How is locality pay in Alaska and Hawaii used in determining high-3?

“Rumors are that the “locality” in Alaska and Hawaii are called something else, and that that something else does not count in the high 3 computation (AK and HI only). I was potentially considering moving back to AK to boost my high 3 in a few years, but not if that’s true. What can you tell me about this?

Reg’s Response

Originally, retirement deductions weren’t take from locality pay in Alaska and Hawaii; therefore, it could not be counted when determining an employee’s high-3 at retirement. However, a change in the law, which became fully effective in 2012, means that locality pay is included when determining an employee’s high-3 and used in the computation of his or her annuity.

RELATED

Financial troubles cloud enlisted retirement home’s future

Without financial fixes, the enlisted retirement home may not be able to serve its veteran residents in the future, a new watchdog report warns.

By Karen Jowers

Got a question for the Federal Times expert? Send inquiries to: fedexperts@federaltimes.com.

Reg Jones, a charter member of the senior executive service, is the resident expert on retirement and the federal government at Federal Times. From 1979 until 1995, he served as an assistant director of the U.S. Office of Personnel Management handling recruiting and examining, white and blue collar pay, retirement, insurance and other issues. Opinions expressed are his own.

In Other News

Austin calls European allies, seeking more Patriots for Kyiv

The U.S. secretary of defense has held multiple one-on-one calls with European allies this week, during which he raised the topic.

Opinion

Can the federal government be a standard bearer for responsible AI?

Malicious actors can “use access to bulk data sets to fuel the creation and refinement of AI and threaten national security."

Senators push to update nuclear military might in defense bill

The Restoring American Deterrence Act focuses on deploying additional ICBMs, uranium enrichment and Defense Production Act grants for industry.

Ask Reg: Do I need to update retirement forms if nothing has changed?

If your agency is asking for an update to your 'SF' retirement forms, here's why.

US to provide $6B to fund long-term weapons for Ukraine, officials say

The new funding — the largest tranche of USAI aid sent to date - will include a wide array of munitions for air defense, such NASAM, HIMARS and Patriots.

Load More