FAQs

Why does the law require that I be a member of TRSL?

Public pension plans, like TRSL, usually require employees who meet certain eligibility criteria to be members of the plan in order to provide the best benefit structure possible at the lowest cost to the members. Public pension plans need to have the funds for long-term investment. Investment earnings provide a major portion of the funds needed to meet the benefit obligations of the system.

TRSL is designed to provide lifetime monthly benefits to members who reach a certain age, and have a minimum number of years of service credit. When your benefit is paid over your lifetime, it will be many times more than the contributions you and your employer made to TRSL.

I’ve heard about 401(k) plans and IRAs. What kind of plan is TRSL?

401(k) plans and IRAs are defined contribution plans used by private businesses to help employees save for retirement, in addition to Social Security benefits. Retirement benefits depend on the accumulated contributions in your personal account.

TRSL is a defined benefit plan. Defined benefit means that your guaranteed lifetime benefit is calculated using a formula that is defined by state law. The TRSL formula is your years of service credit multiplied by your final average compensation multiplied by the appropriate benefit factor. TRSL members generally do not contribute to Social Security.

Can I borrow against my retirement contributions?

No. Louisiana law does not allow you to borrow from your retirement fund. You can withdraw your contributions only if you permanently terminate employment in a TRSL-covered position.

How do I get a refund of my contributions?

You may withdraw your member contributions only after permanently terminating TRSL-covered employment. A refund includes only the contributions you made. It does not include employer contributions or interest. A refund must be for the total amount of employee contributions. Partial withdrawals are not allowed.

To apply for a refund, you must complete the Application for Refund (Form 7). By law, your employer cannot certify the refund application until 90 days after you end employment. The application is then forwarded to TRSL for payment. A refund terminates membership and cancels service credit in TRSL. For detailed information, see Procedures for Requesting a Refund.

I withdrew my contributions when I quit. How do I restore my refunded service credit?

You’ll need to submit a completed Application for Purchase of Refunded Service (Form 9D). The cost to restore withdrawn service is computed using the amount of contributions refunded plus interest at the board-approved actuarial rate compounded annually from the date of refund until payment is made. The current interest rate is 8.25% but is subject to change each year.

A previous refund that was rolled over into a “conduit” IRA may be used to repurchase TRSL service credit. A Rollover Acceptance (Form 9R) must accompany any such funds used to purchase withdrawn service.