Partial Lump Sum Option (PLSO)
You may choose to receive a one-time payment equal to one up to 36 months of your standard payment at retirement. If you choose a PLSO, ERS pays this in addition to your monthly retirement payment. Keep in mind:
- Choosing this option permanently reduces the amount of your monthly annuity payment.
- The Partial Lump Sum Option Payment can only be elected when you start the retirement process.
If you choose this option, you will receive your PLSO payment approximately five days after your first monthly retirement payment.
This option is not available to members:
- retiring with a disability retirement,
- of the Judicial Retirement System,
- retiring with a reduced monthly payment due to age, or
- (most members) retiring under the Proportionate Retirement Program.
PLSO payment options
You can have your PLSO payment paid directly to you or roll it over to a qualified pre-tax account.
If you take your PLSO as a direct cash payment, you’d pay 20% in taxes and may have to pay an additional 10% penalty for early withdrawal if you retire from state employment younger than 55. If you provide your direct deposit information early enough in the retirement application process, we may be able to deposit the PLSO directly into your account within five days of your first monthly retirement payment.
You can also roll your PLSO payment into a Texa$aver 401(k) or 457 Plan account. ERS coordinates the rollover and sends it directly to Empower Retirement. You cannot use the PLSO rollover to pay off an existing Texa$aver loan.
If you have an eligible outside retirement plan or an IRA, you can also roll your PLSO payment into it. ERS will need the name of the financial institution when you apply for retirement. We’ll send you a separate check made out to the financial institution within five days of your first monthly retirement payment.