FAQs - Retired Member FAQs

1. When will I get my first benefit check/payment?
2. Will LASERS send me a retirement check stub every month if I receive an Electronic Funds Transfer (also called direct deposit)?
3. I am a retiree. Are my retirement benefits taxable?
4. Will LASERS send me something for my taxes?
5. How do I get a verification of income letter?
6. How long does it take to receive an income verification letter?
7. I have a credit union deduction from my retirement check. How can I stop it?
8. I have questions about my health insurance plan and premiums. Who should I contact?
9. I have questions about my life insurance policy. Who should I contact?
10. How do I access Member Self-Service?
    
    Cost-of-Living Adjustments (COLAs)
    
11. What is a cost-of-living adjustment (COLA)?
12. What must happen in order for a COLA to be granted to LASERS retirees?
13. When did LASERS retirees last receive a COLA?
14. How is the amount of a COLA calculated?
15. How many consecutive years can LASERS retirees go without receiving a COLA?
16. If a COLA is granted, is it retroactive to cover the years retirees did not receive one?
17. Are all of Louisiana’s retirement systems required to provide the same COLA at the same time?
18. Does the LASERS Board of Trustees support a COLA for retirees?

Form 1099-R

19. Why did I receive two 1099-R forms?
20. I turned age 59½ in 20xx. How does that affect my 1099-R?
21. I switched from Disability to Regular Retirement in 20xx. What does that mean for my 1099s?
22. My spouse was a LASERS retiree who passed away in 20xx. Will a 1099-R be issued in my spouse’s name?
23. If I rolled over funds during the year will I receive a 1099-R?
24. I took a lump sum leave payment when I retired. Does that generate a 1099?
25. Is a separate 1099-R issued for a DROP/IBO distribution taken if the member is also receiving a service retirement distribution?
26. LASERS sent me an invoice in 20xx saying I owed money to the System because of an overpayment during the year. Why is it included on my 1099-R?

1. When will I get my first benefit check/payment?

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.
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2. Will LASERS send me a retirement check stub every month if I receive an Electronic Funds Transfer (also called direct deposit)?

No, LASERS will not send a retirement check stub unless there is a change in your monthly retirement amount.
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3. I am a retiree. Are my retirement benefits taxable?

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.
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4. Will LASERS send me something for my taxes?

Yes. A 1099 will be issued to you each year.
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5. How do I get a verification of income letter?

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.
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6. How long does it take to receive an income verification letter?

Once a verification request is received, it usually is processed within 10 business days.
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7. I have a credit union deduction from my retirement check. How can I stop it?

You must contact the credit union to have this deduction stopped; otherwise, it will continue to be deducted from your retirement check.
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8. I have questions about my health insurance plan and premiums. Who should I contact?

You must contact the insurance carrier or your former employing agency for detailed health plan information.
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9. I have questions about my life insurance policy. Who should I contact?

You must contact the insurance carrier or your former employing agency for detailed life insurance information.
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10. How do I access Member Self-Service?

Click here to download instructions on how to access Member Self-Service.
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11. What is a cost-of-living raise?

A COLA is an adjustment made to your retirement benefit in order to counteract the effects of inflation. COLAs are not automatic or guaranteed. COLAs are funded through excess investment earnings, which are earnings above the LASERS expected actuarial return, and above the hurdles that have been legislatively established to help reduce the debt owed to the System.

Read the National Association of State Retirement Administrators (NASRA) Brief, Cost-of-Living Adjustments, to learn more about the purpose of COLAs, the different types of COLAs offered by government retirement systems, and an overview of recent state changes to COLA provisions.
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12. What must happen in order for a COLA to be granted to LASERS retirees?

Several criteria must be met before a COLA can be granted:

a. The Experience Account, which receives excess investment returns, must have a balance sufficient to fund the COLA on an actuarial basis. There must be a recommendation by the LASERS Board of Trustees to the legislative leadership that a COLA be granted and legislation granting the COLA must receive at least a two-thirds vote of both the Louisiana House of Representatives and Louisiana State Senate. The legislation is subject to gubernatorial veto. (R.S. 18:542)

b. To be eligible, regular retirees must be retired at least one year on the date the COLA is granted and must be at least age 60. These requirements were set by the Legislature in 2009. For survivors, the age 60 requirement is based on the age the retiree would have attained by the date the COLA is granted. There is no age requirement for disability retirees.

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13. When did LASERS retirees last receive a COLA?

A 1.5 percent COLA was granted July 1, 2016 for eligible retirees.
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14. How is the amount of a COLA calculated?

      Based on Act 399 of 2014, a COLA is subject to the following restrictions:

¹ARR is the Assumed Rate of Return for the System, currently 7.75 percent for the 12 month period ending June 30 of the previous year.
²CPI-U is the Consumer Price Index – Urban.

Legislation can change this process.
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15. How many consecutive years can LASERS retirees go without receiving a COLA?

There is no limitation.
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16. If a COLA is granted, is it retroactive to cover the years retirees did not receive one?

No, COLAs are not retroactive.
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17. Are all of Louisiana’s retirement systems required to provide the same COLA at the same time?

No.
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18. Does the LASERS Board of Trustees support a COLA for retirees?

The LASERS Board of Trustees has identified the adoption of a reliable and dependable mechanism for the funding and granting of COLAs for eligible System retirees as a significant board issue.
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19. Why did I receive two 1099-R forms?

Multiple 1099-R forms are required if you receive more than one “type” of distribution as defined by the IRS regulations or if you receive payments for more than one “Payee Type” (i.e. Retiree, DROP, Beneficiary, Survivor, Alternate Payee). The IRS 1099-R Distribution codes (from Box 7 of the 1099-R form) are explained below:

Taxpayer/Payee is younger than 59½ and the distribution is:

A distribution after separation from service in or after the year the taxpayer has reached age 55.

A distribution to a public safety officer after separation from service in or after the year the taxpayer has reached age 50.

A distribution that is part of a series of substantially equal payments.

Includes QDRO’s/Alternate Payees.

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20. I turned age 59½ in 20xx. How does that affect my 1099-R?

You may receive two 1099-R forms in the year that you turn 59½. One will be coded distribution code “2” and the other code “7.”

Example: John Henry received a LASERS benefit each month in 2013. He turned 59½ in May. He will receive two different 1099-R forms. For January through May, his payments were classified as an early distribution code “2”per IRS rules. Once he reached age 59½ his payments became classified as a normal/regular distribution code “7.” Although the amount he received each month did not change, the “type” of benefit being paid did change from an early distribution to a normal retirement benefit because of his age. Next year, John will receive a single 1099-R covering all 12 months for a normal retirement benefit distribution code “7.”
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21. I switched from Disability to Regular Retirement in 20xx. What does that mean for my 1099-R?

You will likely receive two 1099-R forms in the year that you change from a disability retiree to regular retirement. One will be coded distribution code “3” and the other code “7.”

Example: Sara Jane has been receiving monthly benefits. When she turned 60 in 2013, she chose regular retirement. She will then receive two different 1099-R forms in 2013. One form will have a distribution code “3” in Box 7 for payments classified as disability benefits. The other 1099-R will cover payments for normal/regular retirement with a distribution code “7” in Box 7. Although the amount she received each month did not change, the “type” of benefit being paid did change from a disability benefit to a normal/regular retirement benefit because of her age. Next year, Sara will receive a single 1099-R covering all 12 months for a normal/regular retirement distribution.
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22. My spouse was a LASERS retiree who passed away in 20xx. Will a 1099-R be issued in my spouse’s name?

Yes, you will receive at least two 1099-R forms. One will have a distribution code of either “2” or “7” and contain the benefits paid prior to death and the second will be for benefits paid after death to your spouse or the estate with a distribution code “4.” Also, as your spouse’s survivor/beneficiary, you will receive a 1099-R form under your taxpayer identification number with a distribution code “4,” for any distribution made to you.
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23. If I rolled over funds during the year, will I receive a 1099-R?

Yes. Any money rolled over (such as a refund or DROP or IBO account distribution) into a qualified plan such as a tax-sheltered annuity, a governmental 457(b) plan, or an IRA will generate a separate Form 1099-R with a distribution code of “G.” You will receive a separate 1099-R for your monthly benefit amount.
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24. I took a lump sum leave payment when I retired. Does that generate a 1099?

Yes. If the leave payment was rolled over to a qualified plan it will have a distribution code “G.” But, if you separated from employment before the year you turn 55 and you received a lump sum leave payment before age 59½, the 1099-R will have a distribution code “1” for the lump sum leave payment. You will also receive a 1099-R for your retirement benefits with a distribution code “2.”
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25. Is a separate 1099-R issued for a DROP/IBO distribution taken if the member is also receiving a service retirement distribution?

Yes.
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26. LASERS sent me an invoice in 20xx saying I owed money to the System because of an overpayment during the year. Why is it included on my 1099-R?

Because the invoice was not paid back in full.

Example: If you were invoiced for 2013 payments and those payments were paid back in full in 2013 (the same year), your gross amount would be reduced by the invoiced amount. If you were invoiced for 2013 payments and the invoices were not paid in full in 2013, the gross amount will not be reduced by the invoiced amount.

Please see Form 1099-R Explanation of Boxes for further clarification on the boxes that appear on Form 1099-R.
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