High-3 determination


Q. I am a civilian physician working for the VA in FERS, and I want to know what components of my pay are used to calculate my FERS retirement stipend. On my earnings and leave statement, one portion of my pay is classified as “regular pay,” and another portion is classified as “market pay.” Are both of these combined to determine my high-3?

A. Basic pay for retirement purposes is the amount of pay from which retirement deductions are taken. Physicians comparability allowances are considered part of basic pay if certain criteria are met. For more information, go to www.opm.gov/oca/pay/html/pca.asp


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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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