How Is Your Annuity Calculated?
Your annuity is what is known as a “defined benefit” annuity. This means it is based, essentially, on just two numbers: length of creditable service, and high-three average salary. Here is how that is calculated.
High-3
Calculating Your ‘High-Three’ Average Salary
Everybody knows what the high-three is for your future retirement – right? But who knows how to calculate the high-three?
‘High Three’ to ‘High Five’
Government spending to recover from Hurricane Katrina means spending cuts will probably be necessary in other government programs. One possibility is changing the formula for calculating federal employee pension benefits.
