Scenario 3: Ms. X earns 25 years of service and receives an annual allowance
Ms. X works until age 53 and opts for an annual allowance (January 2008)
At that time she'll have 25 years of service to her credit and her average salary for the 5 consecutive years of highest-paid service is estimated at $72,999.17. Her
annual allowance at age 53 is $27,374.69. In this scenario, a 25% reduction of her pension was applied (5% X 30 years - 25 years). See the formula for an annual allowance in "Formulas and Methods ".
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