High-3 and pay cut


Q. I am age 47 with 28 years under FERS. Is it true that if you take a job with a lower grade (pay cut) and retire in less than three years (i.e. Voluntary Early Retirement Authority or normal retirement), it would not affect my high-3 calculation?

A. I think what you are referring to is this: The high-3 used in the computation of your annuity will be based on the average of your highest three consecutive years of basic pay, whenever they occur in your career.


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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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