Pay caps in annuity calculation


Q: I am  a GS-14 Step 6 Federal 1811. With my locality pay (New York) and availability pay, I am subject to the bi-weekly and annual pay cap. For calculation of my high-3, do they use my grade plus locality plus availability pay (as per the charts) or do they use the lower amount that I got paid due to the pay cap?

A: Your annuity will be based solely on the highest three consecutive years of average pay that you actually received, the amount from which retirement deductions were 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

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