Broker Check

Partial Lump Sum Option (PLSO)

The Teacher Retirement System of Texas (TRS) offers a variety of distribution options for its retirement plan participants. The Partial Lump Sum Option (PLSO) allows retirees to reduce their monthly pension amount in return for receiving a quantity of cash, called a 'lump sum,' at retirement. When lump sums are rolled over to IRAs, retirees may realize a variety of benefits. These include:

  • Generating income to supplement pension payments
  • Making cash available to pay medical, travel, or other expenses
  • Creating an inheritance for family members or charity

Prior to rolling over assets from an employer-sponsored retirement plan into an IRA, it’s important that you understand your options and do a full comparison on the differences in the guarantees and protections offered by each respective type of account as well as the differences in liquidity/loans, types of investments, fees and any potential penalties.

If you would like to learn more, please visit our reference library or contact us by calling (281) 277-6400 or sending an e-mail to service@dearborncreggs.com.