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.
|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 memberís 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 memberís 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).|