Partial Lump Sum Option (PLSO)

Members who are not participating in the Deferred Retirement Option Plan (DROP) and are not retiring under the Proportionate Benefits Law may select a partial lump sum distribution (PLSO) at retirement if they meet one of the two following requirements:

(1) the member is eligible for an unreduced service retirement annuity, and is grandfathered as described under Retirement Eligibility Requirements.

OR

(2) the member is eligible for a service retirement annuity (reduced or unreduced) and meets rule of 90 (age + service equal 90).

Eligible members may select a partial lump sum distribution not to exceed an amount equal to 36 months of a standard service retirement annuity. When this option is selected, the member’s annuity will be actuarially reduced to reflect that distribution and will be computed so that no actuarial loss results to TRS. The actuarially reduced annuity will continue throughout the life of the member.

A lump sum amount equal to 12 months of a standard annuity may be taken at the same time as the member’s first monthly annuity payment. A lump sum amount equal to 24 months may be taken in either one or two annual payments. A lump sum amount equal to 36 months may be taken in one, two or three annual payments.

Percentages shown in the table below will be applied to reduce a member’s standard annuity (normal or early age, as applicable), when he or she elects a partial lump sum distribution. For example, a member who retires at age 60 with a $2,000/month annuity and selects a partial lump sum distribution of 12 months would receive a $24,000 lump sum distribution ($2,000 x 12) plus an $1,809.20/month reduced annuity ($2,000 x 90.46%). If a member then selects an optional retirement annuity, the option factor will be applied to the reduced standard annuity.

Percentage of Standard Annuity
Age
12 Months
24 Months
36 Months
45
91.66
83.32
74.98
46
91.62
83.23
74.85
47
91.57
83.13
74.70
48
91.51
83.03
74.54
49
91.46
82.92
74.37
50
91.40
82.79
74.19
51
91.33
82.66
73.99
52
91.26
82.52
73.78
53
91.18
82.37
73.55
54
91.10
82.20
73.31
55
91.01
82.03
73.04
56
90.92
81.84
72.75
57
90.81
81.63
72.44
58
90.70
81.41
72.11
59
90.58
81.17
71.75
60
90.46
80.91
71.37
61
90.32
80.64
70.95
62
90.17
80.34
70.51
63
90.01
80.03
70.04
64
89.85
79.69
69.54
65
89.67
79.34
69.01
66
89.48
78.96
68.44
67
89.28
78.56
67.84
68
89.06
78.13
67.19
69
88.84
77.67
66.51
70
88.59
77.18
65.77
71
88.32
76.65
64.97
72
88.03
76.07
64.10
73
87.72
75.43
63.15
74
87.37
74.74
62.12
75
87.00
74.00
61.00
76
86.59
73.19
59.78
77
86.15
72.31
58.46
78
85.68
71.35
57.03
79
85.16
70.31
55.47
80
84.59
69.18
53.78
81
83.98
67.96
51.94
82
83.32
66.64
49.96
83
82.61
65.21
47.82
84
81.83
63.67
45.50
85
81.00
62.00
42.99
86
80.09
60.18
40.27
87
79.09
58.19
37.28
88
78.00
56.00
34.00
89
76.81
53.62
30.43
90
75.52
51.04
26.56
91
74.13
48.26
22.39
92
72.64
45.29
17.93
93
71.05
42.11
13.16
94
69.36
38.71
8.07
95
67.55
35.10
2.64
96
65.62
31.25
0.00
97
63.59
27.17
0.00

To calculate estimated PLSO amounts, go to
the Retirement Estimate Calculator page.