Foreign Service Normal Cost Law and Legal Definition

Pursuant to 22 USCS § 4044 (5) [Title 22. Foreign Relations And Intercourse; Chapter 52. Foreign Service; Foreign Service Retirement And Disability; Foreign Service Retirement And Disability System], the term Foreign Service normal cost means the level percentage of payroll required to be deposited in the Fund to meet the cost of benefits payable under the System (computed in accordance with generally accepted actuarial practice on an entry-age basis) less the value of retirement benefits earned under another retirement system for Government employees and less the cost of credit allowed for military and naval service.