Q: I plan to retire December 31, 2015, and on December 1, 2015 I am due for a step increase. Will the retirement estimate project from that increase? Will I be paid for my leave and annuity at the new pay increase?
A: Due to the fact that you are getting a pay increase one month before you retire, your high three will be slightly higher for the purpose of computing your retirement. OPM says the following about your high three: “The “high-3 average pay” is the largest annual rate resulting from averaging an employee’s rates of basic pay in effect over any period of 3 consecutive years of creditable civilian service, with each rate weighted by the length of time it was in effect.” One month is, in effect, 1/36 of the period used to calculate your high three.
You will be paid for you annual leave at the new pay rate.
