 Georgia Teacher's Retirement
Beginning July 1, 2004, the General assembly of Georgia passed a bill which allowed retirees an additional option when electing their retirement benefits. This option is called Partial Lump Sum Option Plan (PLOP).
PLOP offers the retiree more flexibility to manage his/her retirement account when collecting benefits. At retirement, in addition to selecting Plan A (maximum plan) or Plan B (survivorship Plan), you may also elect to receive a one time lump-sum distribution (cash payment) in addition to your monthly retirement benefit.
A PLOP distribution will be made as a single payment at the time your first monthly benefit is paid. Based on the amount of the PLOP, your monthly retirement benefit is then reduced to be the actuarial equivalent of the retirement benefit without a lump-sum distribution.
At CKSL, Inc., we can assist you with the complexity of the tax consequences, calculations of PLOP benefits and provide you with several options for your retirement needs. If you are planning to retire in December 2006 or in 2007 and would like to know how the PLOP plan could benefit you, we suggest you contact us a call six (6) month to a year prior to retiring. Optimal retirement planning should starts two (2) to five (5) years prior to retirement. Make the most of your retirement options.
Helpful Links: Teacher's Retirement System of Georgia
Georgia Gov - TRS
Georgia Department of Education
 Alabama Teacher's Retirement
The Deferred Retirement Option Plan (DROP) became effective June 1, 2002. This voluntary plan allows members of the Teacher's Retirement System (TRS) to contract with the TRS to defer receipt of their retirement allowance and continue employment for a specific period of time. At the end of DROP participation, the member may with draw from active service and receive a retirement benefit based on his or her years of service credit at the time of enrollment in DROP plus a lump-sum payment of the amount in their DROP account.
Drop is an optional program which offers qualified active members a way to continue to work while accumulating funds in a DROP account to be distributed at retirement. A member may participate in DROP only one time. To be eligible to participate in DROP, the member must meet all of the following requirements:
- Have at least 25 years of creditable service exclusive of sick leave (members cannot convert sick leave into creditable service to become DROP eligible)
- Be at least 55 years of age
- Be an active contributing member
The participation period for DROP is for a minimum of three years, but not more than five years. Once the member has completed the three year minimum, he or she is eligible to receive either a lump-sum payment or make a direct rollover of the entire account to a qualified plan. A DROP participant may terminate DROP anytime between three years and five years. A penalty will result for members who voluntarily terminate employment or withdraw from DROP in the first three yeas of DROP participation. There is no penalty for involuntary termination, disability, involuntary transfer of his or her spouse, or death of the participant in the first three years.
A member is eligible to apply to enter DROP whenever he or she meets the requirements for participation. However, the member must have the application for DROP into TRS at least 30 days, but not more than 90 days, before the effective date of participation in DROP. The effective date of participation must be the first day of the month.
At CKSL, Inc. we can assist you with the complexity of the tax consequences of DROP benefits and provide you with several options for your retirement needs. If your planning to retire in December 2006 or in 2007 and would like more information on DROP and planning your retirement, we suggest you contact us or call six (6) months to a year prior to retirement for more information. Optimal retirement planning should start two to five years prior to retirement. Make the most of your retirement options.
Helpful Links: Retirement System of Alabama
Alabama Department of Senior Services
Alabama Department of Education
Disclaimer: This information is not intended as a substitute for the laws of Georgia and Alabama governing the TRS. The information summarized here is subjected to change by the Georgia or Alabama Legislature. Do not rely solely upon the information provided here to make any decision regarding participation in PLOP or DROP, but contact us, a retirement specialist and/or your local TRS directly with any questions you may have about eligibility or how the program works.
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