What is the Initial Benefit Option (IBO) referred to as a “partial lump sum distribution”?
The initial benefit option is an optional benefit allowance as provided under R.S. 11:2259 for members that have not participated in DROP or retired under disability retirement. The member may receive a lump sum amount up to thirty-six months of the maximum monthly retirement allowance. The initial lump sum may be paid as a lump sum or placed in an account. Interest will be credited and the member may make monthly withdrawals (same as DROP Accounts). If the initial benefit option is chosen, the member will receive an actuarially reduced monthly benefit.
