Here are the numbers. It currently costs 27k to purchase 1 year. She plans to retire in 7-8 years.The purchase price is based on current salary, 75K, and the pension benefit is based on highest average salary(HAS). She recently had raise/promo to 115k which should grow modestly over the next 7-8 years by 1-3% per year.By purchasing years, she increases her pension benefit payout percent as followsno purchase, pension = 27.5% of HASpurchase 3 yrs, pension = 37.8% of HASpurchase 6 yrs, pension = 50% of HASOne essential consideration is the risk that she will not be able to or want to work in the system for 7 years. If a better opportunity presents itself, we would hate to be locked into this commitment.
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