Annuity computation


Q. I’m 49 years old and I have 18 years in with the post office. I’m under FERS. I want to get in my 20 years and then I want to leave the post office and open up a catering business. When I leave the post office, will I be able to draw on my 20 years at retirement age of 62 or will I lose the time I have in and end up with nothing for leaving early? If I get anything, how will I know how much I can expect to get?

A. If you resign after 20 years of service, you can apply for a deferred annuity at age 60. Your annuity will be computed using the standard formula: .01 x your highest three years of average basic pay on the day you leave x your years and full months of service.


About Author

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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