CORRECTED_Attachment_J.3_-_Annuity_Calculation_Worksheet.pdf

Worksheet for Estimating a Monthly Annuity Payment

If you do not want to use the online Retirement Income Calculator to estimate an annuity, you can print out and use this worksheet. The instructions are attached to this worksheet. Enter information in Step 1 that is appropriate for your expected annuity purchase date.

COMPLETE ALL THREE STEPS.

STEP 1: Participant Information Example Your Estimate

(1) Annuity Option Joint with spouse – 50% level payments no cash refund

(2) Your Age 55

(3) Your joint annuitant’s age (if a joint life annuity.) 52

(4) Age difference (if a joint life annuity) - joint annuitant is-- 3 years years

Younger/Older Younger/Older

(5) Estimated TSP account balance at time of purchase: $50,000.00

STEP 2: Preliminary Annuity Estimate

(6) Estimated amount available for annuity (in thousands of dollars): divide Line 5 by $1,000.

(7) Monthly annuity factor per $1,000 account balance: 5.19

(8) Preliminary estimate of monthly annuity payment:

Multiply Line 6 by Line 7. $ 259.50

STEP3: Final Annuity Estimate (Adjusted for Current Interest Rate)

(9) Current monthly annuity interest rate. (The current 4.875

Interest rate is available on the TSP Web site under “Current Information” or by calling the ThriftLine.)

(10) Interest rate index used in monthly annuity factor tables: 5.000 5.000

(11) Index increase (decrease): Subtract Line 10 from Line 9. (0.125)

(12) Interest adjustment factor 0.120

(13) Adjustment multiplier: Multiply Line 11 by Line 12. (0.015)

(14) Increase (decrease) to estimate: Multiply Line 8 by Line 13. (3.89)

(15) Your estimated monthly annuity payment adjusted for current interest rate. Add Lines 8 and 14. $255.61

NOTE: This is only the preliminary estimate. Complete Step 3.

ANNUITY WORKSHEET INSTRUCTIONS

Before completing this worksheet, read the annuity section of the booklet Withdrawing Your TSP Account After Leaving Federal Service to understand the annuity program and the annuity options available to you. The booklet is available from your agency or service or this Web site at www.tsp.gov. Don’t forget you can use the annuity calculator also to estimate your monthly annuity payments.

STEP 1: PARTICIPANT INFORMATION

1-5: Provide all of the requested information. Your annuity estimate is based upon the annuity option you choose, your age, your joint annuitant’s age, and the account balance you provide. The actual payment is based on the actual information (age, account balance, etc.) at the time the annuity is purchased.

STEP 2: PRELIMINARY ANNUITY ESTIMATE

6: Divide your estimated account balance by $1,000.

7: Obtain the monthly annuity factors from the Forms & Publications section of the TSP Web site.

8: Complete as instructed.

STEP 3: FINAL ANNUITY ESTIMATE

9: Obtain the current monthly annuity interest rate from the Current Information section of the TSP Web site or by calling the ThriftLine.

10: The interest rate index of 5.00% is used in the monthly annuity factor tables.

11: Complete as instructed.

12: Obtain the interest adjustment factors from the Forms & Publications section of the TSP Web site.

13-15: Complete each line as instructed.

http://www.tsp.gov/