Educate Yourself

PARTIAL LUMP-SUM OPTION PLAN (PLOP)

DISTRIBUTION OPTIONS

At retirement, you may elect a lump-sum distribution in an amount between 1 and 36 months of your normal monthly retirement benefit. This amount will be calculated under Plan A - Maximum Plan of Retirement and will be rounded to the nearest $1,000. If a PLOP distribution is elected, your monthly benefit is actuarially reduced to reflect the value of the PLOP distribution. The combination of both the PLOP distribution and the reduced benefit are the same actuarial value as the unreduced normal benefit alone.

A PLOP distribution can be paid through direct deposit to a financial institution or by check. Generally, 20% of the lump-sum distribution will be withheld for federal income taxes. However, you may be required to pay more taxes on the distribution depending on your age at retirement.  If you are a resident of Georgia, a PLOP is also subject to Georgia taxes.

To defer paying taxes on a lump-sum distribution, you may roll over all or a portion of the distribution to another qualified retirement plan or traditional Individual Retirement Account (Roth IRA). TRS encourages you to seek advice from a tax professional.