The defined benefit plan, referred to as “TRSL,” is a plan wherein the employee and the LSU System make contributions into a pool of funds from which employee’s receive a retirement income based on a benefit formula. The amount of benefit is determined by the years of service and the average salary for the 36 highest successive months of earnings. The compensation amount for employees hired on or after January 1, 2011, is calculated by the years of service and the average salary for the 60 highest successive months of earnings.
If an employee elects to participate in the ORP as an alternative to TRSL, that choice may do so within the first 60 days of employment. If opting out of TRSL for an Optional Retirement Plan within the first 60 days of employment, both the employee’s contributions and the LSU System’s contributions may be rolled into the ORP Account. If an employee waits past your first 60 days of employment to enroll in the ORP, the effective date will be delayed to the first of the following month and only the employee’s contributions will transfer over to the ORP carrier (not those made by the LSU System). Once an employee has contributed to the TRSL defined benefit plan for greater than five years, they are not eligible to enroll into an ORP.
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.
Employees are vested in TRSL once they have contributed for at least 5 years. Being vested allows the employee to collect a retirement benefit from the retirement system upon meeting certain eligibility criteria.