High-3 average


Q. I am in the category of FERS employees that “max-out” on every pay period. In fact, I have to give back part of my salary, which is shown on my pay statement as “OVER EARN LIMIT.”  My question is: Will my average high-3 for retirement purposes be calculated on my official salary, or will it be based on my actual “maxed-out” pay, which is less than my official salary?

A. Your “high-3” is based solely on the amount of basic pay that you receive, not what you would have received but for any limitation or cap.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

Leave A Reply