High-3 and re-employment


Q. I have a little more than 20 years of CSRS and resigned in 2001, leaving my contributions in place. I am considering re-entering and will be covered under CSRS Offset. If I work for three to four years and resign, will my deferred annuity at age 62 be based on the new high-3? I’ve heard conflicting information about how many years I would have to stay under CSRS Offset for a new high-3 calculation.

A. Your high three is always the highest three consecutive years of average salary, regardless of when they occur in your career. For example, it could be based on the two years before you left plus one year after you returned to work, one year plus two or the three most recent years. In fact, if you returned at a lower salary than you’d been earning leading up to 2001, it would be based on the three years before you left government.


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.

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