Annuity computation


Q. I am a registered nurse and I am considering taking a job at a Veterans Affairs Department outpatient clinic. If I work 20 years, what would my monthly pension include? I would like to know a monthly dollar amount.

A. While I can’t give you a dollar amount, I can give you the formula that would be used to determine your annuity. Here it is: .01 x your highest three consecutive years of average basic pay x your years and full months of service. To be eligible to retire, you’d have to meet one of the following age and service combinations: 62 with five, 60 with 20, your minimum retirement age with 30 or your MRA+10 (at least 10 years but fewer than 30). In the latter case, your annuity would be reduced by 5 percent for every year you were under age 62. Note: MRAs range between 55 and 57, depending on your year of birth.


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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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