2. Employee Retirement Benefits
E.2.01 - Social Security and Medicare
LSCS will deduct from wages of designated employees any amounts of social security tax required by federal law. All employees must make contributions to Medicare in accordance with federal law. Federal law provides that certain employees who were hired on or before March 31, 1986, and who have remained continuously employed by the System may be exempt from making contributions to Medicare.
E.2.0 - LSCS Benefit Plans
LSCS participates in the health insurance and retirement benefits plans of the State of Texas, administered by the Texas Employees Retirement System of Texas (ERS) and the Texas Employees Group Benefits Program (GBP). The benefits offered and an employee's eligibility to participate in the ERS benefits plans are established by the Texas Employees Group Benefits Act, as amended, from time to time, and regulations adopted by the legislature and ERS.
E.2.03 - Retirement Benefits
Every employee of the System is required to be enrolled in a qualified retirement plan beginning with the first day of employment. The Board of Trustees shall not require retirement of any employee on the basis of age. Both the System and each employee are required to contribute a specified percentage of the employee's monthly gross salary to the appropriate retirement account. The employee contribution will be through payroll deduction. Employees who are active retirees in the Social Security system are ineligible to participate in any retirement plan.
E.2.04 - Teacher Retirement System (TRS)
All full-time personnel, except those employees enrolled in the Optional Retirement Program, shall be members of the Teacher's Retirement System of Texas.
Benefits payable upon the death or retirement of an employee and any restrictions or limitations upon participation in the retirement system will be in accordance with the Teacher's Retirement System of Texas (TRS).
An employee participant with TRS will have vested rights after five (5) years of employment.
E.2.05 - Optional Retirement Program
An employee participant with the ORP shall be responsible for selecting an approved ORP provider and will have vested rights after one year and one day of employment. Failure to complete the sign-up process for ORP will cause an employee to permanently lose the option to participate in ORP during his or her employment with any agency in Texas Public Higher Education, and the employee will be automatically enrolled in TRS.
E.2.06 - TIAA-CREF Plan
All employees not eligible for TRS or ORP (with the exception of current social security retirees) will be required to participate in TIAA-CREF a qualified defined contribution retirement plan. The employee, through payroll deduction, will contribute a percentage of salary and shall have immediate vesting rights.
If an employee terminates employment from the System for any reason, he or she may withdraw the TlAA-CREF deposits made plus any interest earned on such deposits in accordance with State and Federal regulations.
E.2.07 - Tax Deferred Annuity (TDA)
All full-time and part-time employees are eligible to participate in the System's Optional Tax Deferred Annuity (TDA) Compensation Plan. An employee participating in the Plan shall be responsible for selecting a TDA provider approved by the System. Each contribution is subject to current federal tax law limitations.
E.2.08 - Texa$aver 457 Plan
All fulltime employees are eligible to participate in the system approved 457 plans. An employee participating in the plan shall be responsible for selecting an approved provider. Each contribution is subject to current federal tax law limitations.
E.2.09 - Retirement
Retirement from employment with the System will occur when an employee elects retirement under the provisions of the Teacher Retirement System (TRS) or Optional Retirement Program (ORP), or meets the conditions for disability retirement established by the State of Texas.
The System shall provide retirees with such benefits as established by the Texas Employees Group Benefits Program.
An employee who is re-employed following retirement must be enrolled in the TIAA-CREF retirement plan unless the employee has also retired from Social Security.