PLOP Information

Estimating PLOP Costs
A sample Partial Lump-Sum Option Plan (PLOP) Payment estimate appears below. You can also estimate benefits with a PLOP payment by using the service retirement estimate calculator.

A 60-year-old member in the Defined Benefit Plan with a $3,000 per month Single Life Annuity (SLA) elects to take a partial lump-sum payment at retirement. This member is eligible to choose a lump-sum payment from $18,000–$108,000 (six–36 times the monthly SLA benefit). For this example, the member chooses a $50,000 lump-sum payment.

The cost per $1,000 of lump-sum payment for a member retiring at age 60 is $6.47 per month. This member’s monthly cost for a $50,000 payment is 50 x $6.47 or $323.50.

To determine the adjusted benefit, subtract $323.50 from the original $3,000 SLA. In this case, the member would receive $2,676.50 per month after the lump-sum payment. This member could then take a further reduction to provide survivor benefits through a Joint and Survivor Annuity or Annuity Certain. The member must choose a plan of payment which will be used to finalize the lifetime retirement benefit.

Sample 2009 PLOP Estimate Worksheet
Retirement age of member in example: 60	Example: $50,000 PLOP
I. Calculate PLOP range
1. Single Life Annuity (SLA)	$3,000.00
2. SLA times 6 (minimum PLOP)	$18,000.00
3. SLA times 36 (maximum PLOP)	$108,000.00
4. Your PLOP amount (must be within minimum and maximum range)	$50,000.00
II. Calculate cost of PLOP
5. PLOP reduction factor based on age at retirement (from PLOP cost factor table)	$6.47
6. PLOP amount divided by $1,000	50
7. Monthly cost of PLOP (line 5 x line 6)	$323.50
III. Calculate PLOP-adjusted benefit
8. Single Life Annuity (SLA)	$3,000.00
9. Cost of PLOP from line 7	$323.50
10. PLOP-adjusted SLA (line 8 - line 9)	$2,676.50
11. Plan of payment option rate — the percent of SLA used to determine a Joint and Survivor Annuity or an Annuity Certain plan of payment*	89.89%
12. PLOP-adjusted plan of payment (line 10 x line 11)	$2,405.90

* The plan of payment option rate may be found on retirement estimates you received from STRS Ohio or by using the Service Retirement Benefit Estimate calculator.