Lump sum Settlement

1. What is a lump-sum settlement option?
In lump-sum settlement options, some or all of your benefit comes to you in a lump
sum rather than in monthly payments lump sum settlement options.
A partial lump-sum settlement option will allow qualified members to choose a
retirement benefit consisting of a lump-sum refund of their member account
balance plus a lifetime monthly pension from their employer’s contributions.
Members can select a total (double) lump-sum option. This is a total distribution
of the member’s account balance plus a matching amount from employer
reserves.
The following discussion of lump-sum settlements uses to both partial and total
lump-sum options except discussion of monthly benefits, lump sum settlement options, which uses only to
partial lump-sum options.
2. Who is eligible for a lump-sum option?
At retirement, lump-sum options are available to all members except those
receiving a disability retirement and/or thos purchasing refunded time.
3. How do I elect a lump-sum option at retirement? When you complete the Service Retirement Application, you will indicate which
lump-sum option you choose and how you wish to receive your account balance lump sum settlement options.
If you elect to directly receive some or all of your lump-sum distribution, you will
complete two W-4P tax withholding forms. On one, you will tell us what to
with hold from your lump-sum distribution; on the other, what to withhold from
your monthly benefit payment
4. May I change any of my decisions regarding a lump-sum option after I
have submitted a Service Retirement Application?
Yes. You may change any elections you make regarding your retirement within
60 days of the date of your first benefit payment.
If you make changes that increase the total amount of your payments, you will be paid
the difference. lump sum settlement options, If your changes reduce your payments, you will be invoiced
accordingly.

Lump sum Settlement Options

5. How is my benefit calculated if I choose a partial lump-sum option?
If you elect a partial lump-sum option, your monthly benefit will be calculated
using the Money Match method or the lump-sum formula, whatever is greater.
The lump-sum formula is final average salary times creditable service times a

factor set by statute at 1 percent for standard service employees and 1.35 %
for legislators, police officers, and firefighters.

Lump sum Settlement More Options

6. What benefit payout options are available for my monthly payment if I
elect a partial lump-sum settlement?
You may elect to receive your monthly payment under lump-sum options 1, 2,
2A, 3, or 3A. lump sum settlement options, For comprehensive explanations of benefit options, see your PERS
Member’s Handbook.
7. How can I receive the lump-sum refund of my member account?
One can receive the lump sum in one to 5 consecutive, annual installments.
Every single year you tell PERS how you want the installment to be made. Some or all of
each installment can be a direct transfer (rollover) to a standard or Roth IRA or
another eligible employer plan (see Q 14).
8. If I want my account distributed in consecutive, annual rpc_two_rpc, how
much must be distributed in every installment?
Each installment need to be at least 1 % of your account. lump sum settlement options, Percentages must
total 100 percent when the final installment is paid.
9. When will annual rpc_3_rpc be paid?

If you elect more than one installment, the first payment will be made within 90
days of your effective retirement date.
Any additional installments will be paid on the first of the month on the
anniversary of your first payment.
10. Does any leftover aspect of my member account bring in interest?
If you retire on April 1, 2004, and after, interest on your account balance should be
paid in accordance with new earnings crediting rules that will follow the statutory
extremity on Tier One regular account crediting. Accumulated interest will be paid
with your finall installment.
11. May I stay in the variable account if I elect a lump-sum option?
No. If you have bucks in the variable account and elect a lump-sum hope at
retirement plan, the variable account balance will routinely be transferred into
your regular account.
12. Will I get a cost-of-living adjustment if I elect a lump-sum alternative?
Under up to date legislation, an annual cost-of-living adjustment (COLA) of up to 2
percent is paid effective July 1 on all monthly benefit payments. lump sum settlement options, The lump-sum payment will not receive a COLA.