Q. If CONUS locality pay is included in calculating FERS annuity, does that mean civil servants who retire while working overseas and receiving cost-of-living allowances, post allowances or housing allowances will have these allowances included in my high-3 when my annuity is calculated?
A. No, it doesn’t. To see what’s included and excluded from Basic pay when an annuity is calculated, go to https://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c030.pdf and scroll to Section 30A1.1-2.
