Retirement can signal the beginning of a new life, but how you spend your retirement
years, and how well you prepare from them are up to you. According to state and federal
laws, employees of the LSU System must participate in a retirement plan.
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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 (TRSL, LASERS, ORP,
Deferred Compensation), 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).
Your employment in a job not covered by Social Security may affect your Social Security
benefit:
Participation in LASERS is mandatory for all classified, civil service employees appointed
for greater than 50% of full-time effort (more than 20 hours per week) and for duration
more than 2 years (except those excluded by law).
According to state and federal laws, as an employee of the LSU System, you must participate
in a retirement plan. If your appointment is considered temporary or part-time for
retirement purposes, you will automatically be enrolled into Social Security. If you
wish to opt out of paying into Social Security, you can enroll in the Louisiana Deferred Compensation Plan in Lieu of Social Security (through. Employee
contribution when contributing in lieu of Social Security is set at 7.5% before tax
and cannot be changed.
Part-time/Temporary employees are automatically defaulted into this plan
Employee contributes 6.2% of salary
LSU contributes 6.2% on employee's behalf
Employees will receive a benefit once social security age is met
According to state and federal laws, as an employee of the LSU System, you must participate
in a retirement plan. If your appointment is considered temporary or part-time for
retirement purposes, you will automatically be enrolled into Social Security.
Once you have contributed to Social Security for two years with the LSU System, you
will be defaulted into The Teacher's Retirement System of Louisiana (TRSL) defined
benefit plan and have the option to change to the Optional Retirement Plan (ORP).
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.
If you wish to opt out of paying into Social Security, you can enroll in the Louisiana
Deferred Compensation Plan in Lieu of Social Security. Employee contribution when
contributing in lieu of Social Security is set at 7.5% before tax and cannot be changed.
LA Deferred Compensation Plan is a defined Contribution Plan
Employee contributes 7.5% of salary
Immediately vested
Enrollment: Request the Deferred Compensation - In Lieu of Social Security Enrollment Forms from
theBenefits Officeand return the completed from to the Office of Human Resource Management in 433 Bolivar
St. (The Rresource Center/Library Building) room 626 or email tonohrmbenefits@lsuhsc.edu.
ORP is not available to part-time or temporary classified/civil service employees.
Employees on a J or F Visa are not eligible to participate in a retirement plan unless
"substantial presence" has been met.
If substantial presence is met, an employee may choose between Social Security and
Louisiana Deferred Compensation Retirement Plan.
Social Security
Social Security is the default House Officer retirement option. Under this option,
House Officers will pay a 6.2% tax.
Louisiana Deferred Compensation 457(b)
House Officers may elect to participate in Louisiana Deferred Compensation 457(b)
in lieu of Social Security. Under this plan, you will be subject to 7.5% pre-tax payroll
contributions.
The 457(b) plan is a retirement account through the State of Louisiana Deferred Compensation
Plan. There is no employer match for participants. The 457(b) account is immediately
vested. Contributions are invested in options offered by Empower Retirement, the exclusive
provider.
Accumulated contributions including investment earnings may be withdrawn at termination
of service without penalty. However, applicable federal and state taxes must be paid
on withdrawn funds. Funds can be released 30 days after termination.
Termination of employment with the LSU System would also allow you to roll your contributions
over to an IRA or any other qualified plan or receive a cash distribution without
an early withdrawal penalty.
LSU Health - NO offers multiple options to help employees save for the future. The
supplemental retirement program includes 403(b) and 457 (b) plans. Employees may make
paycheck contributions before and/or after taxes. Employees can enroll at any time
of the year and contributions can be changed, stopped, or re-started throughout the
year. Please take a moment to review the benefits of a supplemental retirement account
and which plan will best help you plan for retirement.
