---
kind: "section"
citation: "5 C.F.R. § 847.903"
title: "5"
number: "847.903"
heading: "How is the monthly reduction to the retirement annuity computed?"
url: "https://uscodex.org/cfr/5/847.903"
---

# §847.903. How is the monthly reduction to the retirement annuity computed?

- (a) **The reduction equals—**
  - (1) The difference in the present value of the immediate annuity with credit for NAFI service and the deferred annuity without credit for NAFI service, divided by
  - (2) **The present value factor for the retiree's attained age (in full years) at the time of retirement.**
- (b) **The reduction computed in paragraph (a) of this section is rounded to the next higher dollar.**

## Notes

### Source

Source: 68 FR 2181, Jan. 16, 2003, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 8332(b)(17) and 8411(b)(6) and sections 1131 and 1132 of Pub. L. 107-107, December 28, 2001, 115 Stat 1242; 5 U.S.C. 8347(a) and 8461(g) and section 1043(b) of Pub. L. 104-106, Div. A, Title X, Feb. 10, 1996, 110 Stat. 434. Subpart B also issued under 5 U.S.C. 8347(q) and 8461(n).

### Source

Source: 61 FR 41721, Aug. 9, 1996, unless otherwise noted.