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Q: Does OPM base the CSRS retirement calculation on an employee’s high-three annual BASE PAY or LOCALITY PAY when determining the annual retirement payment?
A: The high-3 average salary for both CSRS and FERS employees is based on the annual rate of Basic Pay plus the Locality Adjustment, or the Adjusted Basic Pay.
These items are found on your SF-50 (Notification of Personnel Action) in blocks 20A, 20B, and 20C, respectively.
Some special employees (such as Law Enforcement Officers) may be able to include any Other Pay shown in block 20D in the high-3 computation, but most employees can use only the Adjusted Basic Pay (20C).