LASERS

Louisiana State Employees’ Retirement System (LASERS)

The Louisiana State Employees’ Retirement System (LASERS) is a qualified defined benefit plan and retirement plan under Section 401 (a) of the Internal Revenue Service code. It was first established by an act of the Louisiana Legislature in 1946. A defined benefit plan allows both you and the LSU System to make contributions to a pool of funds from which you receive a retirement income based on a benefit formula. Detailed information on LASERS is provided in the Membership Handbook. See below for a summary of the plan.

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, 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).

Administrators of LASERS
A 12-member Board of Trustees oversees LASERS’ operations. The law designates members of the board as follows: six elected trustees, who are active members of LASERS; three elected trustees, who are retired members of LASERS; the chairman of the House Retirement Committee, ex officio; the chairman of the Senate Finance Committee, ex officio; and the State Treasurer, ex officio.

Effective Date of Enrollment
You are automatically enrolled into LASERS at the time of employment (unless you meet one of the optional criteria mentioned above) and will begin contributions with your first paycheck.

Contributions
Employee contributions are 7.5% of earned compensation (base pay) as defined by LASERS. The employer contribution is determined each year based on an actuarial formula determined by the State.

Vesting
You are vested in LASERS once you have contributed for at least 10 years. Being vested allows you to collect a retirement benefit from the retirement system upon meeting the eligibility criteria described below.

Retirement Eligibility
Your eligibility to retire is based on your age and years of service. One of the requirements below must be met in order to receive a retirement benefit from LASERS:

• 10 years of service or more at age 60 or later
• 25 years of service or more at age 55 or later
• 30 years of service or more 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 your age, length of service and number of years from your regular retirement age.

Retirement Benefit Calculation
The following formula is used to determine your retirement benefit:

 

[Years of Service] x[Formula %] x [3-Year High Average Salary] = Annual Retirement Benefit

Sample Calculations:

25 Years of Service x 2.5% x $30,000 = $18,750
30 Years of Service x 2.5% x $30,000 = $22,500

• Employees who became members before July 1, 1986 will be entitled to $300 per year in supplemental benefits upon retirement.

Disability Benefits
You may be entitled to disability benefits if you have accumulated at least 10 years of service credit and become disabled. You may apply for disability benefits after leaving state service if you have 20 years of service and have withdrawn from active service before the age of regular retirement eligibility.

Survivor Benefits
Survivor benefits are payable under certain conditions to your spouse, minor children, and totally disabled or mentally handicapped children upon your death. If death occurs while you are in active service, you must have:
 

• Credit for at least five years of service for a benefit to be payable to your surviving minor children.
• Credit for at least 10 years of service for a benefit to be payable to your surviving spouse.
• Credit for at least 20 years of service for survivor benefits to be payable if death occurs after you have terminated employment.

If survivor benefits are not payable, your survivors, your beneficiary, or your estate will receive an amount equal to your total employee contributions.

Termination of Employment Before Retirement
If you leave state service before you are eligible to retire, you may qualify for a monthly benefit upon reaching minimum retirement age. The following criteria would allow you to qualify in this manner:

• Must have obtained credit for the minimum number of years of service needed to retire (vested), and
• Not reached the required age, and
• Left your contributions on deposit with LASERS
• You must provide written application for retirement to LASERS 30 days prior to reaching the required retirement age.

In lieu of leaving your contributions on deposit, you may apply for a refund. See your Benefits Representative for more information.