Changes

*The amount of "creditable Federal service" (in terms of years and months expressed as fractions of years, days of service less than 30 days in a month are excluded).

*The amount of "creditable Federal service" (in terms of years and months expressed as fractions of years, days of service less than 30 days in a month are excluded).

The "high-3" salary is usually the final 36 months of the employee's tenure, but may be an earlier period if an employee took a voluntary downgrade in pay.  The salary includes base pay, locality adjustments (pay increases to account for cost of living in certain metropolitan areas), and shift differentials, but does not include overtime, bonuses/awards, or hazard pay.

The "high-3" salary is usually the final 36 months of the employee's tenure, but may be an earlier period if an employee took a voluntary downgrade in pay.  The salary includes base pay, locality adjustments (pay increases to account for cost of living in certain metropolitan areas), and shift differentials, but does not include overtime (except for some categories involving mainly first responders), bonuses/awards, severance pay (including voluntary buyouts), cash out payments for unused annual leave and credit hours, or hazard pay.

The percentage is 1.1% for employees age 62 or older with at least 20 years service, and 1% for all others.

The system is structured to provide employees an incentive to continue working until age 62 (the earliest date at which an employee can also obtain Social Security benefits), as the annuity percentage is 1.1% for employees age 62 or older with at least 20 years service, and 1% for all others.

Although unused sick leave is added to "creditable Federal service"<ref>The conversion is based on a chart, where 2,087 hours equals one full year, for an example of the chart see http://www.federalretirement.net/sickleavechart.htm.  If actual unused sick leave falls between two amounts, the higher amount is used.</ref>, it cannot be used to make an ineligible employee eligible for retirement, nor to make an employee eligible for the increased 1.1% percentage.

Although unused sick leave is added to "creditable Federal service"<ref>The conversion is based on a chart, where 2,087 hours equals one full year, for an example of the chart see http://www.federalretirement.net/sickleavechart.htm.  If actual unused sick leave falls between two amounts, the higher amount is used.</ref>, it cannot be used to make an ineligible employee eligible for retirement, nor to make an employee eligible for the increased 1.1% percentage.