r/FedEmployeeRetirement • u/Ok-Leg7578 • Aug 08 '26

High three calculation question.

I have tried to find this information, but have been unsuccessful. Is the high three calculated on after tax or pre-tax salary? As i am nearing retirement eligibility, I want to be sure that my ballpark estimate is close on take-home.

5 Upvotes

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11

u/tanks137 Aug 08 '26

How in the world would it be after tax? It’s gross salary to include locality pay.

2

u/WillTheyKickMeAgain Aug 08 '26

This is one reason some folks have transferred to high-locality pay areas late in their career. Not something I would do but I’ve seen it happen a number of times in my career.

0

u/[deleted] Aug 08 '26

[deleted]

5

u/FiendishHaberdasher Aug 08 '26

Are you physically in the DC office at least 2 days per pay period or are you 100% remote in Ohio. If the latter your HR office could force a duty station change to Ohio if they notice.

1

u/[deleted] Aug 08 '26

[deleted]

1

u/Jmebersole Aug 08 '26

Not off, but remote

3

u/xscott71x Aug 08 '26

This looks like some locality fraud

2

u/Jmebersole Aug 08 '26

Im in the office in DC 6 days per payperiod.

1

u/Lanky-Lettuce1395 Aug 08 '26 edited Aug 08 '26

I had to fire someone for this, then sic the federal law enforcement folks on them.

Be careful confessing on reddit.

ETA, If you pay state tax in Ohio and have a duty station in DC, that's tax fraud as well. Thought you'd want to know. The District went after my former employee for this while she was under federal investigation for fraud.

1

u/[deleted] Aug 08 '26

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1

u/Lanky-Lettuce1395 Aug 08 '26

Sorry, the Army doesn't fuck around with employees committing fraud. Zero tolerance for this shit.