Retirement securityIn a changing world

Service Credit

How it is earned:

Members earn 100% of a year service credit for each full year contract

Members cannot earn more than one year of service credit in a 12-month period.

FIVE YEARS SERVICE CREDIT – VESTED IN TRSL

SURVIVOR BENEFITS

DISABILITY RETIREMENT

DEFERRED RETIREMENT

Service and DROP Retirement

Service Retirement

Stop working and begin receiving lifetime monthly retirement benefit check

ILSB

Stop working, receive a lump sum up to 36 times your monthly maximum benefit, and receive a lifetime reduced monthly retirement benefit

Deferred Retirement Option Plan (DROP)

Continue working for up to 36 months, build a retirement nest egg, retire sometime after completion of DROP participation

Service Retirement

At least 5 years at age 60 20 years at any age At least 25 years at age 55 30 years at any age At least 20 years at age 65

See Page 39

DROP/ILSB Eligibility

At least 10 years at age 60

At least 25 years at age 55

30 years at any age

Act 270 – Annual COLA Option

Self-funded 2. 5% annual cost-of living adjustment

Estimated affidavit is sent to member

Member chooses Retirement Option

Retirement benefit is calculated

When Retirement / ILSB / DROP application is received:

Benefit Formula

X X

=

Years of TRSL service credit

%Factor

Average compensation

Maximum Retirement Allowance

Retirement Options

Maximum Option – No named beneficiary

Option 1 – Multiple beneficiaries for lump-sum balance

Options 2 & 2A

Options 3 & 3A One beneficiary

Options 4 & 4A

Note: Option 1 not allowed if retiring under ILSB

See page 47

Benefit Computation ExampleA 55 year old member retiring with $2,500 average monthly salary:

20 X 2% = $1,000 maximum benefit(hired before 7/1/99)

20 X 2.5% = $786 maximum benefit **(hired on or after 7/1/99)

25 X 2.5% = $1,563 maximum benefit

**Actuarially reduced benefit

Initial Lump Sum Benefit (ILSB)

One time lump sum at time of retirement

Lump sum is based on maximum benefit

Lifetime reduced benefit

Benefit reduction is based on age of retiree

Retirement Option is chosen on affidavit (except Option 1)

Funds are treated the same as DROP funds

Page 49

ILSB Example

57 year old with 58 year old beneficiary

Maximum benefit is $1000 per month

Retiree may receive up to $36,000 in a lump sum

($1000.00 X 36 months = $36,000.00)

ILSB Example

Reduction in benefits depends on age of retiree. This benefit is reduced $8.02 for every $1,000 member receives in a lump sum.

Regular benefit Reduced benefit

Maximum $1,000.00 Maximum $711.00

Option 2 $ 928.00 Option 2$660.00

Option 3 $ 963.00 Option 3$685.00

Page 50

Deferred Retirement Option Plan (DROP)

Maximum participation period is 3 years

Window opens when you reach your 1st eligibility date

60 day grace period to enter after 1st eligibility

Window closes 3 years + 60 days from date window opened (deadline for ending DROP)

Member is 57 with 58 year old beneficiary

Maximum benefit is $1000.00 per month

Member participates in DROP for 36 months

Maximum chosen - $36,000 end of DROP

Option 2 chosen - $33,408 end of DROP ($928/mo)

Option 3 chosen - $34,668 end of DROP ($963/mo)

DROP Example

During DROP Participation

Keep workingKeep working

May change jobs May change jobs

No contributions to TRSLNo contributions to TRSL

Retirement benefit amount locked inRetirement benefit amount locked in

Retirement benefit deposited into DROP AccountRetirement benefit deposited into DROP Account

After DROP Participation

Continue working and earn supplemental benefit

DROP funds become eligible to earn interest

Retire and begin drawing monthly benefit and DROP funds

DROP or ILSB Funds

Members eligible for DROP/ILSB prior to Jan. 1, 2004:

DROP/ILSB funds earns interest equal to the TRSL actuarial rate of return on investments minus ½ percent.

DROP or ILSB Funds

Members eligible for DROP/ILSB Jan. 1, 2004 or later:

DROP/ILSB funds will be put into interest-bearing money market account at current rate of return less ¼ percent.

Returning to Work After Retirement in a TRSL Covered Position – Effective 7/1/2010

Act 921 of 2010 covers the following TRSL retirees:

K-12 Classroom Teacher - Critical shortage must be declared- Full time or part time

Speech Pathologist, Audiologist, Speech Therapist in K-12- Critical shortage must be declared- Must be certified- Full time only

Other TRSL members who retired and returned to work PRIOR to July 1, 2010

- Covered under previous return-to-work provisions

Returning to Work After Retirement in a TRSL Covered Position – Effective 7/1/2010

There is a 12-month waiting period.

Eligible return-to-work retirees will pay contributions to TRSL.

Retirees who are not K-12 teachers, Speech Therapists, Pathologists, or Audiologists retiring 7/1/2010 or later.

- Suspension of benefits for duration of re- employment

- No contributions paid to TRSL

- No payments to SS, except Medicare

Things to do now…

Verify beneficiary/beneficiaries on annual statement• Form 3

Send in change of address, if applicable• Form 2AC

Have employer certify employment history

Send in proper documents (see page 39 in handbook)

Get an estimate of benefits• Send TRSL a Form 10• Website calculator (www.trsl.org)

How to contact usMain: (225) 925-6446

TDD: (225) 925-3653

Toll-free (outside Baton Rouge area):1-877-ASK-TRSL (1-877-275-8775)

www.trsl.org