Optional Retirement Plan (ORP)
The Optional Retirement Plan (ORP) is a defined contribution plan where account holders direct their investments through private carriers. The amount of income payable at retirement is directly related to the amount accumulated in the account. This plan is an alternative option for employees who are defaulted into TRSL.
- Alternative option to TRSL:
- Defined contribution plan
- Employee contributes 8.0% of salary
- LSU contributes 6.2% of salary
- Account balance is immediately vested and easily portable
- Participants do not pay into Social Security
- ORP carrier administrative fees are as follows: (TIAA: 0.07%), (VOYA: 0.20%), and (Corebridge: 0.22%).
New Louisiana Act 109: Effective 06/30/2024: Allows ORP Participants to Join the TRSL Defined Benefits Plan.
Enrollment forms and instructions for each carrier can be accessed through the carrier website linked on the ORP Carriers webpage.
Original signed Application for Optional Retirement Forms are required to be returned to HRM for enrollment as well as separately enrolling with the ORP vendor of your choice.
If you wish to enroll in the ORP, you have 60 days from your date of hire to enroll retroactive to your original hire date and receive all employer contributions.
If you enroll after your first 60 days of employment, 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 Optional Retirement Plan.
Additional Information
The ORP is a defined contribution retirement plan and the amount of income payable at retirement is directly related to the amount accumulated in your account. An annuity with or without a partial lump-sum payout is possible at time of retirement. A rollover of up to 100% of ORP funds to an IRA or qualified plan may be done after termination of all covered ORP participation. Please contact an advisor from your ORP Carrier to discuss account details, distribution options, and early withdrawal penalties.
ORP account balances can be rolled over to another IRS-qualified retirement plan or to an IRA(s) after termination of employment in all positions where you are eligible to participate in the ORP. All payment options/distributions must be approved by your ORP carrier. Contact your ORP carrier at the number below for paperwork or for more information. No ORP account paperwork needs to be signed by LSU.
Corebridge 1-800-448-2542
TIAA 1-800-842-2252
VOYA 1-800-584-6001
If you become disabled, you must have at least five years of service in an ORP to apply for continued participation in the insurance plans at retirement. The LSU System will require a medical examination by an independent physician. ORP account benefit based on accumulated contributions, payable at your option, after termination of ORP participation.
Upon your death, the balance of the ORP account is paid out in a lump sum or as an annuity.
Social Security Administration has an on-line calculator that allows members who are eligible for a retirement benefit from the ORP and the SSA to calculate the windfall elimination provision (WEP), which can reduce Social Security retirement benefits for most retirees who collect pensions from jobs not covered by Social Security.