Service and amount of annuity

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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

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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 fedexperts@federaltimes.com.

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