Locality pay and high-3


Q. Is locality pay included in a high 3 for someone who works abroad and retires in the states?

A.  No. Locality pay is only included in determining an employee’s high-3 if he is receiving it in the U.S. Those working overseas don’t receive locality pay. They get allowances and differentials, which aren’t included.

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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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