Compare Louisiana’s Monthly Pension Payouts vs. Lump Sum IRA Rollovers
If you’re a Louisiana public employee, your pension—whether through LASERS, TRSL, or another state retirement system—offers lifetime income. But what it doesn’t offer is choice. Once you select your payment option at retirement, you’re locked in. And the payout options may not be the most efficient way to secure income for you and your spouse—or leave a legacy.
That’s where we come in.
At The Annuity Expert, we specialize in helping Louisiana retirees compare their pension annuity options to personal annuities—specifically ones with Guaranteed Lifetime Withdrawal Benefits (GLWBs). These alternatives often offer more income, better survivor benefits, and tax advantages, depending on how you structure your plan.
Below will estimate how much annual income you’ll receive if you roll over the Louisiana State Pension to your own IRA annuity with a GLWB.
Calculator Purpose
The Louisiana State Pension Calculator helps pension owners estimate their monthly payout or assess the benefits of transferring or rolling over their lump sum into a new IRA fixed index annuity. This tool aids in income planning in retirement, allowing you to make informed decisions tailored to your financial goals.
Key Features
- Monthly Payout Option: Estimate the steady income from the state pension annuity.
- Lump Sum IRA Rollover: Compare the benefits of maintaining control over your retirement accounts by rolling over your lump sum into a fixed index annuity with a Guaranteed Lifetime Withdrawal Benefit.
Scenario: You’re Approaching Retirement in Louisiana
You’re offered a pension annuity through the Louisiana State Employees’ Retirement System (LASERS) or the Teachers’ Retirement System of Louisiana (TRSL). You’re asked to choose from multiple payout options: Single Life, Joint Life, or 100% Survivor.
But here’s the problem:
Once you choose, you can’t change it
Your income is fixed (and likely not inflation-adjusted)
❌ Any remaining balance at death is often lost
We help you evaluate whether taking the lump sum (if offered), or partial lump sum (IIP, DROP, or DROP-to-ROLLOVER) and rolling it into a personal annuity with a GLWB provides better long-term income security.
Option 1: Stay With Louisiana’s Pension Annuity
Fixed Lifetime Income — But Limited Control
✔ Lifetime income
✔ No management needed
✔ May offer Joint Life options
✘ No control over funds
✘ No inflation protection
✘ No death benefit for heirs
✘ Irrevocable once chosen
Who Needs It:
Those with no other income sources and who prioritize simplicity over flexibility.
Who Doesn’t:
Anyone who wants to protect a spouse, keep access to funds, or pass wealth to heirs.
Option 2: Roll Over to a Personal Annuity with a GLWB
Up to 8% Income Base Growth for Lifetime Income Flexibility and Legacy Planning
With a Fixed Index Annuity (FIA) paired with a Guaranteed Lifetime Withdrawal Benefit, you can roll over your lump sum (DROP, IIP, 401(a), 403(b), or 457 plan) and:
✔ Receive lifetime income that competes with or exceeds your pension payout
✔ Get up to 8% income base growth until you start withdrawals
✔ Choose when to start incom, —not when the pension forces you
✔ Provide spousal continuation or death benefit to heirs
✔ Retain contract control with options for changes or withdrawals
✘ Must be comfortable choosing an insurer
✘ Early withdrawals may reduce benefit guarantees
Who Needs It:
Anyone who wants a higher income, legacy planning, inflation protection, or flexibility in case life changes.
Who Doesn’t:
Those who prefer their retirement to be handled entirely by the state, with no decisions to make.
Pros and Cons
Monthly Payout from State Pension:
Pros:
- Guaranteed, predictable income for life.
- No need to manage investments.
Cons:
- Limited flexibility or control over the funds.
- Payments stop when you or your beneficiary passes away, depending on plan terms.
Lump Sum Rollover into Fixed Index Annuity:
Pros:
- Don’t give up control over your retirement accounts.
- Offers income planning in retirement with potential inflation protection.
- Funds can grow tax-deferred with market-linked interest.
- Beneficiaries can inherit the remaining funds as a lump sum.
Cons:
- Investment performance may vary depending on the annuity’s terms.
- Early withdrawals may result in penalties.
Other Louisiana Resources
- Explore Louisiana Retirement Planning Resources
- Estimate Louisiana Retirement Income Taxes
- Compare Louisiana Annuity And CD Rates
- Compare High-Yield Savings Accounts In Louisiana
- Compare Long-Term Care Insurance In Louisiana
- Compare Life Insurance Rates In Louisiana
- Contact Louisiana Department of Insurance
- Contact Louisiana Office of Financial Institutions
- Learn About Protection From Louisiana Life & Health Insurance Guaranty Association
Why Choose The Annuity Expert?
Our retirement planners specialize in finding the best solutions for your unique retirement. Whether you want to transfer or rollover your retirement accounts or fund with cash, we help you shop for the best options for your needs. Before you buy, use our calculator and book a no-obligation consultation.
Estimate Louisiana Pension Annuity Payments
Book a Call with our retirement planners for a free, no-obligation consultation to find the perfect solution for your unique retirement needs.