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... I could retire at 59 with a monthly income of about $3200 (based on my current salary)... going rate in the public sector for programmers with my skills has gone up 10-20k.

I plugged some rough numbers into this website and it looks like an annuity that would pay that much for a single male would cost in the ballpark of $650+K .

Matching the exact terms and assumptions could change the amount significantly. There is also a huge chance that you would not stay at the job until you are 59 and you could lose a significant percentage of the pension.

FYI, getting laid off at 55 will reduce your pension by a lot more than most people realize. Spend some time looking into these numbers so you know just what you are getting into.

You can then make a spreadsheet or find a calculator on the web to see what saving 10-20K a year would grow to in 20 years. Be sure to play with the assumptions to get several numbers.
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