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Louisiana Teachers Retirement Question
Posted on 9/4/24 at 8:42 pm
Posted on 9/4/24 at 8:42 pm
As I understand it, 8% of a teacher's paycheck is taken out and after 30 years they get 100% of their salary in retirement.
What is someone wants to retire at say 15 years. Do they recoup any of that 8% that they have put in over those 15 years?
What is someone wants to retire at say 15 years. Do they recoup any of that 8% that they have put in over those 15 years?
8
Posted on 9/4/24 at 8:49 pm to BlueChips
Google says
quote:
In Louisiana, teachers are vested in the Teachers' Retirement System of Louisiana (TRSL) after five years of service. If a teacher leaves their job before the five-year vesting period is complete, they are only eligible for a refund of their employee contributions.
Posted on 9/4/24 at 9:14 pm to BlueChips
Depending upon when they started, they may be eligible for a refund of contributions or they can draw 37.5% pension at age 60 (I’m assuming this person started before 2015).
TRSL Handbook
TRSL Handbook
Posted on 9/4/24 at 9:36 pm to BlueChips
You don’t get 100% of your salary at 30 years. You do at 40 years. To figure your retirement at 30 years, you multiply 2.5%x30xaverage of highest 3 years salary.
Posted on 9/4/24 at 9:57 pm to tigger4ever
Correct- or at least for the newer hires.
So 30 years, $55k average works out to about $3,437/mth
Basically a little (a lot?) better than social security, which they don’t pay into.
And if you payed into before, their SS is decreased based on amount they get from retirement … someone may can help me out with this… not 100% sure of the mechanics here
So 30 years, $55k average works out to about $3,437/mth
Basically a little (a lot?) better than social security, which they don’t pay into.
And if you payed into before, their SS is decreased based on amount they get from retirement … someone may can help me out with this… not 100% sure of the mechanics here
This post was edited on 9/4/24 at 9:59 pm
Posted on 9/5/24 at 8:38 am to xBirdx
--Defined Benefit Plan
--Automatically defaulted into this retirement plan based on appointment
length/effort
--Employee contributes 8.0% of salary
--Meet age and years of service criteria in order to receive a benefit
--Vested after 5 years of service
--Employees do not pay into Social Security
--If you became a member of TRSL on or after July 1, 2015, with a 2.5% benefit factor, then one of the requirements below must be met in order to receive a retirement benefit from TRSL:
--5 years of service or more at age 62 or thereafter
--At 20 years of service you may retire at any age but your benefit will be
reduced on an actuarial basis which is based on your age, length of
service and number of years from your regular retirement age.
--If hired after Jan 1, 2011
[Years of Service] x [Formula %] x [5-Year High Average Salary] = Annual Retirement Benefit
--Example: 30 Years of Service x 2.5% x $50,000 = $37, 500
--Automatically defaulted into this retirement plan based on appointment
length/effort
--Employee contributes 8.0% of salary
--Meet age and years of service criteria in order to receive a benefit
--Vested after 5 years of service
--Employees do not pay into Social Security
--If you became a member of TRSL on or after July 1, 2015, with a 2.5% benefit factor, then one of the requirements below must be met in order to receive a retirement benefit from TRSL:
--5 years of service or more at age 62 or thereafter
--At 20 years of service you may retire at any age but your benefit will be
reduced on an actuarial basis which is based on your age, length of
service and number of years from your regular retirement age.
--If hired after Jan 1, 2011
[Years of Service] x [Formula %] x [5-Year High Average Salary] = Annual Retirement Benefit
--Example: 30 Years of Service x 2.5% x $50,000 = $37, 500
Posted on 9/5/24 at 8:54 am to BlueChips
After 30lyrs they can do DROP for 3yrs. You still work while in drop but also get your retire benefit deposited to your DROP account.
While in DROP, you don’t pay into TRSL the 8% either.
It’s been awhile so some of that might have changed, not sure.
While in DROP, you don’t pay into TRSL the 8% either.
It’s been awhile so some of that might have changed, not sure.
Posted on 9/5/24 at 9:02 am to BlueChips
quote:Not even close to 100% after thirty years. Probably need 40 now.
As I understand it, 8% of a teacher's paycheck is taken out and after 30 years they get 100% of their salary in retirement.
quote:That's not retiring, but yes, you can cash out, but it's a bad, bad, deal. No interest made and hit with a 15% fee.
What is someone wants to retire at say 15 years. Do they recoup any of that 8% that they have put in over those 15 years?
Posted on 9/5/24 at 9:18 am to bayoubengals88
quote:
What is someone wants to retire at say 15 years. Do they recoup any of that 8% that they have put in over those 15 years?
That's not retiring, but yes, you can cash out, but it's a bad, bad, deal. No interest made and hit with a 15% fee.
Wouldn't there just be an actuarial reduction? Instead of 2.5% factor it would be 1.75% (totally made that up) or something like that?
Posted on 9/5/24 at 9:21 am to TheWiz
quote:I don’t know what this means because I’m not an accountant, but I think you need 20 years to officially retire with a monthly pension.
Wouldn't there just be an actuarial reduction? Instead of 2.5% factor it would be 1.75% (totally made that up) or something like that?
Does that help at all?
Posted on 9/5/24 at 9:28 am to bayoubengals88
Yes.
My wife falls into this category. The benefit factor is listed above which is 2.5% but states that it can be reduced even w/ 20 years of service if you don't meet requirements.
So let's say she does meet all requirements, her pension would look like this:
$100,000 x 25 years of service x 2.5% benefit factor = $62,500/year
If she retired at 20 years, her benefit factor may be reduced. As an example, let's say it reduces to 2%.
$100,000 x 20 years of service x 2.0% benefit factor = $40,000/year.
quote:
If you became a member of TRSL on or after July 1, 2015, with a 2.5% benefit factor, then one of the requirements below must be met in order to receive a retirement benefit from TRSL:
5 years of service or more at age 62 or thereafter
At 20 years of service you may retire at any age but your benefit will be reduced on an actuarial basis which is based on your age, length of service and number of years from your regular retirement age.
My wife falls into this category. The benefit factor is listed above which is 2.5% but states that it can be reduced even w/ 20 years of service if you don't meet requirements.
So let's say she does meet all requirements, her pension would look like this:
$100,000 x 25 years of service x 2.5% benefit factor = $62,500/year
If she retired at 20 years, her benefit factor may be reduced. As an example, let's say it reduces to 2%.
$100,000 x 20 years of service x 2.0% benefit factor = $40,000/year.
Posted on 9/5/24 at 9:30 am to bayoubengals88
quote:
I don’t know what this means because I’m not an accountant, but I think you need 20 years to officially retire with a monthly pension.
Does that help at all?
I know with other public pensions in LA you can retire at 15 years, but you can't draw it until you're a certain age. I think it's either 55 or 60
Posted on 9/5/24 at 9:48 am to TheWiz
quote:I've got some bad news for you.
My wife falls into this category. The benefit factor is listed above which is 2.5% but states that it can be reduced even w/ 20 years of service if you don't meet requirements.
I just ran the calculator on me retiring at the end of the 2034 school year.
I geat paid as a teacher, but I make more than I did as a teacher because I now work 11 months out of the year.
Let's just assume that I'm only making 6k per month at the end of my 20 year career...
This is what it shows. Less than 12k per year
Please correct me if I'm reading it wrong.
This post was edited on 9/5/24 at 9:49 am
Posted on 9/5/24 at 9:56 am to bayoubengals88
quote:Right but that is because you start pulling at age 45. That is an extra $200,000 than if you started pulling it at the current retirement age of 62. I don't know a lot about the teacher retirement but I would assume you could defer that $12k/year and start pulling at 62 and that number would be a good bit higher (not saying this is the correct path, just providing context on why I think that number is so low)
This is what it shows. Less than 12k per year
This post was edited on 9/5/24 at 9:58 am
Posted on 9/5/24 at 9:59 am to TigerTatorTots
Ah, that makes sense.
I just don't see how to indicate that on the benefit calculator unfortunately.
I just don't see how to indicate that on the benefit calculator unfortunately.
Posted on 9/5/24 at 10:00 am to bayoubengals88
[/url] Posted on 9/5/24 at 10:02 am to bayoubengals88
Under projected date of retirement. Then select the months of your contract. Since you are estimating a retirement 20 years away, I factored a final monthly FAC based on 1% raises every year for the next 20 years and also a raise to Professor in there as well.
Posted on 9/5/24 at 10:05 am to TheWiz
Waiting to 62 (full retirement) yields her a ton more money, but she'll be burnt out by then. I'll struggle to have her ride to 60.
Posted on 9/5/24 at 10:06 am to TheWiz
Her final average monthly compensation is estimated to be 10,500? 
Posted on 9/5/24 at 10:06 am to bayoubengals88
She's a physician/teacher for LSUHSC. That's the state portion. The rest is supplemented from the clinics she sees in the hospital.
This post was edited on 9/5/24 at 10:08 am
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