§321. Withdrawal of funds from Deferred Retirement Option Plan accounts by active employees; Hurricane Katrina
A. For purposes of this Section, "retirement system" shall mean any public retirement system in the state.
B. Notwithstanding any other provision of law to the contrary, an individual who is participating or who has participated in the Deferred Retirement Option Plan (DROP) or comparable plan of his retirement system and who is still employed in a position covered by that system shall be allowed to withdraw up to one hundred thousand dollars of all or part of the funds in his DROP account under the provisions of this Section.
C. Such an individual may withdraw funds from his DROP account provided all of the following requirements are met:
(1)On August 28, 2005, the individual was
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§321. Withdrawal of funds from Deferred Retirement Option Plan accounts by active employees; Hurricane Katrina
A. For purposes of this Section, "retirement system" shall mean any public retirement system in the state.
B. Notwithstanding any other provision of law to the contrary, an individual who is participating or who has participated in the Deferred Retirement Option Plan (DROP) or comparable plan of his retirement system and who is still employed in a position covered by that system shall be allowed to withdraw up to one hundred thousand dollars of all or part of the funds in his DROP account under the provisions of this Section.
C. Such an individual may withdraw funds from his DROP account provided all of the following requirements are met:
(1) On August 28, 2005, the individual was domiciled in a parish which has been designated under the Robert T. Stafford Disaster Relief and Emergency Assistance Act as eligible for individual assistance or individual assistance and public assistance.
(2) The individual sustained an economic loss by reason of Hurricane Katrina.
(3) The aggregate amount of such distributions from the account does not exceed one hundred thousand dollars.
(4) Any distribution is made on or after August 25, 2005, and on or before December 31, 2006.
D.(1) If, pursuant to this Section, an individual receives a qualified Hurricane Katrina distribution, the amount of such distribution shall be included in income by the retirement system, generally ratable over the year of the distribution and the following two years in accordance with the Katrina Emergency Tax Relief Act of 2005, referred to in this Section as the "Act", unless the individual elects in writing not to have the ratable distribution apply for any taxable year.
(2) The individual shall be responsible for filing an amended return or returns to claim a refund of the tax attributable to the amount previously included in income if the individual so qualifies under the Act.
(3) Each retirement system shall advise each individual receiving a Hurricane Katrina distribution pursuant to this Section of potential state and federal tax consequences.
E. Each retirement system shall promulgate any rules necessary to implement the provisions of this Section.
F. The provisions of this Section shall supersede any provision of law to the contrary, including but not limited to R.S. 11:449(C), 450(B), 789(B), 1152(H), 1312(J), 1456(I)(2), 1530(J)(2), 1642(B), 1763(J), 1938(J)(2), 2144(I), 2221(J)(1), 2257(J)(2), 3005.1(J)(1)(c), 3039.1(J)(2), 3200(12), 3232(K), 3294(G), 3385.1(K)(2), 3551, and 3685(B)(10)(b).
Acts 2005, 1st Ex. Sess., No. 50, §1, eff. Dec. 6, 2005.