Annuity computation


Q. Could you show the math in calculating how much I could expect to receive every month? I want to retire at 56 because I was born in 1958. I’ll have 15 years of service at that time. I earn approximately $50,000 a year.

A. Because you were born in 1958, your minimum retirement age is 56. If you retired with 15 years of service, the formula for computing your annuity would be: .01 x your highest three consecutive years of average basic pay x all your years and full months of service. However, because you’d be retiring under the MRA+10 provision, your annuity would be reduced by 5 percent for every year (5/12 percent per month) that you were under age 62.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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