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Currently my organization's benefits include a retirement plan and I contribute the maximum allowable annual contribution ($8,000) to my organization's Deferred Compensation Program. In addition, I am eligible to contribute and receive credit in the California Public Employees' Retirement System (CalPERS) for my Military service under the "public service" article of the Government Code. This election would add 3.290 years of service credit to my retirement account. The amount is about $22,000 and I can either (1) pay it in full, (2) pay it by payroll deductions over 8 years, or (3) pay a portion of it and pay the rest through payroll deductions. The payment schedule includes interest through the completion of payments at the rate of 6%. Would I be a Fool to sign up for this plan? Would it be Foolish to put a chunk of my savings into it as well. It seems this arrangement allows me to exceed the $8,000 annual cap. I can't get definitive answers from the plan administrator.
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