Optional Retirement Plan FAQs
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.