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Human Resource Management

Retirement

RETIREMENT PLAN OPTIONS for EMPLOYEES without PREVIOUS STATE SERVICE
(Employees on a F Visa who have not met substantial presence do not pay into any retirement plan)

1. Social Security
www.socialsecurity.gov
Description:
  • Employee is defaulted into Social Security if the appropriate eligibility criteria is met
  • Employee contributes 6.2% of salary
    LSU contributes 6.2% on employee's behalf
    If employee has a permanent appointment, he/she will not contribute to Social Security

Eligibility:
Temporary appointments

  • Appointment with personnel end date of two years or less
  • Employees on F Visa if "substantial presence" is met

Part-time employees

  • Faculty member appointed for less than 50% of full-time effort (20 hours per week or less), or
  • Professional/Staff member appointed for less than 51% of full-time effort (20 hours per week or less)

 2. Louisiana Deferred Compensation (DCCL)
www.louisianadcp.com
Description:

  • Defined Contribution Plan
  • Employee has 30 days from date of hire to elect DCCL in lieu of Social Security w/o a delayed effective date
  • Employee contributes 7.5% of salary
  • LSU contributes 6.2% of salary
  • Immediately vested

Eligibility:

  • Temporary appointments
    • Appointment with personnel end date of two years or less
    • Employees on F Visa if "substantial presence" is met
  • Part-time employees
    • Faculty member appointed for less than 50% of full-time effort (20 hours per week or less), or
    • Professional/Staff member appointed for less than 51% of full-time effort (20 hours per week or less)
  • Classified employees
    • Employees 60 years of age or older at time of employment OR employees 55 years of age or older at time of employment who have at least 40 quarters in the Social Security System may elect Louisiana Deferred Compensation Plan in lieu of LASERS.

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)
  • Meet age and years of service criteria in order to receive a benefit
  • Vested after 10 years of service

Eligibility:

  • Classified/ Civil Service employees appointed for greater than 51% of full-time effort

4. Optional Retirement Plan (ORP)

Description:
  • 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
  • LSUS contributions vary each year. Click HERE  and view current fiscal year and "Normal Cost" to determine employer contributions
  • Immediately vested
  • Irrevocable decision; you may never pay into TRSL
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

5. Teacher's Retirement System of Louisiana (TRSL)
www.trsl.org

Description:

  • Defined Benefit Plan
  • 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. The calculator is available HERE.
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

Comparison of Teacher's Retirement Plan to Optional Retirement Plan