Louisiana Deferred Compensation Plan
- A defined Contribution Plan
- Employee contributes 7.5% of salary
- LSU contributes 6.2% of salary
- Immediately vested
Request the Deferred Compensation - In Lieu of Social Security Enrollment Form from the Benefits Office and return the completed from to the Office of Human Resource Management in 110 Thomas Boyd Hall or email to firstname.lastname@example.org
*Employee contribution when contributing in lieu of Social Security is set at 7.5% before tax and cannot be changed.
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.
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.
Additional Options for Part-time/Temporary/Special Classified Staff, Professional Staff, and Academic Employees: Social Security or Optional Retirement Plan (ORP) (not available to part-time or temporary classified/civil service employees)