Ask The Experts: Retirement

By Reg Jones

What’s included in high-3 calculations

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Q. On the high-3 for annuity purpose, what actually counts? Just base salary, salary plus overtime or salary plus overtime and other earning (deployment incentives such as danger pay and post differential pay)? I know a number of federal employees have deployed to either Iraq or Afghanistan and received temporary promotions, additional overtime hours, danger pay and post differential pay, plus some also received separate maintenance allowance. Do these extras count toward the high-3?

A. The high-3 is based on earnings from which retirement deductions are taken. In other words, basic pay. Neither overtime nor incentives and differentials are included.

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