Louisiana Deferred Compensation Plan
- A defined Contribution Plan
- Immediately vested
The Louisiana Deferred Compensation Plan is a 457(b) plan. LSU employees have the option through the State of Louisiana Deferred Compensation Plan with Empower Retirement. This plan allows employees to defer a pre-tax portion of earnings into a supplemental retirement account.
The Roth 457(b) feature provides an additional way to save for retirement. Employees may make contributions on an after-tax basis under the Roth option, on the pre-tax basis under the 457(b) plan, or a combination of the two. Although the Roth option doesn't change how much can be contributed, it does provide more control over when contributions - and retirement income - will be subject to federal income tax. If an account is open for at least five years and the employee has turned age 59 1/2, every cent in a Roth 457(b) could be withdrawn tax-free. Deferred compensation is open to most employees. For more information and to enroll, visit the Empower website.
Enrollment for Classified Employees less than 50% FTE
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. For this plan the Employee contributes 7.5% of salary* and LSU contributes 6.2% of salary.
*Employee contribution when contributing in lieu of Social Security is set at 7.5% before tax and cannot be changed.
Complete the Enrollment Form and the Paycheck Contribution Election Form and return to the Office of Human Resource Management in 626 Resource Building or email to firstname.lastname@example.org.
Termination of Deferred Compensation Contributions
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)