Service and amount of annuity


Q. Would an annuity based on 16 years’ service be more than one based on five years?

A. Yes, it would. That’s because annuities are based on a formula where one of the factors is years of service. Here’s the FERS formula:
.01 X all years and full months of service X the average of the highest three consecutive years of basic pay


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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