[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]There are some very important questions to ask when you are trying to figure out what your annuity will look like when you retire. For example:
What is high-3?
What is basic pay?
Why is your high-3 important?
Sometimes there are questions that often come up that, more often than not, don’t always get answers that are clear. Some of these questions will be tackled here.
While computing the high-3 do the three years have to be continuous?
No, they do not have to be consistent, if you have a break in service two or more separate but consecutive-periods of serves may be joined together. The critical thing is that the three years of service have to be the ones with the highest average pay.
Can unused sick leave be used to meet the length of service requirement to retire?
Unfortunately, this can’t be done. Unused sick leave can only be used and added in the annuity computation after one has reached the service and age requirements for retirement.
Is it possible for periods of unpaid leave affect one’s annuity or eligibility to retire?
No, it’s not if you have not taken more than six months in a calendar year. The amount of time that you were absent from work will be treated as though you had been at work and receiving your regular salary. This, however, changes if you had beyond six months of leave without pay in a calendar year, it will go on to be treated as though you have had a break in service. That said it wouldn’t be included when your full months and years of service are being determined.
What happens to any days that don’t add up to a full month when one retires?
The days that don’t add up are dropped like a hot coal and are not included in your annuity computation.
When one retires, will this year’s pay increment show up in their annuity?
It all depends on when one retires. For the increment to have the best effect on your annuity, one has to have received it at the very least one year before retirement. Your annuity would receive a lesser effect if you received that increase for fewer months.
Will my annuity be increased when employees get a pay increase by the same amount?
No, it won’t be increased. Any increase your annuity gets will be based on annual changes in the consumer price index (CPI-W). For FERS and CSRS employees, the rules governing the amount of that adjustment are different.
If you have additional questions or need further clarification, please reach out to your financial advisor[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36507″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
