Fers High 3 Calculator

FERS High-3 Average Salary Calculator

Use this calculator to estimate your "High-3" average salary, a critical component in determining your Federal Employees Retirement System (FERS) annuity. Enter your annual basic pay for several consecutive years to find the highest average of any three consecutive years.

function calculateHigh3() { var payValues = []; payValues.push(parseFloat(document.getElementById("payYear1").value) || 0); payValues.push(parseFloat(document.getElementById("payYear2").value) || 0); payValues.push(parseFloat(document.getElementById("payYear3").value) || 0); payValues.push(parseFloat(document.getElementById("payYear4").value) || 0); payValues.push(parseFloat(document.getElementById("payYear5").value) || 0); payValues.push(parseFloat(document.getElementById("payYear6").value) || 0); payValues.push(parseFloat(document.getElementById("payYear7").value) || 0); var maxHigh3Sum = 0; var foundValidSequence = false; if (payValues.length < 3) { document.getElementById("result").innerHTML = "Please enter at least 3 years of basic pay."; return; } for (var i = 0; i maxHigh3Sum) { maxHigh3Sum = currentSum; foundValidSequence = true; } } if (foundValidSequence) { var high3Average = maxHigh3Sum / 3; document.getElementById("result").innerHTML = "$" + high3Average.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ""; } else { document.getElementById("result").innerHTML = "Not enough valid pay data to calculate a High-3 average."; } } .fers-high3-calculator { background-color: #f9f9f9; border: 1px solid #ddd; padding: 20px; border-radius: 8px; max-width: 600px; margin: 20px auto; font-family: Arial, sans-serif; } .fers-high3-calculator h2 { color: #2c3e50; text-align: center; margin-bottom: 20px; } .fers-high3-calculator p { margin-bottom: 15px; line-height: 1.6; } .calculator-inputs label { display: inline-block; width: 200px; margin-bottom: 10px; font-weight: bold; } .calculator-inputs input[type="number"] { width: calc(100% – 210px); padding: 8px; margin-bottom: 10px; border: 1px solid #ccc; border-radius: 4px; box-sizing: border-box; } .calculator-inputs button { display: block; width: 100%; padding: 10px 15px; background-color: #3498db; color: white; border: none; border-radius: 4px; font-size: 16px; cursor: pointer; margin-top: 15px; } .calculator-inputs button:hover { background-color: #2980b9; } .calculator-result { margin-top: 25px; padding-top: 15px; border-top: 1px solid #eee; text-align: center; } .calculator-result h3 { color: #2c3e50; margin-bottom: 10px; } .calculator-result #result { font-size: 24px; font-weight: bold; color: #27ae60; }

Understanding Your FERS High-3 Average Salary

For federal employees covered by the Federal Employees Retirement System (FERS), understanding your "High-3" average salary is paramount. This figure is a cornerstone of your FERS annuity calculation, directly impacting the amount of retirement income you will receive.

What is FERS?

The Federal Employees Retirement System (FERS) is a retirement plan for federal civilian employees. It's a three-tiered system comprising:

1. Basic Benefit Plan: A defined benefit plan, similar to a traditional pension, which provides a monthly annuity in retirement.
2. Social Security: FERS employees also pay into and are covered by Social Security.
3. Thrift Savings Plan (TSP): A defined contribution plan, similar to a 401(k), where employees can contribute pre-tax or Roth dollars and receive agency matching contributions.

The High-3 average salary is specifically used in the calculation of the Basic Benefit Plan annuity.

What is the "High-3" Average Salary?

The "High-3" average salary refers to the highest average basic pay earned during any 3 consecutive years of service. These three years do not necessarily have to be your last three years of employment; they are simply the three consecutive years where your basic pay was highest. This is crucial because it allows employees to maximize their annuity even if their pay decreased towards the end of their career.

Why is the High-3 Important?

Your FERS annuity is calculated using a formula that includes your years of creditable service, a multiplier, and your High-3 average salary. The formula is generally:

FERS Annuity = High-3 Average Salary × Years of Creditable Service × Multiplier

The multiplier is typically 1% for most retirees, or 1.1% if you retire at age 62 or later with at least 20 years of service. As you can see, a higher High-3 average salary directly translates to a higher monthly annuity payment in retirement.

What Counts as "Basic Pay"?

It's important to note that "basic pay" for High-3 calculation purposes includes your regular salary but generally excludes:

• Overtime pay
• Bonuses
• Awards
• Holiday pay
• Military pay
• Travel allowances
• Most differentials (e.g., night differential, Sunday premium pay)

However, certain types of pay, such as environmental differential pay, hazardous duty pay, and availability pay for law enforcement officers, may be included if they are subject to FERS deductions and are part of your regular pay schedule.

How to Use the Calculator

To use the calculator above, simply enter your annual basic pay for several consecutive years. The calculator will automatically identify the highest average of any three consecutive years from the data you provide. For example, if your pay history was:

• Year 1: $60,000
• Year 2: $62,000
• Year 3: $65,000
• Year 4: $68,000
• Year 5: $70,000
• Year 6: $71,000
• Year 7: $72,000

The calculator would identify the highest consecutive three-year period as Years 5, 6, and 7 ($70,000 + $71,000 + $72,000 = $213,000). Your High-3 average would then be $213,000 / 3 = $71,000.

Disclaimer

This calculator provides an estimate based on the information you provide. For an official calculation of your FERS annuity and High-3 average salary, please consult with your agency's human resources or benefits specialist, or the Office of Personnel Management (OPM).