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As an alternative to the DROP, retirees can select a partial lump-sum distribution of cash in exchange for a lower future monthly retirement benefit. This program is available only to members who are eligible for unreduced retirement benefits and who have not entered the DROP. The maximum lump sum that may be taken is an amount equal to 36 months of a member’s monthly retirement benefit. For more information and to calculate the reduced standard monthly benefit under the partial lump-sum option, visit the TRS Web site at www.trs.state.tx.us/Benefits/PLSO.htm.
If, by Aug. 31, 2005, an employee was under age 50, did not meet the Rule of 70 (age and years of service credit total at least 70), or had less than 25 years of service credit, the employee is subject to a new law providing that the PLSO is available only to employees meeting the Rule of 90 upon retirement.
