Partial Lump-Sum Option Payment

90 Days before Retirement - Complete a Police or Civilian PLOP Application Form to request an explanation of PLOP and a PLOP Estimate.

60 Days before Retirement - Make an appointment with KCPERS Staff to review the PLOP estimate.

At your Retirement Appointment - Complete the PLOP Distribution Elections form with KCPERS Staff

Cash Option 

If you elect the cash options, the distribution will normally be paid directly to you at the same time you receive your first monthly benefit payment. KCPERS will withhold the mandatory 20% federal withholding tax on the taxable portion. The taxable portion of the PLOP distribution is considered taxable income for the year in which you receive the payment unless you roll it over to another qualified plan.

Rollover Option

You may elect to have the entire PLOP distribution paid in a direct rollover to the financial institution holding your IRA or another qualified retirement plan that agrees to accept your rollover. The taxable portion of your PLOP distribution that is rolled over to another qualified plan will not be taxed in the year of the rollover and no income tax will be withheld. The payment will be taxed when you take it out of the traditional IRA or other qualified retirement plan.

Combination Cash and Rollover Option

If you elect this option, you may specify the amount of your PLOP distribution to be made directly to an IRA or other qualified retirement plan. The balance will be paid to you (less the required 20% income tax withholding). The cash portion may also be subject to the additional 10% federal tax penalty for early distribution from a retirement plan.