Classified employees that work more than twenty-one (21) hours per week must participate in the Louisiana State Employees' Retirement System (LASERS), unless they are between the ages of 55 and 60 at the time of employment.

Employees between the ages of fifty-five (55) and sixty (60) at the time of employment may contribute to Social Security or the Louisiana Deferred Compensation Plan in lieu of LASERS provided they already have a minimum of forty (40) quarters of Social Security credit and submit proof within 30 days of employment.

• Vested after 10 years of service

• LASERS is a defined benefit retirement plan with benefits based on years of service and the average salary of the three highest consecutive years earnings.

Retirement Eligibility

• 10 years and age 60

• 25 years and age 55

• 30 years at any age

• 20 years at any age (actuarial reduced benefit)

• Disability Retirement possible after 10 years of service

• Survivors benefits for spouse and/or dependent children after 5 years of service

Retirement Formula

(Years of service) X (2.5%) = % average of the 60 months highest consecutive years of salary.  For more details, please contact the Benefits section at (504) 568-7780 for the retirement handbook for details of plan.

Refunds

At termination of state service, employees have two refund options:

1. Roll funds into an Individual Retirement Account (IRA) or other eligible tax sheltered account.  There are no taxes or penalties when funds are rolled to another retirement account.

2. Distribution of funds.  IRS regulations require LASERS to withhold 20% in taxes and apply an additional 10% penalty if you are under age 59 1/2.

Contributions

Employee - 7.5% on pre-tax basis, if member prior to July 1, 2006 or 8% on a pre-tax basis if a member on or after July 1, 2006.