High-3 and locality pay


Q. I live in the Boston commuting area. My salary includes locality pay. My SF-52 shows basic pay and locality pay for a total adjusted basic pay. When factoring my high-3 average, is it based on my total adjusted basic pay, which includes the locality pay?

A. Locality pay is a part of basic pay, so your annuity will be computed using the combined total.


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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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