Buy-Back of Pension Years	Send this page to a friend

To Purchase Or Not To Purchase?

One of the issues that creates the greatest uncertainty is whether to reinstate service credits previously forfeited (buy-back), or to purchase years of service for time and service spent elsewhere (military, other states, parochial schools, etc.).

The uncertainty often comes about because people have long heard that they "should" buy the years, but then they look at the cost. Sometimes, it can be daunting. See examples.

There are a number of variables. The greatest variable is likely to be the additional income that the purchase would guarantee. It is important to be informed just what the consequences are. Funds may be available from another state's system to help offset the cost. It may be that one is going from a system with a lower benefit to a system with a higher benefit.

Each system must be analyzed relative to the other, and to the costs and benefits of doing something or doing nothing. Issues and sources of funding must also be properly accounted for. Fortunately, legislative changes in the past several years have made the process easier, and more affordable.