The following was included in TCTA's 2020-21 Survival Guide, the ultimate reference tool for Texas educators, and is current as of September 2020 but is subject to change.
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. The member must meet a Rule of 90 upon retirement to be eligible for the PLSO.* 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 PLSO, click here.
*An employee who, as a TRS member on Aug. 31, 2005, was at least age 50, or met the Rule of 70 (age and years of service credit total at least 70), or had at least 25 years of service credit does not have to meet the Rule of 90 upon retirement to be eligible for the PLSO, but must meet the requirement for normal (unreduced) retirement.