Amanda has been working for the last 12 years as a teacher at a school in her community. The last nine years she was full-time and making the full pension contributions. Her first three years she worked on contract and did not contribute to the pension plan. Amanda has the opportunity to buyback her first three years of service where she did not contribute to the pension plan. She is debating on whether or not she should. She also is wondering what her options are for buying back the service and which one would you recommend.

 

What advice would you give to Amanda? Explain in detail the benefits and drawbacks of your recommendation. 

Answer rating: 100% (QA)

As Amanda considers whether to buy back her first three years of service in the pension plan its important to analyze the benefits and drawbacks to ma... View the full answer