High 3


Q: Is the annuity calculated on basic pay only for the high 3 years? Are any other earnings factors included besides basic high 3 pay?

A: Basic pay is it. However, you need to know what’s included in and excluded from basic pay. For example, locality pay is included, overtime isn’t. Simply stated, basic pay is the amount from which retirement deductions are taken.


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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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