Initial Lump-Sum Benefit: instead of DROP (only if the member never used DROP), take up to 36 months of the Maximum Option benefit as a lump sum (held in an interest-bearing account) plus an actuarially reduced lifetime benefit. Any option except Option 1. Eligibility follows the DROP rules. ILSB brochure PDF pp. 1-3, 6; DROP Handbook p. 21; R.S. 11:783(A)(3)
Who can take it
| Group | Rule |
|---|---|
| Joined TRSL before July 1, 1999; Joined TRSL July 1, 1999 - December 31, 2010 | 30 years at any age, or age 55 with 25 years, or age 60 with 10 years |
| First joined a Louisiana state system January 1, 2011 - June 30, 2015 | age 60 with 5 years |
| Plan B, first joined a state system before July 1, 2015 | age 55 with 30 years, or age 60 with 10 years |
| First joined a Louisiana state system on or after July 1, 2015; Plan B, first joined a state system on or after July 1, 2015 | age 62 with 5 years |
Members who retire under the 20-years-at-any-age rule after 2010 can't take it. ILSB brochure PDF p. 2, ILSB eligibility requirements; R.S. 11:783(A)(3)(a)
Monthly reduction per $1,000, by age
Multiply your lump sum in thousands by the figure for your age at retirement.
| Age | Per $1,000 |
|---|---|
| 35 | $6.10 |
| 36 | $6.12 |
| 37 | $6.14 |
| 38 | $6.16 |
| 39 | $6.18 |
| 40 | $6.21 |
| 41 | $6.24 |
| 42 | $6.27 |
| 43 | $6.30 |
| 44 | $6.33 |
| 45 | $6.37 |
| 46 | $6.41 |
| 47 | $6.45 |
| 48 | $6.50 |
| 49 | $6.54 |
| 50 | $6.59 |
| Age | Per $1,000 |
|---|---|
| 51 | $6.64 |
| 52 | $6.70 |
| 53 | $6.75 |
| 54 | $6.81 |
| 55 | $6.88 |
| 56 | $6.95 |
| 57 | $7.02 |
| 58 | $7.10 |
| 59 | $7.18 |
| 60 | $7.28 |
| 61 | $7.38 |
| 62 | $7.49 |
| 63 | $7.61 |
| 64 | $7.74 |
| 65 | $7.88 |
| 66 | $8.03 |
| Age | Per $1,000 |
|---|---|
| 67 | $8.21 |
| 68 | $8.39 |
| 69 | $8.59 |
| 70 | $8.81 |
| 71 | $9.06 |
| 72 | $9.32 |
| 73 | $9.61 |
| 74 | $9.93 |
| 75 | $10.28 |
| 76 | $10.66 |
| 77 | $11.08 |
| 78 | $11.54 |
| 79 | $12.04 |
| 80 | $12.60 |
ILSB brochure PDF p. 5, Monthly benefit reduction per $1,000 of ILSB amount
Raises later
PBIs for ILSB retirees are computed on the reduced monthly benefit, not the lump sum. R.S. 11:783(A)(3)(e)
From the sources
- Instead of DROP you can take the Initial Lump-Sum Benefit (ILSB): up to 36 months of your Maximum benefit as a lump sum, with a smaller lifetime benefit. Example: at age 50, each $1,000 lowers the monthly benefit by $6.59, so $10,000 costs $65.90 a month for life.ILSB brochure PDF pp. 3, 5
Questions
What is TRSL's Initial Lump-Sum Benefit?
A one-time lump sum of up to 36 months of your Maximum Option benefit, taken at retirement, in exchange for a smaller monthly benefit for life. It's an alternative to DROP for members who never used DROP.
How much does the ILSB lower my monthly check?
TRSL publishes a table by age. Its example: at 50, a $10,000 lump sum lowers the monthly benefit by $65.90.
Can I take the ILSB with any option?
Any option except Option 1.
Source: TRSL Member Handbook: Regular Plan & Plan B, Last revised April 2026. Also: ILSB brochure PDF pp. 1-3, 2, 5, 6; DROP Handbook p. 21; La. R.S. 11:783. Last reviewed .