The price of NYSTRS prior service years includes 5% annual interest on the theoretical payments that would have been invested in the pension since the time they would have been earned and paid. So buying them early in her 30+ year career would have incurred less interest than we would have had to pay by the time we understood how it all worked.I'm not understanding the comment about being cheaper in the '90s. That could be due to all kinds of reasons like return assumptions, life length expectations, etc. As I mentioned literally while I was in the process of buying my service years, the price-per-year increased due to the pension system significantly reducing their assumptions for future investment returns.
Statistics: Posted by Uniballer — Fri Jul 05, 2024 8:58 am — Replies 6 — Views 275