It Will Cost You More to Buy Time

Several UAGE members have called to inquire about the how and why of the Utah Retirement System’s (URS) plan to raise the cost of purchasing years of service.  Probably at no time in the history of the ability to buy time, has that benefit been more important.

Layoffs and Reductions in Force are causing a flood of questions with no direct answers.

Beginning January 1, 2011 and continuing for two years, URS will implement a phased in increase in costs – but the “how much” is unclear.

UAGE spoke with a representative of URS, Judy Lund and got what we think is the clearest answer to this difficult issue.  Each inquiry is different – Individualized.  If two people, both 50 years old and making the same salary asks about costs but one has twenty five years of service and one has thirty, the one with thirty will pay less for their purchase than the one with twenty five.  The “value” of purchasing time will be based on how much service the person has in the system.  Also the younger you are the more the purchase price will be.   What wasn’t clear is how much more either of those people will pay between the current cost and what happens after January 1st.

URS is putting a calculator on their website and hope to have that up and running within two weeks.  Testing of current programs is underway.  Contact the Defined Benefits/Retirement Division of URS at 801-366-7700 for help with cost estimations.

The calculator will allow you to calculate the difference between what a buy out will cost today versus one in 2015 or 2020.   A variety of scenarios can be put to the test giving you a better look at your options.

Two UAGE members have urgent or need –to- know –right- now problems.  Ms. Lund graciously offered to handle their situations personally.   If you or someone you know is in a critical situation and needs answers about purchasing years of service contact our office 801-483-1200 office or email uageadmin@uagecwa.net for a direct telephone number.

If you have a story you would like to share with UAGE members please email us at uageadmin@uagecwa.net .

categories UAGE, Utah State | datetime July 7, 2010 8:00 pm

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