PLOP Information

PLOP Definition
The Partial Lump-Sum Option Plan (PLOP) allows you to take an amount from six to 36 times the monthly Single Life Annuity (SLA) benefit based on the defined benefit portion of the account only 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 up front in a single payment. 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.
• Be a combination of the two payment options above.

If you are enrolled in the Combined Plan, at retirement you can only select a PLOP payment for the defined benefit portion of your account, starting at age 60 or later.