457(b) and Roth 457(b) Plans
The 457(b) plan offers LSU employees one option through the State of Louisiana Deferred Compensation Plan with Empower Retirement. This plan allows employees to defer a pre-tax portion of earnings into a supplemental retirement account.
The Roth 457(b) feature provides an additional way to save for retirement. Employees may make contributions on an after-tax basis under the Roth option, on the pre-tax basis under the 457(b) plan, or a combination of the two. Although the Roth option doesn't change how much can be contributed, it does provide more control over when contributions - and retirement income - will be subject to federal income tax. If an account is open for at least five years and the employee has turned age 59 1/2, every cent in a Roth 457(b) could be withdrawn tax-free.
Enrolling and/or Inquiries
For a 457(b) supplemental retirement account, you may begin the enrollment process by calling 800-701-8255 to verify your information and establish your log-in. You will need to provide a Date of Hire, and then a security code will be sent to a cell number or email on record with Empower. If no cell number or email is on record with Empower, additional identity verification will be required. From there, you will be instructed to complete your contribution amount online at www.louisianadcp.com. The investment will default to a 6% contribution rate into a Target Date fund based on your date of birth. Any of this may be changed in the future by logging on and making changes to your account. This data will be communicated to LSU’s payroll department via electronic file and you will receive a confirmation of your activity. Federal regulation on 457(b) plans provides that any changes you submit on your account will take place the following month.
Current participants can make deferral changes online at louisianadcp.com.
Please remember, investing in a 403(b) and/or 457(b) supplemental retirement account is not free. Each vendor (company) charges fees, such as record-keeping and in some cases, fees for distribution-related expenses in addition to expenses and fees based on your investment allocation. As a new enrollee in one of these plans, it is up to you to compare and consider the benefits offered by each vendor. New and current participants should confirm all costs associated with their investments, as well as any charges and restrictions associated with your existing contract before requesting a transfer for current participants.
New Enrollee or Current Participant
|New Enrollee's||Current Participants|
|Compare benefits offered by each vendor||X||X|
|Confirm all costs associated with your investment options||X||
|Confirm any changes and restrictions associated with your existing contract before initiating a transfer||
Maximum Deferral Amount Limits
|Annual Maximum Deferral Amount||$19,000|
|Annual Maximum Deferral Amount for participants age 50 and older||$25,000|
Termination of employment with LSU allows funds to be rolled over to an IRA or other qualified plan or receive a cash distribution without an early withdrawal penalty. Contact Deferred Compensation at 1-(800) 701-8255 to begin your distribution after separation.