### Question
How is the term normal cost defined?


### Answer
The term **normal cost** is defined in *22 U.S.C. § 4071a* as the following:

> the entry-age normal cost of the provisions of the System which relate to the Fund, computed by the Secretary of State in accordance with generally accepted actuarial practice and standards (using dynamic assumptions) and expressed as a level percentage of aggregate basic pay

#### Citation:
  - *22 U.S.C. § 4071a*
  - Heading: **CHAPTER 52-FOREIGN SERVICE > SUBCHAPTER VIII-FOREIGN SERVICE RETIREMENT AND DISABILITY > Part II-Foreign Service Pension System**

