FERS High-3 Salary Calculator

1. Time your retirement: Retire after receiving a step increase or promotion. See our complete High-3 guide for timing strategies.
2. Work in high locality pay areas: Even remotely if possible
3. Pursue promotions: Especially in your final 5 years
4. Avoid unpaid leave: In your final 3 years if possible
5. Consider overtime exemptions: Some special positions include overtime

Sarah's Final 5 Years:

Sarah is a federal employee planning to retire under FERS. She wants to understand how her High-3 salary affects her pension:

High-3 Calculation: ($78,000 + $81,500 + $84,000) ÷ 3 = $81,167

Note: The highest 3 consecutive years are used, not necessarily the final 3 years. For more examples, see our FERS retirement calculation examples.

Does my High-3 include locality pay?

Yes! Your High-3 average salary includes both your base pay and locality pay adjustments. This is important because locality pay can significantly increase your pension, especially if you work in high-cost areas like Washington DC, San Francisco, or New York.

What happens to my High-3 if I take unpaid leave?

Unpaid leave (Leave Without Pay - LWOP) can reduce your High-3 if it occurs during your highest earning period. When OPM calculates your High-3, they look at actual earnings over 36 consecutive months. Extended LWOP periods may push lower-earning months into your calculation. Learn more about how LWOP affects your High-3.

Can a promotion in my final year increase my High-3?

Absolutely! A promotion in your final 3 years can dramatically increase your High-3. However, you need to work enough time at the higher grade for it to be included. For example, if you get promoted 6 months before retirement, only those 6 months at the higher rate will count toward your High-3 calculation. See our guide on timing your FERS retirement for optimal strategies.

How does sick leave affect my High-3?

Sick leave doesn't directly increase your High-3 salary, but it can increase your total service credit. When you retire, unused sick leave is converted to additional service time, which increases your pension using the formula: High-3 × (Years of Service + Sick Leave Credit) × Coefficient. Use our Sick Leave Calculator to see how much extra pension you'll earn.

Is High-3 the same for CSRS and FERS?

The concept is similar, but there are differences. Both systems use the highest 3 consecutive years of basic pay. However, CSRS employees who retired before 1987 may have different rules. Compare the two systems in our FERS vs CSRS comparison guide.

What if I have military service? Does that affect my High-3?

Military service doesn't change your High-3 calculation, but buying back your military time increases your total years of service, which multiplies against your High-3 in the pension formula. Calculate the cost and benefit with our Military Buyback Calculator.

When should I retire to maximize my High-3?

The best time to retire is typically right after receiving a step increase, within-grade increase, or promotion. Also consider retiring after working a full calendar year to avoid partial-year calculations. Read our comprehensive guides on retiring at age 50, retiring at MRA (age 55), and comparing retirement at 60 vs 62.