Teacher's Retirement System of Louisiana (TRSL)

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). Detailed information on TRSL is provided in the Membership Handbook. See below for a summary of the plan.

The Defined Benefit Plan Through TRSL
According to state and federal laws, as an employee of the LSU System, you must participate in a retirement plan. As a permanent employee, 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 ORP.

Administrators of TRSL
A Board of Trustees comprised of 12 elected members and four ex-officio members governs TRSL. Members include representatives from each of the state’s seven congressional districts, two trustees who represent retired teachers, one representative for employees paid with school food service funds, one representative for employees of state colleges and universities, and one representative who is employed as a parish or city superintendent of schools. The four ex-officio members include the State Superintendent of Education, the State Treasurer, and the chairmen of the retirement committees of the Louisiana House of Representatives and the Louisiana Senate.

Contributions
Employee contributions are 8.0% of allowable earned compensation. The employer contribution is determined each year based on an actuarial formula determined by the State.

Vesting
You are vested in TRSL once you have contributed for at least 5 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 TRSL:

• 5 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 $50,000 = $31,250
30 Years of Service x 2.5% x $50,000 = $37,500

NOTE: The above calculation applies to employees who were hired on or after July 1, 1999.

Disability Benefits
If you are an employee with more than five years of service, you are eligible to apply for lifetime disability benefits. If you have less than five years of service, you are not eligible for disability benefits; however, you may receive a refund of your contributions to the plan at the time of termination.

Survivor Benefits
If you have at least five but less than 10 years of service, limited benefits are available to your minor children. If you have 10 or more years of service, your surviving spouse may receive benefits for life. If you have less than five years of service, your survivors are not eligible for benefits; however, your beneficiary may receive a refund of your contributions to the plan at the time of your death.

Termination of Employment Before Retirement
If you have less than five years of service credit at the time of termination, you may apply for a refund of your contributions to The System. Employees with five years or more service credit will be eligible to receive a benefit at age 60 if contributions are left on deposit with TRSL.

You may obtain a refund of your employee contributions, upon request, at termination of employment. The earliest you may receive your refund is 90 days after your termination date. You may obtain your refund application from your Human Resources Management Department.