Locality pay and retirement


Q: I am covered by the Civil Service Retirement System with 41 years of service. I was all set to retire this year when they finally phased in the locality pay. There is a clause for those retiring between January 2010 and December 2012 that says we can have the locality pay included in our base pay for annuity purposes. It is my understanding that I would have to work the full three years and then pay the additional CSRS withholding for my high-3 to have locality pay included all three years. What if I want to retire at the end of this year or next year — will I still have the option to have three years with locality pay included in my annuity calculation?

A: No, you wouldn’t have that option.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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