At retirement, eligible members may select a PLSO distribution in addition to a reduced monthly annuity.
Eligibility
Members who are not retiring under the Proportionate Retirement Law may select a PLSO at retirement if they meet eligibility requirements.
| Tier 1, Tier 4, and Tier 6 Members | Tier 2, Tier 3, and Tier 5 Members |
|---|---|
| Be eligible for an unreduced service retirement |
AND
|
Additional information regarding retirement eligibility can be found in the TRS Benefits Handbook (pdf).
A disability retiree is not eligible to select a PLSO.
PLSO Distribution Amounts
Eligible members may select a PLSO equal to 12, 24, or 36 months of a standard service retirement annuity. When a PLSO is selected, the member's monthly annuity is reduced to reflect the PLSO distribution. The 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.
The PLSO distribution is eligible to be rolled over to another eligible retirement plan. TRS will provide the appropriate rollover form no earlier than two months prior to your retirement date.
If you select two or three annual payments, you are eligible to accelerate the distribution of the remaining payment(s). Contact TRS for the appropriate form.
Example
A member who retires at age 60 with a $2,000/month annuity and selects a PLSO of 12 months would receive a $24,000 lump sum distribution ($2,000 × 12) plus an $1,833.40/month reduced annuity ($2,000 × 91.67%). If the member then selects an optional retirement annuity, the option factor will be applied to the reduced standard annuity.
To calculate estimated PLSO amounts, log in to MyTRS and visit the Benefit Calculator under Planning Tools.