The ORP is a “defined contribution plan” to which the employee and the LSU System make contributions to be invested in a retirement annuity contract in the employee’s name. ORP benefits are based on the value of the account when the employee elects to retire and are paid in the form of a lifetime income and, except for death benefits; single-sum payments (lump sum) are not permitted.
• The ORP is the alternative to the Teachers Retirement System of Louisiana
• Immediately vested
• Employee contributes 8.0% of salary
• LSU contributes 5.6852 % of salary for Higher Education and 5.7977% for Lab School
Employee contribution is 8% of allowable earned compensation and is tax-sheltered. TRSL charges you 0.1% to administer the funds. The LSU System contributes 5.70% of the allowable earned compensation. The contribution rate is subject to change each July 1.
There are many investment options in the ORP. Each option has varying degrees of financial risk and rates of return. Employees may contact the ORP representatives for information concerning these options and the best profile for them.
ORP accounts are immediately vested.