(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.