I need some Mustachian advice. Nine years ago I moved to another state for work after graduating college. I work for a local government that still has a pension system. I know I am no longer in it for the long haul as I miss my hometown. I want to get back there as soon as possible. However I do not want to shoot myself in the foot financially. I need some advice on how much longer I should stay.
At a minimum I need 10 years to be vested in the pension system. I will have 10 years on 10/1/19. My future pension is based on the average base pay for my 3 highest pays. Then, I would get 2% per year of service annually starting at age 60. For example if my basepay averaged $100,000 and worked 10 years I would receive $20,000 annually after age 60 for the rest of my life. The other possibility is to bail at any time and get a lump sum of my current investment plus interest.
10/1/17 - $96,390
10/1/18 - $96,390*
10/1/19 - $96,390*
*Worst case – no raise or cost of living raise.
Assuming I leave when I am vested on 10/1/19 my average base pay would be at least $96,390, with 20% being $19,278.
Pension contribution with interest as of 12/1/16 was $42,201.44
Since then I have contributed $2,919.40. Interest earned on my contribution would be 4.25%
I contribute 4% of my salary per pay which is biweekly. Right now that is $148.
So do I stick it out until October 2019 or bail taking my lump sum plus interest and invest myself to be used whenever?
Additionally, I will be 34 in November.
Thanks in advance!