Locality pay and high-3


Q. I will be eligible to retire Aug. 3, 2016 (55 years old, 37 years of service – CSRS). I work in D.C., and the cost of living is added to my salary. Do I use this figure or the figure before the cost-of-living allowance to calculate my high-3 salary?

A. If you are referring to locality pay, the answer is yes. Your annuity will be calculated using the pay from which retirement deductions are taken.


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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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