Q: What is the Initial Benefit Option?
A: The Initial Benefit Option (IBO) is an optional retirement plan that allows the member to receive a lump sum equivalent of up to 36 months of his or her maximum monthly retirement benefit. Members that select an IBO may choose any retirement option other than Option 1.
At the time of the member’s retirement, he or she will select the amount of the IBO. A member is able to designate:
- Any lump sum amount up to 36 months of the member’s maximum
retirement benefit
- OR - - The MAXIMUM lump sum amount, which is 36 months of the member’s
maximum retirement benefit
Q: Who is eligible to select the IBO?
A: Any member is able to choose an Initial Benefit Option (IBO) as long as he or she has met the regular
retirement eligibilities of his or her plan. Members who participated in Deferred Retirement Option Plan
(DROP) are not eligible to participate in IBO. Members who choose regular retirement with an actuarially
reduced benefit are not eligible to participate in IBO or DROP.
Q: When can a member withdraw money from the IBO account?
A: IBO withdrawals can be made at any time after the member has terminated service and the first deposit has been made into the account.