Employee Benefits: Retirement

According to state and federal laws, employees of the LSU System must participate in a retirement plan. To assist in reviewing plan options, below is a list of retirement plans available to the different employee classifications:

Classified civil service employees with an appointment of greater than 50% of full-time effort (more than 20 hours per week) AND appointed for duration of greater than two years, the retirement option is:

 

Classified, civil service employee with an appointment of 50% of full-time effort or less (20 hours or less per week) OR appointed for duration of two years or less, the retirement options are:

 

Unclassified staff member* or Faculty member** with an appointment of 50% of full-time effort or greater OR an  with an appointment of 51% of full-time effort or greater (more than 20 hours per week) AND appointed for duration of greater than two years, the retirement options are:

 

Unclassified staff member* or faculty member** with an appointment of less than 50% of full-time effort OR an with an appointment of less than 51% of full-time effort (20 hours or less per week) OR appointed for duration of two years or less, the retirement options are:

 

*Staff Member: administrative officer, professional staff, teaching associate, research associate, library associate or coordinator

**Faculty Member: instructor, assistant professor, associate professor, professor or librarian
 

Participation in Social Security

With few exceptions, the State of Louisiana does not participate in the Social Security program. If an employee is enrolled in a Louisiana State retirement plan (TRSL, LASERS, ORP, DCCL), they do not pay Social Security tax; however, if hired after April 1, 1986, the employee is required to pay the Medicare portion of the FICA tax (1.45% of salary).

Employees on Visas

According to state and federal laws, as an employee of the LSU System, employees must participate in a retirement plan. However, LSU System employees on a J or F Visa are not eligible to participate in a retirement plan unless “substantial presence” has been met. Under the Internal Revenue Service Code, the Substantial Presence Test (SPT) is used to determine “tax residency” of an international person. The test is a mathematical test based on the individual’s visa status and number of days present in the United States. Once an international person meets the Substantial Presence Test, he/she is subject to the same tax laws as a United States citizen. For more information on the SPT, refer to IRS publication 519 “US Tax Guide for Aliens.” If substantial presence is met, an employee may choose between Social Security and Louisiana Deferred Compensation Retirement Plan. Employees will be notified by a Benefits Representative when you have reached substantial presence and when the retirement election is due.