Thread: A Fund/ B Fund
View Single Post
Old 02-02-2008, 05:52 AM
  #7  
Flying
Line Holder
 
Joined APC: Jan 2007
Posts: 30
Default

One example is the military retirement. It could be called a 2.5% A fund, because multiplying years of service (generally 20) by 2.5% = 50%. This means that for the rest of your life, you'll receive half of what you made during your highest-paid three years on active duty. If you work until 25 years, 25 * 2.5% = 62.5%. For civilian companies there's generally a "fully vested" point where your percentage will not go up anymore no matter how long you work.
Flying is offline