PLOP Reduced Benefit Table PLOP Distribution Example The table below iden fies the amount a monthly benefit is reduced for each $1,000 of a lump-sum distribu on, effec ve July 1, 2018. Amounts shown in this table are based on the Maximum Plan of Re rement. If you choose any of the other ERS op onal re rement allowances, the amounts shown will vary. Age Reducon per $1,000 50 $6.82 51 $6.88 52 $6.95 53 $7.02 54 $7.09 55 $7.18 56 $7.26 57 $7.36 58 $7.46 59 $7.57 60 $7.68 61 $7.81 62 $7.94 63 $8.08 64 $8.24 65 $8.40 66 $8.58 67 $8.77 68 $9.98 69 $9.20 70 $9.44 Before elec ng a PLOP distribu on, ERS encourages you to consider the following: 1. How much will you receive in a lump-sum distribu on? 2. How much will your monthly re rement allowance be reduced? 3. Will the reduced monthly re rement allowance be sufficient to cover living expenses throughout re rement? If you elect a PLOP distribu on, you will receive an actuarially reduced monthly re rement allowance. Your age at re rement, along with your beneficiary's age (if you choose a survivorship op on), is used to determine the reduc on in your re rement allowance if you elect a PLOP distribu on. Example: A 60-year-old member with a $3,300 monthly re rement allowance under the Maximum Plan elects to take a lump-sum distribu on at re rement. The member is eligible to choose a PLOP distribu on, in $1,000 increments, from $4,000-$118,000 (1 x $3,300 = $4,000 rounded up to the nearest $1,000; and 36 x $3,300 = $118,000 rounded down to the nearest $1,000). This member chooses a $50,000 lump-sum distribu on. Under the Maximum Plan, the cost per $1,000 of the lump-sum distribu on for a member re ring at age 60 is $7.68 per month, as shown in the adjacent table. This member's monthly cost for a $50,000 payment is $384.00 (50 x $7.68). To determine the reduced allowance, subtract $384.00 from $3,300. The member would receive $2,916.00 per month as a result of elec ng the PLOP distribu on. Partial Lump-Sum Option Payment (PLOP) Eligible members can elect to receive a lump-sum distribuon at rerement in addion to a monthly rerement allowance. E RSGA Serving those who serve Georgia Employees' Retirement System of Georgia www.ers.ga.gov 800-805-4609 404-350-6300 ERS Revised 07/2018 What is a PLOP? In an effort to provide you with more choices, ERS will offer a Par al Lump-Sum Op on Payment (PLOP) at re rement. In exchange for a reduced life me re rement allowance, you can elect to receive a lump-sum distribu on in addi on to a monthly re rement allowance. Your age and choice of the Maximum Plan or an op onal re rement allowance are used to determine the reduc on in your re rement allowance. A PLOP distribu on will be made as a single payment at the me the first monthly allowance is paid. Based on the amount of the lump-sum distribu on, the monthly re rement allowance is actuarially reduced to reflect the lump sum distribu on. If you are interested in elec ng a PLOP distribu on, ERS encourages you to seek assistance from a financial advisor and tax professional. A lumpsum distribu on used to enhance re rement income or savings may merit considera on. A PLOP distribu on used to purchase depreciable assets or used for leisure should be given careful considera on as these purchases may compromise long-term re rement income. Who is Eligible? You are eligible to choose a Par al Lump-Sum Op on Payment if you meet the following criteria. You must: have 30 years of creditable service or 10 years of creditable service and a ain age 60 (not early re rement) Note: Old Plan members with 34 or more years of service and who are under age 65 must use age 65 for their cost factor not re re with disability benefits Beneficiary Designaons When applying for re rement, you may choose the Maximum Plan or an op onal re rement allowance that provides for survivorship benefits. If you elect a survivorship op on, you may also choose to receive a lump-sum distribu on. Once the lumpsum amount is determined, the reduced monthly allowance will be calculated based on your age and the age of your beneficiary(ies). If you elect a survivorship op on and a PLOP distribu on, at your death, the beneficiary's allowance will be based on your reduced allowance. Distribuon Opons At re rement, you may elect a lump-sum distribu on in an amount between 1 and 36 months of your normal monthly re rement allowance. This amount will be calculated under the Maximum Plan of Re rement and will be rounded to the nearest $1,000. If a PLOP distribu on is elected, your monthly re rement allowance is actuarially reduced to reflect the value of the PLOP distribu on. The combina on of both the PLOP distribu on and the reduced allowance are the same actuarial value as the unreduced normal re rement allowance alone. A PLOP distribu on can be paid through direct deposit to a financial ins tu on or by check. Generally, 20% of the lump-sum distribu on will be withheld for federal income taxes. However, you may be required to pay more taxes on the distribu on depending on your age at re rement. To defer paying taxes on a lump-sum distribu on, you may roll over all or a por on of the distribu on to another qualified re rement plan or tradi onal Individual Re rement Account (IRA). ERS encourages you to seek advice from a tax professional. Fast Facts $ The actual lump-sum distribu on is based on your unreduced normal monthly re rement allowance. $ Monthly re rement allowance payments will be actuarially reduced due to the elec on of a PLOP distribu on. $ All lump-sum distribu ons will be provided in $1,000 increments. Fast Facts $ The smallest lump-sum distribu on available to you cannot be less than one month of your normal monthly re rement allowance (up to nearest $1000). $ The largest lump-sum distribu on available to you cannot exceed 36 months of your normal monthly re rement allowance (down to nearest $1000). Fast Facts $ All PLOP distribu ons are considered final once the money has been issued. $ Cost of Living Adjustments (COLAs) are not applied to a PLOP distribu on, only to a monthly re rement benefit. For more detailed informa on on the ERS PLOP, please call our office