# PercentOfAnnualized

When you create a `PercentOfAnnualized`

action, you must specify a percentage. When setting up
a benefit of this type, you must specify one or more based-on benefits. The calculations
are done by applying the percentage to the annualized sum of the periodic values of the
based-on benefits. The sum is annualized by dividing it by the phasing factor.

## Calculation formulas

The `PercentOfAnnualized`

type
uses this formula:

`Period that contains the action start date = Percentage x (Sum of periodic values of the based-on benefits for this period / Phasing factor for this period)`

This calculation type is not prorated to avoid double proration in the case that the based-on benefit is prorated.

## Example 1: PercentOfAnnualized calculation

This example shows how to calculate a `PercentOfAnnualized`

action for a position with an even phasing method
and the phasing factor of 1/12.

Starting on April 8, 2017, the action percentage is 10%.

This table shows the based-on benefits, Benefit A and Benefit B, and their values for periods from February through June:

Benefit type | Feb | Mar | Apr | May | Jun |
---|---|---|---|---|---|

Benefit A | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |

Benefit B | 0 | $1,000 | $2,000 | $3,000 | $4,000 |

This table shows the calculation result for this action:

Month | Calculation | Result |
---|---|---|

Apr | 10% x ( ($1,000 + $2,000) / (1/12) ) | $3,600 |