Understanding your High-3
Your FERS High-3 is the average of your three highest consecutive years of basic pay. It is the single salary figure your entire pension is built on. Counting the wrong pay, like overtime or bonuses, throws the estimate off, so it pays to know exactly what goes in.
9 min read · By RetireCiv Editorial · Updated June 15, 2026
What your High-3 is
Your High-3 is the average of your three highest consecutive years of basic pay. It is the salary figure at the center of your FERS pension. The formula multiplies it by your years of service and a small percentage, so the High-3 sets the scale of everything else.
Averaging three years is a deliberate design choice. It smooths out any single unusual year and stops anyone from spiking their pay right before retirement. OPM defines the High-3 as your highest average basic pay over any 3 consecutive years.
For most people that average comes from the final three years, when salary is highest. It does not have to be the last three, though. An earlier stretch can win if your basic pay was higher then.
Because the pension scales directly with the High-3, raises near the end of your career carry extra weight. A promotion in your last few years lifts not just your paycheck but your pension for life. The rest of this lesson covers what counts, how the window is chosen, and how to estimate yours.
What is the FERS High-3 salary?
The FERS High-3 is the average of your three highest consecutive years of basic pay. It is the salary input in the pension formula, which is your High-3 times a multiplier times your years of service. For most employees the High-3 comes from the final three years of work. It uses basic pay only, so overtime, bonuses, and awards are left out.
Is the High-3 always my last three years?
Usually, but not always. In a normal career, salary rises over time, so the last three years are the highest and become your High-3. If you took a lower-paying position late in your career, an earlier three-year block might pay more. OPM uses whichever consecutive three years are highest, so a late pay cut does not automatically shrink your pension.
Why does the High-3 matter so much?
The High-3 is the dollar figure the entire pension formula scales. A higher High-3 raises the pension proportionally, for life. Your years of service and your multiplier matter too, but they multiply against the High-3. That is why a raise or promotion in your final years has an outsized effect on your retirement income.
What counts as basic pay
Only basic pay counts toward your High-3. Basic pay is the salary your position pays, including locality pay. It leaves out extras like overtime, bonuses, and awards.
The reliable test is simple: pay counts if retirement deductions are withheld from it. OPM includes salary increases with retirement deductions, such as shift rates. Your locality pay counts because deductions come out of it too.
Extra pay without retirement deductions is left out. Overtime, bonuses, and cash awards do not count, no matter how large. Neither do travel reimbursements or most allowances.
What goes into your High-3
| Type of pay | Counts toward High-3? |
|---|---|
| Base salary (your GS rate) | Yes |
| Locality pay | Yes |
| Shift or night differential | Yes |
| Overtime pay | No |
| Bonuses and cash awards | No |
| Travel and relocation pay | No |
Does locality pay count toward my High-3?
Yes. Locality pay is part of your basic pay for retirement, because retirement deductions are withheld from it. It is included in the salary figure that forms your High-3. This matters because locality pay can be a large share of total salary in high-cost areas. Moving to a higher-locality area in your final three years can raise your High-3.
Does overtime or a bonus count toward my High-3?
No. Overtime pay, bonuses, and cash awards are not basic pay, so they do not count toward your High-3. The same is true of travel reimbursements and most allowances. Only the salary your position pays, with retirement deductions withheld, is included. A high-overtime year does not raise your pension, even though it raises your gross income.
What is the quick test for what counts?
Check whether retirement deductions are withheld from the pay. If they are, it counts toward your High-3; if not, it does not. Your basic salary and locality pay have deductions withheld, so they count. Overtime, bonuses, and awards do not have retirement deductions, so they are excluded. Your leave-and-earnings statement shows which pay has retirement deductions taken.
How your three years are chosen
FERS picks the three consecutive years where your basic pay averaged the most. In a normal career, salary rises over time, so the highest block is your final three years. The formula averages those 36 months of basic pay.
A rising salary makes the math intuitive. Each step increase and promotion pushes your recent pay above your earlier pay. By the time you retire, your last three years are almost always your highest.
There are exceptions. If you took a lower-paid position late in your career, an earlier three-year stretch might pay more. OPM uses whichever consecutive three years are highest, which protects you from a late pay cut.
How are the three years for my High-3 selected?
FERS finds the 36 consecutive months where your average basic pay was highest. It does not pick three separate best years; the months must be continuous. For almost everyone with a rising salary, that block is the final three years before retirement. OPM averages the basic pay across those months to set your High-3.
What if I took a lower-paying job at the end?
You are protected. Because OPM uses your highest consecutive three years, not necessarily your last three, an earlier higher-paid block can be used instead. A move to a lower grade or a lower-locality area late in your career does not force a lower High-3. The formula always reaches for the best continuous 36 months.
Do part-time years change my High-3?
Part-time service is handled in two parts. Your High-3 uses your full-time equivalent salary rate, so part-time hours do not lower the salary figure itself. The part-time reduction is applied separately, to your years of creditable service. A dedicated Mid Career lesson on part-time service covers how that proration works in detail.
How the High-3 drives your pension
The pension formula is your High-3 times a multiplier times your years of service. The multiplier is usually 1.0 percent per year, or 1.1 percent if you retire at 62 or later with at least 20 years. The High-3 is the dollar figure both of the others scale.
Picture an employee named Renee with an example $110,000 High-3 and 30 years of service. At the standard 1.0 percent, her pension is $110,000 times 1.0 percent times 30, or $33,000 a year. (Figures are illustrative; see our assumptions.)
Because the High-3 multiplies through, a higher final salary lifts the whole result. The same 30-year career on a $120,000 High-3 instead of $110,000 adds $3,000 a year to the pension, for life. That is why end-of-career raises matter so much.
The High-3 multiplies through the whole formula. A higher final salary lifts the pension for life.
How is the FERS pension calculated from the High-3?
The pension equals your High-3 times a multiplier times your years of service. For most retirees the multiplier is 1.0 percent per year. Retiring at age 62 or later with at least 20 years raises it to 1.1 percent. So a $110,000 High-3 with 30 years at 1.0 percent produces about $33,000 a year, before any survivor reduction.
How much does a higher High-3 add to my pension?
The pension rises in direct proportion to the High-3. With 30 years at 1.0 percent, every $1,000 of extra High-3 adds about $300 to the annual pension, for life. A $10,000 higher High-3 means roughly $3,000 more a year. That is why a promotion or step increase in your final three years has such a lasting effect.
Which multiplier applies to me?
Most FERS retirees use the 1.0 percent multiplier. You get the enhanced 1.1 percent only if you retire at age 62 or later with at least 20 years of service. Special-provision employees in law enforcement, firefighting, and air-traffic control use richer multipliers. The multiplier is fixed by law; you cannot change it, but your retirement age and service determine which one applies.
How to estimate your own High-3
You can estimate your High-3 in a few minutes. Average your three highest consecutive years of basic pay, then run the result through the formula. It gives a solid ballpark for your pension.
Start with your basic pay, not your gross pay. Your leave-and-earnings statement and SF-50 forms show your salary rate. Use the basic-pay figure, which includes locality pay but excludes overtime, bonuses, and awards.
For most people the last three years are the right window. Add those three annual salaries, divide by three, and you have your High-3. Then multiply by your multiplier and your years of service for an estimated annual pension.
How do I calculate my High-3 myself?
Take your three highest consecutive years of basic pay, add them, and divide by three. For most people those are the final three years. Use the basic salary rate, including locality pay, and leave out overtime, bonuses, and awards. Multiply the average by your multiplier and your years of service to estimate the annual pension.
Where do I find my basic pay history?
Two places. Your leave-and-earnings statement shows your current basic pay rate and the deductions withheld. Your SF-50 forms, the Notification of Personnel Action records, show your salary at each change. Together they let you reconstruct your basic pay over your highest three years. Your agency HR office can provide copies if you are missing any.
How accurate is my own estimate?
A careful estimate gets you close, usually within a small margin. The main sources of error are counting pay that does not qualify, such as overtime, or guessing at service time. For an exact figure, request an official retirement estimate from your agency or OPM. Our calculator also projects your High-3 and pension from the numbers you enter.
Why your High-3 matters for planning
Your High-3 is the one pension input you can still influence. Years of service accrue on their own, and the multiplier is fixed by law. But your final salary, and the timing of your last raises, shape the High-3 directly.
Late-career moves have outsized effect. A promotion, a within-grade step increase, or a move to a higher-locality area in your final three years all raise the average. Working a bit longer to lock in a higher salary block can lift the pension for life.
The High-3 also connects to the rest of your plan. It feeds the pension that anchors your three pillars, and it works alongside your eligibility date and the Special Retirement Supplement.
Estimating by hand gets you close; modeling gets you exact. To see your projected High-3, pension, and full retirement income, run your free readiness score. It pulls your numbers together and tests how a final raise or an extra year changes the result.
Can I increase my High-3 before I retire?
Yes, within limits. A promotion, a within-grade step increase, or a higher-locality assignment in your final three years raises the average. Working long enough to replace a lower-paid year in the window with a higher-paid one also helps. You cannot count overtime or bonuses, so the lever is your basic salary rate, not extra hours.
Does waiting longer to retire raise my High-3?
Often, yes. Each additional year usually brings a raise or step increase, which can push a higher salary into your three-year window. Waiting also adds years of service and may unlock the 1.1 percent multiplier at age 62. We explain how these factors interact rather than recommend a retirement date, because the right timing depends on your situation.
How does my High-3 fit the rest of my retirement plan?
The High-3 sets the size of your pension, which is one of the three pillars of FERS retirement income. A larger pension can change how much you need from the TSP and when you claim Social Security. It also feeds the Special Retirement Supplement if you retire before 62. Modeling all of these together shows how a change in your High-3 ripples through your plan.