PLOP Information
PLOP Definition
The Partial Lump-Sum Option Plan (PLOP) allows you to take from six to 36 times
the monthly Single Life Annuity (SLA) benefit in a lump sum at retirement. Monthly
benefits still begin with your retirement date and are payable for life, but
they are reduced to reflect the amount taken in a lump sum. A plan of payment
for your lifetime retirement benefits — Single Life Annuity, Joint and
Survivor Annuity or Annuity Certain — must be selected for determining
the remainder of your lifetime benefit.
The one-time lump-sum payment may:
-
Be directly rolled over into an individual retirement account
(IRA) or other qualified plan.
-
Be paid to you through direct deposit to a financial institution named
at retirement. The payment will be subject to any federal taxes, state taxes and penalties
due. Twenty percent will be withheld for federal income taxes, but this may
not be sufficient to pay the taxes due. State taxes are not withheld from PLOP payments.
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Be a combination of the two payment options above.
