1. What is the High-3 Retirement System?

The High-3 retirement system calculates military retirement pay based on the average of the highest 36 months (3 years) of basic pay. This system applies to those who entered service before September 8, 1980, or who chose to remain under this system.

2. How the Calculation Works

The calculator uses the standard High-3 formula:

Where:

• \( High\text{-}3\ Average \) — Average of highest 36 months of basic pay
• \( Years\ of\ Service \) — Total creditable years of military service
• \( 2.5\% \) — Retirement multiplier for each year of service

Explanation: The formula calculates 2.5% of your High-3 average pay for each year of service. For 20 years of service, this equals 50% of your High-3 average.

3. Importance of Retirement Planning

Details: Understanding your projected retirement pay helps with financial planning and decision-making about when to retire from military service.

4. Using the Calculator

Tips: Enter your estimated High-3 average pay in dollars and your total years of service (including partial years as decimals). The calculator will estimate your annual retirement pay.

5. Frequently Asked Questions (FAQ)

Q1: What's included in High-3 average pay?
A: It includes basic pay only - not allowances (BAH, BAS) or special pays. The highest 36 consecutive months are used.

Q2: What's the maximum percentage?
A: The maximum is 75% of High-3 average, reached at 30 years of service (30 × 2.5% = 75%).

Q3: How are partial years calculated?
A: Each month counts as 1/12 of a year. For example, 20 years and 3 months would be 20.25 years.

Q4: Does this include COLA adjustments?
A: No, this calculates base retirement pay. Annual COLA adjustments are applied separately.

Q5: How does this compare to the BRS system?
A: The Blended Retirement System (BRS) uses a 2.0% multiplier but includes government contributions to the Thrift Savings Plan.