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URL:  https://boards.fool.com/here-are-the-numbers-it-currently-costs-27k-to-30867428.aspx

Subject:  Re: Buy years or buy stocks Date:  9/12/2013  11:14 AM
Author:  DeeMGee2024 Number:  72796 of 99799

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 follows
no purchase, pension = 27.5% of HAS
purchase 3 yrs, pension = 37.8% of HAS
purchase 6 yrs, pension = 50% of HAS

One 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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