5 CFR 842.504 - Amount of annuity supplement.
(1) The numerator of which is the annuitant's total service creditable under FERS, excluding military service not performed during an absence of leave without pay from civilian service, rounded to the nearest whole number of years not exceeding 40 years; and
(2) The denominator of which is 40.
(1) The benefit referred to in paragraph (a) of this section is computed -
(iv) Using the actuarial reduction (section 202(q) of the Social Security Act) prescribed in the following table:
|Year of Birth||Reduction (percent)|
|1937 and before||20|
|1960 and later||30|
(2) In computing the primary insurance amount -
(i) The number of elapsed years used to compute the number of benefit computation years does not include the years beginning with the year in which the annuity supplement commences;
(ii) For an employee or Member who retires under §§ 842.205, 842.206, 842.209, or 842.211 before reaching the minimum retirement age, wages in calendar years beginning after the date of separation on which the retirement is based, are deemed to be zero.
(iv) For a benefit computation year after age 21 during which the retiree did not perform a full calendar year of service creditable under FERS the retiree's wages are deemed to equal the product of -
(A) The National Average Wage Index (as determined by the Commissioner of the Social Security Administration) corresponding to that year, multiplied by
(B) A fraction -
(2) The denominator of which is the National Average Wage Index (as determined by the Commissioner of the Social Security Administration) corresponding to the retiree's first full year of service creditable under FERS.