Regardless of which payment option is selected, retiring members may also elect a Partial Lump Sum Option Payment (PLOP). The PLOP allows a member to receive a lump sum benefit payment along with a reduced monthly retirement allowance.
The lump sum payment cannot be less than six times or more than 36 times the monthly amount that would be payable under the plan of payment selected. The lump sum payment cannot result in a monthly benefit that is less than 50 percent of the original monthly benefit.
The total amount paid as a lump sum and monthly payments will be equal to the amount that would have been paid had the member not elected to receive a lump-sum payment.
As a lump-sum distribution, the PLOP is fully taxable, unless it is rolled over to a qualified plan or IRA and, like monthly benefits, may be subject to court orders, such as division of property orders and support withholding orders, if applicable.
An OPERS member who is a law enforcement or public safety officer terminating public employment at age 50 or older and who receives a Partial Lump Sum Option Payment (PLOP) on or after Aug. 18, 2006 will not have to pay the additional 10 percent tax on this distribution, provided the position from which they terminated was their law enforcement or public safety position.