Analysis Process
When MercedCERA provides you with the cost of the service credit
purchase, you will also receive relevant information such as the
total hours eligible to purchase, the total cost and payment
options.
You can find out how long it will take to recover your service
credit purchase by dividing the cost of the investment by the
monthly benefit. For example:
total cost of service credit purchase ÷ additional monthly
benefit = months to recover cost
$4,000 cost ÷ $80 additional monthly benefit = 50 months
50 ÷ 12 = 4.1 years
In this example, the cost of the purchase is recovered in 4.1
years after retirement.
