PSRS Partial Lump Sum Option (Missouri): Who Qualifies

Missouri specificsShort answer: the PSRS PLSO lets you take 12, 24 or 36 months of your Single Life benefit as a lump sum at retirement, for a smaller monthly benefit for life. You qualify at 63 with 8 years, with 33 years, or under the Rule of 86. Most or all of the lump sum is taxable unless rolled over (see taxes). Compare it with payment plans and one more year, and pick a PLSO in the calculator.

Who qualifies

You need one of these on your retirement date. Each is three years past a normal retirement rule.

Who qualifies (Missouri PSRS)
PLSO rule	Three years past
Age 63 with 8 years	Age 60 with 5 years
33 years, any age	30 years
Age + service = 86 (Rule of 86)	Rule of 80

Handbook p. 49, Partial Lump Sum Option (PLSO) Benefits, Eligibility; RSMo 169.073.1

Early (25-and-Out or age-reduced) retirees can't take a PLSO. Neither can a second membership after you go back to work. Handbook p. 86, Establishing a Subsequent Membership as a PSRS Retiree

How it works

A one-time lump sum of 12, 24 or 36 times the Single Life monthly benefit, in exchange for a lifetime monthly benefit reduced by a PLSO factor (applied whatever plan you choose). Not available on a second membership after returning to work. Handbook p. 49, Benefit Amount: Lump-Sum Payment; Reduced Lifetime Monthly Benefits; PLSO brochure p. 2

PSRS's exampleA $3,213 Single Life benefit at age 61. A 12-month PLSO pays $3,213 × 12 = $38,556. The monthly benefit becomes $3,213 × 0.9236 = $2,968 for life ($2,967.53 before PSRS rounds). Handbook p. 49, Examples; PLSO brochure pp. 2-3

The same $3,213 benefit at 58, worked with PSRS's factors:

How it works (Missouri PSRS)
PLSO	Lump sum	Factor	Monthly for life
12 months	$38,556	0.9266	$2,977.17
24 months	$77,112	0.8532	$2,741.33
36 months	$115,668	0.7798	$2,505.50

The factor applies whatever payment plan you choose.

PLSO factors by age

PSRS calls these approximate: the real factor uses your age in years and months.

PLSO factors by age (Missouri PSRS)
Age	12-month	24-month	36-month
50	0.9325	0.8649	0.7974
51	0.9319	0.8638	0.7956
52	0.9313	0.8625	0.7938
53	0.9306	0.8612	0.7918
54	0.9299	0.8597	0.7896
55	0.9291	0.8582	0.7873
56	0.9283	0.8567	0.785
57	0.9275	0.855	0.7825
58	0.9266	0.8532	0.7798
59	0.9257	0.8513	0.777
60	0.9247	0.8493	0.774
61	0.9236	0.8471	0.7707
62	0.9224	0.8448	0.7672
63	0.9211	0.8422	0.7634
64	0.9198	0.8395	0.7593
65	0.9183	0.8365	0.7548
66	0.9167	0.8333	0.75
67	0.9149	0.8298	0.7448
68	0.913	0.8261	0.7391
69	0.911	0.8219	0.7329
70	0.9087	0.8174	0.7262

Handbook p. 49, PLSO Reduction Factors (approximate; exact factor depends on age in years and months); PLSO brochure p. 3 (ages 55-70, same values)

Not settled in the sources Check with PSRS

PSRS's PLSO reduction factors are also printed by whole age (50 to 70) and are approximate. The exact factor depends on your age in years and months.

What we use: the factor for your age in whole years.

Taxes on the lump sum

Most or all of a PLSO is taxable in the year paid unless rolled over; PSRS must withhold 20% federal tax on the taxable portion not rolled over; a 10% penalty may apply before 59 1/2 unless you separate from service in or after the year you reach 55. Funds credited before January 1, 1987 that were previously taxed are non-taxable. Handbook pp. 73-74, Income Taxes on the Partial Lump Sum Option; PLSO brochure p. 3

Questions

Who can take a PLSO?

Members who work three years past normal retirement eligibility: age 63 with 8 years, 33 years at any age, or age plus service of 86 or more.

How big is the lump sum?

12, 24 or 36 times your Single Life monthly benefit. With a $3,213 benefit, that's $38,556, $77,112 or $115,668.

What does it cost?

Your monthly benefit is reduced for life by a PLSO factor that depends on your age and the lump sum you choose. At 61, a 12-month PLSO uses 0.9236.

Is the PLSO taxed?

Most or all of it is taxable in the year you get it, unless you roll it over.

See the PLSO on your numbers →

Source: PSRS Member Handbook, 2026-2027 (as of September 2026), pp. 49, 56, 57, 73, 74, 86; PLSO brochure pp. 2, 3; RSMo 169.073. Last reviewed Nov. 12, 2026.

Who qualifies

How it works

PLSO factors by age

Taxes on the lump sum

Questions

How Missouri compares

DROP and lump-sum options: same topic in other states