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:

  • Part-time and temporary employees are automatically defaulted to this plan.
  • 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

    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.

    Social Security is the nation’s basic method of providing a continuing income when family earnings are reduced or stopped because of retirement, disability, or death.

    Termination of Social Security contributions
    If you leave employment with the LSU System, your Social Security Contributions may not be refunded. You are only eligible to receive benefits once you reach Normal Social Security Retirement Age and have contributed a certain amount of quarters into Social Security.

    For more information, please call Social Security Administration at 1-800-772-1213. 

    FT employee continued over two years
    Once you have contributed to Social Security for two years with the LSU System, you will be defaulted into The Teacher’s Retirement System of Louisiana (TRSL) defined benefit plan and have the option to change to the Optional Retirement Plan (ORP). 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.

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

  • Defined Contribution Plan
  • Employee contributes 7.5% of salary
  • LSU contributes 6.2% of salary
  • Immediately vested

    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)

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:

  • 5 years of service or more at age 60 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.

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.

Hazardous Duty Plan Members
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:

  • 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%).

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

Human Resource Management

Supplemental Retirement Info

LSU offers multiple options to help employees save for the future. The supplemental retirement program includes 403(b) and 457 (b) plans. Employees may make paycheck contributions before and/or after taxes. Employees can enroll at any time of the year and contributions can be changed, stopped, or re-started throughout the year. Please take a moment to review the benefits of a supplemental retirement account and which plan will best help you plan for retirement. Participation is voluntary. LSU does not make any matching contributions.

Types of SRA Programs offered at LSU Shreveport
1) 403(b) Plan:  The federal government has made it possible for "not-for-profit" healthcare organizations, education institutions, and charitable agencies to allow their employees to make contributions (either tax-sheltered or Roth) through the Internal Revenue Service Code Section 403(b). 

2) 457(b) Plan: The federal government also allows for government entities to allow their employees to make contributions (either tax-sheltered or Roth) through the Internal Revenue Service Code Section 457(b).

403(b) and / or 457(b) Maximum Contributions for 2022
The maximum amount that may be tax-sheltered is determined by federal law and is set by the IRS each calendar year.
Annual Maximum Deferral Amount                                                              $20,500
Annual Maximum Deferral Amount for participants age 50 and older       $27,000
Maximum contributions to a 403(b) and 457(b) account can be made at the same time.

403(b) PLAN
The 403(b) plan (through TIAA-CREF, VALIC, and Fidelity) offers LSU System employees several options in terms of where they can invest their money. Employees also have numerous funds available to diversify their retirement portfolio. Termination of employment with the LSU System allows employees to roll their funds over to an IRA or other qualified plan. Early withdrawal penalties will be assessed if withdrawals are made prior to obtaining age 59½. 

Please see the following document for important information regarding 403(b) plan changes effective September 2018. Click here

ADMINISTRATORS OF THE 403(b) PLANS - SUPPLEMENTAL RETIREMENT ACCOUNTS
TIAA, AIG RS (Formerly VALIC), and Fidelity - Click here for LSU 403(b) Fund Performance

TIAA-CREF Financial Services

Representative: Sean Mossman, 214-626-8317, smossman@tiaa.org
Website:  https://www.tiaa.org/public/index.html

Enroll in a 403(b) with TIAA:
1. Click here to enroll with TIAA. Please print a confirmation of enrollment and turn into HR (AD 109).
2. All contributions must be set up through Retirement Manager. See below for additional information.

Change 403(b) contributions
All contribution changes must be made through Retirement Manager. See below for additional details.

AIG

Representative: Melissa McConnell, 318-572-8601, melissa.mcconnell@aig.com
Website:  lsu.valic.com

Enroll in a 403(b) with AIG RS
1. Click here to enroll with AIG RS. Print a confirmation of enrollment and turn into HR (AD 108). Employees may also contact Melissa McConnell for assistance.
2. Set up an account with Retirement Manager to begin contributions. See below for additional instructions.

Change 403(b) contributions
All contribution changes must be made through Retirement Manager. See below for additional details.
Fidelity Investments

Representative: Russell Jeanis, 1-800-343-0860 or russell.jeanis@fmr.com and Miguel Salazar, miguel.salazar@fmr.com or 972.795.1562
Website: https://nb.fidelity.com/public/nb/lsu/home
Additional Resources: Click here to view educational information, calculators and more

Enroll in a 403(b) with Fidelity
1. Click here to enroll online
2. Set up an account with Retirement Manager to begin contributions. See below for additional instructions.

Change 403(b) contributions
All contribution changes must be made through Retirement Manager. See below for additional details.

RETIREMENT MANAGER
Retirement Manager allows employees participating in a 403(b) and/or a Roth 403(b) access to their accounts in a convenient, secure web-based portal anytime and anywhere, 24 hours, seven days a week. Employees must use Retirement Manager, to start, stop or change 403(b) contributions. Employees will also use Retirement Manager request a distribution eligibility certificate for a loan or hardship, view aggregate balance information across all active and legacy 403(b) vendors and much more.  

Simply go to: www.myretirementmanager.com/myrm/?lsubrpaid. 

Employees do not yet have a USER ID and will need to register as a new user. 
Step 1:  Once you click on the hyperlink above, select "I'm a New User."
Step 2:  You will be prompted to select your employer. Type in "LSU - Baton Rouge Paid" then select "continue."
Step 3:  Type in your Social Security Number, Last name and Date of Birth, then select "continue."
Step 4:  Establish a USER ID, enter your email address, then create a password and answer the various security questions.
Step 5:  Log in.

Retirement Manager also offers a support line to take calls from all Louisiana State University employees regardless of their investment provider selection.  The participant support line is available Monday through Friday (excluding holidays) from 7:00AM to 6:00PM Central time.  Retirement Manager Support Line: 1-866-294-7950.  The support line is staffed with a dedicated group of Client Service Professionals that are available to provide guidance on the login process, general navigation questions, and how to use the enrollment and disbursement transaction screens.  Please note that account specific questions related to a particular provider should still be addressed directly to the provider. 

457(b) PLAN
The 457(b) plan (through the State of Louisiana Deferred Compensation Plan / Empower Financial Services) offers LSU System employees one option through the State of Louisiana Deferred Compensation Plan, the exclusive provider. Termination of employment with the LSU System allows employees to roll contributions over to an IRA or other qualified plan or receive a cash distribution without an early withdrawal penalty.

ADMINISTRATOR OF THE 457(b) - LOUISIANA DEFERRED COMPENSATION PLAN
EMPOWER RETIREMENT

Website: https://louisianadcpretire.gwrs.com/login.do?accu=LouisianaWR
Representative: Beau Bordelon, 318.453.8624, beau.bordelon@empower-retirement.com

Enroll in a 457(b) Deferred Compensation Plan with EMPOWER Retirement
Please contact Kristin Fiser for the online enrollment code. 

Additional resources:
Click here to view the 457(b) Plan Document
Click here to review investment performance

Once the supplemental 457(b)/Deferred Compensation account is open, employees may start, stop, increase, or decrease their contributions as necessary through the online portal.

WITHDRAWING MONEY FROM YOUR SRA
While Actively Employed
The main purpose of the SRA is to help provide employees with long-term financial security through current tax-efficient savings. In exchange for the tax breaks the IRS gives employees government regulations limit withdrawals while during employment. In addition, some investment companies have policy or contract restrictions that may include fees or interest penalties for early withdrawal. Be sure to review the company's policy before making a decision. Withdrawal forms may be requested from each investment company or its representative.

There are instances in which employees may be eligible to withdraw this money in the event of a hardship. In order to qualify for a hardship, employees must have a verifiable, immediate, and heavy financial need. The withdrawal must be necessary to meet the need; in other words, employees are unable to meet the need from any other source. In this case, employees can withdraw only your contributions, not the earnings on them.

403(b)
Employees who withdraw money from their 403(b) SRA before 59 ½ must pay a 10% penalty tax on the amount withdrawn unless the distribution meets one of the following requirements:
- It is due to termination of employment on or after age 55;
- It is in the form of substantially equal payments for life or life expectancy, after termination of employment;
- It is due to disability or death;
- It is for non-reimbursed medical expenses to the extent allowed to be itemized on income tax return (more than 7.5% of adjusted gross income)
- It is a payment to an alternate payee directed by a qualified domestic relations order (QDRO).
Withdrawals are handled through Retirement Manager.

457(b)
Current employees who are not yet 59 1/2 will not be subject to the 10% penalty tax.  Employees should visit the Deferred Compensation website for the most current plan forms and discuss any restrictions with the plan representative.

https://louisianadcp.empower-retirement.com

After Termination of Employment
After employment terminates with the LSU System, contributions to the SRA will stop. The deposits and earnings accumulated can be withdrawn and paid (or named beneficiary upon former employee's death). Contract or policy withdrawal restrictions will apply.

Distributions made that are not part of a series of substantially equal payments made over a period of 10 years or more, or that are not required to be made under the IRS minimum distribution rules, may be rolled over to an IRA. Employees may also elect not to defer any tax liability. Any withdrawals that are not directly rolled over to an IRA or another SRA will be subject to tax withholding of 20%.

403(b)
Former employees who are not yet 59 ½ and do not meet any of the criteria explained under the governmental restrictions will have distributions subject to a 10% penalty tax according to IRS regulations. This penalty tax is in addition to any contract or policy withdrawal restrictions that may apply.

457(b)
Former employees who are not yet 59 1/2 will not be subject to the 10% penalty tax.  Former employees should visit the Deferred Compensation website for the most current withdrawal / rollover forms. 

https://louisianadcp.empower-retirement.com/

In the Event of Employee's Death
In the event of an employee's death, the named beneficiary must contact the investment company or its representative to receive withdrawal information.

When an employee enrolls in an SRA, he/she will be given a beneficiary designation form that contains all the information for beneficiary election. Employees who wish to change their designation of beneficiary will need to contact the investment company or its representative.

Required Minimum Distributions
403(b) and 457(b) SRA Plans must begin by April 1 of the year following the later of these two events:  attainment of 70 ½ years of age or upon retirement.