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Understanding your FERS retirement pension starts with calculating your High-3 average salary—a crucial number that significantly influences your benefits. Whether you’re nearing retirement or planning ahead as a federal employee, our FERS High-3 Calculator is a fast and easy tool that gives you clarity on your future pension.
This article walks you through how the calculator works, how to use it step-by-step, offers real-life examples, and answers the most common questions federal workers have about FERS retirement planning.
What Is the FERS High-3 Average?
The High-3 average salary refers to the average of your highest-paid consecutive 36 months of service in the federal government. Under the Federal Employees Retirement System (FERS), this number is used to calculate your annual pension.
The High-3 typically includes your base pay, locality adjustments, and shift differentials—but not overtime or bonuses.
FERS Pension Formula:
The basic formula used is:
javaCopyEditHigh-3 Average Salary × Years of Service × Pension Multiplier (usually 1% or 1.1%)
About the FERS High-3 Calculator Tool
Our calculator helps federal employees estimate their High-3 average salary. By simply entering your highest-paid three years of salary, the tool automatically computes the average. This gives you the key figure you’ll need when estimating your pension benefits.
How to Use the FERS High-3 Calculator: Step-by-Step
Using the calculator is straightforward:
- Enter Year 1 Salary
- Input the first of your three highest-paid years. Include base pay and any permanent locality adjustments.
- Enter Year 2 Salary
- Add the second year’s salary. It must be part of a consecutive 36-month period.
- Enter Year 3 Salary
- Input the third year’s salary. The tool works best when you use the exact gross salary for each fiscal year.
- Click “Calculate”
- The tool computes your High-3 average instantly and displays the result.
You can repeat the process using different combinations of high-earning years to see which three-year span yields the highest average.
Example Calculation
Let’s say your three highest consecutive years of salary are as follows:
- Year 1: $92,500
- Year 2: $94,300
- Year 3: $96,800
Using the calculator:
bashCopyEditHigh-3 Average = ($92,500 + $94,300 + $96,800) / 3 = $94,533.33
If you’ve worked 30 years in federal service, your estimated pension would be:
bashCopyEdit$94,533.33 × 30 × 1% = $28,360 per year
Or if you qualify for the 1.1% multiplier (for retiring at age 62+ with 20+ years of service), it becomes:
bashCopyEdit$94,533.33 × 30 × 1.1% = $31,196 per year
Why the High-3 Salary Matters
The High-3 average isn’t just a number—it directly affects your financial security in retirement. Knowing your High-3 early helps with:
- Planning the best time to retire
- Calculating pension eligibility
- Weighing job promotions and salary changes
- Understanding long-term federal benefits
It’s also used in disability retirement calculations and in some survivor annuity computations.
15+ Common FAQs About the FERS High-3 Average
1. What is the FERS High-3 average salary?
It’s the average of your highest-paid consecutive 36 months of federal service, used to calculate your pension.
2. Does the High-3 include bonuses or overtime?
No. Only base pay, locality pay, and certain shift differentials are included.
3. Can I choose any three years for my High-3?
No. They must be three consecutive years. However, you can choose which consecutive years are the highest.
4. What if I had a break in service during those three years?
The 36 months must be continuous federal service without significant breaks.
5. Does temporary service count toward the High-3?
Generally, no. Only service covered under FERS contributes to the High-3 calculation.
6. Is the High-3 based on calendar or fiscal years?
It’s based on any 36 consecutive months, not strictly calendar or fiscal years.
7. When should I start tracking my High-3?
Ideally, start reviewing your earnings 5–10 years before retirement to optimize your salary timing.
8. What’s the pension multiplier?
Usually 1%, or 1.1% if you retire at age 62+ with 20+ years of service.
9. Does leave without pay affect the High-3?
Yes. Extended unpaid leave may reduce the average if it results in lower pay during that period.
10. Can promotions impact the High-3?
Yes. A promotion that leads to higher pay during a 36-month span will increase your average.
11. How accurate is the FERS High-3 Calculator?
It provides a reliable estimate when you enter accurate yearly salaries.
12. What’s the difference between High-3 and High-5?
FERS uses High-3. High-5 is not a standard federal metric but may apply in private pension plans.
13. Will COLAs affect my High-3?
No. Cost-of-Living Adjustments (COLAs) are post-retirement increases, not part of your salary history.
14. Can I calculate my full pension with this tool?
The calculator only computes the High-3 average. You can then use the formula to estimate full pension benefits.
15. How often should I recalculate my High-3?
Reassess annually or when you receive promotions, transfers, or changes in locality pay.
16. Does military service affect my High-3?
If you’ve bought back your military time and are receiving creditable civilian pay, it can factor in.
17. How do part-time roles affect the High-3?
Your earnings are prorated. Fewer hours = lower total salary = lower High-3 average.
18. Is the High-3 used for disability retirement too?
Yes, although disability retirement uses a slightly different calculation method involving the High-3.
19. Where can I find my salary history?
You can request official records from your agency’s HR or use pay stubs and W-2s to estimate.
20. What happens if my salary drops before I retire?
As long as your top 36 consecutive months were in the past, your pension won’t drop with your latest salary.
Final Thoughts
Planning for federal retirement doesn’t have to be complicated. With our FERS High-3 Calculator, you can make smarter decisions about your retirement timeline, promotions, and financial future. By understanding how your High-3 average is calculated and what affects it, you can retire with confidence and clarity.
Whether you’re a few years away or decades out, use this calculator to take control of your retirement planning today.
Try the FERS High-3 Calculator now and get a clear view of your retirement outlook.
