“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.
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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.
Reg Jones, a charter member of the senior executive service, is our resident expert on retirement and the federal government. From 1979 to '95, he served as an assistant director of the Office of Personnel Management handling recruiting and examining, white and blue collar pay, retirement, insurance and other issues. Opinions expressed are his own.
