The Partial Lump Sum Option (PLSO)

If you work three years past normal retirement, you can choose a one-time, Partial Lump Sum Option (PLSO) payment at retirement with reduced lifetime benefits.

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)

Your lifetime monthly benefit amount will be reduced if you take a PLSO payment. The reduction is based on the amount of the payment and your age at retirement. Learn more »

You must properly terminate your employment to be eligible to retire. Learn more »

Most, or all, of a PLSO payment is considered taxable income by the IRS

PEERS is required by the IRS to withhold 20% for federal taxes. You may be able to defer the tax liability by rolling the PLSO payment to a qualified retirement account. Learn more »