Which retirement plan multiplies 2.5% by the years of service to determine the retirement benefits?

The High-3 Retirement Plan is designed to calculate retirement benefits by taking the highest average salary over three consecutive years of service and multiplying it by a specific percentage for each year of service. In this case, the percentage is 2.5%. Therefore, if a person has served for a certain number of years, their retirement benefit would be calculated by multiplying those years by 2.5%.

This model is commonly used in federal government retirement systems, ensuring that those with longer service receive a more substantial benefit upon retirement. The High-3 system reflects the idea of rewarding employees based on their service length and peak earnings, making it a straightforward way to determine retirement benefits for federal employees.

Other retirement plans mentioned, like the Traditional Retirement Plan, Blended Retirement System, and Career Status Bonus Plan, do not employ this specific calculation of 2.5% times years of service for their benefit determinations. Each of those plans has its own methodologies and structures for calculating retirement benefits, differing in fundamental ways from the High-3 system.