How will selection of PLSO impact future annuity increases for retirees should increases be provided?
Selection of a PLSO effectively limits a retiree’s initial annuity as compared with the annuity that would be received if they had not selected PLSO. Post-retirement increases are based on the amount of a retiree’s annuity. Consequently, any future increases that may be approved would be smaller than they otherwise would be since they would be calculated on a smaller annuity. Given the longer life span of retirees today, this factor should be considered when deciding whether to participate in PLSO. [-TOP-] For a complete statement of the laws and administrative rules that pertain to PLSO, please consult the TRS Laws and Rules (Laws, Chapter 824, and Rules, Chapter 29).
