, any amount distributed in excess of the minimum required distribution for any calendar year shall be an eligible rollover distribution and may be rolled over into an eligible retirement plan.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with the provisions of R.S. 11:1588(A), R.S. 11:1635, and the Administrative Procedure Act, R.S. 49:950 et seq.

Historical Note

HISTORICAL NOTE: Promulgated by the Board of Trustees of the District Attorneys’ Retirement System, LR 41:2316 (November 2015), amended LR 43:878 (May 2017).