5 CFR 842.702 - Definitions.
In this subpart -
Alternative form of annuity means the benefit elected under § 842.705.
Current spouse annuity has the same meaning as in § 842.602.
Former spouse annuity has the same meaning as in § 842.602.
Present value factor represents the amount of money (earning interest at an assumed rate) required at the time of retirement to fund an annuity that (a) starts out at the rate of $1 a month and is payable in monthly installments for the annuitant's lifetime based on mortality rates for non-disability annuitants; and (b) increases each year at an assumed rate of inflation. Interest, mortality, and inflation rates used in computing the present value are those used by the Board of Actuaries for valuation of the System, based on dynamic assumptions. The present value factors are unisex factors obtained by averaging sex-distinct present value factors, weighted by the total dollar value of annuities typically paid to new retirees at each age.
Time of retirement has the same meaning as in § 842.602.