Your Turn to Ask
What is the PLOP, and will I be eligible for it?
The Partial Lump-Sum Option Payment (PLOP) is one of the benefit payout options available to you when you retire. VRS is often asked about the PLOP, which is a one-time payment from your member contribution account. Taking a PLOP will reduce the amount of your monthly benefit in retirement.
You might use a PLOP to pay off a child’s tuition, a mortgage or roll it over into a tax-deferred account, such as the Commonwealth of Virginia 457 Deferred Compensation Plan. However, there are certain eligibility rules you should know.
Who can take the PLOP? To qualify, you must work at least one year beyond the date you are eligible for an unreduced retirement benefit. You can choose an amount equal to one, two or three times your annual retirement benefit, depending on how long you work beyond your unreduced retirement date.
Prior service cannot substitute for the active service needed to qualify. Check your retirement eligibility in myVRS.
Read more about the PLOP, how it’s taxed and your other benefit payout options.
