The Civil Service Retirement System pays a cash annuity to individuals retired from public service. The system calculates the amount of the annuity based on a formula that factors in the length of employment and the salary amount, according to FederalRetirement.net.Continue Reading
To estimate your annuity amount, first calculate your high-three average pay. This is your highest average salary over any three-consecutive-year period, excluding any additional income, such as overtime or allowances, explains FederalRetirement.net. Multiply your high-three pay by 0.015 and the number of years of service for the first five years, multiply .0175 and the number of years of service over five and up to 10 years, and multiply 0.02 and the number of years of service over 10 years. Add these three numbers together to estimate your yearly annuity, as of 2015.
Public employees who retire under the age of 55 may receive reduced annuities, with some exceptions, states FederalRetirement.net. These exceptions include employees who lose their positions due to lay-offs or other reorganizations and have worked for at least 25 years. Employees over 50 can qualify with 20 years of service. The same exceptions apply to any involuntary separation that is not a result of misconduct. Public employees with at least five years of service may receive full benefits at any age if they leave their position due to a disability.Learn more about Financial Planning