March 19, 2019
NOTE: Each month, NARFE Magazine publishes a wide range of Questions & Answers from members. Don’t miss an issue. Keep your membership current!
 

Calculating "High-3"
Salary

QUESTION: Is overtime used in the calculation of the "high-3" average salary toward retirement?

ANSWER:
Unfortunately, basic pay does not include cost-of-living adjustment (COLA), overtime or bonuses. Basic pay includes salary for your position, shift rates and locality pay. Your “high-3” average salary is an important part of your pension calculation for federal retirement. It’s the highest average basic pay you earned during any three consecutive 12-month periods of federal service, not calendar years. For example, your “high-3” average salary interval might be April 2016-April 2019.

Most people earn their highest pay during their last three years of service, but not always. Your “high-3” average years could be from an earlier time in your career. Make sure to review your entire earnings history.

 

 

 

   

National Active and Retired

FEDERAL EMPLOYEES Association

NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.

March 19, 2019
NOTE: Each month, NARFE Magazine publishes a wide range of Questions & Answers from members. Don’t miss an issue. Keep your membership current!
 

Calculating "High-3"
Salary

QUESTION: Is overtime used in the calculation of the "high-3" average salary toward retirement?

ANSWER:
Unfortunately, basic pay does not include cost-of-living adjustment (COLA), overtime or bonuses. Basic pay includes salary for your position, shift rates and locality pay. Your “high-3” average salary is an important part of your pension calculation for federal retirement. It’s the highest average basic pay you earned during any three consecutive 12-month periods of federal service, not calendar years. For example, your “high-3” average salary interval might be April 2016-April 2019.

Most people earn their highest pay during their last three years of service, but not always. Your “high-3” average years could be from an earlier time in your career. Make sure to review your entire earnings history.

 

 

 

   

National Active and Retired

FEDERAL EMPLOYEES
Association



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NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.