Educate Yourself

Partial Lump-Sum Option Plan (PLOP)

Can I receive a cash payment and pension at retirement?

Beginning July 1, 2004, at retirement, in addition to selecting Plan A (maximum plan) or Plan B (survivorship plan), you may also elect to receive a one time lump-sum distribution (cash payment) in addition to your monthly retirement benefit. 

In exchange for a reduced lifetime monthly benefit, you can elect to receive a Partial Lump-Sum Option Plan (PLOP). Your age and plan of retirement are used to determine the reduction in your benefit.

A PLOP distribution will be made as a single payment at the time your first monthly benefit is paid. Based on the amount of the PLOP, your monthly retirement benefit is then reduced to be the actuarial equivalent of the retirement benefit without a lump-sum distribution. You cannot elect a PLOP that will reduce your monthly benefit by fifty percent or more of the benefit you are eligible to receive under Plan A.

If you are interested in electing a PLOP, TRS encourages you to seek assistance from a financial advisor and/or a tax professional. A PLOP used to enhance retirement income or savings may merit consideration.  A PLOP used to purchase depreciable assets or used for leisure should be given careful consideration as these purchases may compromise long-term retirement income.

For detailed information, you may click through the topics on the right side of this page or download the PLOP Brochure below. The TRS Pension Calculator allows you to calculate the lump-sum distribution available to you at retirement.