Frequently asked questions about the ORP
What is the ORP?
The ORP (Optional Retirement Plan) is a defined contribution plan, under Internal Revenue Code §401(a), in which account holders direct their own investments through private carriers. The ORP is a retirement plan in which certain higher education employees can choose to participate rather than the TRSL defined benefit retirement plan.
Who’s eligible for the ORP?
Academic and unclassified employees of Louisiana colleges, universities, and community colleges can participate in the ORP. Employees of any constitutionally established board that manages institutions of higher education also can participate.
How do I join the ORP?
If you decide to enroll in the ORP, you will need to complete TRSL’s Application for Optional Retirement Plan or Change of Carrier (Form 16). Eligible employees can enroll in the ORP at any point before earning five years of TRSL service credit.
What are my retirement options under the ORP?
An ORP participant can choose to retire and receive benefits at any time after termination of all public employment in Louisiana. At a participant’s death, the ORP account is payable to the beneficiary(ies) in a lump sum or as an annuity. Benefits payable to ORP participants or their beneficiaries are the sole liability and responsibility of the ORP carrier selected by the participant. For more information on payment options for ORP balances, please refer to page 7 of the TRSL’s ORP guide.
TRSL or the ORP: Which one should I choose?
The decision to join the ORP is irrevocable once your election window provided by La. R.S. 11:932 expires. You should look at your career expectations carefully and realistically before deciding whether to enroll in TRSL or the ORP. You may want to consult a financial advisor.
For more information on the differences between the two plans, please refer to this comparison chart.
Frequently asked questions about the ORP election windows
How can I make the election to join TRSL after I participated in the ORP?
Use Form 2TR. This form must be completed by you and your employer within the time limit set by state law (La. R.S. 11:932). See the table for deadlines.
NOTE: TRSL needs the original of both pages of this form. Scanned copies of either page will not be processed. Your employer will mail the form to TRSL.
Who is not eligible for TRSL?
Anyone who is no longer employed by a TRSL-participating employer or whose position is part-time, seasonal, or temporary employment. Please consult your employer if you’re unsure of your status.
If I join TRSL, when will I be eligible to retire?
You can retire and begin drawing a benefit at age 62 with at least 5 years of service, or at any age with at least 20 years of service (actuarially reduced).
What if I don’t want to work until age 62?
If you have at least five years of service credit, you can terminate your position, leave your contributions with TRSL and be eligible to apply for retirement at age 62.
How do I use the ORP comparison calculator?
Here are some tips for using the calculator:
You will join TRSL as a brand-new member in the 2015 Retirement Plan. Your years of service (eligibility credit) will start at 0.00.
If you left contributions with TRSL and did not roll them over to your ORP account, that service credit may be used to increase your monthly TRSL benefit but it cannot be used to attain eligibility for retirement. Pre-ORP service credit also will not count toward eligibility for disability or survivor benefits.
Can I transfer my ORP account into TRSL?
No, the ORP account will always remain separate from the TRSL pension account; the ORP funds cannot be transferred into TRSL and no TRSL credit can be given for the time in which you participated in the ORP. You will continue to be able to manage the funds in your ORP account, but no new contributions can be made to your ORP account. You can receive distributions from your ORP account once you retire from the defined benefit plan or terminate all TRSL-eligible employment.
Can I refund my ORP contributions and use them to purchase service credit in the TRSL defined benefit plan?
No. State law does not permit this.
What happens to my ORP contributions?
Your accumulated ORP contributions will remain with your ORP carrier, but new contributions into your ORP account will cease and you will instead begin contributing to TRSL’s defined benefit plan. Upon retiring from TRSL, you will have earned a lifetime benefit from TRSL’s defined benefit plan and will also be able to access the funds you previously contributed to the ORP. Your ORP account will always remain separate from the TRSL pension account; the ORP funds cannot be transferred into TRSL and no TRSL eligibility credit is given for the time in which you participated in ORP.
What happens to my annual leave and sick leave if I move from the ORP to the TRSL defined benefit plan?
Questions about annual and sick leave usage, accrual rates and balances should be directed to your human resources personnel.
Once I retire, can my annual leave and sick leave balances be converted to service credit?
It depends on whether the leave was accumulated while you were participating in the ORP or during your membership in the TRSL defined benefit plan.
Who can answer questions about health insurance?
Health insurance, including any retiree health insurance through the Office of Group Benefits, is an employment benefit provided to you by your employer. Please contact your employer or the Office of Group Benefits directly with any health insurance questions.
What is the ORP?
The ORP (Optional Retirement Plan) is a defined contribution plan, under Internal Revenue Code §401(a), in which account holders direct their own investments through private carriers. The ORP is a retirement plan in which certain higher education employees can choose to participate rather than the TRSL defined benefit retirement plan.
Who’s eligible for the ORP?
Academic and unclassified employees of Louisiana colleges, universities, and community colleges can participate in the ORP. Employees of any constitutionally established board that manages institutions of higher education also can participate.
How do I join the ORP?
If you decide to enroll in the ORP, you will need to complete TRSL’s Application for Optional Retirement Plan or Change of Carrier (Form 16). Eligible employees can enroll in the ORP at any point before earning five years of TRSL service credit.
What are my retirement options under the ORP?
An ORP participant can choose to retire and receive benefits at any time after termination of all public employment in Louisiana. At a participant’s death, the ORP account is payable to the beneficiary(ies) in a lump sum or as an annuity. Benefits payable to ORP participants or their beneficiaries are the sole liability and responsibility of the ORP carrier selected by the participant. For more information on payment options for ORP balances, please refer to page 7 of the TRSL’s ORP guide.
TRSL or the ORP: Which one should I choose?
The decision to join the ORP is irrevocable once your election window provided by La. R.S. 11:932 expires. You should look at your career expectations carefully and realistically before deciding whether to enroll in TRSL or the ORP. You may want to consult a financial advisor.
For more information on the differences between the two plans, please refer to this comparison chart.
Frequently asked questions about the ORP election windows
How can I make the election to join TRSL after I participated in the ORP?
Use Form 2TR. This form must be completed by you and your employer within the time limit set by state law (La. R.S. 11:932). See the table for deadlines.
NOTE: TRSL needs the original of both pages of this form. Scanned copies of either page will not be processed. Your employer will mail the form to TRSL.
Who is not eligible for TRSL?
Anyone who is no longer employed by a TRSL-participating employer or whose position is part-time, seasonal, or temporary employment. Please consult your employer if you’re unsure of your status.
If I join TRSL, when will I be eligible to retire?
You can retire and begin drawing a benefit at age 62 with at least 5 years of service, or at any age with at least 20 years of service (actuarially reduced).
What if I don’t want to work until age 62?
If you have at least five years of service credit, you can terminate your position, leave your contributions with TRSL and be eligible to apply for retirement at age 62.
How do I use the ORP comparison calculator?
Here are some tips for using the calculator:
- Please be aware that your ORP account is not linked to the ORP comparison calculator. The calculator provides a projection of your ORP benefit as a new contributing member to the ORP. It will not take into account any previously accumulated ORP contributions.
- If you use the ORP comparison calculator as a resource to decide whether to switch to the TRSL defined benefit plan or remain in the ORP, you will need to compare the projected TRSL benefit with the ORP retirement projections provided by your financial advisor.
- TRSL Regular Plan Employee Contribution Field: Some ORP participants were previously members of the TRSL defined benefit plan before joining the ORP.
- If you moved your TRSL contributions to your ORP account when joining the ORP (this is typical): Enter 0 (zero) in this field since you no longer have a contribution balance in TRSL.
- If you chose to keep your TRSL contributions in TRSL (this is not typical): Enter the contribution amount from your last TRSL Member Statement.
- If you have never participated in the TRSL defined benefit plan: Enter 0 (zero).
You will join TRSL as a brand-new member in the 2015 Retirement Plan. Your years of service (eligibility credit) will start at 0.00.
If you left contributions with TRSL and did not roll them over to your ORP account, that service credit may be used to increase your monthly TRSL benefit but it cannot be used to attain eligibility for retirement. Pre-ORP service credit also will not count toward eligibility for disability or survivor benefits.
Can I transfer my ORP account into TRSL?
No, the ORP account will always remain separate from the TRSL pension account; the ORP funds cannot be transferred into TRSL and no TRSL credit can be given for the time in which you participated in the ORP. You will continue to be able to manage the funds in your ORP account, but no new contributions can be made to your ORP account. You can receive distributions from your ORP account once you retire from the defined benefit plan or terminate all TRSL-eligible employment.
Can I refund my ORP contributions and use them to purchase service credit in the TRSL defined benefit plan?
No. State law does not permit this.
What happens to my ORP contributions?
Your accumulated ORP contributions will remain with your ORP carrier, but new contributions into your ORP account will cease and you will instead begin contributing to TRSL’s defined benefit plan. Upon retiring from TRSL, you will have earned a lifetime benefit from TRSL’s defined benefit plan and will also be able to access the funds you previously contributed to the ORP. Your ORP account will always remain separate from the TRSL pension account; the ORP funds cannot be transferred into TRSL and no TRSL eligibility credit is given for the time in which you participated in ORP.
What happens to my annual leave and sick leave if I move from the ORP to the TRSL defined benefit plan?
Questions about annual and sick leave usage, accrual rates and balances should be directed to your human resources personnel.
Once I retire, can my annual leave and sick leave balances be converted to service credit?
It depends on whether the leave was accumulated while you were participating in the ORP or during your membership in the TRSL defined benefit plan.
- If accumulated while participating in the ORP: Annual leave and sick leave you earned while in the ORP cannot be converted to service credit. However, leaving the ORP and joining the TRSL defined benefit plan will not impact the amount of annual leave or sick leave you have accumulated. Leave is an employment benefit, not a retirement benefit. Questions about annual leave and sick leave earned while in the ORP – including annual and sick leave usage, accrual rates and balances - should be directed to your human resources personnel.
- If accumulated during membership in TRSL’s defined benefit plan: Once you join the TRSL defined benefit plan, your employer will start reporting the number of sick days you use each year to TRSL. When you retire, TRSL will use the Unused Sick Leave Conversion Chart to see how much of your unused sick leave earned while in TRSL will convert into service credit. Up to one year of unused sick leave can be converted to service credit. You may be able to purchase any remaining unused sick leave for conversion to additional service credit. Unused annual leave earned after joining the defined benefit plan may be purchased for additional service credit. There is no specific conversion formula set in statute like there is for sick leave conversion.
Who can answer questions about health insurance?
Health insurance, including any retiree health insurance through the Office of Group Benefits, is an employment benefit provided to you by your employer. Please contact your employer or the Office of Group Benefits directly with any health insurance questions.