What percentage of the highest months of base pay is used in the High-3 retirement plan?

The High-3 retirement plan calculates an employee's retirement annuity based on their average highest three years of base pay. The percentage of the highest months of base pay used in the calculation is 2.5% for each year of service. This means that for every year of qualifying service, 2.5% of the averaged highest three years of salary is factored into the calculation of the retirement benefit.

This methodology rewards longer service with higher retirement benefits; for example, an employee with 20 years of service could receive 50% of their High-3 average (2.5% multiplied by 20 years).

Understanding this percentage is crucial for employees planning their retirement, as it directly impacts the amount they will receive upon retirement based on their salary history and duration of service.