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Hu_Flung_Pu 
USA Fan
In the handicap stall
Member since Jan 2013
1327 posts
| Can anybody explain the State's retirement... (Posted on 1/29/13 at 11:53 am)
I work for the state(LA) and don't know exactly what they are doing with my contributions. I plan on additionally getting a Roth IRA.
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KT70 
LSU Fan
Baton Rouge
Member since Jun 2011
1064 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 12:10 pm to Hu_Flung_Pu)
LINK
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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
18951 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 12:33 pm to Hu_Flung_Pu)
what state plan are you in trsl, lasers,..?
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Hu_Flung_Pu
USA Fan
In the handicap stall
Member since Jan 2013
1327 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 12:40 pm to TigerintheNO)
lasers
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Layabout 
UNO Fan
Baton Rouge
Member since Jul 2011
4477 posts
 Online
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 1:07 pm to Hu_Flung_Pu)
They're taking your contributions and the state's contributions on your behalf and investing them. Their ROI has historically been very good.
It's still a defined benefit plan if you're already in it which means that you will be entitled to a guaranteed pension based on your salary and years of service. The pension benefit is computed by taking the average of your five highest earning years with the state multiplied by .025 (2.5%) multiplied by the number of years of service. For example, if your highest earning average is $50,000 and you retire after 20 years, your pension would be .025 x 20 x 50,000 = $25,000.
There are some minimum age requirements to retire but those can be flexible in return for a reduced benefit. You can also name a beneficiary to receive your pension after you die for the rest of the beneficiary's life. Read the handbook for details. A defined-benefit plan like this is the Cadillac of pensions. You can also invest in a deferred comp 457 plan (similar to a 401K) while working for the state.
This post was edited on 1/29 at 1:09 pm
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Hu_Flung_Pu
USA Fan
In the handicap stall
Member since Jan 2013
1327 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 1:31 pm to Layabout)
thanks for the info. is this the new one? I heard it changed
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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
7643 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 1:32 pm to Layabout)
Don't forget the Drop program. You can work for 3 years while putting your paycheck into an interest bearing account while drawing your pension as payment while working after achieving retirement age (20-25 years).
At the end of three years, that 36 months of compounded salary is paid out in a lump sum.
I've been considering buying a few years of service credit. I think it would cost me around $12K right now and allow me to retire in my mid 50's.
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Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
115690 posts
Online
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 1:47 pm to Hu_Flung_Pu)
quote:
I plan on additionally getting a Roth IRA.
Good idea
You can't trust the state
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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
7643 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 1:55 pm to Powerman)
quote:
Powerman
quote:
Good idea
You can't trust the state
We've averaged 10% returns through the recession on an annual basis. If any of the last 5 governor's of our state would pay the state's share of our retirement contribution, we'd actually be completely solvent.
The problem is not that more are taking out than are putting in. The problem is not that we're losing money in the markets. The problem is our leadership kicking the can down the road while kicking us while we're down.
Zero raises in the past five years, no cost of living adjustments in decades. Retirement and healthcare under attack at every session...even though his plans are literally ruled Unconstitutional by a conservative panel of La judges...
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Mung
LSU Fan
Member since Aug 2007
2582 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 2:15 pm to Hu_Flung_Pu)
State makes large promises to employees for decades, doesn't allocate enough money to pay for said promises, kicks can down the road every legislative session, creating nightmare scenario of large tax increases in future, or defaulting on pensions.
In other words, typical politics.
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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
4477 posts
Online
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 2:35 pm to Hu_Flung_Pu)
quote:
thanks for the info. is this the new one? I heard it changed
No, this is the original retirement plan. I believe the new plan went into effect on January 1, 2013 for new hires. Not sure about the details but if you were in the old plan I think you can elect to remain in it. Maybe others could clarify.
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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
18951 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 4:05 pm to Layabout)
quote:
I believe the new plan went into effect on January 1, 2013 for new hires. Not sure about the details but if you were in the old plan I think you can elect to remain in it. Maybe others could clarify.
Was ruled unconstitutional.
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PvilleP 
New Orleans Saints Fan
Prairieville
Member since Apr 2011
1138 posts
Online
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 4:54 pm to TigerintheNO)
Surprised no one has mentioned the other benefit from State retirement - health insurance coverage for life. 
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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
4477 posts
Online
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 5:05 pm to PvilleP)
quote:
Surprised no one has mentioned the other benefit from State retirement - health insurance coverage for life.
Good point. However if you've worked other places besides the state and are eligible for Medicare, you have to enroll in Medicare when you reach 65 and the state provides Medicare supplement coverage. The state pays 75% of the cost of that for the employee, less for any dependents.
This post was edited on 1/29 at 5:06 pm
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Lil Man
New Orleans Saints Fan
Baton Rouge
Member since Jan 2007
1339 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 5:15 pm to GFunk)
quote:
I've been considering buying a few years of service credit. I think it would cost me around $12K right now and allow me to retire in my mid 50's.
How do you buy time? How much is it?
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Ders
LSU Fan
LA
Member since Jan 2013
91 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 7:45 pm to Lil Man)
You will need to fill out an application that can be found on lasers website. You can purchase up to 5 years of airtime. The cost is calculated by an actuary and varies depending on numerous factors. A $150 fee will have to be paid for the actuary to calculate the cost.
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Hu_Flung_Pu
USA Fan
In the handicap stall
Member since Jan 2013
1327 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 8:03 pm to Ders)
great posts. thanks
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Ders
LSU Fan
LA
Member since Jan 2013
91 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 8:12 pm to Hu_Flung_Pu)
Be sure you know what plan you are in, as there are about 22 different ones. This will determine your retirement eligibility and accrual rate.
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Jake88 
George Mason Fan
Member since Apr 2005
5613 posts
| re: Can anybody explain the State's retirement... (Posted on 1/29/13 at 9:08 pm to Ders)
quote:
You can purchase up to 5 years of airtime.
Can that 5 years bought get you vested? Say you worked 5 years for the state but it takes 10 years to be vested.
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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
4477 posts
Online
| re: Can anybody explain the State's retirement... (Posted on 1/30/13 at 9:49 am to Jake88)
quote:
Can that 5 years bought get you vested?
No. You have to have at least ten years of actual employment to be vested.
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