Human Resources
Comparison of TRSL & ORP
Things to consider...
TRSL or ORP? That is the question.
The answer should be reached only after you have taken a careful look at
your career expectations.
If you are reasonably certain you will continue in your
current position, or do not plan to remain in Louisiana, then you should
give careful consideration to an ORP because your plan will be portable
to most other U.S. colleges and universities. However, if you plan
to continue teaching or working in Louisiana, either at a public college,
university, vocational-technical institute, or school, or a state or local
government agency, you should consider enrolling in TRSL.
If you enroll in TRSL, with 10 years of service, you
can leave your contributions with TRSL and at age 60 begin receiving a benefit
based on 20 percent of your average compensation.
If you enroll in TRSL, you have five years in which to
change your mind and transfer the employee portion (not the employer portion)
of your retirement contributions into an ORP. However, the decision
to join an ORP is irrevocable. You cannot change your mind later and
join TRSL. If you enroll in the ORP, we recommend that you consider
enrolling in the Standard Long-Term Disability Income Plan and the Unum
Term Life Insurance policy, since the ORP does not provide a substantial
benefit until you have been contributing for at least 15 years.
Look carefully at the following comparison of benefit
features and make the best choice for you and your family.
Comparison Chart
| TRSL |
ORP |
| Lifetime benefits; no
matter how long a member lives, the retirement benefits will continue.
|
Lifetime benefits based
on amount accumulated in contribution account.
|
| Lifetime benefits payable
after 20 years of service or 10 years of service at age 60.
|
Lifetime benefits based
on accumulated contributions; payable at the member’s option, after
termination of ORP participation.
|
| Guaranteed by the State
of Louisiana.
|
Guaranteed only by the
solvency of the carrier.
|
| A member has five years
after joining TRSL to decide to change to an ORP.
|
ORP member cannot change
their minds and join TRSL. The decision to join ORP is irreversible.
|
| If a member with five
years of service credit dies, survivor benefits are provided for
spouse and minor children.
|
Upon the death of a member,
the amount of the contributions account is paid out in a lump sum
or as an annuity.
|
| If a member with five
years of service credit is disabled, he or she will receive disability
benefits from TRSL for life.
|
Lifetime benefits are
based on accumulated contributions; payable at the member’s option
after termination of ORP termination.
|
| Defined benefit plan;
monthly pension is determined by years of service and highest three-year
average annual salary x 2 percent or 2.5 percent.
|
Defined contribution
plan; monthly annuity is determined by employer and member contributions
and investment return on those contributions.
|
| Contributions do not
determine benefits; employee contribution is 8 percent of salary.
|
Contributions determined
benefits; employee payroll deduction is 8 percent of salary.
|
| May be transferred to
other Louisiana schools, colleges, universities, vo-tech institutes,
and many state agencies.
|
Portable to most colleges
and universities in the U.S.
|
| Refund of employee contributions
of request, upon termination on employment.
|
No lump-sum refund of
contributions possible under any circumstances except death.
|
| Investments controlled
by TRSL; current five-year average annual return is 10.5 percent.
|
Member direction of investments
(see ORP carrier brochure).
|
