Retirement plan options for employees without previous state service
Note: Employees on a F Visa who have not met substantial presence do not pay into any retirement plan.
Description
With few exceptions, the State of Louisiana does not participate in the Social Security program. If you are enrolled in a Louisiana State retirement plan (TRSL, LASERS, ORP, Deferred Compensation), you do not pay Social Security tax; however, if you were hired after April 1, 1986, you are required to pay the Medicare portion of the FICA tax (1.45% of your salary).
According to state and federal laws, as an employee of the LSU System, you must participate in a retirement plan. If your appointment is considered temporary or part-time for retirement purposes, you will automatically be enrolled into Social Security.
- Part-time/Temporary employees are automatically defaulted into this plan
- Employee contributes 6.2% of salary
- LSU contributes 6.2% on employee’s behalf
- Employees will receive a benefit once social security age is met
Social Security Contact Information:
2. Louisiana Deferred Compensation Plan (in lieu of Social Security)
www.louisianadcp.com
Description
- A defined Contribution Plan
- Employee contributes 7.5% of salary
- LSU contributes 6.2% of salary
- Immediately vested
Deferred Compensation Contact Information
Empower Retirement
- Patrick Hannie: (225) 326-4474
- Dedrick Lewis: (225) 975-0460
- Sean Harris: (225) 494-3981
Enrollment
Request the Deferred Compensation - In Lieu of Social Security Enrollment Form from the Office of Human Resource Management in Administration Building, Room 108.
*Employee contribution when contributing in lieu of Social Security is set at 7.5% before tax and cannot be changed.
Effective date of enrollment
As a temporary employee you are automatically enrolled into Social Security. If you wish to enroll in Deferred Compensation you have 30 days from your date of hire to enroll retroactive to your original date. If you wait past your first 30 days of employment to enroll, your effective date will be delayed to the first of the following month and the contributions that were made to Social Security will NOT be transferred into your Deferred Compensation account.
Termination of Deferred Compensation Contributions
- Employment Ends: Account balance is 100% vested. Early distribution penalties do not apply to 457(b) deferred compensation plans for eligible withdrawals of 457 pre-tax money. Any withdrawals will be taxed as ordinary income and will be subject to a 20% mandatory withholding. The withdrawals are also subject to state income tax.
- Withdrawal/Rollover Information - 1-800-937-7604
- You Contribute for at Least Two Years: Once you have contributed to Deferred Compensation for two years with the LSU System, you will be defaulted into The Teachers’ Retirement System of Louisiana (TRSL) defined benefit plan and have the option to change to the Optional Retirement Plan. However, if you are a part-time employee upon continuation, you will continue to participate in Social Security. Once your appointment becomes full-time, you will be defaulted into TRSL with the option to change to the ORP.
3. Louisiana State Employees Retirement System (LASERS)
www.lasersonline.org
Description
- Defined Benefit Plan
- Employee contributes
- 7.5% of salary (Joined LASERS on or before June 30, 2006)
- 8.0% of salary (Joined LASERS on or after July 1, 2006)
- 9.5% of earned compensation (HAZ DUTY Members)
Enrollment
Eligible employees are automatically enrolled into LASERS at the time of employment and will begin retirement contributions with their first paycheck.
Mandataory Participation
Participation in LASERS is mandatory for all classified, civil service employees appointed for greater than 50% of full-time effort (more than 20 hours per week) and for duration more than 2 years (except those excluded by law).
Optional Participation
Participation in LASERS is optional only for Classified employees who are 60 years of age or greater at the time of employment, OR for employees who are 55 years of age or greater at the time of employment and who have credit for at least 40 quarters in the Social Security System. These employees have the option to participate in the Louisiana Deferred Compensation Plan (DCCL) or Social Security in lieu of LASERS.
Retirement Eligibility
Any member who joined LASERS on or before June 30, 2006, shall be eligible to retire if he/she has:
- 30 years of service or more regardless of age
- 25 years of service or more at age 55 or later
- 10 years of service or more at age 60 or later
- At 20 years of service you may retire at any age but your benefit will be reduced on an actuarial basis which is based on your age, length of service and number of years from your regular retirement age.
Any member who joined LASERS between July 1, 2006 and June 30, 2015, shall be eligible for retirement if he/she has:
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5 years of service or more at age 60 or thereafter
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At 20 years of service you may retire at any age but your benefit will be reduced on an actuarial basis which is based on your age, length of service and number of years from your regular retirement age.
Any member who joined LASERS on or after July 1, 2015, shall be eligible to retire if he/she has:
- 5 years of service or more at age 62 or thereafter
- At 20 years of service you may retire at any age but your benefit will be reduced on an actuarial basis which is based on your age, length of service and number of years from your regular retirement age.
Members of Hazardous Duty Plan
Any Hazardous Duty personnel who joined LASERS on or after January 1, 2011 or the Hazardous Duty personnel employed before January 1, 2011 who made the affirmative choice to join the HAZ PLAN, shall be eligible for retirement if he/she has:
- 12 years or more of service credit at age 55
- 25 years or more of service credit regardless of age
- At 20 years of service you may retire at any age but your benefit will be reduced on an actuarial basis which is based on the number of months you are away from HAZ PLAN Regular retirement eligibility.
All years must be worked as a member of the HAZ PLAN, unless you transferred your prior service into the HAZ PLAN.
Under HAZ PLAN retirement, you will not select a retirement option as your benefits are directed by statute.
If you are a member of the HAZ PLAN, and do not meet the eligibility requirements described above, you may retire with five years of service credit at age 60. If you retire under this option, your benefit will be calculated at 2.5 percent of your average compensation and will be paid in accordance with the LASERS regular plan options. The retirement benefit and survivor benefit provisions of the HAZ PLAN will not apply if you retire under this option.
4. Optional Retirement Plan (ORP)
Description
The Optional Retirement Plan (ORP) is a defined contribution plan where account holders direct their investments through private carriers. The amount of income payable at retirement is directly related to the amount accumulated in the account. This plan is an alternative option for employees who are defaulted into TRSL.
- Alternative option to TRSL
- Defined Contribution Plan
- Permanent employees have 60 days from date of hire to elect an ORP in lieu of TRSL without a delayed effective date
- Employee contributes 8.0% of salary
- LSU Contributes 6.2% of salary
- Immediately vested
- Participants do not pay into Social Security
- Irrevocable decision; you may never pay into TRSL
- ORP carrier administrative fees are as follows: (TIAA: 0.07%), (VOYA: 0.20%), and (AIG: 0.22%).
New Louisiana Act 109: Effective 06/30/2024: Allows ORP Participants to Join the TRSL Defined Benefits Plan.
Eligibility:
- Permanent appointments only
- Faculty member appointed for 50 % effort or greater, or
- Professional/Staff member appointed for 51% effort or greater, and
- An appointment that is greater than two years
- Note: faculty and staff who are on a F Visa are not eligible for this retirement plan
ORP Retirement Contact List
TIAA
Louis Bundy, 504-249-4707 (office) / 501-470-5296 (cell)
louis.bundy@tiaa.org
https://www.tiaa.org/public/tcm/louisianaorp
Corebridge
Melissa McConnell, 318.572.8601
melissa.mcconnell@corebridgefinancial.com
https://www.corebridgefinancial.com/rs/trsl/plan-details/orp-plan
Corebridge Financial
Thomas Ditta, 318.355.0754
Thomas.ditta@corebridgefinancial.com
https://www.corebridgefinancial.com/rs/trsl/plan-details/orp-plan
VOYA
Matt Saterfiel, 318-387-9168 (office), 318-235-1317 (cell)
mattsaterfiel@voyafa.com
https://trsl.beready2retire.com/
5. Teacher's Retirement System of Louisiana (TRSL)
www.trsl.org
Description
Teachers’ Retirement System of Louisiana (TRSL) offers a defined benefit, or guaranteed lifetime monthly benefit, to its retirees which is calculated based on a formula. TRSL also offers disability and survivor benefits once vesting has been met.
- Defined Benefit Plan
- Automatically defaulted into this retirement plan based on appointment length/effort
- Employee contributes 8.0% of salary
- Meet age and years of service criteria in order to receive a benefit
- Vested after 5 years of service
- Employees do not pay into Social Security. The Social Security Administration has an on-line calculator that allows members who are eligible for a pension from TRSL and the SSA to calculate the windfall elimination provision (WEP), which can reduce Social Security retierment benefits for most retirees who collect pensions from jobs not covered by Social Securty.
TRSL Contact Information:
The Defined Benefit Plan through TRSL
With Teachers’ Retirement System of Louisiana (TRSL), you have a defined benefit retirement plan, often called a pension. Your TRSL benefit is paid to you for your entire life, and is calculated using three factors:
- Your years of TRSL service credit,
- Your final average compensation (FAC)
- A benefit factor (2.0% or 2.5%)
These three factors, multiplied together, total the maximum TRSL benefit that you are eligible to receive. Your retirement income from TRSL is based on these factors, not on how much you contribute to your retirement or the balance in a retirement account.
If you are appointed for greater than two years and greater than 50% effort, you are automatically enrolled into TRSL at the time of employment with contributions starting with your first paycheck. If you elect to participate in the Optional Retirement Plan (ORP) as an alternative to TRSL, you may do so within the first 60 days of employment. If you opt out of TRSL for an ORP within your first 60 days of employment, both your contributions and the LSU System’s contributions may be rolled into your ORP Account.
If you wait past your first 60 days of employment to enroll in the ORP, your effective date will be delayed to the first of the following month and only your contributions will transfer over to your ORP carrier (not those made by the LSU System). Once you have contributed to the TRSL defined benefit plan for greater than five years, you are not eligible to enroll into an Optional Retirement Plan.
Eligibility
Retirement eligibility is determined by the date you joined TRSL. Refer to the minimum eligibility requirements below to find out when you can retire.
TRSL Member Prior to 7/1/1999
If you became a member of TRSL prior to July 1, 1999, with a 2% benefit factor, then one of the requirements below must be met in order to receive a retirement benefit from TRSL:
- 5 years of service or more at age 60 or later, excluding military service purchased after September 10, 1982, or
- 20 years of service or more you may retire at any age, excluding military service purchased after September 10, 1982
If you became a member of TRSL prior to July 1, 1999, with a 2.5% benefit factor, then one of the requirements below must be met in order to receive a retirement benefit from TRSL:
- 20 years of service or more at age 65, excluding any military service,
- 25 years of service or more at age 55 or
- 30 years of service or more regardless of age
TRSL Member Between 7/1/1999 - 12/31/2010
If you became a member of TRSL between July 1, 1999 and December 31, 2010, with a 2.5% benefit factor, then one of the requirements below must be met in order to receive a retirement benefit from TRSL:
- 5 years of service or more at age 60, excluding military service purchased after September 10, 1982, or
- 25 years of service or more at age 55, or
- 30 years of service or more regardless of age, or
- 20 years of service or more regardless of age (actuarially reduced), excluding military service purchased after September 10, 1982
TRSL Member Between 12/1/2011 - 6/30/2015
If you became a member of TRSL between January 1, 2011 and June 30, 2015, with a 2.5% benefit factor then one of the requirements below must be met in order to receive a retirement benefit from TRSL:
- 5 years of service or more at age 60 or later
- At 20 years of service you may retire at any age, but your benefit will be reduced on an actuarial basis which is based on your age, length of service and number of years from your regular retirement age.
TRSL Member On or After 7/1/2015
If you became a member of TRSL on or after July 1, 2015, with a 2.5% benefit factor, then one of the requirements below must be met in order to receive a retirement benefit from TRSL:
- 5 years of service or more at age 62 or thereafter
- At 20 years of service you may retire at any age but your benefit will be reduced on an actuarial basis which is based on your age, length of service and number of years from your regular retirement age.
Retirement Benefit Calculation
If Hired Before January 1, 2011
[Years of Service] x [Formula %] x [3-Year High Average Salary] = Annual Retirement Benefit
Example: 25 Years of Service x 2.5% x $50,000 = $31, 250
If Hired On or After January 1, 2011
[Years of Service] x [Formula %] x [5-Year High Average Salary] = Annual Retirement Benefit
Example: 30 Years of Service x 2.5% x $50,000 = $37, 500
