§2257.1. Self-directed Deferred Retirement Option Plan investment account

            A. The board of trustees shall select a third-party provider to administer a self-directed investment program for Deferred Retirement Option Plan accounts.

            B. The third-party provider selected shall act as an agent of the system for the purpose of investing the balance in the self-directed account of the participant as directed by the participant. The participant shall be given investment options that comply with federal law for the self-directed plan; however, the provider shall have as an investment option a stable value fund that preserves the participant's principal.

            C. Prior to participation in the self-directed Deferred Retirement Option Plan, the participant shall make an irrevocable, written election of his participation in the plan acknowledging the following:

            (1) All funds in his account or accounts shall be transferred to the third-party provider of the self-directed investment account.

            (2) The participant waives his rights as set forth in Article X, Section 29 of the Constitution of Louisiana as it relates to interest earned by his Deferred Retirement Option Plan account.

            (3) That the participant and the provider shall be responsible for complying with all applicable provisions of the Internal Revenue Code and that he and the provider, not the state or the system, bear the sole responsibility and liability for any violation of the Internal Revenue Code that occurs as a result of his participation in the self-directed investment program.

            (4) That there shall be no liability on the part of and no cause of action of any nature shall arise against the state, the system, or its agents or employees for any action taken by the participant for choices he makes in relation to the investments in which he chooses to place his account balance.

            (5) The benefits payable to the participant are not the obligation of the state or the system, and any returns and other rights of the plan are the sole liability and responsibility of the participant and the provider.

            Acts 2025, No. 344, §1.