My significant other (34 years old) has recently quit her job with the county government. The employer opts out of SS, but offered an optional pension. She opted into the pension fund and it makes up a large portion of her retirement fund.
She worked there for ~3.5 years, short of the 5 year vest. Her contributions plus employer match are currently worth ~$15,000.
There are 3 possibilities:
(1) Roll it over to an IRA and loss the 'years of service'
(2) Leave it in the pension fund, earning negligible interest. If she returns to country a job (even in a different department, expect the school district), her 'years of service' will start where she left off, i.e. ~3.5 years.
(3) Leave it in pension fund, earning negligible interest, never vest, and receive the lump sum at 65.
I'd say the chances of her returning to county are low given she is not happy working in large/political bureaucracies. But it's hard to predict the future over the next 30 years.
Should we roll the pension fund over to an IRA?
Thanks in advance.