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Eligible Police and Fire Retirement System members can choose to receive a reduced lifetime retirement benefit in exchange for a one-time lump sum payment. The lump sum payment is made when your retirement benefit is finalized.

Eligibility

To be eligible to choose a partial lump sum payment (PLS), you must:

• Retire under a special 20- or 25-year plan;
• Retire on or after April 1, 2008;
• Have been eligible to retire with a service retirement benefit for at least one year prior to your date of retirement; and
• Retire with a service retirement benefit (not a disability retirement benefit).*

Choosing a Lump Sum Payment

When you file for retirement, if you are eligible for PLS, we will send you a special Option Election Form so you can choose PLS along with the standard retirement option you want for your continuing lifetime benefit.

Lump Sum Payment Amounts

If you file for retirement after being eligible to retire for one year:

• You can choose to receive a lump sum payment of 5 percent of the value of your benefit.
• Your continuing lifetime retirement benefit will be reduced by 5 percent.

If you file for retirement after being eligible to retire for two years:

• You can choose to receive a lump sum payment of either 5 or 10 percent of the value of your benefit.
• Your continuing lifetime retirement benefit will be reduced by the percentage you choose.

If you file for retirement after being eligible to retire for three or more years:

• You can choose to receive a lump sum payment of 5, 10 or 15 percent of the value of your benefit.
• Your continuing lifetime retirement benefit will be reduced by the percentage you choose.

Future cost-of-living adjustments (COLAs) will be based on your reduced lifetime benefit. The lump sum payment is excluded from the COLA calculation.

For More Information

For more information, including the taxability of a PLS payment, please refer to our publication, Partial Lump Sum Payment at Retirement (VO1750).