In the High-3 retirement plan, what is used as the base in the retirement pay formula?

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Multiple Choice

In the High-3 retirement plan, what is used as the base in the retirement pay formula?

In the High-3 retirement plan, the pension is calculated using 2.5% times years of service times the average of your highest 36 months of basic pay. That average serves as the base for the retirement pay formula. In many study explanations this base is described as Final Basic Pay because it represents the pay level used to determine the pension, derived from the last years of service rather than a single final month. The other terms don’t fit because they either imply a single snapshot (Base Pay at retirement) or refer to different pension concepts (Final Average Pay, Retired Pay Base) that aren’t the basis for the High-3 calculation.

In the High-3 retirement plan, the pension is calculated using 2.5% times years of service times the average of your highest 36 months of basic pay. That average serves as the base for the retirement pay formula. In many study explanations this base is described as Final Basic Pay because it represents the pay level used to determine the pension, derived from the last years of service rather than a single final month. The other terms don’t fit because they either imply a single snapshot (Base Pay at retirement) or refer to different pension concepts (Final Average Pay, Retired Pay Base) that aren’t the basis for the High-3 calculation.

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