Calculating Your High 3 - How to Calculate Your High-3 for Federal Retirement скачать в хорошем качестве

Calculating Your High 3 - How to Calculate Your High-3 for Federal Retirement

Learn how to calculate the high-three average for federal retirement, which is crucial for pension planning. This video explains the inclusion and exclusion of various types of pay in the high-three calculation and provides a detailed example for a clearer comprehension. The importance of understanding creditable service, including civilian and military service, is highlighted, along with considerations for loyalty pay. Additionally, the video emphasizes the significance of high-three calculation in determining federal retirement benefits and offers a questionnaire to assist individuals in assessing their retirement plan. Voiceover: I appreciate you coming by today to get your high three calculations figured out. Me too. I have been wanting to get an idea on what my high three average is, that way I can have a better idea of what my pension will look like if I decide to retire in the near future. Completely understandable. It's always a good idea to keep tabs on things like this throughout your career, so that you know where you are and what you need to work towards to achieve your goals for a happy and sound retirement. Now, let's start by looking at and totaling up your current creditable service. Civilian service is 28 years, 1 month, and 3 days. Military service is 4 years, 2 months, and 6 days. Unused sick leave is 0 years, 6 months, and 18 days, so the total would be 32 years, 9 months, and 27 days. Great. So now that we have your creditable service calculated, let me just give you some side information before we proceed. Here are some high three exclusions to note: basic pay does not include the following: bonuses, overtime pay, military pay, cash awards, holiday pay as a work holiday, and travel pay outside regular tour of duty. The high three average salary determined for wage grade employees in the federal workers system includes night differential pay, environmental differential pay. Annual salary is determined by the 2087 hour work year. Okay, last thing to look at before we start your calculations. High three salary is defined as the average of adjusted basic pay over any period of three consecutive years of creditable service, this includes loyalty pay. Okay, now for the fun part; your calculations. From 1st September 2020 to 23rd June 2021, your annual basic pay was $40,715 and the total time was 0 years, 8 months, and 24 days. Let's use the high three time factor table to find your time factor number. Looking at the table, we can see that for 8 months and 24 days, the time factor is 733. So, let's multiply your annual basic pay by the time factor of 733, which gives us a pay earned of $34,450.11. Next, we simply repeat that process for the other time periods. Once we've filled out all those rows, we can now add up the columns. So, the total pay earned is $42,988 which we will divide by three, so your high three average pay will be $47,654.94. Wow, there's no way that I would have been able to do all these calculations without you. Thank you so much for all of your help. This definitely helps give me a better idea on what my retirement would currently look like. I am glad that I was able to help, and if you ever need anything else, you know where to find me. For more information or to better understand what your retirement plan could look like, take the questionnaire. Link in the video description. About Pathfinder Retirement At Pathfinder Retirement, our unwavering commitment lies in helping individuals navigate the challenges of retirement planning, ensuring that their golden years are truly golden. Founded on the principle that everyone deserves a secure and fulfilling retirement, our consultancy is passionately devoted to making this a reality for each of our clients. Our mission is straightforward: to equip individuals and families with the knowledge and resources essential for achieving financial security and peace of mind during retirement. We understand that the prospect of retirement planning can be overwhelming, and that's where we step in – guiding our clients every step of the way. We prioritize understanding each client's retirement journey, approaching it with compassion, and tailoring solutions to meet their individual needs. Going beyond the role of a traditional retirement firm, we strive to be dedicated partners, providing unwavering support at every stage. Our foundational values of Integrity, Compassion, and Service are not just words to us; they are the fundamental principles that shape every aspect of our operations, guiding our interactions, decisions, and dedication to ensuring that every client feels understood, valued, and confidently prepared for their retirement journey.