The Partial Lump Sum Option (PLSO)

In exchange for reduced lifetime monthly benefits, eligible PEERS members can choose to receive a one-time Partial Lump Sum Option (PLSO) payment at retirement equal to 12, 24 or 36 times your Single Life monthly benefit.

You are eligible for PLSO if you:

  • Are at least age 63 with eight or more years of service
  • Have 33 or more years of service
  • Qualify for Rule of 86 (when your age plus your years of service equals 86 or more).

If you choose PLSO, you still must choose a benefit plan (Single , Life, Joint-and-Survivor, or Term-Certain) for the payment of your monthly benefits.

Benefit Amount-Lump-Sum Payment

If you qualify for PLSO, your PLSO lump-sum amount is determined by multiplying your Single Life monthly benefit by 12, 24 or 36.

In the example below, the member selected a 12-month lump-sum payment.

Lifetime Single Life Benefit X 12, 24 or 36 = PLSO Payment
$672 X 12 = $8,064

 

Benefit Amount-Reduced Lifetime Monthly Benefits

In addition to a lump-sum payment, you receive reduced lifetime monthly benefits. Because of the lump-sum payment, your monthly benefits are actuarially reduced to reflect the value of your PLSO payment and your age. This reduction is calculated by multiplying your Single Life monthly benefit by a PLSO Reduction Factor. The reduction applies regardless of the benefit plan you choose for the payment of your monthly benefits.

In the example below, the member is 63 years old and selected a 12-month lump-sum payment.

Lifetime Single Life
Benefit
X

PLSO Reduction Factor

= PLSO-Reduced
Lifetime Single Life
Benefit
$672 X .9089 = $611

Income Taxes on PLSO Payments »

Why Choose PLSO? »