Partial Lump Sum Payment in Long Island (PLS)

A partial lump sum payment (PLS) is a single distribution from your retirement fund made at the time of your retirement.

Certain New York State Police and Fire Retirement System members, who are covered by 20- or 25-year retirement plans and have been eligible to retire for at least one year, are able to receive a partial lump sum payment (PLS) at retirement.

If you choose PLS, you will receive a reduced lifetime monthly benefit. The reduction in your monthly benefit depends on the amount of your lump sum payment. If you decide to take advantage of the PLS, you cannot change your mind once 30 days after the end of your retirement month have elapsed. Future cost-of-living adjustments (COLAs) will be based on the amount of your reduced lifetime benefit. The lump sum payment is excluded from the COLA calculation.

PLS payments are a percentage of the actuarial value of your retirement benefit at the time you retire. The amount of the percentage you can choose depends on when you retire.

You can have the PLS payment made to you or you can have all or any portion paid in a direct rollover to an IRA (Traditional or Roth) or other eligible plan that accepts rollovers. The choices you make will have tax implications for your distribution, so you should consider carefully whether PLS is right for you.

When you file for retirement, if you are eligible for PLS, you will receive a special Option Election Form so you can choose PLS as well as the standard option for your monthly benefit. This form must be filed by the end of the month in which you retire.

If you have questions about PLS or your eligibility, or want to estimate your lump sum payment amount, go to New York State PLS or contact the financial planning professionals at Craig James Financial Services, LLC.

If you are a member of the New York State Police and Fire Retirement System and you live in Islip, Melville, Hauppauge, Huntington or elsewhere on Long Island, call Craig James Financial Services to learn more about this retirement option. Call: 631.393.2888 or Toll Free: 877.876.2707

*Neither Next Financial Group Inc. or your representative offers tax advice.

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