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    Deferred Compensation Plans

                  
     

    TSA Consulting Image

     
    403(b) Administrator

     

     

    Voya Image

      
    457(b) Administrator

     888-796-3786

     

     844-525-2873 

     
     
    The District offers active employees traditional 403(b) and 457(b) voluntary deferred compensation plans.  They allow for the investment of pre-tax earnings, through automatic payroll deductions, to save for retirement.  Any pre-tax investment gains/losses are tax-deferred until withdrawn.  Pre-tax contributions may also lower current income taxes.

    Effective January 2020, active employees will have an additional option to contribute into a Roth 457(b) deferred compensation plan.  Unlike contributions to the traditional plans which are made on a pre-tax basis, contributions to a Roth 457(b) are made on an after-tax basis with the benefit that you may be able to withdraw from your account tax-free when you retire subject to the Internal Revenue Service (IRS) rules.

    For more resources on the District Sponsored 457(b) plan, visit Voya Financial®.
            
                                                           Quick Comparison
       403(b) Plan  457(b) Plan Roth 457(b) Plan
    Tax Treatment of Contributions Before Tax Before Tax After Tax
    Tax Treatment of Earnings

    Tax Deferred

    Tax Deferred Tax Free¹
    Tax Treatment of Final Distributions

    Taxable

    Taxable

    Tax Free¹

    Penalties

    10% early withdrawal federal tax penalty if not age 59½ regardless of separation from service.

    No 10% early withdrawal federal tax penalty after separation from service. No 10% early withdrawal federal tax penalty after separation from service.
    Distribution Restrictions Withdrawals made prior to separation from service or prior to age 59½ can only be made due to financial hardship.   Withdrawals made prior to separation from service or prior to age 70½ can only be made in an unforeseeable emergency. Withdrawals made prior to separation from service or prior to age 70½ can only be made in an unforeseeable emergency.²

    ¹ Subject to the Internal Revenue Service (IRS) rules and regulations regarding qualified distributions.  A qualified distribution of the Roth 457(b) resulting in tax-free distribution earnings requires that the distribution is made after a 5-taxable-year period of Roth participation and is either:

    • made on or after the date you attain age 59½ and separated from service
    • made after your death, or
    • attainable to your being disabled as defined by the IRS as separation from active service because the person cannot engage in any substantial gainful activity because of a physical or mental condition.  A physician determines that the disability has lasted or can be expected to last continuously for at least a year or can lead to death.

    The 5-year account holding period, attainment of age 59½, and separation of service are the key factors that result in a tax-free distribution.  If the distribution circumstance does not meet all three requirements, the "earnings" portion of the distribution is subject to ordinary income taxation.  The "after tax" contributions are never taxed again.  The Roth 457(b) is still exempt from the 10% additional excise tax if withdrawn before 59½, but the earnings portion of your account would lose its "tax-free" status if all three criteria are not met.

    ² For purposes of the 457(b) plan, an unforeseeable emergency is defined by the IRS as a severe financial hardship of the participant or the participant's dependent resulting from an extraordinary or unforeseeable circumstance beyond the control of the participant or the participant's dependent.

All active employees (with the exception of student workers) are eligible to enroll in any deferred compensation plan.  The maximum allowable contribution, as set by the Internal Revenue Service (IRS), is as follows:

  • Individuals under age 50: up to $19,500 per plan per year.*
  • Individuals age 50 or older: an additional amount up to $6,500.

    * The combined contribution amount for traditional 457(b) and Roth 457(b) cannot exceed the maximum allowable contribution which is subject to change yearly based on IRS regulations.

Contributions may begin at any time.  It may take one or two payroll cycles before the first deduction, or any change, is reflected.

Visit TSA's Investment Provider List to view available Investment Providers.

Open an account with any of these providers by completing the provider's application. Applications are available only from the Investment Providers.

Once an account with the Investment Providers of your choice is established, create an account with TSA Consulting's login/account setup page.

 

Voya Financial® is the plan administrator for the District's sponsored 457(b) Deferred Compensation Plans.

To enroll in either 457(b) or Roth, please visit 457b.lausd.net.  To enroll via paper application, a copy of the enrollment form is available in the Deferred Compensation Plans section of the Forms and Publications page.

To setup and/or make any contribution changes, login to TSA and click on "Salary Reduction Agreement" found under the "Services" tab on the menu bar. 

An established account with an Investment Provider is required to setup and/or make contribution changes.

 

To make any contribution changes to your 457(b) plan, login to Voya Financial® and click on "Change Contributions" found under "Account" on the menu bar.

 

The TSA Consulting site allows participants to make various transactions, such as: 

     · Transfers
     · Withdrawals, Surrenders, and Hardship Distributions; and
     · Loans

To request any of these transactions, login to TSA and click on the desired transaction found under the "Services" tab on the menu bar.

 

The Voya Financial® site allows participants to make various transactions, such as: 

     · Transfers and Rollovers
     · Withdrawals, Surrenders, and Hardship Distributions; and
     · Loans

To request any of these transactions, login to Voya Financial® and click on desired transaction under the "Manage Investment" section found under "Account" on the menu bar.

 

 

For members who have a TIAA Traditional Account and would like more information, please visit TIAA or call 800-842-2252.  Please note: your TIAA Traditional Account does not allow you to contribute money, take loans, or take emergency withdrawals.  Assets from your TIAA Traditional Account may be transferred to Voya Financial® by completing the "TIAA Request for a Direct Transfer" form and submitting it to TIAA.  

 

Retirement Investment Advisory Committee

The Retirement Investment Advisory Committee (RIAC) oversees the administration and implementation of the 403(b) and 457(b) plans as well as the Public Agency Retirement System (PARS).  Its main responsibility is to advise the District’s Chief Financial Officer.

The RIAC is comprised of representatives of the various labor unions, an appointee for the District’s Board of Education, an appointee for the District’s Chief Financial Officer, staff from the District’s Benefits Administration, members at large, the 403(b) and 457(b) third-party administrators, TSA Consulting Group and Voya Financial®, as well as staff from SST Benefits Consulting and PARS.
 

RIAC Meeting Minutes November 2019

RIAC Meeting Minutes August 2019

RIAC Meeting Minutes May 2019

RIAC Meeting Notes February 2019

RIAC Meeting Minutes 2018

RIAC Meeting Minutes 2017 
RIAC Meeting Minutes 2016 
RIAC Meeting Minutes 2015 
RIAC Meeting Minutes 2014 
RIAC Meeting Minutes 2013 
RIAC Meeting Minutes 2012 
RIAC Meeting Minutes 2011 
RIAC Meeting Minutes 2010

 

 

To view 403(b) and 457(b) related documents, please visit the Deferred Compensation Plans section of the Forms and Publications page.

 

For information regarding distribution, loans, and/or hardship withdrawal, contact:

403(b): TSA Consulting (888-796-3786)

457(b): Voya Financial® (844-525-2873)