1. What is the High-3 Calculation?

The High-3 average is the highest average basic pay you earned during any 3 consecutive years of service. This average is used to calculate federal retirement benefits.

2. How Does the Calculator Work?

The calculator uses the simple average formula:

Where:

• Year 1 Salary — Highest salary year
• Year 2 Salary — Second highest salary year
• Year 3 Salary — Third highest salary year

Explanation: The calculation simply averages your three highest consecutive years of salary.

3. Importance of High-3 Calculation

Details: Your High-3 average salary is a key component in determining your federal retirement annuity. A higher High-3 average results in higher retirement benefits.

4. Using the Calculator

Tips: Enter your three highest consecutive years of salary in dollars. The years do not need to be consecutive in time, just in salary amount.

5. Frequently Asked Questions (FAQ)

Q1: What counts toward High-3 salary?
A: Basic pay counts, but bonuses, overtime, and allowances typically don't count toward your High-3 average.

Q2: Can the three years be non-consecutive?
A: No, they must be three consecutive years of service, though they don't have to be your last three years.

Q3: How does part-time work affect High-3?
A: Part-time salaries are annualized (calculated as if you worked full-time) for High-3 purposes.

Q4: When is the best time to maximize my High-3?
A: Try to have your three highest earning years at the end of your career when you're likely at your highest pay grade.

Q5: Does locality pay count toward High-3?
A: Yes, locality pay is included in your basic pay for High-3 calculations.