Retirement benefit payments usually begin within 30 to 45 days after the effective date of your retirement. However, delays may occur if requested documentation is not received in a timely manner.

No, LASERS will not send a retirement check stub unless there is a change in your monthly retirement amount.

As a LASERS retiree, you are exempt from Louisiana state income taxes on your LASERS pension. You are required to pay federal taxes on the pension.

Yes. A 1099 will be issued to you each year.

You must send a request in writing to LASERS, P. O. Box 44213, Baton Rouge, LA or by fax to 225.935.2856 and a completed letter will be mailed or faxed to you according to your request.

Once a verification request is received, it usually is processed within 10 business days.

You must contact the credit union to have this deduction stopped; otherwise, it will continue to be deducted from your retirement check.

You must contact the insurance carrier or your former employing agency for detailed health plan information.

You must contact the insurance carrier or your former employing agency for detailed life insurance information.

Click here to view tutorials on how to create your myLASERS account.

Deferred Retirement Option Plan (DROP)

The DROP interest rate is not a one-year return or even a simple multi-year average.  The rate is derived using an actuarial return calculation, one uses the last five years of returns, accounting for realized and unrealized gains and losses.

LASERS is a globally diversified plan, investing in equities, fixed income, and alternative assets worldwide. The plan returns and risk reflect this diversification.

Outperformance in the US stock market is highly unusual and will differ from the returns in a broadly diversified portfolio such as LASERS.

If you entered DROP based on a retirement eligibility date prior to January 1, 2004, you may still have your DROP account held at LASERS. Those accounts earn interest based on the investment returns earned by LASERS, but those returns are “smoothed” over a five year period. This smoothed earnings rate is then subtracted by 0.50% (for administrative expenses) to determine the interest credited to the members’ DROP accounts.

“Smoothing” mitigates volatility in the short-term market fluctuations. Gains and losses are recognized in twenty percent increments over a five year period, subject to corridor limits which avoid outlying returns. Typically, the amount of a gain or loss is recognized 20% in the first year, 40% in the second year, 60% in the third year, and 80% in the fourth year.

Funds in DROP accounts may not be accessed until after a member terminates state service. This rule applies to accounts held at LASERS and accounts held at Empower in the Self-Directed Plan.

DROP account funds held at LASERS may be withdrawn at the retiree’s discretion, subject to IRS rules about required minimum distributions. However, there is nothing that can be done with those funds until withdrawal, other than allowing them to earn interest based on the LASERS investment earnings.

DROP account funds held at Empower may be invested in a wide variety of fixed investment options and mutual funds from asset classes with different holdings, management styles, and risk factors, including a stable value fund designed to avoid investment losses. Empower has investment professionals available to help members with investment decisions.

DROP account funds withdrawn from LASERS or Empower are subject to federal taxes, but are exempt from Louisiana state taxes. However, if DROP account funds are rolled over from a LASERS or an Empower DROP account to another financial provider, the Louisiana state income tax exemption is lost.

When you are in the DROP participation period, you no longer pay contributions to LASERS. No service credit is earned during the participation period.

The amount that you would receive as a retirement benefit is deposited to your DROP account each month during the participation period, which is a maximum of 36 months.

You continue to earn sick and annual leave while in DROP.

DROP funds may not be accessed until state service is terminated.

LASERS does not currently allow withdrawals to be made online from DROP accounts. It is a feature being explored for the future.

Obtain and complete Form 09-03: Request for Withdrawal from DROP/IBO here on our website and submit it to LASERS.

The completed form may be faxed to 225-935-2856 or mailed to P. O. Box 44213, Baton Rouge, LA 70804.

Online withdrawals are allowed from Empower accounts. Contact Empower directly to withdraw your self-directed DROP or IBO money.

You may choose to continue working after DROP participation ends. If so, contributions to LASERS resume, and service credit toward a supplemental benefit is earned. Deposits to the DROP account cease. The DROP account may not be accessed until employment is terminated.

When you terminate employment, you will begin receiving a monthly retirement benefit, including the supplemental benefit for the time you worked after DROP. The final average compensation used to calculate a supplemental benefit depends on your plan and how long you work. For details, see the Deferred Retirement Option Plan chapter here in the Member’s Guide to Retirement.