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

Supplemental Retirement Info

The LSU System provides the opportunity for employees to participate in supplemental retirement accounts (SRAs) (both tax-sheltered and ROTH options) through payroll deduction. Participation is totally voluntary and the LSU System 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 2020
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                                                              $19,500
Annual Maximum Deferral Amount for participants age 50 and older     $26,000
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-CREF, VALIC, and Fidelity - Click here for LSU 403(b) Fund Performance

TIAA-CREF Financial Services

Representative: Joy Doss, 972-745-9867, jdoss@tiaa.org
Website:  https://www.tiaa.org/public/index.html
Additional Resources:
Click here for the TIAA-CREF Tools and Calculators

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.

 VALIC

Representatives: Melissa McConnell, 318-572-8601, melissa.mcconnell@valic.com
Websitehttps://www.valic.com/home_3240_422903.html
Additional Resources
Click here for VALIC's Calculator Tools

Enroll in a 403(b) with VALIC
1. Click here to enroll with VALIC. Print a confirmation of enrollment and turn into HR (AD 109). 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 Jason Walters,
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
Click here for the online enrollment code that is valid through June 2020.  Please contact Kristin Fiser in HR for assistance. 

Additional resources:
Beneficiary Election Form
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).
403(b) Withdrawal Election form should be submitted to Human Resources to apply for a withdrawal.

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://louisianadcpretire.gwrs.com/preLoginContentLink.do?accu=LouisianaWR&specificBundle=preLogin&contentUrl=prelogin.resourceCenter.forms

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://louisianadcpretire.gwrs.com/preLoginContentLink.do?accu=LouisianaWR&specificBundle=preLogin&contentUrl=prelogin.resourceCenter.forms

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.