OPERS Essentials: PLOP

Here’s how to receive a lump sum payment when you retire

By Michael Pramik, Ohio Public Employees Retirement System

March 5, 2019 – Most OPERS members can cash out a portion of their pension as a partial lump sum option payment, or PLOP, when they retire. How does this option work? Watch the latest video in the OPERS Essentials series, which explain various features of your OPERS retirement plan.

You can view all of the OPERS Essentials videos on our YouTube channel.

 

Michael Pramik

Michael Pramik is communication strategist for the Ohio Public Employees Retirement System and editor of the PERSpective blog. As an experienced business journalist, he clarifies complex pension policies and helps members make smart choices to secure their retirement.

Michael Pramik

Communication Strategist

8 thoughts on “OPERS Essentials: PLOP

  • March 5, 2019 at 10:17 am
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    Nice video, Michael. Regarding the 10% withdrawal penalty if under age 59 1/2: Is that only if I withdraw it early from an IRA later on before that age? In other words, if I just take a PLOP on retirement directly into a bank account at say age 54 does that get penalized?

    Reply
        • April 4, 2019 at 4:38 pm
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          Mr. Paxton,

          Good question — you’re not the first to ask. We receive this question periodically.

          You cannot withdraw funds or borrow against your OPERS account. You can, however, refund your contributions after leaving OPERS employment. For more information about refunding your account, go to the OPERS website at https://www.opers.org/members/refunds.shtml.

          Julie, OPERS

          Reply
  • March 20, 2019 at 7:09 am
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    Tom,
    I am looking to retire next year at 55, if I take a plop and have the money go directly to an IRA does it still get penalized or is the penalty only if the money is directly deposited into your personal checking or savings account?
    Thank you, Sean

    Reply
    • March 29, 2019 at 2:52 pm
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      Sean,

      If you receive a payment from a tax-deferred retirement plan before the age of 59 ½ and you do not roll it over to another qualified retirement plan, then in addition to regular income tax, you may be subject to an early withdrawal penalty by the IRS which is equal to 10% of the taxable portion. There are some exclusions to this early withdrawal penalty even if you take the distribution directly, but the exceptions vary for different types of retirement plans. One of the exclusions that applies to OPERS payments is if you are age of 55 or older in the year you separate service. To find out more about your personal tax liability those exclusions from the 10% penalty, you can talk to a professional tax advisor.

      Any portion that you rollover to another qualified retirement plan is not taxable.

      Julie, OPERS

      Reply
  • April 9, 2019 at 1:50 pm
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    Is plop available to disability retirement

    Reply
    • April 10, 2019 at 1:36 pm
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      A PLOP is available only for those retiring from the Traditional, Combined or Member-Directed Plans.

      Reply

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