Louisiana ORP Overview

What is the Louisiana ORP?

The Louisiana Optional Retirement Plan (ORP) is a 401(a) defined contribution retirement program that is offered to certain employees of Louisiana's colleges, universities, and community colleges, as an alternative to the State Teachers' Retirement System of Louisiana (TRSL).

The Louisiana ORP offers you:

Back to top

Eligibility

Academic or unclassified employees of Louisiana's public institutions of higher education are eligible to join the ORP. The ORP is also available to employees of:

Active contributing members of TRSL's Regular Plan who are academic or unclassified employees and who have less than five (5) years of creditable service in TRSL may elect to participate in the ORP and transfer accumulated employee contributions to the ORP.

Back to top

When do I have to make my decision between the Louisiana ORP and the traditional defined benefit plans offered by TRSL?

Within 60 days of joining the Louisiana public higher education system, you’ll need to make an important decision concerning your retirement plan - whether to enroll in the TRSL or the ORP.

Note: The decision to join the ORP is irrevocable and you will not be eligible for TRSL at any time after that. If you change to another employer that reports to TRSL, you must stay in the ORP.

For more information about the differences between ORP and TRSL, please contact your personnel office or TRSL and request a copy of TRSL or ORP? A Choice for Your Future (a pamphlet that compares the benefits of the plans).

Back to top

Louisiana ORP and ING

When you choose ING Life Insurance and Annuity Company (ING) for your ORP, you and your employer each contribute a certain percentage of your total compensation to the ING Retirement Master variable annuity contract, issued by ING Life Insurance and Annuity Company. Those contributions are invested in the variable investment options or fixed options you select. ING also offers you a choice when it comes to enrollment service and retirement planning. See the chart below for a side-by-side comparison of the two service options.

Back to top

Important Information

Variable annuities offered through a retirement plan are long-term investments designed for retirement purposes. Early withdrawals taken prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax. Money distributed from the annuity will be taxed as ordinary income in the year the money is received. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. Tax deferral is provided by your employer’s plan and the annuity does not provide any additional tax deferral benefit. Annuities may be subject to additional fees and expenses to which other tax-qualified plan funding vehicles may not be subject. However, annuities provide features and benefits such as lifetime income payments and death benefits which may be valuable to you.

You should consider the investment objectives, risks, charges and expenses of the variable product and its underlying fund options carefully before investing. The contract and fund prospectuses contain this and other information. You may obtain a prospectus by contacting your ING representative or the Company at the address listed below. Please read the prospectus carefully before investing.

Back to top

Product features

The Retirement Master variable annuity contract has the following features:

Your ING campus representative is available to meet with you one-on-one to explain the program, answer your questions, and help make enrollment simple. Your representative will work with you to help you build a portfolio of funds within the variable annuity contract that is suitable to your risk tolerance and personal time horizon.

Back to top

Service Comparison

When you select ING Life Insurance and Annuity Company as your provider for the ORP, you can also choose the counseling and enrollment service option that best meets your individual needs. Below is a side-by-side comparison of the two available service options.

	Personal Retirement Planning Service	Personal Enrollment Service
Fees	0.85% Mortality & Expense Risk Charge	0.30% Mortality & Expense Risk Charge
Fixed Account Contract Minimum	3.0%	2.0%
Initial Enrollment Support	Face-to-face enrollment support with Registered Representative, including comprehensive approach to investment education and advice regarding asset class and fund lineup review. Please see the “How to Enroll” section that follows this chart.	Online enrollment. Registered Representative available to assist with enrollment. Please see the “How to Enroll” section that follows this chart.
One-on-One Meetings	• One-on-one participant account reviews and meetings with assigned local representative (topics include): - Identification of investment objectives - Risk tolerance - Asset classes - Risk/Reward spectrum - Available investment options - Diversification - Asset allocation - Portfolio modeling - Retirement planning and distribution option modeling - Settlement illustrations • One-on-one financial needs analysis and asset allocation modeling. Utilizing ING Financial Healthcheck analysis and advanced allocation tools, we help participants obtain a realistic picture of their financial situation. This analysis includes short and long term goals, such as retirement and other life events, as well as an analysis of a participant’s asset allocation mix. • Specific asset allocation strategies that match the participants’ risk tolerance and financial goals to the allocation of their retirement assets. Using our asset allocation tools, we provide employees with the guidance they need to implement the asset allocation approach that is right for them.	One-on-one participant services not available.
Educational Seminars	• Defined Contribution Plans - 401(a) ORP Defined Contribution Plan Part I: The Plan and Its Features–Seminar of Plan basics. - 401(a) ORP Defined Contribution Plan Part II: Charting Your Own Course –Seminar reviewing the Plan’s investment options, investment techniques and strategies. - 401(a) ORP Defined Contribution Plan Part III: Retirement Planning – Overview of retirement options and considerations with respect to the plan and other assets. • Targeted seminars, topics include: - Asset Allocation: The Well-Balanced Investor - Retirement Readiness: Are We There Yet? - Common-Sense Investing: Roadblocks to Results - Retirement Savings Options: To Move or Not to Move? - Retirement Income, Beyond the Basics, Early Retirement: Put the Pedal to the Metal - Long-Term Care Insurance: How to Age Gracefully - Job Loss: When Life Throws You a Curveball - Life Insurance: How Families Carry On - Saving for College: The Parent Prep Course - Estate Planning Basics: Put Your House in Order - Women and Investing • Retiree-specific seminar topics • Miscellaneous seminar topics, including “Identity Theft”	Customized seminars not available.
Educational Publications	• Comprehensive plan enrollment materials • Promotional materials including payroll stuffers and participant mailings • Scenario planning kits, including model investment portfolios • Comprehensive investment information, including fund one-pagers	Same educational information available.
Interactive Tools	Interactive calculators available online include: • Pay-check and tax savings calculator • Budget and net worth estimator • Retirement needs calculator • Investment calculator • College funding calculator • Tools that will calculate an estimated retirement payout to determine the participant’s readiness level to retire • Investor profile analysis • IRA eligibility • IRA comparison	Same calculators available.
Toll-Free Account Access	Toll-free access to our customer contact center by calling (800) 262-3862. You can opt to speak with a Customer Service Associate (Monday through Friday 8am to 10pm ET and Saturday 8am to 4pm) or use the 24/7 automated features.	Same toll-free account access available.
Internet Access	Click “Account Access” on left navigation tab for online account access.	Same online access.
Statements	Detailed account statements mailed quarterly.	Same.
Newsletter	Participant newsletter mailed with statements.	Same.

Back to top

Contributions

The member’s contribution is 7.9 % of salary. The employer’s contribution is approximately 7 percent (7%) of salary.

Back to top

Distributions

Under the provisions of Louisiana law, you may receive your account value as a lifetime payout. In addition, ORP account balances may be rolled over to another eligible retirement plan at any time after termination of employment.

A one-time, lump-sum payment of up to 36-months of your annuity also is available from the ORP account at the time of retirement, in addition to a lifetime annuity. If the up-front lump sum option is chosen, lifetime benefits would be reduced accordingly. (La. R.S. 11:929B). Cash withdrawals of more than this upfront lump sum amount from your ORP account are not allowed.

Distributions will be taxed as ordinary income when received and, if taken prior to age 59½, an IRS 10% premature distribution penalty tax may apply.

Back to top

Guaranteed death benefit

The death benefit is guaranteed to be the greater of (1) the current value of the account or (2) the total of net contribution(s) made to the individual account minus the total of any withdrawals, annuitizations, or loans. Guarantees apply to the claims-paying ability of ING Life Insurance and Annuity Company. If you die while receiving annuity payments, your benefits will be distributed according to the payment method in effect at your death (consistent with the provisions of the Plan, contract, and applicable Required Minimum Distribution). If you die before a payout starts, your beneficiary may elect to receive the value of your account or select one of several settlement options.

Back to top

Variable annuities offered through a retirement plan are long-term investments designed for retirement purposes. Early withdrawals taken prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax. Money distributed from the annuity will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. Tax deferral is provided by your employer’s plan and the annuity does not provide any additional tax deferral benefit. Annuities may be subject to additional fees and expenses to which other tax-qualified plan funding vehicles may not be subject. However, annuities provide features and benefits such as lifetime income payments and death benefits which may be valuable to you.

Neither ING or its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.

Louisiana is a "community property" state. Under the Louisiana Civil Code, a spouse is entitled to 50% of any payout from a public or private pension or retirement plan, an annuity policy or plan, an individual retirement account, a Keogh plan, a simplified employee plan, or any other similar retirement plan.