High-3 and the pay cap


Q. Is the High-3 only up to the pay cap? Does the pay cap even matter when determining the High-3?

A. Your High-3 is based on the amount of basic pay you actually receive (the amount from which retirement deductions are taken), not the amount you would have received if there hadn’t been a pay cap.


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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.

1 Comment

  1. Basic pay is the amount from which retirement deductions are taken. If retirement deductions were taken from your “on call” pay then it’s part of your Basic pay; if they weren’t, it isn’t.

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