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Thread: buying service credit

  1. #21
    Senior Member
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    Aug 2016
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    6,400
    I think with ours, you can buy the service without the specific job years, but they are about twice as expensive. At least that is what the calculator indicated--if I bought "qualified years" where I worked for the government, which is what my years are, it was about 11000, and if I bought unqualified, it was about 20000. I think.

    But confused about whether you buy specific years, like 1981 and 1982 plus others in the 2000's.

  2. #22
    Senior Member Teacher Terry's Avatar
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    Dec 2013
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    Nevada
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    In Nevada it would be cheaper to buy years you actually worked back from the 80’s. They also let employees buy up to 5 years despite not earning them at the expensive price. Some people do that if they have 25 and don’t want to work the last 5 years to reach 30 years where you can retire at any age without penalties.

  3. #23
    Senior Member
    Join Date
    Feb 2011
    Posts
    255
    I had the opportunity when my system moved from 2%@62 to 2.7%@55. I had enough in my 457 plan to do it but I didn’t. My reasoning was, I was a single parent at the time and based on my retirement investments, I would clearly be fine with expected results. Also retirement accounts can pass to heirs but pensions not to the same extent.

    This was not a good financial move as I had two considerable promotions and was making a lot more income when I retired. I was remarried at retirement three years ago. We have more than enough from my pension to live well and when I am required to pull money from 457 and IRA at age 72 I will get slammed with tax.

    Like another mentioned, if you can buy service credit early in your career, it likely makes sense, nut your mileage may vary

  4. #24
    Senior Member
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    Aug 2016
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    That is interesting. I think I will call next week and try to ask some questions now that I have a better understanding of what to ask. Thank you!

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