High-3 and pay differentials

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Q. I am a federal worker at a VA hospital. I am a General Schedule employee under CSRS. I switched to night shift and work lots of weekends to boost my last three years of earnings. I read in OPM under CSRS/retirement/High-3 Average Salary, “Your basic pay is the basic salary you earn for your position. It includes increases to your salary for which retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc.”

I still am not sure if night shift will work out to a bigger retirement annuity. I make plenty more in my night differential pay for night tour. What I noticed is retirement deductions in my Pay Statements remained the same as before when I worked the day shift. This is puzzling.

A. For GS employees, night shift differentials are not considered part of basic pay and, therefore, cannot be included in the determination of a high-3. That’s why your retirement deductions didn’t change.

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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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