Contributions

Contributing membership in the system ceases when a member resigns, is dismissed, retirees, or is otherwise separated from service as a state police officer.

 

Employee/Employer Contributions


Currently, the law sets the employee contribution rate at: a) 9.5% if first employment making the employee eligible for membership in the retirement system is on or after January 1, 2011, b) 8.5% if first employment making the employee eligible for membership in the retirement system is prior to January 1, 2011, or, c) 8.0% if hired prior to January 1, 2011 and participated in the “old” DROP, of earned compensation, or base pay, for state police officers. The agency pays the employer contribution rate determined each year based on an actuarial formula set by state law.

 

Base pay does not include overtime, per diem, differential pay, payment in kind, premium pay, or any other authorized expense allowance.

 

Once an employee has earned benefits equal to 100% of his/her current final average compensation (usually after 30 years of service), he/she may opt out of paying employee contributions.

 

Return of Contributions


LSPRS will pay you, your survivor, your beneficiary, or your estate an amount equal to your total employee contributions if you terminate employment and are not eligible for retirement benefits, provided no survivor benefits are being paid pursuant to plan provisions. Refunds are subject to Louisiana state income taxes if a portion of the refund is sheltered (contributed after January 1, 2004).

 

You are not required to withdraw your contributions at the time of your termination of employment. Your contributions may be left on deposit with LSPRS which is a common practice for members anticipating reemployment in the future.

 

Refund of Contributions


You may apply for a refund of your employee contributions only when you leave state police service, even if you are eligible to retire. If you transferred any service to LSPRS, you will be refunded only the employee portion of that transfer.

 

You must be out of state service for a minimum of 30 days to be eligible for a refund. LSPRS processes your refund only after all of your contributions have been submitted by DPS, approximately 60 days after your exit from service. When you accept a refund of your contributions, you automatically forfeit all service credit and accrued rights in LSPRS. The system does not pay interest on any amounts refunded. LSPRS processes most refunds within 60 days after your date of termination.

 

Repayment of Refunds


You may repay a prior refund if you return to state police employment. To restore the service credit, you must repay the amount refunded plus interest compounded annually from the date of the refund until payment is made in full. Your repayment must be made in a lump sum. You may repay a refund at any time prior to the date of your retirement.

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