jimnjana
Thinks s/he gets paid by the post
Brother in law asked for help with a PA state employee pension system question. He retired early (18 yrs ago) from the PA system when he switched jobs. Now he is back in PA and has to decide whether or not to repay the retirement pay he has received over the years. The net difference in his future retirement pay if he decides not to repay, is 2k per month. Cost to repay is 165k. It looks like it might make sense to repay what he can (100K) using 401k money. But PA retirement system has a 41B shortfall and changes are being proposed. COLAs have occurred but must be passed by the PA legislature...His old pension is now frozen, if he doesn't repay it remains frozen until he retires again. He will then receive an adjusted retirement pay based on his new years of service. He wants to retire in 10 yrs, he is eligible to buyback one year of service for every year he works, which he is planning to do. What I'm afraid of is having all his retirement eggs in the PA retirement system.
Suggestions?
Suggestions?