§ 11:2271 — Tax qualification provisions

§2271. Tax qualification provisions
The Firefighters' Retirement System shall be a tax-qualified governmental plan
as provided in the Internal Revenue Code of 1986, as amended. In accordance with
the requirements of the Internal Revenue Code, the following provisions shall apply
to the retirement system:
(1) The assets of the retirement system shall be held for the exclusive benefit
of the members of the retirement system, the retirees thereof, and the survivors and
beneficiaries of the retirees and members. No part of the funds held by the trustees
of the retirement system shall be used or diverted for any reason, including any
contingency or event or by any other means, to other purposes, including but not
limited to reversion to any employer.
(2) The retirement benefit of a member shall be fully vested and nonforfeitable
no later than the date on which he becomes eligible to retire. Benefits of members
shall also become vested and nonforfeitable upon the termination of the system or the
complete discontinuance of contributions to the system.
(3) Forfeitures shall not be used to increase the benefits of the remaining
members of the system. This shall specifically not preclude any increase in benefits
by amendment to the benefit formula made possible by a change in contribution rate,
favorable investment results, or other means.
(4) A member's benefit shall begin to be distributed not later than the latest
date provided for the commencement of benefits for governmental plans under
Section 401(a)(9)(C) of the Internal Revenue Code of 1986, as amended.
Distributions to a surviving spouse, dependent, successor and/or beneficiary of a
member shall be made at least as soon as distributions are required to be made by
qualified governmental plans under the Internal Revenue Code of 1986, as amended.
(5) In computing benefit accruals, there shall not be taken into account
compensation in excess of the limitations specified in Section 401(a)(17) of the
Internal Revenue Code, as amended. Such compensation limit was two hundred
thousand dollars for tax years beginning after December 31, 2001.
(6) The retirement system, its trustees, consultants, and advisors shall not
engage in any prohibited transactions as that term is defined in Section 503 of the
Internal Revenue Code of 1986, as amended.
(7) Amendments to the retirement system required for the purpose of
maintaining continued compliance with the Internal Revenue Code and the
regulations thereunder that do not require legislative action shall be promulgated as
rules in accordance with the Administrative Procedure Act.

Legislative History

Acts 2006, No. 492, §1, eff. July 1, 2006; Acts 2012, No. 480, §1, eff. July 1, 2012.