Q. I am a FERS GS-11 step 10 employee planning to retire at 66 with 25 years of federal service in 2016. Pensions are based on the high-3. Is the high-3 based on base pay for the grade and step or base plus locality percentage? The 2012 GS Base table shows 11 step 10 as $65,371. Base plus locality equals $77,138, or an addition of 14.16 percent or $11,767 over base. There is a large difference when calculating retirement figures using $65,371 versus $77,137.
Browsing: base pay
Q. When the calculations are made for annuity payments, are actual earnings or base pay used in calculations? My base pay is higher than the actual pay in each of the high-3. A. I believe you misunderstand the meaning of the words “base pay.” Base pay is the amount of pay from which retirement contributions are taken, not the amount you actually receive, nor the figure that is shown on a pay chart that exceeds the amount payable because of a pay cap.
Q. My NSPS base pay was $72,000, plus locality pay (for Hawaii), plus COLA (for Hawaii). My GS “conversion” this month provides a base pay of $68,310 (GS-5), but my locality pay increased, COLA stayed the same, to provide more than the original NSPS $72,000. This is a $5,000 reduction in base pay. Are base pay plus locality pay used for all benefit calculations? What items are calculated on base pay only, if any? Pension and TSP are based on base pay plus locality pay. What about COLA, Social Security, etc? A. Your annuity will be based on your highest…
Q: I saw this question on your website regarding overseas locality pay. I am assigned to a foreign post for U.S. Customs and Border Protection. Will my locality pay go toward my high-3? A: Locality pay is always considered to be part of base pay when computing a high-3.