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Employers Manual
Service Retirement for Defined Benefit Plan Members
Optional Plans of Payment
A retiree must select a plan of payment at the time of retirement. Three
actuarially equivalent plans are available: Single Life Annuity, Joint
and Survivor Annuity, and Annuity Certain. Each plan protects the retiree
with lifetime benefits; survivor protection varies among plans.
Partial Lump-Sum Option Plan (PLOP)
The Partial Lump-Sum Option Plan allows a member to take from six to
36 times the monthly Single Life Annuity benefit in a lump sum at retirement.
Monthly benefits still begin with the member’s retirement date
and are payable for life, but they are reduced to reflect the amount
taken in lump sum. A plan of payment for lifetime benefits — Single
Life Annuity, Joint and Survivor Annuity, or Annuity Certain —
must be selected for the remainder of the 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 a financial institution named at retirement; or be a combination of these two payment options. The payment is subject to any federal taxes and penalties due.
