# Buying back pension



## Sophie (Oct 20, 2011)

Does it make sense to buy back service in a defined benefit pension if you're older (50's) and will have a maximum of 10 years total service @ retirement? I was paid out 9K for 2 years previous service and now have the option to buy back 3 years for around 24K, so about 15K net to get 3 of my 10 years in the DB pension. Would appreciate any sage advice


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## Daniel A. (Mar 20, 2011)

In most cases it pays, 15 net to get three years more service could very well be worth every penny.
Check your monthly amount based on seven then ten years, my rule of thumb is for every year of pension it's worth around a 100.00 per month in a DB plan.


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