What is the “present value” of my Pension Plan benefit?
The “present value” is the amount of money you would need to invest today to give you roughly the same monthly benefit you would have received from the Pension Plan. In figuring that amount, it’s assumed that you terminate from the FRS today; begin drawing retirement benefits on your normal retirement date the earlier of age 62 or 30 years of service, or the earlier of age 55 or 25 years of service for members of the Special Risk Class; live an average life span; and received 3% annual benefit increases during retirement. Present value is based only on your current FRS service to date and your current average final compensation. If you stay in the Pension Plan instead of switching to the Investment Plan, the value of your Pension Plan benefit will increase over time if you accumulate more service. If you switch to the Investment Plan without transferring your Pension Plan benefit to the Investment Plan and remain an inactive participant in the Pension Plan, the value of your Pension Pl
