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Calulation of Monthly Retirement Benefit

Page history last edited by Robert Jones 1 yr ago
CALCULATION OF MONTHLY RETIREMENT BENEFIT
 
 
The formula used to calculate a service retirement benefit is…
 
 
2.5% x FAS x SVC
 
 
FAS = Final Average Salary … (to calculate FAS, add the annual income for the last three years of work and divide it by 36)
SVC = Service (years of full time service)
 
 
 
Payroll data for a Grade 16…
 
 
 
Annual income for the following years….
 
2005 – 40,568.00
2006 – 42,589.60
2007 – 44,898.40
           128,056.00
 
128,056.00 divided by 36 months (or 3 years)  = 3557.12 = FAS
 
2.50% x 3557.12 x 30 years = $2,667.90 - monthly benefit
 
 
 
DROP Benefit
If you DROP….
 
  • 1 year of service = 2667.90 x 12.3300 =    32,895.21

 

  • 2 years of service = 2667.90 x 25.2909 =  67,473.52

 

  • 3 years of service = 2667.90 x 38,9148 = 103,820.80
 
 
 

 

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